Published: Fri, February 16, 2018
Business | By Max Garcia

Cryptocurrency trading problems: Coinbase overcharging users

Cryptocurrency trading problems: Coinbase overcharging users

As a result, some purchases made between 22 January and 11 February this year may have been refunded and reprocessed, resulting in extortionate charges, overpayments, and empty accounts.

USA cryptocurrency trading platform Coinbase has pledged to reimburse all users who have been impacted by ongoing issues which left some customer's' bank accounts being drained.

Earlier today reports started coming in across social media and reddit that Coinbase users were seeing odd charges on their credit and debit cards.

Visa, however, denied that it's to blame for the incidents. One user claimed he experienced 50 duplicate charges amounting to $67,000 and was preparing to take legal action. Coinbase has said they're working with Visa to make sure this happens, and also will reach out to customers who were potentially affected urging them to check and make sure their transaction history is accurate.

It attributed the glitch to a new policy among credit card companies and banks which changed the merchant carrier code (MCC) that cryptocurrency companies use when working with credit card networks.

The community has been in a state of uproar over the past week after bank accounts linked to the website were overcharged, often multiple times.

The major card networks recently re-classified merchant category coding for cryptocurrency purchases as cash advances, meaning that banks could hit up customers for additional fees.

A number of Coinbase users have reported unauthorized charges to their bank accounts by the exchange and digital wallet provider, in some cases draining all their funds and leaving customers with large overdraft fees.

Coinbase admitted that some users have been overcharged, but it blamed Visa Inc., saying that "we have determined that the erroneous credit and debit charges are the result of Visa reversing and recharging transactions". We have identified a solution and future purchases will not be affected. "Cards provide wider access to digital currency than just bank accounts". "For the benefit of consumers, we hope that this will not have additional cash advance fees". One complained: "It's been over a week with nothing but a canned response to my ticket".

It wrote: "We deeply apologise for any frustration this may cause".

This is not the first time that the exchange has double-charged customers.

Coinbase is one of the most popular exchanges in the United States.

We're now investigating an issue where some customers were charged incorrectly for purchases of digital currency with credit and debit cards.

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