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Coinbase has long accepted debit and credit cards for instant buys, however, passing on to the buyer the standard 4 percent credit card transaction fee. Now, it seems VISA issuers and Mastercard have quietly reclassified the way Coinbase credit card purchases are processed on their networks. Transferring funds from your bank has lower fees, but takes several days. Justin Mauldin is the founder of Salient PR and an investor in cryptocurrency. Currently, if you want to buy bitcoin, ethereum or any other alt-coin instantly, the only option is to use your debit or credit card. Even worse is that cash advances do not fall under the standard interest-free grace period that consumers expect for other credit card purchases. It will become more difficult for investors to purchase bitcoin and other cryptocurrency on their terms. Justin Mauldin Contributor. The rise of bitcoin and future cryptocurrency is tied to the eventual fall of financial middlemen like VISA and Mastercard. More posts by this contributor The Bank Of Facebook. Acquirers and merchants are responsible for ensuring that all Visa transactions are properly coded in the Visa payment system, so that issuers can rely on accurate and consistent coding when making authorization decisions. In a world where cryptocurrency prices can swing wildly in either direction, a week feels like a nail-biting eternity. Incidents like this pose several challenges for the cryptocurrency industry short-term, but also show just how scared the incumbents really are. If anything, this change makes things more complicated in the short term. By reclassifying Coinbase and presumably all other exchanges, as well , VISA and Mastercard are doing their best to make it harder, slower and more expensive for people to invest in cryptocurrency. These codes have been in place for some time.

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