VISA officially blames cryptocurrency overcharge scandal on Coinbase

VISA officially blames cryptocurrency overcharge scandal on Coinbase

As Bitcoin soars, so do the complaints by Coinbase users. The day started off with news circulating social media platforms that Coinbase overcharged some of the cryptocurrency buyers up to 50 times the original price.

Users started complaining about social media and Reddit that they saw higher than normal charges on their cards and debit cards. Users were not at all happy with the overcharges emptying their bank accounts.

No one knew what was happening until Coinbase stepped in and said that the issue was a result of the changes in Merchant Category Code (MCC) by banks and financial institutions.

“This is related to the recent MCC code change by the card networks and card issuers charging additional fees,” Coinbase said.

As banks and card issuers changed the MCC code, all the transactions will cost a little extra. The extra charges will not go to Coinbase, but the banks. This is going to have a significant effect on Coinbase’s user base as no one will like to purchase cryptocurrencies from their debit cards and pay extra money.

Coinbase further accused Visa of the strange prices as according to Coinbase, Visa reversed and recharged past charges following the decision of classifying Coinbase transactions.

Everybody expected that the changes will be applied to future transactions, nevertheless, Visa without any notice, reversed the transactions that happened between January 22nd and February 11th in order to classify them under the new Merchant Category Code.

All the transaction were refunded at the same time as they were recharged but as per the tradition of banks, the refund took multiple days to complete and therefore users saw the double charge come before the refund and simply assumed that they were being charged double.

Coinbase simply blamed Visa and stepped out clear, but Visa didn’t take the accusation very smoothly. Visa came out and blamed Coinbase for having a systematic bug that resulted in duplicate charges.

“Visa has not made any systems changes that would result in the duplicate transactions cardholders are reporting,” a Visa spokesperson told TNW.

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.”

Now, amid this blame game, the most pitiable are the users who are really freaking out as some of them are left with nothing but empty bank accounts.

Fortunately, Coinbase assured the users that it is working with Visa to refund the accidental double charges. Unfortunately, the crypto exchange did not provide a clear timeline for the refund.

“We are working closely with Visa to ensure affected customers are being refunded as soon as possible, as well as notifying all customers that made transaction during the past few weeks that they might be impacted,”

“We take this very seriously and are taking all necessary steps to resolve this issue as soon as possible.”

Also Read: Coinbase Introduces PayPal-like Merchant Solution

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