If you happen to be one of Coinbase’s 10 million customers, there is a possibility that you might have been charged more than once for past transactions. This is not the first time Coinbase, a start-up valued at 1.6 billion, has been a point of speculation, as over the years they have made multiple faux pas.
However, this time the blame doesn’t seem to fall on Coinbase, it instead seems to fall onto Visa’s shoulders. Yesterday, 16 February 2018, it was announced that Coinbase had made duplicate charges and at first the blame was put on Coinbase and their engineering team. But Coinbase retaliated by saying that the fault was actually Visa’s; because of the path Visa took when migrating merchant categories for cryptos.
What happened was that Visa refunded, as well as recharged, as much as a month of old transactions, under a different category. Because the recharge came in to customers accounts before the refund, it appeared to many users that they had been double charged. The issue may also have been caused by existing payment rails. Either way, it seemed clear that the fault lay with Visa.
This seemed to be a solid explanation but Visa issued a statement this morning, which clearly put the blame back in Coinbase’s court. Visa said that they had not made any system changes that would result in the duplicates and none of their other merchants had complained about similar issues, thus the fault must belong to Coinbase. But strangely, later Visa retracted the statement saying that Coinbase was not to blame after all.
Visa then issued a joint statement with Worldpay, Coinbase’s payment processing partner. The statement was somewhat vague, as to who exactly was to blame, by insinuating that Visa, Worldpay, Coinbase and affiliated banks were all working together on the issue. Either way, the statement promised customers that they were taking all the necessary steps to reverse the duplicates. There was also an apology and further reiteration that Coibase was not to blame.
Definitely good news for Coinbase that they are not to blame, as it helps in proving that they are a trustworthy company, despite previous speculation.