Coinbase Fraudulent Charges Due to System Error

FirstWizard on 16/02/2018 - 15:55
Last edited 21/02/2018 - 09:55

I just logged into my ING bank account to find out that Coinbase has done a transaction for $150.
As a result, my account has been overdrawn (I use a second txn account for online transactions that require Debit cards).

Upon calling the bank, they told me that this has happened to many customers and Coinbase has said in their twitter that they're investigating the issue. I insisted that I want to make a fraud claim as I never initiated the transaction, so the lady on the phone sent me a form which I should fill, print, sign, scan, and e-mail (Too much work TBH).

Apparently, this was caused by Visa when they were trying to retroactively recategorise all coin base transactions as cash-advances rather than purchases. I've made a transaction with coinbase purchasing $150 worth bitcoin 3 weeks ago.

My problem is, why would ING let them draw cash from an account which has a $0 balance?

Has this happened to anyone else?

UPDATE:
Last evening(20/02/2018) ING posted a Misc. Credit onto my account(for the sum of the total charge) which was backdated to 16th Feb. This may stop any overdraft fees being charged.

Poll Options

  • 7
    I use Coinbase, same happened to me.
  • 4
    I use Coinbase, but no fraud on my account.
  • 25
    I've never used Coinbase
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Comments

  • Murderface on 16/02/2018 - 16:19

    I had quite a shock when I checked my ING account.

    I have multiple transactions from Coinbase over the last month that I was charged twice for. I wonder if I'm going to get hit with an overdrawn fee on top of it?

    • FirstWizard on 16/02/2018 - 16:29

      ING said if I leave it overdrawn for more than 3 days, they would charge me overdraft fees.

      These fees would not be refunded even if they reverse the erroneous transaction.

      • Murderface on 16/02/2018 - 16:30

        Thanks for letting me know, looks like I'll have to transfer money in to cover it in that case.

    • peuwayaqdq on 20/02/2018 - 18:25

      Have your transactions been reversed?

      • Murderface on 21/02/2018 - 09:19

        Yes, it was reversed yesterday.

        • peuwayaqdq on 21/02/2018 - 10:11

          Thanks … Mine has just been reversed this morning. I don't think I got charged overdraft fees, at least not that I can see. But I don't understand the logic that they won't refund the fees. The fees charged over erroneous transaction and that transaction was reversed, the fee should not be charged in the first place.

  • Looking4Bargians on 16/02/2018 - 16:20

    It happened to me. They overcharged $100 + $3 fees but refunded $100.. Now, who is willing to refund the transaction fees. Nither Coinbase nor the bank. So, i have to bear it

  • toniyellow on 16/02/2018 - 16:23
    +2

    My problem is, why would ING let them draw cash from an account which has a $0 balance?

    Because in the terms and conditions it says "You need to be aware that visa debit card and direct debit transactions may overdraw your account"

    • Quantumcat on 16/02/2018 - 19:25
      +1

      Is there any debit card that is impossible to overdraw? I.e. an attempted transaction that would take your balance below zero would be rejected (good for PayPal).
      ?

      • tomclancy on 16/02/2018 - 23:04
        +1

        I don't think so for a normal debit card (attached to a savings account).

        But you can achieve it with a reloadable physical debit card like the Coles one or if spending online then even better would be a virtual credit card like Divipay: https://www.ozbargain.com.au/node/329572

        • peuwayaqdq on 20/02/2018 - 07:11

          Has anyone used reloadable credit card for Coinbase? Probably that's the safest if we can use it.

          What's the best reloadable Visa/MasterCard out there? eg. smallest fee to top up.

        • tomclancy on 20/02/2018 - 10:06

          @peuwayaqdq: I've not used one myself. I use Divipay which is more convenient. No top-up fees and since Coinbase is online no reason not to use Divipay

        • peuwayaqdq on 20/02/2018 - 10:44

          @tomclancy: Thanks @tomclancy. I just signed up … ;) Any catch that I should be aware of?

        • peuwayaqdq on 20/02/2018 - 10:53

          @tomclancy: Uhm… seems like I have to link a real card instead of being able to do once-off top up?

