Visa: Coinbase Was Not Responsible For Overcharging Customers

Payments processor Visa Inc. (V) issued a statement this morning stating that it had reversed numerous erroneous charges made to Coinbase customers accounts. Visa also clarified that it was responsible for the mess-up in customer charges at Coinbase.

The cryptocurrency exchange has been criticized after customers complained of increased or duplicate charges to their accounts. (See also: Coinbase Accused Of Overcharging Customers.) 

Visa said the duplicate transactions have been reversed and appropriate credits posted to cardholder accounts. “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 wrote.

Visa’s latest statement is an about-turn from its position a couple of hours earlier. In a statement to some publications, the company initially said it had not made any “systems changes” that might result in duplicate transactions. “We are also not aware of any other merchants who are experiencing this issue,” it stated.

The problem, which was first reported on a Reddit forum during the first week of February, blew up in the last couple of days as irate customers thronged online forums and social media with complaints about duplicate transactions or being overcharged. (See also: Coinbase Has More Users Than Schwab.)   

Coinbase has experienced scaling problems since 2017 after the prices and markets for cryptocurrencies surged following widespread media attention. The largest crypto exchange in North America has also been accused of insider trading. The introduction of bitcoin offshoot, Bitcoin Cash, on its exchange skyrocketed its prices without any significant reason.

Last week, Coinbase – which is valued at $1.6 billion in private markets – launched Coinbase Commerce, a PayPal-like commerce button for businesses to begin accepting cryptocurrencies. (See also: Coinbase To Integrate SegWit: What It Means To You.) 

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of bitcoin.

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