Do not use credit card on Coinbase

in coinbase •  7 years ago 

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Cryptocurrency exchange Coinbase informed an hour ago that you might be charged a special fee by your bank if you buy cryptocurrency using your credit card. These fees go to your bank, as the bank considers the transaction as cash withdrawal or cash advance.

Banks have changed their MCC Codes for digital currency purchases so that they can track such transactions.

You already pay a fee to Coinbase, plus coin transfer fee when you take it to another exchange to buy other coins. If you are not careful, you will pay an extra charge now which may never be covered by your profit.

Use a bank account instead and wire money when you plan to buy coins on Coinbase.

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This is confirmed. You will be charged a fee. My credit card showed a $50 transaction with a $10 fee.

Sorry to post a link - but this is also important and the information needs to be spread. Thank you.
https://steemit.com/coinbase/@captainvapoor/coinbase-and-visa-look-for-extra-fees-on-all-credit-card-transactions

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