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Coinbase Overcharging Bug Detected, Worldplay and Visa at Fault

Feb 20, 2018 Posted /  2803 Views

Coinbase Overcharging Bug Detected, Worldplay and Visa at Fault

Last Thursday various Coinbase users suffered from multiple charging on their transactions. As the account was linked to their Debit Cards and Credit cards, the double or triple times charges were deducted from their accounts also generating costly overdraft fees.

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Noticing the mishappening, various users claimed that the exchange platform is fraud or has been hacked.  On the other hand, multiple users commented on Reddit where one user complained to be “hit” by 50 new charges costing $67,000. Other user faced a situation of bankruptcy when they were supposed to settle their bills.

The exchange began its investigation and reached till the culprit by the evening. As per Coinbase reports, Visa introduced a new payment framework without any prior notice where they added innumerable coinbase charges, which was demanded by the banks earlier.

Dan Romero is the Vice President and General Manager at Coinbase. In an interview with fortune, he stated, “We immediately began an investigation, and through contacts with the card networks and the card issuers and our processor, determined that this was an action taken by Visa—it was not done by Coinbase,”

Reportedly, around 1 million Visa transactions were refunded and reprocessed after the incident. It seems that the new Visa charges were imposed even before banks could process a refund of primary transactions. The misconduct resulted in overdrafts for various customers.

The above details of the incident are from Coinbase’s point of view which is completely different from Vias’s. As per Visa Reports, the charges only affected Coinbase users. There were no changes made by Visa that could result in duplicate transactions. Further, the spokesperson of Visa put blame on Coinbase’s processor – Wordplay.

“Visa has not made any systems changes that would result in the duplicate transactions that are being reported, “We are also not aware of any other merchants who are experiencing this issue.” – Visa’s Spokesperson

But Coinbase stood to its position with an explanation that only Visa card users were charged multiple times. To rectify the mishappening, Visa started refunding the extra charged amount in erroneous users accounts by Friday evening. The case was settled by a joint statement by both parties in a blog saying “We deeply regret any inconvenience this may have caused customers.” A meeting was conducted by Coinbase between the representatives of both sides: Visa and wordplay to ascertain the company with the fault.

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Tags: Coinbase Cryptocurrencies trading

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