        • tomclancy on 20/02/2018 - 11:49

          @peuwayaqdq: Setting up a funding card is for once-off top-ups. It's not auto-taken from the funding card if the virtual card is overdrawn. Also, virtual cards can be created & deleted at will.

        • peuwayaqdq on 21/02/2018 - 21:55

          @tomclancy: Thanks for the info. I have created a new card, topped it up. But when I tried to link it to my Coinbase account, I got the following error: Withdrawal limit exceeded.

          Have you experienced the same thing?

        • tomclancy on 21/02/2018 - 22:35

          @peuwayaqdq: sorry I don't use Coinbase, and with my payments have not seen that error message. Send support and email, they always have gotten back to me within 12 hours even on Sundays. Pretty helpful customer support. Let us know how you go

        • divipay on 05/03/2018 - 17:53

          @peuwayaqdq: Hi, DiviPay rep here. Checking in to see if there is anyway we can help? Please let me know.

        • FirstWizard on 26/03/2018 - 17:17

          @divipay: I just tried adding DiviPay card to Coinbase, Doesn,t seem to work. the Error says "We were unable to verify your card. The following error was returned: Card withdrawal limit exceeded"

        • divipay on 11/04/2018 - 16:48
          +1

          @FirstWizard: Earlier this year Coinbase blocked card loads from credit cards. As DiviPay is represented to the merchant as a credit card they will unfortunately no longer accept this payment method.

      • uncoelite on 16/02/2018 - 23:20

        Up until about ten years ago some banks had the option to allow/disallow overdraws on credit/debit cards. It seems they've all stopped that now because fees are better.

    • peuwayaqdq on 19/02/2018 - 09:36

      I am still not clear on how this overdraw works because definitely there are occasions where transactions were declined to insufficient fund.

  • [Deactivated] on 16/02/2018 - 16:57

    Btc markets is better

    • FirstWizard on 16/02/2018 - 17:01

      It is indeed way better, the only problem is that it takes them 1-2 business days to do Bpay transactions. Whereas Coinbase charges your debit/credit card instantly at a 4% fee.

      Then this happens :S

      • [Deactivated] on 16/02/2018 - 17:03
        +4

        I’d rather wait.
        4% seems very high
        Btcm is 0.85% for all trades.
        They do POLI too which is practically instant sometimes

        • Kangal on 16/02/2018 - 18:14
          +1

          Yeah, 4% is huge… and another 100% on top is almost deal-breaking

          Only problem is that a 2 business days wait might mean a much different withdrawal amount/lost potential value

        • uncoelite on 16/02/2018 - 23:23
          +1

          Meanwhile the dip that you could have possibly bought into has corrected 15% up in the 2 days you've waited for funds to clear.

          Also btcmarkets stopped doing Poli pay back in late December. They don't have an instant option anymore

  • SydShopCat on 16/02/2018 - 18:55

    Same here, two separate payments of $500 to Coinbase from my ING.
    Is contacting ING or Coinbase best here? First time something like this has happened to me.

  • wordplay on 16/02/2018 - 20:31

    all part of the cryptocurrency experience. overdrawn by $6000 due to double charges - its crazy, now have to sell some coin which has gone up, but i really think i will regret doing it.

    • FirstWizard on 17/02/2018 - 00:07

      ING says they're working with Coinbase to resolve the issue. But apparently the first point of contact should be the merchant.

      Coinbase Twitter says they know of the error and the transactions would be reversed soon. But don't know how soon is soon.

  • altomic on 17/02/2018 - 08:38
    +1

    coinbase grab the money.
    buy bitcoin.
    increase in bitcoin looks like bitcoin is bouncing back
    bitcoin investors (weary of the recent plummet) gain confidence and buy.
    increase market demand
    market price increase
    coinbase sell bitcoin a few days later for a profit.
    coinbase return money -"sorry, LOL"

    TL:DR -
    1. stealmoney
    2. call it an error.
    3. ??????
    4. Profit

  • Serapis on 17/02/2018 - 23:35

    No issue here, would blame visa / bank

  • FirstWizard on 19/02/2018 - 09:45

    Visa apparently has taken the blame for this, and all transactions have been reversed according to the statement from visa. However, it may take a couple of business days for it to be processed.

    https://cointelegraph.com/news/visa-worldpay-take-blame-for-…

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