Cryptocurrency exchange Coinbase has sent out an e-mail to users with a credit card on file warning them that Coinbase transactions might code as a cash advance. This is due to the fact that major credit card networks have recently reclassified the MCC code for digital currency purchases to code as a cash advance. Capital One has been flat out declining all cryptocurrency purchases as of late. Bank of America & Chase were also both looking at making changes to their policies as well. I don’t think buying cryptocurrency with a credit card was ever a good idea due to volatility and high fees (3%+), but now it’s even worse of an idea.
