it makes sense for receiver to pay that service fee as it has nothing to do with the sender.

if the fee exceeds amount received, then it should not cost the receiver additional funds.

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Agreed.

If I sell something for 10k sats and only receive 8k sats, how does that make sense?

your choice to use the wallet, LSP and ToS?

im not saying its fair, but its not the payers responsibility to pay receiver wallet fees