Digital Currency Fees Increasing
Coinbase, the cryptocurrency exchange I use, informed all it's members that additional fees may be applied to digital currency purchases.
A number of major credit card networks have changed the Merchant Category Code (MCC) for digital currency purchases. MCCs are used to classify purchases as goods or services and to determine which transactions are reported to the IRS. (Source: https://www.irs.gov/irb/2004-3...)
What this means to you
The MCC change enables banks and card issuers to charge additional "cash advance" fees should you purchase cryptocurrency (e.g. Bitcoin) using a credit card.
These additional fees will show up on your card statements.
It is up to your credit card issuer to collect these "fees" or not as well as determine what the "cash advance" fee amounts are.
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I received that message as well and they suggested using a debit card tied to a bank account instead. I think we are in the midst of great and volatile change in the cryptocurrency world now that it has gotten so much mainstream attention and not necessarily for the better at the moment.
India just announced they are going to ban all cryptocurrencies and not recognize them as legal tender. Facebook announced they are banning all cryptocurrency ads and I believe a Japanese Exchange was hacked and over $530 million of cryptocurrency was stolen. All this has caused nearly all cryptocurrencies to see dramatic drops in prices.
Bitcoin has now dropped below $10,000 after nearly reaching $20,000 back in December. I think those who invested a lot of money in altcoins are now panicking and losing a lot of money. I've invested some in cryptocurrency, but only enough where it won't hurt me financially during times like this. I think it will be awhile, but they will bounce back eventually because the technology behind them will only get better and they will strive to keep scams and hacks from happening as they have been lately.
I saw the news about the Japanese Exchange hack. Disappointing to say the least. I think too many of these exchanges are relatively unsecure witnessed by the number that have been hacked over the years.