VISA and MasterCard Raise Cryptocurrency Purchase Charges
February 7, 2018
Last week VISA and MasterCard owners who buy cryptocurrency directly with their cards saw their receipts having additional point on extra charges. The companies turned to have altered their approach towards digital assets and changed the status.
Last night Coinbase exchange sent a message around its customers that many banks had changed Merchant Category Code for buying cryptocurrency with credit cards. From that moment on they have been regarded as “cash withdrawal” rather than “purchase”. For this reason emitters gained the opportunity to set extra charges. So banks added another 5% to the already existing 4%.
To date additional charge is supported at a limited number of exchanges yet up-date rules are expected to be applied soon to all popular cryptotrading sites with such function.
What is more, renewed transactions do not fall within the scope of credit cards grace maintenance. Hence interest rate for these operations may reach up to 26% in some cases.
The fact to be recalled: Coinbase users with more than 200 transactions a year or exceeding 20000-dollar transaction limit have received lately tax bills from Internal Revenue System.