Accused of Bogra, Wonder Fee: In-in Sinbase's credit card pain

Coinbase, the biggest US exchange of cryptocurrency, risks its burgeoning business if it does not work smoothly with the traditional finance industry.

Right now, both sides are emaciated.

For a few months some US banks have said that they will face protests in various places around the world by purchasing credit card in Bitcoin and other digital currencies. Soon, Coinbase users were complaining that the harsh "cash advance" fee card that flocking to the online forum still supporting the sale was in the card. Days later, inaccurate charges - usually similar to earlier purchases - starts getting started.

Coinbase, who said that his business would not work without confidence, fired on complaints on Twitter, blaming banks and causing card networks such as Visa Incorporated. But behind the scenes, some of the financial industry is pushing behind, there seems to be a general divider: Coinbase.

"Sinbase has been told that the wrong accusations are not our fault," the exchange said in a statement on Friday. It says that it is working with the organizations involved in card purchases to solve quick and fair problems for customers.

It was later reversed: "We will be evaluating our long-term payment method to ensure that our customers are not affected in the future."

And it tossed a leg: "We're doing this with the importance of those."

According to a person with knowledge of the company, Coinbase, at the most prominent beginning of the financial-technology world, depends on nearly 20% of its total sale debit and credit card.

For more than a percentage of new users, he said that the person who was asked not to discuss his financial matters was asked. So those who cut off the channel will have a strict measure, deep frustration signal.

But three disappointments close to the situation are doing high depletion in the traditional financial world, where the payment system has been honed for several decades and has been transferred trillions dollars in regular annual transactions. In that realm, the disagreements between the parties discreetly stabilize - and especially on Twitter.

Earlier this month, Coinbase accused the so-called merchant classification code change visa and MasterCard Incorporation of public exchange, prompting banks to prosecute credit card purchases on the spot as a cash advance.

Codes are curious but important: financial institutions help track credit risks and detect frauds. For Coinbase customers, it can charge a cash advance fee on bank transactions, making digital coins less interesting as a trade or investment medium.

The problem with the codes started in November, when a US citizen complained about the credit risk networks associated with CryptocoRoad, according to a person familiar with the matter. Coinbase plans to meet with the network in the end of January January to discuss their concerns, the person said.

A few hours before the meeting, Sinbase was informed that its code would change to 6051, a number of non-financial organizations involved in foreign currency, money orders and tourists checks. The change came into effect on that day, the person said.

For their part, Visa and MasterCard had emphasized that there was no change in the code. Instead, they said they simply told the banks that they were using all for trading in the Cryptoconcurrency Exchange. It is not then the bank, not the network, decide whether to stress the fees, said MasterCard spokesman Seth Eisen last week.

Coinbase works with a so-called merchant officer, WorldPay Inc., which works as a link to the credit card world. The World Bank corrected the code three weeks ago, and in a few days, customers issued a warning about Reddate's new cash advance fee. This week, users have been charged more, who said they charge twice for the same transaction.

In theory, Syanbase customers will not be able to pay double if their bank returns to a primary transaction counter and replaces it using another code. But if a bank does not immediately delete the first one, a double charge appears - and that can trigger other disturbances. For example, if the driver empties a bank account, it can create unnecessary overdraft fees. Are some customers complaining about online?

World Bank spokesman Andrew Ceferdini said the company is working with card networks, lenders, other processors and Sybase to solve this problem. The visa says that it does not change any system that will result from duplicate transactions. And both companies said that there has been any wrong charge that has reversed the charge.

"Our customers are being harmed and we will have to make it to them," Coinbase said. "At the end of the day, we want the best possible results for our customers.