BIG banks ban credit card purchases for BITCOIN

[cola-jere]

Not surprising at all since if these credit card users purchase cryptocurrencies and lost in the trade then do not pay their credit card bills, that will become the banks liability.

[benalexis12]

Virgin Money has joined Lloyds Banking Group in banning customers from buying Bitcoin and other digital currencies with their credit cards.

Virgin Money's spokesperson said: "Following a review of our policies, I can confirm customers will no longer be able to use their Virgin Money credit card to purchase crypto-currencies."

Like Lloyds, Virgin's ban only applies to its credit cards, not debit cards.

The value of Bitcoin fell a further 10.86% to $7,297.65 on Monday.

Like Lloyds, Virgin Money is concerned about customers running up large debts following a sharp fall in the value of digital currencies.

Over the weekend, several of the biggest issuers of credit cards in the US also banned customers from using their cards to buy digital currency.

The list of financial firms included Bank of America, Citigroup, JP Morgan, Capital One and Discover.

Lloyds' ban, starting on Monday, applies to its eight million credit card customers across Lloyds Bank, Bank of Scotland, Halifax and MBNA.

Lloyds said it would not be contacting its customers either digitally or through the post to inform customers about the change to its credit card policy. Customers will only be informed should they query a blocked crypto-currency credit card transaction. 

The time has visibly seen that bitcoin are going into the industry as massive bomb or even a threat for the usual money making it almost seen to be out of the show for some banks. Basically what they seem to be prptecting is the banks service to still be patronised making them do something to still do for what is in demand.

They are all refusing bitcoin for now, and yes Credit cards are money from the banks they are blocking the path of cryptocurrency, We could use debit card either to buy bitcoin instead.

[Powerman001]

In my opinion it will not affect anything on the development of bitcoin later. because to invest in advise not to use money for daily needs, let alone money mortgagor. investing in crypto is highly risky. in the wake of losses if investors who use money for daily needs will have economic difficulties.

[gabmen]

In my opinion it will not affect anything on the development of bitcoin later. because to invest in advise not to use money for daily needs, let alone money mortgagor. investing in crypto is highly risky. in the wake of losses if investors who use money for daily needs will have economic difficulties.

That's actually a good point. It's not advisable to loan money to invest in something that's as volatile as btc, since profits may take longer than you expect. Aside from the fact that bankers seem not too keen in working with crypto, it's actually a safe move for them since people may have a hard time paying their dues if their btc investments don't go exactly as planned

[cryptobluemoon]

the last bubble created by Lehman brothers was through credit bubble now they are afraid of credit card purchases as well this kind of restrictions are possible in crypto filed

[mOgliE]

Hi,

That's quite logical. Banks don't want to be overrun by a system allowing customers to get rid of them. They don't want customers to realize they are completely useless...

The reason they give (people may have debts) is completely wrong. They still grant loan and let people make contracts with credit establishment, at crazy rates. They don't care if their customers are dry, they just want to ensure they will keep their profit and power.

So the news is not surprising. 

[Dyatrev]

Because the banks are under control of the governments and the goverments dont want money which is not controlled by them. If you cant control the money, you lose your power.

[Magiciansmate]

guys, stop and read (apologies to those of you who have, but it's Worth reiterating)

None of these banks have banned buying cryptocurrency. At all. You can do what the hell you want with your money when using these banks. Keyword, YOUR money.

A credit card is a loan.

NOBODY with some soul and minimum fiscal responsability would ever let you take out a loan to buy cryptocurrency. that is irresponsible and all-in-all a terrible choice. If you DO want to buy crypto with borrowed money, then you will have to find someone with little enough scruples and high enough interest rates that won't mind giving you money to burn.

What these banks have done is _resposnible_, it is good. for them AND for the customers. Sure, they most likely did not do it out of the kindness of their heart, but because they have little ability to recupe eventual losses. still a good thing.

Absolutely correct. Given bitcoins ups and downs, people buying on credit cards are taking a very risky gamble.

[yana0901]

In order to earn it is necessary to clearly show that you were sure where you put it.