Coinbase is erratically overcharging some users and emptying their bank accounts

I wasn't sure where to put this. But I've just been following a conversation about this. If anyone is thinking about or already buyimg cryptocurrency through Coinbase....stop
www.theverge.com...

A growing number of Coinbase customers are complaining that the cryptocurrency exchange withdrew unauthorized money out of their accounts. In some cases, this drained their linked bank accounts below zero, resulting in overdraft charges.

In a typical anecdote posted on Reddit, one user said they purchased Bitcoin, Ether, and Litecoin for a total of $300 on February 9th. A few days later, the transactions repeated five times for a total of $1,500, even though the user had not made any more purchases. That was enough to clear out this user’s bank account, they said, resulting in fees.

“My bank account went from very comfortable to negatives balance, not to mention extra $5 charges, and overdraft fees,” the user wrote. “As a result my rent check bounced, and my bank went further into negative for a NSF charge for $25. My landlord is not a nice person and is on my CASE and I have nothing to offer him. I am FREAKING OUT.”

www.reddit.com...

There's an ongoing discussion herr from people who have been repeatedly charged transaction fees by coinbase. Some people have had tens of thousands of dollars taken from their bank accounts and it looks like coinbase is not taking responsibility for the problem.

1/ 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. We are working with Visa to ensure all affected customers are reimbursed.

2/ Over the last few months, large banks and card issuers requested that card networks change the MCC for purchases of digital currency. Visa changed the MCC for digital currency purchases to a code that allows large banks and card issuers to charge consumers additional fees.

3/ Coinbase is actively working with major card networks to create a new MCC for digital currency purchases. For the benefit of consumers, we hope that this will not have additional "cash advance" fees. Cards provide wider access to digital currency than just bank accounts.

4/ If you have been affected by any erroneous charges associated with purchases of digital currency with credit and debit cards, we are encouraging customers to contact their bank or card issuer and ask about the charges. In addition, please contact Coinbase support.

Based on the types of charges and various accounts being affected...and the hostile responses to this. I don't think I believe coinbase's explanation...seems like a good old fashioned scam to me. Also note...this isn't cryptocurrency that people have lost...they have had their bank accounts drained of money by coinbase...this was not losses from buying cryptocurrency.

a reply to: dug88

It is easy to confuse deposit and withdrawal buttons when performing ACH transfers between accounts.
What concerns me more is the unnecessary hold delays for fund transfers out of the investment houses.
Probably similar to stock trade settlement time, which should have shortened after the T+2 regulations were implemented.
In the case of stock liquidation these holds are extending more than three weeks till the proceeds reach your bank!

Cash flow issues?

a reply to: dug88

I woke up to a ton of charges that were instantly credited.

This is after I already removed all my banking information from their website over a week ago when things started acting up. Thankfully the banks and Coinbase are working together even though they are shifting the blame.

I feel bad for the people who got their account drained before Coinbase admitted there was an issue, their support is horrible and people weren't getting much help.

Either 'new recruits' or thievery is how a Ponzi Scheme continues 'paying off'... The best thing is We won't need any $$$, except for the coins in the eyes, for the next spot..

a reply to: JosephKnecht

That could be a serious situation if you didn't have enough funds in your bank account to cover the disputed charges.
Coinbase could claim they received "funding request" denials from the bank as reason to freeze your coinbase account.

Over a year with coinbase, and I've had no issues.

I check my account daily because I am aware of the snip.

a reply to: dug88

Based on the types of charges and various accounts being affected...and the hostile responses to this. I don't think I believe coinbase's explanation...seems like a good old fashioned scam to me. Also note...this isn't cryptocurrency that people have lost...they have had their bank accounts drained of money by coinbase...this was not losses from buying cryptocurrency.

Do you realize how much money Coinbase is making off of legit business practices?

Why would they tarnish their name while making over 1.7 million dollars a day, just to scam a few people out of 100's or thousands of dollars?

If you take a look at most of the problems it does seem to come directly from the Visa debit card transactions.

Visa problems

It seems that there is something to their claim of it being a Visa problem.

I have made many transactions with my bank account linked for wire transfers with no problems.

I was trying to link my debit card but now I think I'll just stick to the long waiting period of direct bank account transfers.

It is easy for someone to automatically jump to conclusions and claim "scam", "they are scamming us", but if one would take a step back and look at the information given and realise that this company is making just as much money as some fortune 500 companies, one would realise that it probably is just a problem that will get worked out. Coinbase has too much to lose by "scamming people" out of a few dollars when compared to their bigger fiscal picture.

I personally am waiting for another dip to purchase some more coin and I am not going to hesitate on pushing the buy button.

So when people are getting charged are they receiving a coin? When I use my card at coinbase I have to decide if I want to buy bitcoin or litecoin or ether first then purchase.

