JPMorgan Chase has agreed to provide $2.5 million in refunds for cash advance (and other) fees charged on Cryptocurrency purchases. The lawsuit contends that such cryptocurrency transactions are not “cash-like transactions” under the credit card contract and, thus, the cash-advance fees and interest were improper. JPMorgan Chase has denied any wrong doing but has agreed to pay $2.5 million in refunds and that this would cover approximately 95% of these alleged improper fees.
In February 2018 near the height of BTC prices cryptocurrency exchange Coinbase sent out an e-mail warning users of cash advance fees due to the merchant category code for digital currency purchases being reclassified as a cash advance. Credit card issuer Capital One went as far as declining all cryptocurrency purchases.
Affected Chase cardholders should have (or will) receive an e-mail stating that they are eligible.
