Earlier this month, Coinbase customers started reporting that that they had been overcharged — generally by as a lot as 50 occasions their authentic buy — for transactions made by way of the favored cryptocurrency brokerage platform.
Affected clients reported being saddled with a litany of overdraft charges, along with an lack of ability to pay their lease and utility payments.
Writing on Twitter, Coinbase acknowledged the issue and stated that the unauthorized prices could be reversed. The San Francisco-based agency blamed the technical situation on Visa, stating that the bug stemmed from the fee processor’s latest choice to reclassify Coinbase-related transactions as “money advances.
Visa, nonetheless, denied that it was chargeable for the overcharges. The issue, the agency stated, lay on the ft of Coinbase.
“Visa has not made any methods adjustments that may end result within the duplicate transactions cardholders are reporting,” a Visa spokesperson informed tech outlet The Next Web. “We’re additionally not conscious of some other retailers who’re experiencing this situation.”
“We’re reaching out to this service provider’s buying monetary establishment to supply help and to make sure cardholders are protected against unauthorized transactions,” the spokesperson added.
No matter which firm is definitely in charge, the incident marks the most recent in an extended line of public relations complications that Coinbase has confronted because it has matured from a plucky cryptocurrency startup into an trade large with a $1.6 billion valuation.
The corporate has struggled to scale its operations to fulfill surging shopper demand, usually going offline during times of market volatility. Buyer complains have additionally soared in latest months, owing to the truth that the agency’s buyer assist workers has been overwhelmed with requests from new customers, a lot of whom are new to the cryptocurrency house.
Coinbase didn’t instantly reply to a request for remark.