[Ethereum] Who pays transaction fee ? Payer or Recipient of the ETH

address.transferfeesgastransactions

When we call address.transfer() or address.send() to transfer ETH, who has to pay transaction fee ? Payer or Recipient of the ETH? And is there any option to choose payer of the fee or gas?

Updating :

Note 1 : According to this page:

if Bob (payer) were to make an on-chain transaction for each tweet, 20% of Alice (recipient) ’s income would be eaten up by fees.

Meaning that it's recipient who has to pay transaction fee, isn't it?

Note 2 : According to this page:

Instead of calling a function myself to initiate a payment, I’ll let the receiver of the payment do that—and therefore pay the transaction fee

Meaning that it's recipient who has to pay transaction fee. And is there any advantage if the recipient pays the transaction fee ?

What can we conclude ?

Best Answer

The payer of the transaction pays for the gas cost. There is currently no option of making the recipient pay for the ether. You can do a gas estimate and deduct the amount of ether the recipient would get manually on your end, but the paying account still needs to pay the gas up front.

Response to edits:

I think note 1 is just not rigorous. I think that the author meant that regardless of who pays, someone is paying for 20% of Alice's income.

Note 2 is a mention of a different design pattern that circumvents this problem, but requires additional setup.

Related Solutions

Transactions – Who Pays Gas for Smart Contracts? Comprehensive Guide

In brief, I deploy the contract do I need to provide gas to it? Can I somehow force clients to do that? By the way, this.balance of contract is used as gas storage?

When deploying what you have to pay is the fee of the transaction that was used to put the contract in the blockchain. Whenever someone wants to use your contract (invoke a function), he needs to send a transaction for that. And as you have correctly mentioned,

With every transaction client pays the fee, in gas, and this gas will be used to execute called smart contract function.

the one who send the transaction will have to pay the gas cost of executing that particular function in the contract.

You may refer this question as well.

Hope this helps!

EDIT - If it's a call for a constant function, view or pure, there won't be a transaction initiated, hence no gas cost. Check this for more on view and pure functions.

[Ethereum] Is an additional transaction fee possible in the ERC20 token

Yes. That's pretty possible. It depends on the code of your smart contract. You can have a function that transfers 1% of the fee to a central account. You can have a function like this:

function transfer(address _to, uint256 _value) {
        require(_value%100 == 0);
        uint fee = _value/100; // for 1% fee
        require (balanceOf[msg.sender] > _value) ;                          // Check if the sender has enough balance
        require (balanceOf[_to] + _value > balanceOf[_to]);                // Check for overflows
        balanceOf[msg.sender] -= _value;                                    // Subtract from the sender
        balanceOf[_to] += (_value-fee);                                           // Add the same to the recipient
        balanceOf[thirdPartyAddress] += fee;
    }

Best Answer

Related Solutions

Transactions – Who Pays Gas for Smart Contracts? Comprehensive Guide

[Ethereum] Is an additional transaction fee possible in the ERC20 token

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