How the 1.5% Transaction Tax Powers Global Charities While You Reduce Merchant Interchange Fees

Cut Costs. Fund Causes. Same Transaction.

You're throwing away profit on interchange fees. Visa charges 2.9–3.5%. Mastercard takes their cut. Then come the extras, currency conversion, cross-border charges, monthly gateway fees, chargeback penalties.

It adds up fast. Most merchants don't realize they're paying 40–60% more than necessary.

Larecoin flips the script. Pay 1.5% flat. Fund global charities. Keep more revenue.

The Traditional Payment Processor Problem

Legacy payment systems drain merchant revenue through layered fees:

• Base transaction fees: 2.9–3.5% per swipe

• Cross-border charges: Add another 1–3%

• Currency conversion: Hidden markups of 3–5%

• Monthly gateway fees: $25–$50 recurring

• Chargeback penalties: $15–$100 per dispute

• PCI compliance costs: Hundreds annually

• Equipment rentals: $40–$100 per terminal monthly

A merchant processing $100,000 monthly loses $3,000–$5,000 to fees alone. That's $36,000–$60,000 yearly vanishing into payment infrastructure.

Traditional charities aren't better. Administrative overhead eats 15–40% of donations. Only $60–$85 of every $100 reaches actual causes. Executive salaries. Fundraising campaigns. Office space. Marketing budgets.

There's a better way.

How Larecoin's 1.5% Transaction Tax Works

Larecoin charges a flat 1.5% transaction tax plus minimal gas fees averaging $0.00025 on Solana. That's it. No hidden charges. No monthly fees. No surprises.

The math is simple:

• Process $100,000 monthly = $1,500 in fees

• Save over 50% compared to Visa/Mastercard

• Keep $24,000–$42,000 yearly that would've gone to traditional processors

Every transaction automatically deducts the 1.5%. Smart contracts handle the rest. No paperwork. No separate charitable giving decisions. No tax season headaches trying to track donations.

You pay less. Charities get more. Blockchain handles everything in 400 milliseconds.

The 87/13 Split That Changes Everything

Here's where Larecoin gets revolutionary.

Of that 1.5% tax:

• 87% flows directly to charitable grant programs

• 13% covers infrastructure costs

Zero executive salaries. Zero administrative bloat. Zero fundraising expenses. Smart contracts don't need corner offices or expense accounts.

Compare this to traditional charitable models where 60–85% reaches causes after overhead. Larecoin delivers 87% directly to verified organizations through automated blockchain distribution.

The infrastructure portion (13%) maintains:

• LareBlocks Layer 1 blockchain operations

• LareScan explorer and transparency tools

• Smart contract execution and gas optimization

• Security audits and protocol upgrades

• Merchant portal and wallet infrastructure

That's it. No marketing teams. No fundraising dinners. No direct mail campaigns.

Where Your Transaction Tax Goes

Every quarter, verified organizations receive automated distributions. The charitable pool focuses on five core impact areas:

Clean Water Infrastructure Building wells and filtration systems in developing regions. Providing access to safe drinking water for communities without reliable sources.

Educational Technology Access Distributing laptops, tablets, and internet connectivity to underserved schools. Bridging the digital divide for students in emerging markets.

Small Business Microloans Funding entrepreneurs in developing economies. Providing capital to businesses that traditional banks won't touch. Creating sustainable local economic growth.

Global Health Initiatives Fighting preventable diseases through vaccination programs, medical supplies, and healthcare infrastructure. Supporting organizations delivering measurable health outcomes.

Environmental Conservation & Disaster Relief Protecting ecosystems through reforestation and wildlife preservation. Providing rapid response funding when natural disasters strike communities.

Organizations apply through the Larecoin DAO. Community members vote on allocations. Smart contracts execute distributions automatically.

Zero corruption. Zero administrative delays. Zero funds "lost in transit."

Blockchain Transparency Beats Traditional Charity Every Time

Traditional charitable giving is a black box. You donate. Maybe you get a tax receipt. Maybe you see an annual report with glossy photos and vague percentages.

You never truly know where your money went.

