JPMorgan Chase To Provide $2.5 Million In Refunds For Cryptocurrency Cash Advance Fees

JPMorgan Chase has agreed to provide $2.5 million in refunds for cash advance (and other) fees charged on Cryptocurrency purchases. The lawsuit contends that such cryptocurrency transactions are not “cash-like transactions” under the credit card contract and, thus, the cash-advance fees and interest were improper. JPMorgan Chase has denied any wrong doing but has agreed to pay $2.5 million in refunds and that this would cover approximately 95% of these alleged improper fees.

In February 2018 near the height of BTC prices cryptocurrency exchange Coinbase sent out an e-mail warning users of cash advance fees due to the merchant category code for digital currency purchases being reclassified as a cash advance. Credit card issuer Capital One went as far as declining all cryptocurrency purchases.

Affected Chase cardholders should have (or will) receive an e-mail stating that they are eligible.

View Comments (21)

    • lol banks fuck with whoever they can... sometimes other put up fights and they back off

  • Wait, didn’t BofA send out a notice recently that crypto WAS cash-like transactions? I recall receiving a letter in the mail within the past month or two. I’m so confused.

  • Considering that JPMC could have followed Capital one and declined all Crypto purchases - instead decided to profit instead.

    Wonder if it was a CARD act violation (since they said they are denying wrongdoing).

    Actually suprised any issuer allows Crypto purchases - seems like just asking for bust out fraud - with limited clawback or recourse.

    • And I don't know why any crypto exchange ever allowed credit card purchases, with the possibility of a chargeback.

  • Did one need to opt into a class action case to receive the refund? I was hit with nearly $100 in these fees in early 2018 (had been buying and selling crypto daily for months with no fees, then Chase unexpectedly changed it to cash advance without any kind of advance warning), but I never received any notice of a class action settlement nor any communication at all from Chase. I can't imagine the total fees were only $2.5M, if even I, a very small-time crypto trader, had $100 in fees; I would have imagined the scale to be 10x this figure if not more...unless this $2.5M only includes those who opted-in while most others were unaware of the option.

    • Update on this. It turns out I must have been largely correct in questioning that $2.5M would actually cover 95% all the fees that were actually assessed by Chase. I finally just got a check in the mail for the settlement. I got less than $25, just a fraction of the fees Chase actually charged me.

    • I'd expect most of the bigger traders weren't trying to use credit cards. And there are a lot of other banks' credit cards people could have been using too.

    • Update: Just received an email that answered my question. Evidently, one needs not opt into the settlement but may opt out. The email states: "How do I get my Settlement payment? Once the Court approves the Settlement, you will automatically receive a check. The amount you receive will depend on the amount of cash advance fees you were charged for cryptocurrency transactions using your Chase credit card(s) during the Class Period. To confirm your mailing address for delivery of your check after final approval of the settlement and for information about how the awards will be calculated, please visit http://www.tuckerchasesettlement.com."

  • Why is this the case? Does something about the IRS' tax treatment of crypto as assets rather than currency mean they're not allowed to charge cash advance fees on the purchase?

    • Because they wanted to steer normal folks away from crypto, why jamie dimon called bitcoin "fraud" and now this year JPM gives banking services for coinbase/gemini. They are unethical thieves.

    • Doubtful. Most likely had to do with insufficient disclosure — now your Cc agreement makes it clear buying crypto / the coding is like a cash advance. Back then it wasn’t very clear