Smarting from criticism of overcharging customers, CoinBase exchange reacted swiftly to the accusations by appointing a Portland office to handle customer servicing. It was also accused of unauthorised withdrawals from their accounts. The exchange now states that it has finally, “identified a solution.”
Much of the alleged overcharging, which was escalated on subreddit last week, was found to be from the changes in the way credit cards classified transactions handled by digital currency. The continued reporting of crypto accounts being emptied caused panic and resulted in many of the customers of coinbase using the exchange.
“Identified Solution,” says coinbase
The exchange issued a statement, “We’re currently investigating an issue where some customers were charged incorrectly for purchases of digital currency with credit and debit card.” It has stated that it will refund in full, any charges that have been made by mistake.
It also says that, “This is related to the recent MCC code change by the card networks and card issuers charging additional fees. We have identified a solution and future purchases will not be affected. We will ensure any customer affected by this issue is fully refunded.”
Further, all refunds would be automatic and would be credited to the customer’s respective banks. The exchange has claimed that it will review card transactions that have occurred in the past few weeks. All affected customers will then be notified.
Apparently, all transactions made by Coinbase users between January 22, 2018 and February 11, 2018 will be reprocessed and refunded if there overcharges, by error.
Coinbase has been in rough weather over overcharging in the past as well. It has been at the receiving end of investors mood swings, given its default position as the most popular exchange for digital currencies in the San Francisco-region.
The investor have been following the rise and fall of bitcoin, and the volatility this coin has been facing in recent months has meant that exchanges such as Coinbase too have been fluctuating. There has been no stable product in the market of late, and Coinbase has been facing the brunt of such over action among alternate coins.
New ecommerce product
Leveraging its leader position on cryptocurrency exchanges, Coinbase has announced a new ecommerce platform. The business model for this service would be very similar to that of online payment service provider, PayPal.
The need to provide effective merchant services in the emerging cryptocurrency phase, has led to Coinbase Commerce, in February, 2018. The principle of operating this commerce site is that, it will integrate cryptocurrency payments for a range of currencies such as – bitcoin Cash, Ethereum, Litecoin.
The biggest benefit from the CoinbaseCommerce platform is that no buyer has to hold an account with the cryptocurrency company.
There are many competitors in this spectrum of services already, with BitPay, being a key merchant-environment service provider. However, the approach by Coinbase is different. It will use Ethereum as the first option in processing payment. All payments will be completed by the company by using the scanner or QR Code, Wallet Address.