Coinbase creates havoc in cryptomarket, assures reimbursement

Sudden website errors and disappearance of deposits of thousands of users on Coinbase led to massive havoc in the crypto market. Visa overcharged some customers erroneously for credit and debit purchases of crypto. Thousands of dollars became untraceable for many crypto traders. But, in their official blog, they have expressed that they are soon going to refund every affected customer.

Reason for Deduction

Coinbase, in their official blog, has given the reason for this error. In addition, they stated that the change of MCC for digital currencies by Visa was the primary reason behind this error. It basically allows large banks and card issuers to charge consumers additional fees. This meant that banks and cards issuers will now process crypto payments as “cash advances”. They explained that the extra charges were a result of Visa reversing and recharging transactions due to the MCC code change.

Coinbase Refund

Meanwhile, it also said that they will refund all the wrongfully charged users. They are ensuring that no monetary loss of its customers will happen. They said that they are working with Visa and other major credit card network to create a new MCC for crypto purchases. This will ensure that this will not have additional ‘cash advance’ fees for customers.

Their official twitter handle read:

 

The official blog also wrote that this affected any customers who purchased crypto on their exchange between Jan. 22 and Feb. 11. Furthermore, Coinbase has asked the affected users to contacts their official support team.


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