On 16 February 2018, Coinbase caused a huge uproar in the crypto market. Apparently, Visa had charged thousands of Coinbase users irrationally huge amount. 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.
We had earlier reported that Coinbase’s point of view on the whole fiasco. Coinbase, in their official blog, blamed the change in policy by the Visa company for this havoc. The changes of MCC for digital currencies by them was the primary reason behind this error. 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.
Visa blames Coinbase
Initially, they blamed Coinbase for cryptocurrency overcharge scandal. In addition, they also blamed the bug that might be present on the Coinbase’s platform. Their official statement read:
“Visa has not made any systems changes that would result in the duplicate transactions cardholders are reporting. We are also not aware of any other merchants who are experiencing this issue. We are reaching out to this merchant’s acquiring financial institution to offer assistance and to ensure cardholders are protected from unauthorized transactions”.
Change of thought
However, Visa soon changed its stance on the overcharging fiasco. Visa and Worldplay released a joint statement on a social networking platform, Medium. In the blog, they said that Coinbase was not at fault in this fiasco. Their official statement read:
Worldpay and Coinbase have been working with Visa and Visa issuing banks to ensure that the duplicate transactions have been reversed and appropriate credits have been posted to cardholder accounts. All reversal transactions have now been issued and should appear on customers’ credit card and debit card accounts within the next few days. We believe the majority of these reversals have already posted to accounts.
While the statement doesn’t give a ton of clarity on the issue, it seems to absolve Coinbase of any blame. Furthermore, they also assured that Visa and Coinbase will jointly refund all the affected customers. They also requested the affected customers to contact the official Customer support team.
In conclusion, crypto traders will now be a little relieved after hearing this news.