Coinbase Users to Be Charged For Buying Cryptos With Credit Cards

post image

Credit card users, who also appear to be cryptocurrency devotees, may not be having the best time of their lives. As recently a range of American and British banks announced the clampdown on the purchase of cyber assets with credit cards, the other troubling news has appeared. Among them, there are Citigroup, J.P. Morgan Chase, Bank of America, UK’s Lloyds, as well as Virgin Money, which joined the list recently.

According to CCN, now the customers of the California-based digital currency venue Coinbase will have to pay cash equivalence dues. These fees will be charged by particular credit card firms. And the change has come with a few adjustments in the Merchant Category Codes.

No More Free Purchases

In an email by Coinbase team, sent to one of its users and published by CCN, the exchange representatives appear to inform its clients about the following:

“Recently, the MCC code for digital currency purchases was changed by a number of the major credit card networks. The new code will allow banks and cards issuers to charge additional “cash advance” fees.”

At the same time, the team emphasized that it is not the crypto bourse which will charge the dues but the companies, whose credit cards people are using. These fees will be listed separately in clients’ card statement. However, the representatives added, they do not know which exactly credit card issuers will charge these fees.

What is MCC?

MCC stands for a Merchant Category Code – a four-digit number used to categorize various types of business depending on the services or commodities they offer. This number is appointed to negotiants by credit card issuer. And this happens when the business commences accepting these cards. In the US MCC is essential, as it defines whether the company has to report the regulators about tax issues.

What Are Cash Equivalence Dues?

Apparently, cash-equivalent fees appear when it comes to the related type of transactions. In accordance with Chron, such fees are charged for operations, where one uses a credit card to buy something that can be cashed out. For example, customers will have to pay these dues if they but casino chips, lottery tickets foreign currency, or stuff like that. As we can see, card issuers have swollen the range of these instruments with cyber assets.

How it will affect the crypto market, the time will tell. But what is clear is that both governments and financial institutions are tackling on cryptos.

Report: Survey Shows People Use Cryptos More For Remittances
People tend to send remittances using bitcoin and its brethren more shows new research by a BLT-centered research company. Such a spike can be explained...
Malta’s Prime Minister: Blockchain Makes Cryptos Inevitable Future of Money
The leader of the Maltese cabinet Joseph Muscat has openly claimed that unaltered ledger will help bitcoin and its brethren become the future of money....
Akon to Launch AKoin and Establish a Crypto-City in Senegal
The world of showbiz is persistently trying to invade the world of cryptocurrencies. Celebrities keep prying into the industry, e.g., rapper Snoop Dogg...
Cryptos Are No Danger to The World of Finance, Says Russia’s Central Bank
Bitcoin and its brethren do not pose any threat to the global financial system due to the fact that the overall volume of cyber assets financial operations...
Crypto Supply May Reach $1 Trillion This Year With BTC Soaring By $50,000 – Experts
The past week was not the best one in the history of cryptos. Experiencing extreme gyrations, which reached their pick on February 6, cyber assets total...
UK’s Royal Coins Producer Launches Own ‘Bitcoin’, Backed by Gold
In a plethora of countries bitcoin and its brethren have been taken with a pinch of salt both by regulators and institutional investors, e.g., in China,...
Samsung Confirmed It Produces Chips For Mining Cryptos
Crypto business keeps experiencing wider adoption as Samsung Electronics steps in the industry. According to multiple South Korean local media notifications,...
Blockchain Will Bring As a Big Leap To Developing Countries As Smartphones Did
Blockchain can be as revolutionary in the emrging-market countries as mobile phones have been. As an expert at the investment bank Exotix Paul Domjan explains,...
South Korea Called IMF, EU and 23 Nations For Help in Handling Crypto Trading
South Korea keeps an eye on cryptocurrencies and does not lower the guard when it comes to bitcoin regulation. The country’s nation embraces cryptos. For...
Visa Banned Several European Crypto Cards: Why & What to Expect?
On January 5 several crypto-payment service providers, among which are Tenx, Bitwala, and Bitpay, informed that their cards are no longer valid. The cards,...
JPMorgan’s Jamie Dimon Accepts Being Wrong When Called BTC a “Fraud”
The Chairman and CEO of the US largest bank JPMorgan Chase – Jamie Dimon – five months after calling bitcoin a “fraud” decided to take it back. In a conversation...
Medical Tourism Boom: Where to Receive Medical Care For Bitcoin
Currently, bitcoin is experiencing an optimistic adoption in various industries. Today, with this cryptocurrency you can pay for goods, services and even...
Buterin Announces $1 mln Subsidies for Blockchain Research as Ether Surges to $900
Since the last month of spring 2017, ethereum’s price had been varying from $200 to $400 per unit. However, within the previous months “the little brother”...
South Korean Exchanges Launch New Rules as Gov’t Curbs Crypto Market
The crypto exchanges which function in South Korea, have exercised some alterations to obey country’s authorities cryptocurrency regulations. Meanwhile,...
Risks of Cashing Out Cryptos Into Fiat
In 2017 bitcoin has grown by around 1,700%, when litecoin managed to surge up by about 7,000% and despite the correction which occurred to the whole crypto...