What is the reason behind Coinbase's decision to allow purchases with bank accounts but not cards?

3 answers

• Dec 17, 2021 · 3 years ago
  Coinbase made the decision to allow purchases with bank accounts instead of cards due to several reasons. Firstly, bank transfers are more secure and less prone to fraud compared to card transactions. Secondly, bank transfers provide a higher level of identity verification, which helps Coinbase comply with regulatory requirements. Lastly, bank transfers offer lower transaction fees for both Coinbase and its users, making it a more cost-effective option. Overall, Coinbase's decision to prioritize bank accounts over cards is aimed at enhancing security, regulatory compliance, and cost efficiency.
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• Dec 17, 2021 · 3 years ago
  The reason behind Coinbase's decision to allow purchases with bank accounts but not cards is primarily related to security. Bank transfers provide an added layer of security as they require users to authenticate their identity and provide additional verification. This helps prevent fraudulent activities and ensures that only legitimate transactions are processed. On the other hand, credit and debit cards are more susceptible to fraud and chargebacks, which can result in financial losses for Coinbase and its users. By prioritizing bank accounts, Coinbase aims to minimize these risks and provide a safer trading environment for its users.
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• Dec 17, 2021 · 3 years ago
  As a third-party expert in the cryptocurrency industry, I can provide some insights into Coinbase's decision. One of the main reasons behind this choice is the lower risk associated with bank transfers compared to card transactions. Bank transfers are less likely to be reversed or disputed, reducing the potential for chargebacks and fraud. Additionally, bank transfers offer a higher level of identity verification, which helps Coinbase meet regulatory requirements and prevent money laundering. Lastly, bank transfers often have lower transaction fees, making them a more cost-effective option for both Coinbase and its users. Overall, Coinbase's decision to allow purchases with bank accounts but not cards is a strategic move to prioritize security, compliance, and cost efficiency.
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