So do these guys have extra crypto or just effed completely. The way everything has been going up it might be a good thing for some of these people if they got coin.

a reply to: liejunkie01

I was trying to link my debit card but now I think I'll just stick to the long waiting period of direct bank account transfers.

That's what I'm doing.

Pretty sure that's why I haven't been affected.

It's a pain, but better than the alternative.

originally posted by: neo96
a reply to: liejunkie01

I was trying to link my debit card but now I think I'll just stick to the long waiting period of direct bank account transfers.

That's what I'm doing.

Pretty sure that's why I haven't been affected.

It's a pain, but better than the alternative.

From what i read last night only 2 banks are affected.

originally posted by: neo96
a reply to: liejunkie01

I was trying to link my debit card but now I think I'll just stick to the long waiting period of direct bank account transfers.

That's what I'm doing.

Pretty sure that's why I haven't been affected.

It's a pain, but better than the alternative.

Yeah, I have been wanting to just put some money in my USD account on coinbase. The problem there is if there is a massive down turn in the 4-5 day waiting, I will miss out.

Oh well, that's just the way it is.

a reply to: liejunkie01

There's always a downturn.

Just catch the next one.

a reply to: liejunkie01

I thought one of the great things about bitcoin is that it allows instantaneous transfers?

Guess not.

originally posted by: sligtlyskeptical
a reply to: liejunkie01

I thought one of the great things about bitcoin is that it allows instantaneous transfers?

Guess not.

Not back to fiat.

originally posted by: sligtlyskeptical
a reply to: liejunkie01

I thought one of the great things about bitcoin is that it allows instantaneous transfers?

Guess not.

The transfers of crypto from wallet to wallet is almost instant.

But first you have to have a means of purchasing the bitcoin or crypto of your choice.

Either Coinbase is FoS! Or the banks are trying to deter everyone from playing with Crypto.

Why the hell would a CC company have to charge more for Crypto charges? It's just like any other damn payment to any other transaction. Why would people need special cards for that??

That's stupid in so many ways. Though, I knew the banks would do something to get their grubby paws on "their share". So this is how they're going to do it, huh?

Someone's not telling the truth and it doesn't matter who it is. It still should be illegal.

If it's the banks... They're only going to make people want crypto instead of banks. Looks like it's trying to defeat the purpose of crypto.

Sad...

The fact that Coinbase is pretty much the only option for customers in the US wanting to get into crypto is so ridiculous. And the wait times, it used to be instant and there were other platforms. In Europe, etc there are literally dozens of different exchanges where coin can be bought with fiat. Way less freedom here - go figure.

originally posted by: lightedhype
The fact that Coinbase is pretty much the only option for customers in the US wanting to get into crypto is so ridiculous. And the wait times, it used to be instant and there were other platforms. In Europe, etc there are literally dozens of different exchanges where coin can be bought with fiat. Way less freedom here - go figure.

There were more but uhhh... they scammed their customers and bailed.

I think I still have an account on coinbase but haven't used it in years.

originally posted by: liejunkie01
a reply to: dug88

Based on the types of charges and various accounts being affected...and the hostile responses to this. I don't think I believe coinbase's explanation...seems like a good old fashioned scam to me. Also note...this isn't cryptocurrency that people have lost...they have had their bank accounts drained of money by coinbase...this was not losses from buying cryptocurrency.

Do you realize how much money Coinbase is making off of legit business practices?

Why would they tarnish their name while making over 1.7 million dollars a day, just to scam a few people out of 100's or thousands of dollars?

If you take a look at most of the problems it does seem to come directly from the Visa debit card transactions.

Visa problems

It seems that there is something to their claim of it being a Visa problem.

I have made many transactions with my bank account linked for wire transfers with no problems.

I was trying to link my debit card but now I think I'll just stick to the long waiting period of direct bank account transfers.

It is easy for someone to automatically jump to conclusions and claim "scam", "they are scamming us", but if one would take a step back and look at the information given and realise that this company is making just as much money as some fortune 500 companies, one would realise that it probably is just a problem that will get worked out. Coinbase has too much to lose by "scamming people" out of a few dollars when compared to their bigger fiscal picture.

I personally am waiting for another dip to purchase some more coin and I am not going to hesitate on pushing the buy button.

Nope visa is denying responsibility.

thenextweb.com...

a reply to: dug88

Nope visa is denying responsibility. 

It looks like they both are denying responsibility.

While Visa and Coinbase are fighting over who should take responsibility for this massive blunder, heaps of affected cryptocurrency investors have cried out that the accidental multiple charges have practically emptied out their bank accounts.

But regardless it seems the issue has been worked out and a solution has been found.

This is related to the recent MCC code change by the card networks and card issuers charging additional fees,”  Coinbase told TNW. “We have identified a solution and future purchases will not be affected. We will ensure any customer affected by this issue is fully refunded. We expect these refunds to happen for customers automatically through their bank.”

From your source.

It doesn't really seem to me like a company that is intent on scamming people.