Re:Coinbase Insured
by drcode on Friday August 29, 2014 @03:28PM
(#8244147)
Same reason as always: The existing payment system used in the world has a weird system of "chargebacks" which mean that it's hard to know that any transaction is ever "final" and can be considered completed. This flaw in the traditional payment infrastructure makes it hard for coinbase to hand you over your coins even if they received a perfectly valid bank wire or credit card payment.
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Whether it's a "flaw" is in the eye of the beholder.
I have confidence buying from questionable online merchants using a credit card because I know I have a recourse if they are deceptive. I would say it's more of an issue of incompatibility between the systems rather than a real "flaw" in either.
Except waiting 4 days really wont help you against chargebacks.