Circle Issues $50 to Customer to Cover Unexpected Cash Advance Fee

Stan Higgins
Aug 1, 2014 at 19:10 UTC
Updated Aug 5, 2014 at 12:27 UTC

Bitcoin financial services startup Circle Internet Financial has issued at least one user a $50 credit in order to help refund that customer for possible cash advance fees he may have incurred using the service.

Circle, which is currently undertaking a closed test of its platform, appears to be responding to criticisms regarding the charging of cash advance fees, a common headache experienced by those attempting to buy bitcoin with a credit card. As previously reported by PandoDaily, the company was made aware of the cash advance fees and, at the time, promised to investigate the issue.

In an email posted to the bitcoin subreddit, the company informed the user in question that because he had used a credit card, he was at risk of a cash advance fee.

The email read:

“We recently learned that some of our customers are being charged cash advance fees by their credit card issuing banks for deposits made to Circle. We noticed you used a card with us, and we hope that you have not been charged these fees.”

It added: “Just in case, we’ve sent you $50 in bitcoin for any inconvenience.”

Community response

Community reaction to the development was generally positive.

For example, some observers took to the subreddit to decry cash advance fees as yet another injustice of the traditional financial system, and the customer who received the $50 in bitcoin said that he was pleased with the beta test thus far.

The positive remarks were a far cry from the generally mixed reaction of reddit users to Circle announcements. In recent months, reddit users have taken to the forum to speak out about Circle’s closed testing, its business practices and past statements made by its CEO Jeremy Allaire that have at times incited the bitcoin development and altcoin communities.

For a behind-the-scenes look at Circle’s bitcoin banking platform, read our full preview of the program.

Image via Circle

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