Coinbase discontinues acceptance of credit cards for US users to pay for cryptocurrencies

15 February 2018

Coinbase published a statement this week notifying its US users that it discontinues accepting new credit cards as a method to pay for cryptocurrencies on its platform. In the notice posted on its official blog page Coinbase added that debit cards are not affected by the new rules.

The US largest cryptocurrency exchange explained the move as a prompt action to protect its customers as it cannot ensure successful transaction completion with credit cards in view of the progressive trend among financial institutions to impose restrictions or explicitly ban the use of credit cards for buying cryptocurrencies.

Coinbase noted that the decision was not taken lightly as they understand how many customers have already added credit cards to their accounts, a sign illustrating customer preference arising from the convenience given by credit cards. While those users with their credit cards already linked to Coinbase accounts may continue paying for cryptocurrencies on their credit cards subject to reservations made by their respective banks, new credit cards will no longer be linked. Meantime, Coinbase strongly recommends users to add debit cards to their accounts and warned that banks may charge cash advance fees for using credit cards.

Users in other countries will not be affected so far, but Coinbase is conducting analysis and examination of the situation and will likely apply similar changes to other customers.

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