[2018-02-08] Barclays: Bitcoin Buying on Credit Cards Allowed

[FollowSynergy]

Traditional ‘big four’ UK banking group Barclays has confirmed that customers will continue to be able to purchase cryptocurrencies using credit cards while Virgin Money hits the brakes.

Contrary to a policy change by rival banking institution Lloyds Banking, a spokesperson for British banking giant Barclays has told the BBC that customers will be able to use both Barclays debit cards and Barclaycard credit cards to purchase cryptocurrencies.

The spokeswoman stressed Barclays would take precautions and flag suspicious transactions but will not, currently at least, enforce any clampdown on purchasing cryptocurrencies.

The Barclays spokeswoman stated:

    “We take precautions to assess affordability before extending credit, flag and prevent any suspicious transactions and also closely monitor credit risk.”

Meanwhile, Edinburgh-based financial services company Virgin Money UK is joining Lloyds in keeping its customers from buying cryptocurrencies like bitcoin. The concern, according to a Virgin Money rep, is on customers running up debts during volatile markets.

Virgin Money operates in the UK, South Africa and Australia. While it isn’t certain that the ban applies across all three countries, a Virgin Money spokesperson confirmed a change in policy will bar its customers from crypto purchases.

A spokesperson stated:

    “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 Money’s ban will only apply to credit cards and not debit cards linked to its customers’ bank accounts. The ban against credit card cryptocurrency purchases applies despite, as the BBC report suggests, the legal usage of credit cards in gambling in the United Kingdom where interest charges could reach up to a staggering 30% annually – and that isn’t counting additional fees.

Founded by Richard Branson as a subsidiary of the Virgin Group, Virgin Money’s move to block crypto purchases comes despite its founder’s own famed support for cryptocurrencies. A staunch proponent and advocate for bitcoin, billionaire Richard Branson is a long-time holder of the cryptocurrency. In 2013, Branson’s Virgin Galactic began accepting bitcoin for future space tourism.

Over the years, Branson has continually lauded cryptocurrencies, stating in 2014:

    “Bitcoin is creating an entirely new form of currency. I was happy to see PayPal announce they will integrate BitPay into their website, and we are also accepting Bitcoin on Virgin Galactic.”

Branson’s private Necker Island has also played host to Blockchain Summits with a number of attendees representing the biggest heavyweights of the bitcoin and blockchain industry.

https://www.ccn.com/barclays-bitcoin-buying-credit-cards-allowed-virgin-money-banned/

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The Barclays spokeswoman stated:

    “We take precautions to assess affordability before extending credit, flag and prevent any suspicious transactions and also closely monitor credit risk.”

I think that is the right thing to do.

[FrueGreads]

I usually don't like bans, and people should be allowed to make their own decisions, but truth be told, a lot of people out there don't really know how to manage risk. A lot of banks started banning bitcoin purchases through visa, and I have no problems with it. I believe in bitcoin, and I'm very bullish on it's technology but I would never buy bitcoin with a loan.

Barclays will not ban and that is a good thing overall, but they should really "closely monitor credit risk", as they said they would.

About the 2014 statement:  “Bitcoin is creating an entirely new form of currency. I was happy to see PayPal announce they will integrate BitPay into their website, and we are also accepting Bitcoin on Virgin Galactic.”

What happened to this? I don't use PayPal very often but I never saw this option on their service.

[1Referee]

Banning certain forms of credit usage should only be 'justified' from the bank's perspective, if they really want to prevent people from taking high risks with credit on all grounds. That means the bank should also prohibit people from using credit to gamble with, stocks, binary options, futures, crowdfunding, etc. In other words, everything that involves a higher degree of risk. You can't just ban one thing and leave all other risk focused options free for people to 'fall for'. Investing in crypto doesn't come even close to what level of risk you expose yourself to with binary options or straight gambling. I personally find it an utter stupid thing to use credit in the first place, but at the end, I believe that people should be held responsible for their own actions, and thus be allowed to do whatever they want with credit if that option is given to them. Banks love to put people in debt, and this system is all about that, so they shouldn't moan about crypto. It's clear that their actions are strictly meant to take away the easiest option for people to buy crypto with. In all other scenarios, they don't care a single bit if you go severely into debt. Thumbs up for Barclays.

[Harlot]

I usually don't like bans, and people should be allowed to make their own decisions, but truth be told, a lot of people out there don't really know how to manage risk. A lot of banks started banning bitcoin purchases through visa, and I have no problems with it. I believe in bitcoin, and I'm very bullish on it's technology but I would never buy bitcoin with a loan.

Barclays will not ban and that is a good thing overall, but they should really "closely monitor credit risk", as they said they would.

