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Coinbase now charging all credit cards as cash advances

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  • Feb 18th, 2018 7:40 am
[OP]
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Dec 21, 2007
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Coinbase now charging all credit cards as cash advances

So woke up to this email from Coinbase today...
Dear Coinbase Customer
We’re writing because you have a credit card on file and want to inform you of a recent change that may increase the cost of purchasing digital currency with a credit card.

Recently, the MCC code for digital currency purchases was changed by a number of the major credit card networks. The new code will allow banks and card issuers to charge additional "cash advance" fees. These fees are not charged or collected by Coinbase. These additional fees will show up as a separate line item on your card statement.

Coinbase does not know whether or not your card issuer collects these fees, nor do we know how much they might collect. As a result, we would strongly suggest switching to a debit card or bank account as your primary payment method. You can do that on the following page: https://www.coinbase.com/settings/linked-accounts.

We apologize for any inconvenience this might cause.


Best,


The Coinbase Team
So, I guess that essentially ruins Coinbase as an easy way to buy small amounts of cryptocurrency for Canadians. That said, as I have never used a cash advance before, can someone explain how they work? Say I always pay my cards off every month on the due date (I actually had PADs set up to handle this automatically), how do I avoid any interest from the cash advance? Would I need to manually zero balance the card just before or just after the cash advance?

For example, say if I had $2000 due on the card in 15 days (not from past statements, but just from that billing period that isn't due yet), and bought $500 crypto from Coinbase, do I avoid the fees if I immediately pay down the card by $500 after buying (same day), or would I need to pay down the whole $2500 that day, since the $500 wouldn't go to the cash advance until the card is otherwise zero balanced?

Also mods, feel free to merge this into the main threads, but I felt it best to post separately in case anyone didn't notice the email from Coinbase and could be in for a very bad day.
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Oct 19, 2016
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Cash Advance is usually when using credit card to withdraw $$$ from ATM. I dont think you avoid the fees involved with this.
Deal Fanatic
Jun 27, 2007
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make sure your credit card has CREDIT before doing cash advance. This will be interest free transaction minus fees.
eg pay off the balance manually and then pay extra money (amount you need) for credit - company owes you money.
when doing cash advance, you're not using credit and no interest applies

p.s. careful with cryptos, they are falling like hot knife
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[OP]
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It's not about avoiding fees, as much as it is minimizing them. If I get dinged $3-5 on the advance that's ok, I just would want to make sure I'm paying a day's interest at most on the amount.
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Jan 14, 2011
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Conundrum1911 wrote: So woke up to this email from Coinbase today...



So, I guess that essentially ruins Coinbase as an easy way to buy small amounts of cryptocurrency for Canadians. That said, as I have never used a cash advance before, can someone explain how they work? Say I always pay my cards off every month on the due date (I actually had PADs set up to handle this automatically), how do I avoid any interest from the cash advance? Would I need to manually zero balance the card just before or just after the cash advance?

For example, say if I had $2000 due on the card in 15 days (not from past statements, but just from that billing period that isn't due yet), and bought $500 crypto from Coinbase, do I avoid the fees if I immediately pay down the card by $500 after buying (same day), or would I need to pay down the whole $2500 that day, since the $500 wouldn't go to the cash advance until the card is otherwise zero balanced?

Also mods, feel free to merge this into the main threads, but I felt it best to post separately in case anyone didn't notice the email from Coinbase and could be in for a very bad day.
Your best bet is to call your CC company with the number on the card and they'll be happy to explain it. From what I understand, cash advances on your CC really ought to be used only in case of emergencies. The loanshark level interest rate begins the minute you withdraw money regardless of your current balance.

Actually, I was surprised CCs were not treating it as a cash advance to begin with. Maybe they were slow to react?
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Put extra $250 on your credit card in advance before buying cryptos on Coinbase. Why pay $3-5 when you don't have to.
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[OP]
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Raggie wrote: Put extra $250 on your credit card in advance before buying cryptos on Coinbase. Why pay $3-5 when you don't have to.
True...I use most of my cards already, but I could spin up a new one solely for Coinbase. Which bank was the most crypto friendly again? RBC?
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Could those customers dispute the charges of these "cash advances" since coinbase only notified their customers thru an email so late like this.
As I remember people starting to notice these charges on their CC bills starting two weeks ago on this forum.
A credit card issued by a bank would be easier to get them to waive these $5 fees for every purchase than trying to get visa or mastercard to do it
cause I can see them telling you right now "Those purchases are your own fault!" and they are not obligated to waive anything since you are borrowing money from them.
But your bank who issued you a credit card would be more inclined to waive those fees since you are their customer and they don't want you switching banks over a $5 fee.
And moving all your products you purchase thru them, RRSP/GICS/yada yada yada, to another bank just to spite them for not being reasonable in reversing the fees charged by this unscrupulous company known as Conbase.
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Jan 4, 2017
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It's not Coinbase charging you cash advance fee, it's the bank/cc issuer. Coinbase just let you know that the way cc are billing those transactions changed. That's a courtesy on their part.

It is pretty annoying though. cc cash advance is generally not something you want to be doing. You're paying a fee plus you lose out on the interest-free grace period, so you pay interest on top of that. If your strategy is to pre-load the CC into a credit balance ahead of time, that's not a whole lot better than just funding Quadriga via EFT or something similar to that (some accept Interac e-transfer, or Interac Online if you have that).
[OP]
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To update, I found a potential better way to deal with this/still use them. If you have a Visa Debit card (like TD's newer access cards), then you can still add that on Coinbase which will accept it as a Visa card. That said, since it ties directly back to your TD account, there is no cash advance fee as you are only spending your own money. Works the same for play.olg.ca too for buying lottery tickets.
I am the Stig's brother's cousin's friend's former roommate.
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Jul 19, 2007
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The $4 cash advance fee was still worth it since it already went up 50% since the last crash.

But this is very annoying, more so as you won't get rewards on your CC.
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Dec 14, 2017
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Can someone confirm that this is applicable to MBNA RE cards?
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KingKuba wrote: The $4 cash advance fee was still worth it since it already went up 50% since the last crash.

But this is very annoying, more so as you won't get rewards on your CC.
MBNA charges $7.50
Sr. Member
Jul 19, 2007
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7865875 wrote: Can someone confirm that this is applicable to MBNA RE cards?
Every CC.

CT only charged me $4.
Newbie
Jan 1, 2017
13 posts
Raggie wrote: Put extra $250 on your credit card in advance before buying cryptos on Coinbase. Why pay $3-5 when you don't have to.
Hi can you confirm again, if this works (non-cash advance). If it does I'm going to start making purchases this way.
[OP]
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Dec 21, 2007
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FYI Coinbase is apparently endlessly charging people's cards atm (eg. you buy $100, and it will keep billing you $100 until it empties your account). I'd hold off for now, or check their reddit and decide for yourself.
I am the Stig's brother's cousin's friend's former roommate.
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Conundrum1911 wrote: FYI Coinbase is apparently endlessly charging people's cards atm (eg. you buy $100, and it will keep billing you $100 until it empties your account). I'd hold off for now, or check their reddit and decide for yourself.
I've heard when people email support they just reply with YOU DON'T UNDERSTAND BITCOIN. :)

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