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Visa, Worldpay Clear Coinbase Of Duplicate Card Payments Issue

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Payment processors Visa and Worldpay have jointly announced that the latest instances of duplicate transactions for customers who used a credit or debit card at the cryptocurrency platform, Coinbase, was not caused by the latter.

"Over the last two days, some customers who used a credit or debit card at Coinbase may have seen duplicate transactions posted to their cardholder accounts," Visa and Worldpay said in a joint statement.

"This issue was not caused by Coinbase," they added.

Worldpay and Coinbase have been working with Visa and Visa issuing banks to ensure that the duplicate transactions have been reversed and appropriate credits have been posted to cardholder accounts, they added.

Further, the companies said all reversal transactions have now been issued, and should appear on customers' credit card and debit card accounts within the next few days.

On February 15, Coinbase tweeted that the erroneous credit and debit charges were caused by Visa reversing and recharging transactions.

In January, Visa and Mastercard started charging additional fees for instant purchase of cryptocurrencies using debit or credit cards.

Both companies began reclassifying credit card purchases of cryptocurrencies as a "cash advance" rather than a "purchase".

The change meant a credit card user will be charged a 5 percent fee in addition to the standard 4 percent transaction fee already being levied on clients by cryptocurrency platforms.

Coinbase said it is "actively working with major card networks" to create a new merchant category code, or MCC, for digital currency purchases, which it hopes will not have additional "cash advance" fees.

Visa denied making any systems changes that would cause the duplicate transactions cardholders are reporting, the Financial Times reported.

The issue suggest that traditional finance is still struggling to cope with the needs of the fast emerging and highly volatile cryptocurrency market.

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