Consumers who use debit cards or PayPal to buy crypto — which many users do for convenience — are paying an additional surcharge of up to 2.5% on every transaction, compounding the total cost significantly when combined with the spread and the base transaction fee.
Coinbase's dual-fee structure means retail users pay both an embedded spread (up to 2% of transaction value) and a separate explicit transaction fee on every buy or sell, making the true cost of trading higher than either charge alone suggests. Users paying with debit cards or instant bank transfers face significantly higher fees than those using standard ACH transfers, which can materially affect the economics of small or frequent trades. You can see your exact total fees — including the spread — by clicking the 'Preview' button before confirming any transaction in the Coinbase app or website.