The latest news breaking out of major news outlets blaming Coinbase for their recent glitch where they over-charged users exorbitantly might actually not be their glitch at all.
All through the past few hours, there have been multiple unconfirmed reports of users being charged 20 or 30 times more for their past transactions. Some users even complained that their credits suddenly maxed out with the charges they were levied upon.
With multiple rumors about Coinbase allegedly stealing users money, now there has been some clarity on this issue, Coinbase traced the issue back to credit card processing rails which were traced back to Visa.
With major banks issuing notices of banning cryptocurrency purchases using credit cards citing risk, other banks changed their classification of credit purchases to ‘cash advances’. This means extra charges would be levied on transactions like this and affects only the user. This was done to discourage users from buying cryptocurrencies using credit cards.
Markus Paine, ex-CTO at Boston Financials spoke to AMBCrypto and says,
“Coinbase has seen a lot of technical glitches but this one was not their fault and they are getting blasted for it. Spending on an asset when you don’t have the right to own it is wrong, credit card purchases itself are wrong”
These transactions should technically be reversed but since there are multiple charges, users would fail to understand the double charges and consider it as a fraud. Coinbase in their blog reached out to its users and said,
“Coinbase will ensure that each affected customer will be refunded in full for any erroneous charge”
Diana Walsch, a Market Analyst at FX, says,
“Mistake or not, there are a lot of fraudsters out there and any mischievous transactions could make people lose trust in you. The change in MCC code is a sign of change not letting investors buy cryptocurrencies through credit card is a sign of stability for the crypto markets”
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