Coinbase now charging all credit cards as cash advances
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?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.
The Coinbase Team
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.