Visa confirms Coinbase wasnt at fault for overcharging users

Yesterday, we wrote that Coinbase clients were being charged multiple times for past transactions.

While some speculated that the erroneous recedes were down to a Coinbase engineering issue, Coinbase issued a statement saying it wasn’t liable for the duplication charges. The blame, instead, rested with Visa for the route it handled a migration of merchant categories for cryptocurrencies, Coinbase said.

While you can read my post yesterday for an in-depth description of what happened, the basic gist is that about a month of old transactions were refunded and recharged under a different merchant category. Many users saw the recharge come through before the rebate processed, making it definitely sounds like the latter are double charged. Honestly, the questions was likely exacerbated by existing payment rails — it’s normal for refunds to take multiple days to show up on credit and debit statements.

But here’s where it gets weird — this morning Visa issued a statement to some publications , which sounded to us( and others) like the latter are blaming Coinbase, telling TNW that “Visa has not made any systems changes that would result in the replicate transactions cardholders are reporting.” We are also not well informed any other merchants who are experiencing this issue.”

But now the payment giant has issued a second statement inducing it crystal clear that it wasn’t Coinbase’s fault.

The following is a joint statement from Visa and Worldpay, which is Coinbase’s payment processor partner. While Coinbase initially distributed the statement on its own blog, we’ve also received the statement immediately from Visa.

Over the last two days, some customers who used a credit or debit card at Coinbase may have considered duplicate transactions posted to their cardholder accounts.

This issue was not caused by Coinbase .

Worldpay and Coinbase have been working with Visa and Visa issuing banks to ensure that the duplication transactions have been reversed and appropriate credits have been 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. We believe the majority of these reversals have already posted to accounts. If you continue to have problems with your credit or debit card account after this reversal period, including issues relating to card fees or charges, we encourage you to contact your card issuing bank.

We deep regret any inconvenience this may have caused customers.

While the statement doesn’t give a ton of lucidity on the issue, it seems to absolve Coinbase of any blame, which is a win for the startup considering it’s been trying to prove to the world that its engineering and customer service squads can stand up to the challenge of maintaining a dependable financial platform.

Indeed, Coinbase CEO Brian Armstrong hit out at media reports that initially placed the blame for the snafu on Coinbase.

The startup — is valued at $1.6 billion after raising $100 million last year — has suffered some challenging periods as it continues to scale its services to accommodate its 10 million-plus registered customers.

Issues over the past year have included muddling prices on Overstock.com, a flash accident, and a general struggle to keep up as cryptocurrencies boomed in 2017. In December, Coinbase launched an internal investigation into suggestions that company insiders profited from knowledge of impending support for Bitcoin Cash.

This post was updated to clarify that Visa itself didn’t initiate the new batch transactions.

Note: The writer owns a small amount of cryptocurrency .

Jon Russell contributed to this story. He also owns a small amount of cryptocurrency .

Make sure to visit: CapGeneration.com

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