Coinbase credit card purchases posting as a cash advance. What you guys think, Why?

preetiyoga (25)in #crypto • 7 years ago

Hi I am sure you guys noticed that coinbase recent changes about credit card purchases posting as a cash advance.

My last 2 purchased were on 26th Jan and 28th jan and I noticed I got charged cash advance fee $5 on both transaction29th and today I got email form coinbase.

Funny part we didnt get notice about it just got charged . And after a week coinbase sending message out-

Here is the message from coinbase I just got

Dear Coinbase CustomerWe’re writing because you have a credit card on file and want to inform you of a recent change that may increase the cost of purchasing digital currency with a credit card.
Recently, the MCC code for digital currency purchases was changed by a number of the major credit card networks. The new code will allow banks and card issuers to charge additional "cash advance" fees. These fees are not charged or collected by Coinbase. These additional fees will show up as a separate line item on your card statement.
Coinbase does not know whether or not your card issuer collects these fees, nor do we know how much they might collect. As a result, we would strongly suggest switching to a debit card or bank account as your primary payment method. You can do that on the following page: https://www.coinbase.com/settings/linked-accounts.
We apologize for any inconvenience this might cause

BUT

I heard people who used debit card also got charge $5 fee but i dont see anything about debit card in above message.

Anyone else here have any info about it?

#coinbase #credicard #bitcoin #bank

7 years ago in #crypto by preetiyoga (25)

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bayuya (63) 7 years ago

It is not only about Credit Cards. They just call all cards - credit cards.
VISA, Discover and others are announcing they will not allow cryptocurrency transactions via their cards.

Here is an interesting news article about this, published couple of hours ago:
https://btcmanager.com/major-credit-card-companies-refuse-cryptocurrency-transactions/

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photogeek (54) 7 years ago

However it should be noted that blocking credit card transactions is not same as blocking debit card transactions because credit cards are always associated with risk where the customer might max out the credit card and because of uncertainties in the market, find himself unable to repay the amount.

Although they are claiming that this ban is because of possible repayment problems, in reality this is the next punch on cryptocurrency phenomena. After China, Korea and India have made their announcements causing crypto markets to fall sharply, this might be the next big hit to drive the prices even lower.
If after all this, the resistance will be overwhelmed by BTC, That can easily indicate the strong will of free investors to build the future for crypto's.