Beyond the base transaction cost, XRPL supports an additional fee type called the transfer fee — a percentage charged by token issuers when their custom tokens move between accounts. This applies only to issued tokens (IOUs), not XRP itself.

The XRPL supports multiple types of fees. The base transaction cost applies to all transactions and is burned. Transfer fees apply only to issued tokens and are collected by the issuing account, not burned.

How Transfer Fees Work

A token issuer sets a TransferRate on their account. When tokens flow between two non-issuer accounts, the sender must send enough to cover both the recipient's amount and the transfer fee. If an issuer sets a 1% transfer fee and the recipient needs 2 EUR tokens, the sender must send 2.02 EUR.

Transfer Fee Limits

Transfer fees cannot be less than 0% or more than 100%. The maximum was lowered from approximately 329% to 100% by the fix1201 amendment, enabled November 14, 2017.

• Transaction cost: Paid in XRP, burned, applies to all transactions
• Transfer fee: Paid in the issued token, collected by the issuer, IOU transfers only
• Native XRP transfers have no transfer fee
• Transfer fees apply to AMM trades, DEX swaps, and direct IOU payments