BIG banks ban credit card purchases for BITCOIN

[craig121]

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. 

[Druiz287]

Banks not letting people use the bank's money for money that will remove the power (and profitability) of banks?

Not surprising.

[colmenajose]

It is clear that it is part of the war against bitcoin, but with this what is going to be achieved is that bitcoin comes out strengthened. 

[baysky]

If you think about it, it's pretty ridiculous how bank doing this. 

What's the bank to tell me how I spend my money?  good or bad, it's my decision to make.
It's like Bank ban purchasing alcohol and cigarette with credit card 'for your own good'   

[louisLavery]

The first shot in the war on bitcoin was just fired by the banks. The bullet ended up in LLoyds' foot.

[stompix]

If you think about it, it's pretty ridiculous how bank doing this. 

What's the bank to tell me how I spend my money?  good or bad, it's my decision to make.
It's like Bank ban purchasing alcohol and cigarette with credit card 'for your own good'   

It's not your money.Did you even read the text?

They are banning credit card purchases, not  debit cards.
Credit card money are money the bank is (if) willing to lend you. In this case they decided not to do so.

[Cryptoshops]

My guess is they will eventually try and ban all purchases. I have problems trying to buy using my Barclays debit card now

[emuLOAD]

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.

[Marco Ambrusini]

well not all the big banks.There are equally good high profile institutions who also accepts bitcoins.Super powers are scared of wealth been decentralised.

[HasHe]

Banks have always treated bitcoin as their rival and they are trying their best to stop bitcoin progress but they couldn't. But in this particular move, there seems some logical reason and it should not be considered as an act totally against bitcoin.If the customers purchase bitcoins with their debit cards, then banks would not have any issue as it is their own money.But if they purchase bitcoins from their credit cards, then banks would have to face serious threat as bitcoin price is highly volatile and so the chances of bitcoin purchaser to repay his loans when purchasedv via credit card becomes very low and no banks would be voluntarily willing to get caught in such losses.

[hackzang12]

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. 

Don't mind them. They will get back after they will realize fiat money will no longer the currency of the future. I think they will review the blockchain technology in the long run.

[Doge dealer]

this is not alarming at all or is it unexpected , its obvious the conflict of interest that will exist between bitcoins and them. i however think they are looking at it the wrong way by trying to control credit card purchases because at the end of the day these money would generate interest payment for these banks but hey we all get it regardless of that they are not gonna let any newbie(bitcoins) come into the markets and simply turn them into the servants rather than the masters. This is really about profits and power.

[Jaya912]

Banks not letting people use the bank's money for money that will remove the power (and profitability) of banks?

Not surprising.

It might be the best reason why they ban their credit card user to buy bitcoin and other cryptocurrency.
Its not surprising like you told us.
However, credit card has limit to buy something wheater its for offline good or online. So no reason to banning user to buy something because the user has fund to pay the credit monthly.

[Ba37]

It shouldn't have a big impact. They are also missing out on balance transfer/cash advance fees. I have seen people converting credit card cash to fiat via cryptos.
On the other hand, they will realize soon that they need to get on the blockchain train

[sabine80]

i think banks start to fear bitcoin and they try everything to bring bitcoin down. but i think this action will not hurt bitcoin much. for me is this a good thing. banks starts to realize that there is challenger for the old system.

[antosionta]

it is normal that most of bank doesnt want to use crypto,
because the crypto will replace them someday. so they banned it to maintain their existence.

[Layonk]

If you think about it, it's pretty ridiculous how bank doing this. 

What's the bank to tell me how I spend my money?  good or bad, it's my decision to make.
It's like Bank ban purchasing alcohol and cigarette with credit card 'for your own good'   

It's not your money.Did you even read the text?

They are banning credit card purchases, not  debit cards.
Credit card money are money the bank is (if) willing to lend you. In this case they decided not to do so.

Yes correct. Its not our money in credit card. But its the banks money which we need to pay monthly.
I am credit card user but i know a little how its working.
Before bank issuing credit card to user, bank will do research regardimg your job and asset in offline. After checking, the bank know how restriction that bank should make for each user since it will not the same with other user. Then if the limit reach then credit card can not be used again. Its seems like the user can not more than they can afford to pay.  So banks said because they dont want to make user lend more money and in other reason bank worry if the user can not pay the bill at the end.
But remember again the restriction, all user can pay the bill. Bank does not need to worry.

[cryptohunter]

more noob accounts posting repetitive crap

we have 20x threads on this already

its good banks are stopping these people who cant afford to pay on a debit card for btc.

[rapwindsoul]

In my opinion, those banks are worried right now that someday somehow Bitcoin is taking over the market so they are doing everything possible to eliminate the cryptocurrency. Bitcoin has come a long way for almost 8 years, due its decentralised and anonymous nature. It offers also lower transactional charges comparing to banks transactions which have made cryptos to out match the banking system made them to realise there is a cause for alarm.

[Thecryptocurrency09]

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.

[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.