to update: Visa has corrected its vague statement regarding a technical issue with Coinbase that has resulted in overcharging for many cryptocurrency buyers. Previously, the company denied any wrongdoing in this case, and practically returned the blame to the People’s Exchange Office.
The company has now released another statement, along with payment processing service Worldpay, indicating that the issue may not be Coinbase’s fault after all. However, the statement conveniently refrains from naming the culprit for this fatal error.
“Over the past two days, some customers who used a Coinbase credit or debit card may have seen duplicate transactions posted to their cardholder account.”
The statement continues: “Worldpay and Coinbase are working with issuing banks and Visa to ensure that duplicate transactions are reversed and appropriate credits are posted to the cardholder’s accounts.” “All retraction 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 setbacks have already been reported in the accounts,” he adds. “If you continue to have issues with your credit or debit card account after this reversal period, including issues with card fees or charges, we encourage you to contact the bank that issued your card.”
While it’s great to hear that customers will be getting refunds, it’s quite disappointing to see that all of the companies involved seemingly got away quietly without accepting responsibility for this mess.
Meanwhile, there is still no clear timeline on when customers can expect their money back.
After a technical issue that led Coinbase to overcharge many cryptocurrency buyers of up to 50 times their original purchases, VISA is now blaming the popular exchange bureau.
A Visa spokesperson told TNW: “Visa has not made any changes to the systems that would result in duplicate transactions being reported by cardholders.” “We are also not aware of any other dealers experiencing this problem.”
“We are contacting the financial institution acquiring this merchant to provide assistance and to ensure that cardholders are protected from unauthorized transactions,” the statement concluded.
This horrific situation first came to light when a lot of Coinbase users rushed to Reddit to complain that the crypto exchange had charged them incorrectly multiple times for their original purchase — some buyers claiming they were charged up to 50 times the intended purchase.
Soon after the news broke, Coinbase returned to TNW to explain that its team was investigating the issue, and speculated that it might have something to do with recent changes to the MCC token by banks and financial institutions.
“This is related to the recent MCC token change by card networks and card issuers who are charging additional fees,” Coinbase told TNW. “We have identified a workaround and future purchases will not be affected. We will ensure that any customer affected by this issue will be fully refunded. We expect that refunds to customers will be done automatically through their banks.”
Shortly thereafter, the company took to Twitter to shift the blame to Visa.
2/ Over the past few months, major banks and card issuers have asked card networks to change their MCCs to purchase cryptocurrencies. Visa has changed the MCC code for digital currency purchases to one that allows major banks and card issuers to charge consumers additional fees.
– Coinbase (coinbase) February 16, 2018
4/ If you are affected by any wrong fees associated with purchasing digital currency with credit and debit cards, we encourage customers to contact their bank or card issuer and inquire about the fees. Additionally, please contact Coinbase support.
– Coinbase (coinbase) February 16, 2018
Coinbase has since assured users that incidental fees will be refunded. Unfortunately, the company was unable to provide TNW with a clear timeline for refunds.
“WWe will work with banks to ensure refunds are processed as soon as possible,” a Coinbase spokesperson told us via email. “In many cases, we expect multiple refunds to occur automatically.”
As Visa and Coinbase fight over who should take responsibility for this fatal mistake, a large number of crypto-influenced investors have shouted that the occasional multiple fee has practically emptied their bank accounts.