What are the reasons behind Coinbase's rejection of credit cards for buying digital currencies?

3 answers

• businessloansdirectJun 03, 2023 · 2 years ago
  Coinbase rejected credit cards for buying digital currencies due to the high risk of fraud and chargebacks associated with credit card transactions. This decision was made to protect both Coinbase and its users from potential financial losses. By only allowing bank transfers and debit cards, Coinbase can ensure more secure and reliable transactions.
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• diego fariasJun 03, 2021 · 4 years ago
  The rejection of credit cards by Coinbase is mainly driven by the need to comply with anti-money laundering (AML) and know your customer (KYC) regulations. Credit card transactions are more difficult to trace and verify, making them less suitable for meeting these regulatory requirements. By focusing on bank transfers and debit cards, Coinbase can better monitor and track the source of funds, reducing the risk of illicit activities.
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• GraeciaNRJul 13, 2021 · 4 years ago
  As an expert in the cryptocurrency industry, I can tell you that Coinbase's decision to reject credit cards is a smart move. Credit card transactions are often reversible, which exposes Coinbase to the risk of chargebacks. Additionally, credit cards are more susceptible to fraud, making them a less secure payment method for purchasing digital currencies. By limiting payment options to bank transfers and debit cards, Coinbase can provide a safer and more reliable platform for its users.
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