Coinbase users losing thousands of dollars because of accidental charges

Last updated on November 19th, 2018 at 12:10 am

Coinbase users are not happy at the moment as a result of accidental charges they have lost while buying cryptocurrency on the platform with credit and debit cards.

Customers who transacted on the platform between January 22 and February 11, 2018 are largely affected by this problem.

And the company isn’t denying that. The crypto wallet and exchange has admitted that some customers were erroneously overcharged for credit and debit purchases of cryptocurrency, it confirms on its blog.

Coinbase has promised to refund those who have been erroneously charged in full.

The company confirmed that the problem started when banks and card issuers changed the merchant category code (MCC) for crypto purchases earlier this month.

What this means is that crypto payments would now be processed as “cash advances,” meaning that banks and credit card issuers could begin charging customers “cash advance” fees for crypto purchases.

Also on coinbase reddit page, the firm explained that the extra charges were a result of Visa reversing and recharging transactions due to the MCC code change. To correct this, coinbase confirmed on its reddit page that it’s working with Visa and other major credit card network to create a new MCC for crypto purchases, and that they “hope that this will not have additional ‘cash advance’ fees” for customers.

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Customers of the crypto platform have been voicing out their frustrations about the ugly development, “Are you going to refund the overdraft fees that were incurred from this fiasco?” Sam Yoo writes on medium.

Another customer Ipzi posted on Coinbase’s Reddit page that he was charged with 50 duplicate charges for a total of $67,000.

If you have been affected by extra charges you’re directed to report to coinbase for you to be reimbursed.

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