Users of the Coinbase GDAX exchange have reacted angrily to a change in payment processing. In recent days it has become apparent that additional interest and fees will now hit anyone who plans to deposit money in their Coinbase account using a credit card. In the past, a deposit which was made using a credit card would be treated like any other purchase, with the standard APR for the card charged.

However, in recent days, users have noticed that transactions with Coinbase are now listed as a cash advance. A cash advance from a credit card typically attracts a small charge which is applied immediately to the account. Cash advances are also subject to much higher rates of interest. If a user now wishes to make a maximum deposit of $3,000 to their Coinbase account, they would be charged around £3110 by their credit card company, and this sum would be subject to higher interest compared to retail purchases.

The additional credit card charges are believed to be linked to the fact that Coinbase’s Merchant Category Code has been updated. The MCC is a four digit code which designates the business type of each organisation which is authorised to accept credit card payments.