Don't Use Your Credit Card on Coinbase!

I started using Coinbase recently to get into crypto trading. I was reluctant to connect a bank account to the service until I felt comfortable using it. I made a few purchases without a problem. Recently, Coinbase decided to change the way they code the transactions for credit card purchases and decided not to send out any notifications (or at least I didn't get any).

If you look at the credit card entry on January 21, you can see that they coded the transaction as a sale, which makes sense since they are charging almost 4% in fees. I also had a purchase on January 22, which is coded the same way.

Just two days later (January 23), they changed the code to cash advance.

What this means is, in addition to paying 4% transaction fees, you also get hit with a fee from your credit card company, in my case $10 (effectively a 10.8% fee on TOP of Coinbase fees). And, if that's not enough, the credit card company charges 26% interest on cash advance amounts, so unless you pay off your credit card the same day it posts, you are getting hit with another fee on top of everything you paid.

I called my credit card company and they waived the transaction fees as a one time courtesy but told me I'd have to call back to ask about the interest. In case anyone's been purchasing crypto on Coinbase, please check your credit card statements to make sure you are not in the same boat. I tried to contact Coinbase but they are having issues with their system and won't let me submit a request. For any cryptocurrency purchase, you would effectively be paying up to 40% in fees if you use your credit card. Please share this with anyone you know who uses Coinbase .

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