I have a site that is trying to process micropayments. It uses a mnemonic / extended private key generated here to generate a new Bitcoin address for every payment.
Everything works fine except I'm realizing now that it will be expensive to recover funds from the generated addresses because it will cost a ~10,000 satoshi mining fee per address.
This is a small fee but it is too high considering the totals being extracted are only 20,000 to 30,000 satoshi.
Are there any options to solve this problem? I know Bitcoin has this concept of "sweeping" funds. Does that still involve incurring a flat fee for every address generated by the master private key?
A few other options I've been considering:
- BlockCypher had a microtransactions API which seems to be shut down now
- Some node APIs including BlockCypher offer payment forwarding though I don't understand the fees involved or how it works internally
- Payment channels / Lightning Network