UPDATE: Visa has released a new statement, saying “This issue was not caused by Coinbase.”
“All reversal transactions have now been issued, and should appear on customers’ credit card and debit card accounts within the next few days,” the company said in an email. “We believe the majority of these reversals have already posted to accounts.”
The new statement was sponsored jointly with Coinbase and payment procesing provider WorldPay.
Original story: Coinbase customers should check their bank accounts, as debit and credit cards may have been overcharged.
On Thursday, the cryptocurrency exchange apologized for the accidental overcharges following a number of complaints online. “You drained my bank account and now I have nothing,” posted one customer on Reddit.
“I just got hit with 50, count them 50 duplicate charges to the tune of $67k total,” posted another user.
The overcharges have been occurring over the last few days. Fortunately, the cryptocurrency exchange is promising refunds, which should arrive throughout the week. “Coinbase will ensure that each affected customer will be refunded in full for any erroneous charge,” the company said in a blog post.
Coinbase points the finger at Visa. “We have determined that the erroneous credit and debit charges are the result of Visa reversing and recharging transactions. This was not done by Coinbase,” the company said in a tweet.
According to Coinbase, the problem relates to the Merchant Category Code it uses for processing transactions through major credit card networks. Last month, Visa changed the code to let banks charge cash advance fees on cryptocurrency purchases, and somehow, the new code overcharged customers. As a result, purchases made over Coinbase between Jan. 22 and Feb. 11 may have been affected, the company said.
Visa, however, told The Next Web it “has not made any systems changes that would result in the duplicate transactions cardholders are reporting.”
Regardless of who’s to blame, Coinbase said it’s working with Visa to ensure all affected customers are reimbursed. The cryptocurrency exchange is also seeking a new MCC code. Affected Coinbase customers can contact the company’s support team for help on receiving a refund.
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