Picking a Chain for a Recurring Monthly Payment
Choosing once and sticking to it beats optimising per transfer. The four criteria that decide it, in order.
Felix Oduya · ·2 min read
If you are paying the same person every month, the network decision is made once. Make it properly and then stop thinking about it.
First: can they receive on it
Ask, in writing, which networks their wallet or venue supports for deposits. Not which they prefer, which they support.
Everything else is subordinate to this. A network that saves four dollars and strands the payment has cost the whole payment.
Second: can you send on it
Your venue supports a specific list. A venue that lists the networks it supports publishes it, and the intersection of their list and yours is your real set of options.
Frequently that intersection has one element, which makes the rest of this easy.
Third: what does it cost
Compare the venue’s withdrawal fee rather than the raw network fee, because the withdrawal fee is what you actually pay. The two differ, sometimes substantially.
On a monthly payment, a three dollar difference is thirty six dollars a year. Worth one decision, not worth a monthly deliberation.
Fourth: how stable is the cost
A network whose fee swings from twenty cents to eight dollars during congestion makes budgeting annoying, even if the average is low.
For a recurring payment, predictability has real value. Choose the boring option.
Write it down where it will be read
Network, address, token, and the date agreed, stored with the payee’s details rather than in a message thread. Address and network travel together or neither is useful.
Re-confirm the address on any change of network, because an address valid on one chain is not necessarily the right one on another.
Test the first one
Send a small amount first, confirm it arrived, then send the rest. On a recurring arrangement you do this once, on setup.
The fee on a test transfer is the cheapest insurance in this entire subject.
When to revisit
When your venue adds support for something materially cheaper, or when the payee changes venue. Otherwise, leave it alone.
Exchanges that state which chain they settle on will notify you when their supported list changes, which is the only trigger you need. Collect & Exchange publishes the current list rather than leaving you to discover it at the withdrawal screen.