Consumer complaint received 2019-07-18
Company: Coinbase, Inc.
State: VA
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Confusing or missing disclosures

Complaint:
XX/XX/XXXX Used Coinbase XXXX  application to try to buy Virtual Currency ( bitcoin ) The app had updated itself to display ACH transactions as the first purchasing option, after years of Visa being the first purchasing option on the list, causing me in a rush to put through an ACH buy when I meant to buy BTC via Debit card as it is quicker that way, and I have a history of doing Visa buys not ACH, as I am an impatient man. 

The app gave no warning that my default method payment had changed, coinbase support offered no help in the matter and would refuse to cancel the payment. My bank would only cancel the payment for a {$20.00} fee, after I had been charged a {$29.00} overdraft fee XX/XX/XXXX Went to buy BTC as Visa Debit, after almost another year of Coinbase having Visa Debit as my main buying option, ACH for some reason was the method that the coinbase app decided to put through at the time of transaction. once again contacted Coinbase support, this was their response " Hi XXXX, Thanks for contacting Coinbase Support. I appreciate your patience and would be happy to help. 

Please note that purchases can not be cancelled once the bank transfer process has started since this is an external process. 

Also, it looks like these funds were reclaimed from your account by Coinbase due to a payment from your bank being reversed. 

To clarify what had happened, see below : * On XX/XX/XXXX, you created a purchase for {$42.00}. 
* On XX/XX/XXXX, XXXX was credited to your BTC Wallet balance. 
* Unfortunately, on XX/XX/XXXX, your bank reversed the charge for {$42.00}, citing the error code, " R01, '' which caused a negative balance on your account. 
* Therefore, on XX/XX/XXXX and XXXX, XXXX, as authorized in the User Agreement, we deducted {$42.00} from your funds. You can read the User Agreement at XXXX XXXX XXXX  

I hope this clears up the confusion. If you are unsure about the reason your bank reversed the charge, please contact them for further explanation and to find out what is needed to avoid this situation in the future. 

Furthermore, when you use a linked bank account as a payment method to deposit funds to your Coinbase fiat wallet or to purchase cryptocurrency, these funds are immediately available for buying and selling on Coinbase. However, for security reasons, you will be unable to immediately withdraw these funds or send from Coinbase.

You can see when deposited funds will be available for withdrawal prior to authorizing a purchase or deposit, as well as on the confirmation email for the transaction. For more information on how to use a bank account, or when deposited funds are available for withdrawal, please visit : XXXX XXXX   XXXXusing-a-bank-account-as-a-payment-method-for-us-customers I hope that helps! Please let me know if there's anything else that I can assist you with. 

All the best, Coinbase Support '' Once again, no offer to cancel the transaction. I let Coinbase know  the funds were not in my account, and they are making the move to once again try to take the funds from my account. causing me {$60.00} in fees, for a {$40.00} transaction, which will probably result in another {$29.00} in fees because I work for tips and do not use my bank account as often as I should.

Company response to consumer: Closed with explanation