Visa confirms Coinbase wasn’t at fault for overcharging users

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

While some speculated that the erroneous withdraws were down to a Coinbase engineering issue, Coinbase issued a statement saying it wasn’t liable for the duplicate charges. The blame, instead, rested with Visa for the way 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 Visa refunded and recharged (under a different merchant category) a month of old transactions. Many users saw the recharge come through before the refund processed, making it look like they were double charged. Honestly, the issue 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 shifting the blame back to Coinbase, telling TNW that “Visa has not made any systems changes that would result in the duplicate transactions cardholders are reporting.” We are also not aware of any other merchants who are experiencing this issue.”

But now it seems that the payment giant has revised its stance, and clarified 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 directly from Visa.

Over the last two days, some customers who used a credit or debit card at Coinbase may have seen 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 duplicate 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 deeply regret any inconvenience this may have caused customers.

While the statement doesn’t give a ton of clarity 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 teams can stand up to the challenge of maintaining a reliable 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 endured some challenging periods as it continues to scale its service to accommodate its 10 million-plus registered customers.

Issues over the past year have included muddling prices on Overstock.com, a flash crash, 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.

Note: The author owns a small amount of cryptocurrency.

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

Comments

The EHang 184 Is A Human-Sized Drone Taking Off At CES

We’ve seen some pretty cool stuff on day 1 of CES 2016, but probably nothing more eye-catching than the EHang 184, a human-sized drone built by the Chinese UAV company EHang . Yes you heard right — a giant autonomous drone that fits a human. It’s basically what you would expect to see if someone shrunk you down to the size of a LEGO and stuck you next to a DJI Inspire. Except no one was shrunk, and the giant flying machine was sitting smack in the middle of the CES drone section. EHang, which was founded in 2014 and has raised about $50M in venture fundingto date, was pretty gung-ho about telling everyone at CES that the 184 was the future of personal transport. And for the most part, people were too in awe to question them. But the reality is that the company probably was using the 184 as more of a marketing tool for their standard-sized drones like the Ghost . Not that we’re saying that the 184 will never be a real thing, just that it probably isn’t co...

Western Union Brings Money Transfer And Its Tricky Fees To Chat Apps

Remittance has always been a shady business. Migrant workers need to send money they earn home to their families, but get hit with fine print fees so less cash comes out the other side than they might assume. Remittance companies earn extra by keeping the margin between their own made up exchange rate and the real one. Western Union is the best known remittance company, with 500,000 brick-and-mortar locations around the world. But tech startups like TransferWise, Azimo, and WorldRemit are gunning for the business. They hope to increase convenience and reduce fees to lure customers away from Western Union, Moneygram, and other old-school remittance providers. So Western Union is going digital thanks to partnerships with big messaging apps. It launched its Western Union Connect system in October last year, followed by a partnership with WeChat for sending up to $100. Now it’s getting into bed with Viber , which has over 664 million “unique” users, thou...

Google Calls Out EFF Over Bogus Claims That It Snoops On Students With Its Chromebooks

The Electronic Frontier Foundation (EFF) caused quite a stir this week when it alleged that Google is using its Chromebook platform, which has made a significant impact in the education sector, to snoop on students. The charges were damning, with the EFF claiming that Google was violating its own corporate policies and using students’ personally identifiable browsing data/habits to refine its services, in addition to sharing that data with partners. "EFF bases this petition on evidence that Google is engaged in collecting, maintaining, using, and sharing student personal information in violation of the 'K-12 School Service Provider Pledge to Safeguard Student Privacy' (Student Privacy Pledge), of which it is a signatory,” alleged the EFF in its initial FTC complaint. Google takes such allegations very seriously, and has thus responded to every claim brought forth by the EFF. “While we appreciate the EFF’s focus on student data privacy, we are confid...

Following Patent Deal, Every Time Apple Sells An iPhone, Ericsson Gets A Bit Of Money

Telecommunications infrastructure company Ericsson just announced that it has reached an agreement with Apple over an ongoing patent dispute. For the next seven years, Apple will pay a fraction of its iPhone and iPad profit to Ericsson in royalties. Back in February, Ericsson filed suits in many different jurisdictions for patent infringement (the International Trade Commission, the U.S. District Court for the Eastern District of Texas, the U.S. District Court for the Northern District of California, as well as courts in the U.K., Germany and the Netherlands). According to the Swedish company, Apple has been violating 41 patents over the past few years with its iPhone and iPad, in particular patents related to GSM, UMTS and LTE technologies. As expected, the two companies have reached an agreement and Ericsson is dropping all of its lawsuits. Today’s news isn’t particularly surprising as Ericsson holds more than 35,000 patents. Many of them are related to wireles...

NVBOTS Wants To Make 3D Printers As Easy As Toasters

Right now 3D printing curriculums, if they exist, are fairly sparse. Putting a two thousand dollar machine in front of a grade schooler usually ends up in a lot of 3D printed Yoda heads and not much education while the learning curve for most 3D design tools is steep. That’s what the founders of NVBOTS, AJ Perez, Forrest Pieper, Christopher Haid, and Mateo Peña Doll, are looking to solve. Their product, the NVPRO , is a 3D printer with a few interesting features. The two most interesting are the automatic removal system which pops parts off of the build plate when they are done and a built-in print server that allows you to print from any device. This means you can run large batches of prints from different users with each part popping off as its printed. This means a class of students can send jobs to a printer and then pick them up just as they would a laser printer. The printer also supports a central “admin” who can check jobs before they are printed as and offers a ...

Exciting Technology

Search This Blog