Coinbase is a digital asset exchange company headquartered in San Francisco, California. They broker exchanges of Bitcoin (₿), Ethereum (Ξ), Litecoin (Ł) and other digital assets with fiat currencies in 32 countries, and bitcoin transactions and storage in 190 countries worldwide.

Coinbase has been increasingly unresponsive to customer complaints about their credit card policy. Some users have reported that their credit cards have been declined by Coinbase, even though they have sufficient funds to cover the transaction.

Others have found that their credit card limits have been suddenly reduced without warning or explanation.

The most likely reason for Coinbase’s credit card policy is that the company is trying to minimize its exposure to chargebacks. Chargebacks are when a credit card holder disputes a charge with their bank and the bank refunds the money to the cardholder.

This is a costly process for businesses because they not only lose the disputed amount, but also incur fees from the bank.

Coinbase may be trying to avoid chargebacks by only allowing customers to use debit cards or bank accounts to purchase cryptocurrencies. This way, if a customer does dispute a charge, Coinbase can simply refund the money from the customer’s account instead of going through the hassle and expense of a chargeback.

While this policy may be frustrating for customers who only have credit cards, it is understandable from a business perspective. Chargebacks are a major headache for businesses of all sizes, and Coinbase is likely trying to protect itself from this costly process.