Monday, April 10, 2006

E-Gold Fees and Transactions

E-Gold Fees

e-gold charge an account fee (or Agio Fee) of 1% per annum (deducted in monthly payments) on all e-metal stored.

Spending e-gold is free, with transaction fees (or Spend Fees) deducted from the recipient. As of 2006 these spend fees vary on a sliding scale from 55% for very small amounts (0.0004 grams of gold, worth about 1 cent) to 5% for amounts on the order of 0.1 gram (about $2) to 1% for amounts of over 1 gram (about $20), with a maximum fee of .05 grams (about $1).

e-gold spends clear instantly, in contrast to cheques or credit card transactions. Unlike other online payment systems such as PayPal, there are no distinctions between merchant and non-merchant e-gold accounts. Anyone can create a "merchant account" (there is only one type of account) instantly. All e-gold accounts carry the same fees and have the same capacity to receive and transmit e-gold account holdings.


Non-reversible Transactions

Unlike credit cards, there is no way of having transactions reversed, even in case of a legitimate error or an unauthorized spend. e-gold's Terms of Use stipulate that all spends are final and e-gold cannot be held responsible for any spend. In this respect, an e-gold spend is more akin to a cash transaction (except for the fact that there is a fee levied) while PayPal transfers, for example, could be considered more similar to credit card transactions. As a consequence of this, it is of course not possible to buy e-gold online with a mere credit card.


Universal Currency

Proponents claim that e-gold offers the first truly global and borderless world currency system which is independent of exchange rate variations. Gold, silver, platinum and palladium are internationally recognised as forms of currency under ISO 4217.

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