Larecoin changes this through LareScan transparency:

• View every transaction on-chain in real-time

• Track charitable allocations to specific organizations

• Verify distribution timing down to the millisecond

• Audit fund flows without requesting special reports

• Confirm organizational wallets receiving grants

Every merchant and customer can verify exactly where charitable funds flow, when they arrive, and which organizations receive grants. No trust required, just verification.

The entire distribution process executes autonomously:

1. Transaction processes (400ms)

2. 1.5% tax automatically deducted

3. Funds route to charitable pool

4. Smart contract allocates to verified organizations

5. NFT receipt mints with full transaction history

Try getting that level of transparency from a credit card processor or traditional charity.

The Competitive Edge: Larecoin vs. Traditional Crypto Payment Processors

How does Larecoin stack up against alternatives like NOWPayments and CoinPayments?

NOWPayments:

• Charges 0.5–1% transaction fees

• No built-in charitable giving

• Limited blockchain transparency

• Requires separate merchant accounts

• Manual reconciliation processes

CoinPayments:

• Charges 0.5% transaction fees

• No social impact component

• Multi-coin support but complex setup

• Higher gas fees on slower networks

• No integrated metaverse shopping

Larecoin:

• 1.5% total cost (yes, slightly higher)

• 87% automatically funds global charities

• Full LareScan transparency on every transaction

• Master and sub-wallet management for enterprises

• AI-powered metaverse shopping integration

• NFT receipts for tax advantages

• Built on Solana for $0.00025 average gas fees

The 1% difference in fees delivers exponentially more value. You're not just processing payments: you're building brand reputation through verified social impact.

Customers increasingly choose businesses aligned with their values. 73% of millennials pay more for sustainable products. The 1.5% tax becomes a competitive advantage, not a cost.

Smart Contracts Eliminate Overhead

Traditional payment processing requires armies of employees:

• Fraud detection teams

• Compliance officers

• Customer service representatives

• Accounting departments

• Legal counsel

• Executive management

Each person adds cost. Each layer adds delay.

Larecoin uses smart contracts instead:

• Automated fraud detection through on-chain analysis

• Instant compliance via programmed CLARITY Act parameters

• Self-service merchant portals replacing support tickets

• Automated accounting with real-time reconciliation

• Programmatic legal compliance through code audits

The result? Lower fees. Faster processing. Higher charitable allocation. Better merchant experience.

Smart contracts execute the same tasks for fractions of pennies that would cost traditional processors thousands in labor.

The ROI of Social Impact

Think the 1.5% fee is expensive? Calculate the return.

Direct Financial Benefits:

• Save 50%+ vs. Visa/Mastercard fees

• Eliminate currency conversion charges

• Remove cross-border transaction fees

• Avoid chargeback penalties through blockchain finality

• Reduce accounting costs with automated reconciliation

Indirect Brand Value:

• Attract socially conscious customers

• Generate positive PR through verified impact

• Build customer loyalty through shared values

• Differentiate from competitors using legacy processors

• Create shareable social proof of charitable contributions

Tax Advantages:

• NFT receipts provide clear documentation

• Charitable component may qualify for deductions

• Reduced payment processing expenses

Every transaction becomes a marketing asset. "We've funded 47 water wells through customer purchases" beats "We accept Visa" in every customer conversation.

Learn more about reducing merchant interchange fees through Web3 payment infrastructure.

Start Processing With Purpose Today

The choice is simple:

• Keep overpaying legacy processors

• Continue funding bloated payment infrastructure

• Miss the Web3 payments revolution

Or join Larecoin. Cut fees. Fund causes. Gain competitive advantage.

Set up takes minutes. Integration is straightforward. Support is responsive.

Merchant tools include:

• Master and sub-wallet management

• Real-time LareScan transaction monitoring

• Automated charitable impact reporting

• Multi-chain payment acceptance

• Push-to-card settlement options

Visit larecoin.com to explore the merchant portal. Read the whitepaper. Join the Telegram community.

Every transaction you process through traditional channels is profit lost and impact missed.

The 1.5% transaction tax isn't a cost. It's an investment in your business reputation, customer loyalty, and global impact.

Start processing with purpose. Your bottom line and your values don't have to conflict.