Bitcoin And Other Crypto Purchases Using Credit Cards Draw Added Fees: Coinbasebr>
Coinbase, the largest US digital currency exchange, has warned customers that buying cryptocurrency with a credit card is now being processed by some issuers as a cash advance, resulting in additional fees.
The change has been underway for several weeks, but only recently addressed by Coinbase. The purchases affect customers in the US and Canada. It is unclear how customers outside those territories are affected.
“Recently, the MCC code for digital currency purchases was changed by a number of the major credit card networks,” said the Coinbase statement. “The new code will allow banks and card issuers to charge additional ‘cash advance’ fees. These fees aren’t charged or collected by Coinbase. These additional fees will show up as a separate line item on your card statement.”
The moves comes as bitcoin is in a major reversal and under heavy scrutiny from many sectors, including government and financial institutions. The Wall Street Journal has reported that Capital One Financial Corp. has prohibited purchases of bitcoin or ethereum blockchain tokens using its credit cards, citing the risks of “fraud, loss and volatility.”
Another banking giant, Bank of America, are reportedly assessing a similar policy.