Did Coinbase Drain Your Bank Account?

After allegedly draining bank accounts, Coinbase promises refunds

Cryptocurrency Exchange Coinbase Glitch Overcharges Users, Investigation Ongoing

Some users have reported on Reddit that purchases via linked bank accounts have been duplicated, as well, which indeed would presumably indicate an issue on Coinbase's end - not Visa's.

This is not the first time Coinbase has double-charged its customers.

But then the complaints started pouring in.

In the past several days, clients, mostly from the United States and Canada complained about being double or even triple charged for cryptocurrency purchases they did previously. The company also responded in a blog post, saying it "will ensure that each affected customer will be refunded in full for any erroneous charge".

While some users faced minor charges of roughly couple hundred dollars, some users were hit with duplicate charges of up to 50 times, totaling over tens of thousands of dollars.

A Coinbase representative named Justin replied to most of the threads.

As background, last week most banks and card issuers changed the Merchant Category Code (MCC) for Coinbase, meaning all transactions would now be classified as cash advances (which typically means your bank charges a higher fee).

"I had over $300 in charges to my debit card and hope to see these reversed".

"It has not made any systems changes that would result in the duplicate transactions cardholders are reporting".

Worldpay spokesman Andrew Ciafardini said the company is working with card networks, lenders, other processors and Coinbase to resolve the issue.

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There's no bad blood, no problems", he continued. "We communicate here and there", he admitted. Meanwhile, Tyga also claims the exes are still in touch, because they separated amicably.

Some customers might experience a delay between the issuance of the new charge and the offsetting refund, but ultimately customers should only have a single charge on their statement.

But the blame game is more complicated.

On the other side of the spectrum, however, Visa is not anywhere near to taking the blame for the mishap.

Coinbase has said it is working with Visa to make sure this happens, and also will reach out to customers who were potentially affected urging them to check and make sure their transaction history is accurate.

Coinbase is now said to be working with Visa to make sure that the refund is initiated soon and will also be working with people affected in this matter thereby asking them to make sure that their transaction history remains intact.

In this case, Coinbase's acquiring bank is Worldpay, one of the largest USA payment processors. "This was not done by Coinbase", the company said in a tweet.

While Coinbase has had its fair share of technical issues the last few months, it seems the latest one may not be their fault. "Well done Coinbase, Scotiabank advisers are telling their clients that you guys are a scam".

Worldpay, for its part, would neither confirm nor deny that the problem was tied to its own systems.

"We're investigating an issue where some customers recently were charged incorrectly for purchases of digital currency with credit and debit cards. We are all committed to helping resolve it for Coinbase's customers as quickly as possible". "Cards provide wider access to digital currency than just bank accounts".

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