Fees
Recording gas and network fees on stablecoin payments
Updated · 4 min read
In short
When the customer pays the network fee, the business receiving the stablecoin has nothing to record. When the business pays gas itself in a native token such as ETH, two things happen: a small crypto asset is disposed of, and a fee expense arises. Where the fee is presented is a policy choice.
Start with who paid the fee
Every on-chain transfer pays a network fee, often called gas. It is paid by the wallet that sends the transaction, usually in the chain's native token: ETH on Ethereum, Base and Arbitrum, SOL on Solana, POL on Polygon, TRX (or energy) on Tron. That single fact sorts most cases.
| Situation | Treatment in published guidance | Status |
|---|---|---|
| Customer pays gas on a payment to you | Nothing to record for the payee | Settled |
| Business pays gas to acquire a crypto intangible | Capitalised as a transaction cost of the asset acquired (not a transportation cost) | Settled for intangibles |
| Business pays gas to move stablecoin between its own wallets | No authoritative guidance; practice is to expense it as a network fee | Unsettled |
| Gas paid in a native token (ETH, SOL…) | Derecognise the native token at carrying amount, recognise the fee at fair value, gain or loss for the difference | Mechanics settled; fee line unsettled |
| Exchange withdrawal fee | Fee expense, or part of a disposal if tied to a sale | Unsettled |
| Spread and fee when converting to USD | Loss on disposal or fee expense, by policy | Unsettled |
When the customer pays the fee
The customer sent 10,000 USDC and paid, say, $0.004 in gas from their own wallet. The business received exactly 10,000 USDC. The receipt is recorded at 10,000 against the invoice and there is no fee line. This covers most inbound payments.
A different case is a payment that arrives short because the sender's exchange or platform deducted its fee from the amount sent. That is a short payment, not a network fee, and it is handled with the invoice: see partial and over-payments.
When the business pays gas in a native token
Native tokens such as ETH, SOL, POL and TRX are within ASC 350-60 and carried at fair value through net income. Spending some of that balance on gas is a disposal of an in-scope asset. The AICPA practice aid (Q&A 9 and 9A) and KPMG describe two effects: the token leaves the books at its carrying amount, and the fee expense is recognised at the token's fair value at the time.
| Account | Debit | Credit |
|---|---|---|
| Dr Network and transaction fees [line per your policy] | 1.00 | |
| Cr ETH, crypto asset (ASC 350-60) | 0.96 | |
| Cr Gain on disposal of crypto assets (ASC 610-20) | 0.04 |
The USDC itself only changed location. Moving it between the business's own wallets creates no entry beyond the fee.
The amounts are tiny, but they repeat. To do this properly the books need the native-token balance and its carrying amount per wallet. Many accountants set a materiality policy for these small gains and losses; that decision is theirs.
Gas to acquire an asset
If the business pays gas to buy ETH or swap into a token, the gas is part of what the asset cost. The AICPA practice aid (Q&A 2A) and KPMG (Q 4.3.10, 4.3.20) treat it as a capitalised transaction cost, not a transportation cost. For a 350-60 asset that cost is then written off at the first fair-value remeasurement. For a stablecoin held as a financial asset the treatment of transaction costs is not confirmed in the sources reviewed.
Withdrawal fees and conversion to dollars
Exchanges charge a withdrawal fee to send stablecoin out, and a trading fee or spread to convert it to dollars. No specific guidance addresses the withdrawal fee; it is usually presented as a fee expense, or folded into the disposal if it is part of a sale.
| Account | Debit | Credit |
|---|---|---|
| Dr Cash, exchange USD balance | 9,993.00 | |
| Dr Transaction fees [policy] | 5.00 | |
| Dr Loss on disposal of stablecoin | 2.00 | |
| Cr USDC [classification per your policy] | 10,000.00 |
An alternative policy nets the fee into the loss ($7.00). Whether a USD balance held at an exchange counts as cash depends on the custody terms and is for the accountant.
Where the fee line goes on the P&L
The expense line for network fees is not set by any standard. Common choices are a payment-processing line near cost of sales, general and administrative expense, or other expense. What matters for review is that the same line is used every month and the policy is written down.
Gladpaid tracks the gas-token balance and each lot's cost per wallet, and posts fee journals to the accounts your accountant maps. To see the entries for one transaction, try the record a USDC payment tool.
Questions
Do I record the network fee when a customer pays me in USDC?
When the customer's wallet paid the fee, the business received the full amount and there is no fee to record. A shortfall deducted by the sender's platform is a short payment against the invoice.
Why does paying gas in ETH create a gain or loss?
ETH is carried at fair value under ASC 350-60, so spending it on gas is a disposal. The difference between its carrying amount and its fair value at the time is a gain or loss.
Is gas between my own wallets an expense?
There is no authoritative guidance. Practice is to expense it as a network fee, and the transfer of the stablecoin itself creates no entry.
Which expense line do network fees go on?
No standard sets it. It is an entity policy, applied consistently, commonly payment processing, general and administrative, or other expense.
Sources
- [1]AICPA practice aid, Q&A 2A, 9 and 9A (transaction costs and disposals)Settled
- [2]KPMG Handbook: Crypto assets (April 2026), Q 4.3.10, 4.3.20Settled
- [3]Deloitte Heads Up: ASU 2023-08 (ASC 350-60 scope and measurement)Settled
- [4]ASC 610-20 (derecognition of nonfinancial assets)Settled
- [5]Gas between own wallets and fee presentation: practice onlyUnsettled
This guide describes how published standards and guidance treat these transactions, and where that guidance is unsettled. It is not accounting, tax or legal advice. The treatment for your business is your accountant's decision.