Visa Cryptocurrency mcc

Coinbase promises refunds after repeatedly charging crypto fees

A number of Coinbase customers have found themselves experiencing duplicate fees for a single card-based purchase over the past few days. Some have even reported missing tens of thousands after being charged 17 or even 50 times. In a blog post informing clients of the situation, the cryptocurrency exchange promised to “ensure that every affected client will be fully refunded for any wrongful charges.” The company said that after conducting an internal investigation, it determined that the problem was a calendar Reverse the visa and then reload it. As you know, it usually takes some time for debit and credit card refunds to appear.

in a tweet detail Based on the findings of the investigation, Coinbase said that Visa payments on its website have been disabled because the credit card network has changed the Merchant Class Code (MCC) for crypto purchases. The new code appears to allow credit card providers to treat cryptocurrency purchases as a “cash advance” in order to charge an additional fee. A Coinbase employee revealed the code change in a Reddit post in early February, shortly before a group of banks decided to ban the purchase of cryptocurrency using credit cards. Banks have cited the volatile nature of cryptocurrencies and the risks associated with them as the reason behind the ban.

However, Visa has denied being responsible for the accidents. Its official statement was published by cnet is reading:

“Visa has not made any systems changes that would result in duplicate flagged transactions. We are also not aware of any other merchants experiencing this issue. We are contacting the financial institution that this merchant obtained to provide assistance and ensure that cardholders are protected from Unauthorized transactions.

Regardless of who is at fault, Coinbase Vice President Dan Romero said he is “working closely with Visa to ensure that affected customers are recovered as soon as possible.” The company will also contact customers who have transacted over the past few weeks to ensure that they have verified their bank statements and bank account details. On Twitter, exchange I showed They work with major credit card networks to create an entirely new MCC for cryptocurrency purchases – one that doesn’t charge customers additional cash advance fees.

Update (Feb 17, 2018): A Visa spokesperson reached out and confirmed that the payment system has not changed the MCC rating for cryptocurrency purchases. Furthermore, the spokesperson clarified that Visa does not reverse or forward transactions. This is not part of Visa’s role – all transactions are processed by card issuers, which are financial institutions such as banks.

Coinbase and its payment processing partner WorldPay also released an update on the situation (emphasis on us):

“Over the past two days, some customers who used a credit or debit card on Coinbase may have seen duplicate transactions posted to their cardholders’ accounts.

This issue was not caused by Coinbase. Worldpay and Coinbase work with Visa and Visa issuing banks to ensure that duplicate transactions are reversed and appropriate credits are posted to the cardholder’s accounts. All rollback transactions have now been issued, and should appear in customers’ credit and debit card accounts within the next few days. We believe the majority of these pullbacks have already been posted to the accounts. If you continue to have issues with your credit or debit card account after this cancellation period, including issues with card fees or charges, we encourage you to contact the bank that issued your card.

We deeply regret any inconvenience this may cause to customers.”

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