About the 2014 statement:  “Bitcoin is creating an entirely new form of currency. I was happy to see PayPal announce they will integrate BitPay into their website, and we are also accepting Bitcoin on Virgin Galactic.”

What happened to this? I don't use PayPal very often but I never saw this option on their service.

And I wouldn't blame them if they did ban their credit card purchases for crytpocurrencies as the risk of their own money not returning is really big. I mean they are actually lending their money for their clients to risk it on the cryptocurrency market, and the big market correction didn't help at all as it showed us that prices of cryptocurrency are too volatile. Unfortunately some banks like JP Morgan have a different view about it and at the end we need to understand they are just businesses looking for their best interest.

[veleten]

on one hand the banks do not want to lose their clientelle
on the other hand they are the ones who are impeding the adoption as much as they can
if the major banks supported bitcoin exchange this would have led to undermining their own ability to control the financial system
to give people financial freedom,off the hook of the fractional reserve system without huge debts and constant consumption marathon that your life turned into
would be the stuff of nightmires for them

[richardsNY]

It's almost funny how we are getting happy with something that is just very normal. Banks not allowing people to use their credit cards are just stupid as they miss out on extra revenue. A bank is nothing more than a business looking to book profits, and limiting their clients in terms of crypto purchases doesn't, and shouldn't fit in that category. It's a wasted effort since it has zero actual benefits because people will always be able to buy Bitcoin with their credit cards via an easy alternative way. This should be a reason for people to ditch the financial institutions acting like an utter jerk here -- ditching them is the only way you can make them feel your frustration.

[FrueGreads]

And I wouldn't blame them if they did ban their credit card purchases for crytpocurrencies as the risk of their own money not returning is really big. I mean they are actually lending their money for their clients to risk it on the cryptocurrency market, and the big market correction didn't help at all as it showed us that prices of cryptocurrency are too volatile. Unfortunately some banks like JP Morgan have a different view about it and at the end we need to understand they are just businesses looking for their best interest.

Well I'm not really worried about banks losing their money, because this would never happen. If people can't pay them back, they will eventually have access to their possessions (mortgage, cars, wtv), so in the end they will never lose money. If they could actually help people from making risky investments that would put their "financial health" at risk, I would be ok with it (although I would agree that they probably don't even care about their clients). I know people must be held accountable for their decisions, and should have freedom to make them, but a lot of them lack the knowledge to do that, so they should at least be taught on how to invest.

[Kprawn]

I am not a big fan of Banks, but when they can make rational decisions like this, I would support them. Most of these other

financial institutions are making emotional decisions about this matter. {...probably saying, They are not going to use our

money to buy bitcoins.} When these companies make poor decisions like that, we should not support them. Take your

business to the people that support your goals. {They misuse their centralized power to make decisions on your behalf}

What is better? Me buying bitcoins with my credit card or me buying a TV with my credit card and going to a Pawn shop to

sell that TV to buy those bitcoins? They are just washing their hands.... this is not going to prevent people from making bad

financial decisions. 

[J. Cooper]

I am not a big fan of Banks, but when they can make rational decisions like this, I would support them.

You don't even have to support them. Just use their service. And if for someone reason they also decide to block cryptocurrency purchases just move on to the next service providers. Essentially that's all they are, service providers. And if they don't sève you well then they don't deserve doing business with you.

[veleten]

It's almost funny how we are getting happy with something that is just very normal. Banks not allowing people to use their credit cards are just stupid as they miss out on extra revenue. A bank is nothing more than a business looking to book profits, and limiting their clients in terms of crypto purchases doesn't, and shouldn't fit in that category. It's a wasted effort since it has zero actual benefits because people will always be able to buy Bitcoin with their credit cards via an easy alternative way. This should be a reason for people to ditch the financial institutions acting like an utter jerk here -- ditching them is the only way you can make them feel your frustration.

if only ditching the banks that are not bitcoin friendly was that easy,most of the major banks are not
and not planning to be unless they are forced to
they have no incentitive to give people alternative to their system
I don't think many of the banks ,if any declared their support for bitcoins
and Coinbase is acting like an elephant in a china shop,doing as they please since there are not so many to challenge their monopoly
it should be better in a few years,adoption will increase,the amount of transactions per second break the 10 limit
so there is a challenge to Visa/Mastercard payment gateways

[coin_lover]

If mastercard / visa put pressure they might rethink the move but as of now a sensible move

[DrSha]

More bully tactics from the big banks.

Strange that virgin won't allow you to buy bitcoin with it's credit card.  But I can log into there casino and spend as much as I like gambling https://www.virgingames.com/

So it's ok to be able to gamble but they outlaw buying crypto.

Something is very very wrong here...