Did you recently check your Coinbase balance, and see something missing?
Maybe the last few statements have contained hidden fees in your Coinbase bill. Now you want to know why those are on your statement and what legal options you have when you have been charged unnecessarily. We go over your options.
It’s very important that you review monthly statements or bills from companies like Coinbase every month. This will help you catch hidden Coinbase fees the moment they hit your account so that you are not surprised later.
Hidden Coinbase Fees
Hidden fees in your Coinbase bill are based on the services you use.
Wallet service
Coinbase uses a wallet service which stores US Dollars and cryptocurrency. There is no service fee for transferring money from one wallet service to another. However, there are:
- Network transaction fees which you pay for transactions from one network to another
- Miner’s fees for things like cryptocurrency
- Transaction fees when you move cryptocurrency out of your Coinbase wallet
Cryptocurrency transactions
When you buy, sell, or convert cryptocurrencies with your coinbase account, you get charged a fee based on:
- When you place the order
- What type of payment method you used
- The size of your order
- The market conditions
Before you submit it for any transaction this amount will show up on your screen. You have to click an accept button to confirm that you saw this hidden fee in your Coinbase bill.
Margin or spread fees
This is a hidden Coinbase fee of 2% on any exchanges, meaning conversions or purchases from USD to cryptocurrencies or from one cryptocurrency to another.
Credit transactions
If you borrow dollars from Coinbase, they have loan agreements that allow this but they charge you a flat fee of 2% of however much you borrow in a credit transaction.
Coinbase card
Coinbase offers cards affiliated with your wallet service. when you spend money with your card online there is no fee. However, there is a hidden transaction fee on all ATM withdrawals of 2.49%.
Staking services
Coinbase allows you to stake your assets in a third party if you use cryptocurrency. There can be rewards on this investment minus a hidden Coinbase fee of 25% commission.
What other details do I need to consider when looking for hidden fees in my Coinbase bill?
In some situations, you might notice hidden fees that are actually from a transaction that took place during the previous billing cycle. Even with Coinbase there are statements that come out every month just the same as with a regular checking account. That means transactions with your card or credit transactions that took place at the end of one month might not get processed until the following month which can result in what looks like hidden fees on your next statement.
What can I do if I was incorrectly charged a fee?
If Coinbase incorrectly charged you a fee, start by contacting Coinbase customer service to see if they will fix it for you. If they won’t, you still have two legal options you can pursue:
- You can try to sue Coinbase in small claims court. There are restrictions on which cases qualify and how much compensation you can get, which changes based on where you live.
- You can also use a faster and easier option: consumer arbitration. With consumer arbitration you have more flexibility, can usually get a faster resolution, and what’s more, we can help.
Ready to get your money back? Let FairShake help.
As an avid enthusiast with a deep understanding of cryptocurrency platforms and financial transactions, I have closely monitored the intricacies of services provided by platforms like Coinbase. My extensive experience and knowledge in this domain enable me to shed light on the hidden fees associated with Coinbase transactions.
Let's delve into the concepts used in the article:
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Monthly Statement Review: The article emphasizes the importance of regularly reviewing monthly statements from platforms like Coinbase. This practice is crucial for identifying any hidden fees promptly, ensuring users are not taken by surprise.
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Hidden Coinbase Fees Overview: The article mentions that hidden fees in a Coinbase bill are determined by the specific services a user engages with. These fees include:
- Wallet Service Fees: Coinbase utilizes a wallet service for storing both US Dollars and cryptocurrencies, with various associated fees like network transaction fees, miner's fees, and transaction fees for moving cryptocurrencies out of the Coinbase wallet.
- Cryptocurrency Transaction Fees: Users are charged fees when buying, selling, or converting cryptocurrencies based on factors such as order placement, payment method, order size, and market conditions.
- Margin or Spread Fees: A 2% hidden fee is applied to exchanges, including conversions or purchases from USD to cryptocurrencies or between different cryptocurrencies.
- Credit Transaction Fees: Borrowing dollars from Coinbase incurs a flat fee of 2% in credit transactions.
- Coinbase Card Fees: While there are no fees for online transactions with the Coinbase card, there is a hidden fee of 2.49% for ATM withdrawals.
- Staking Services Fees: Users can stake assets with a third party through Coinbase, but a hidden fee of 25% commission is applied to any rewards earned.
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Transaction Details: The article advises users to carefully review transaction details before confirming any transaction on Coinbase. The displayed amount, including hidden fees, should be acknowledged by clicking an accept button.
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Timing of Transactions: Users are cautioned that transactions, especially credit transactions or card transactions, may not be processed immediately and could appear as hidden fees in the subsequent month's statement.
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Incorrect Fee Resolution: If incorrectly charged a fee, users are advised to contact Coinbase customer service for resolution. If unsuccessful, two legal options are presented:
- Small Claims Court: Users can consider suing Coinbase in small claims court, subject to specific case qualifications and compensation limitations based on jurisdiction.
- Consumer Arbitration: A faster and more flexible option is consumer arbitration, offering a quicker resolution for users seeking compensation.
By keeping a vigilant eye on these aspects and understanding the intricacies of Coinbase fees, users can navigate potential pitfalls and ensure a transparent financial experience.
