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Author Topic: J.P. Morgan, BOA and Citigroup - credit card blockade!  (Read 132 times)
DesmondHayes
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February 13, 2018, 05:56:09 PM
 #1

It is interesting that the J.P. Morgan, BOA, and Citigroup came out with the news about the blockades for the credit cards users that are paying the cryptocurrencies with the same. I think that these days there will be more agreements and deals at private meetings in Davos.
That's why I'm not too optimistic about prices in the short term, but I do not underestimate Bitcoin and growth potential these days.

What are your opinions; will these next meetings resolute with the positive outcome for the credit card users?

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February 13, 2018, 06:11:52 PM
 #2

Probably not, nor should they. I mean it is predatory at its finest, you are putting highly volatile assets on interest which means when majority of people lose they will be most likely paying massive interest on money they never had. Most people in that spot should not take the funds, hell if you have the funds just deposit from your debit account then. That is why credit cards should be stopped, it is gross that they allowed it to go on this long.

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February 13, 2018, 06:13:08 PM
 #3

That's not the worst thing in the world if you think about it. Buying crypto on credit card is really risky, and banks like to reduce their risk. It is the same reason why you cannot usually buy stocks on a credit card, for example.
Pan Troglodytes
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February 13, 2018, 06:27:13 PM
 #4

It has been in a news for a few years already - banks blocking accounts of users who transmit money to crypto exchanges or blocking payment cards. It has been happenning in waves, in a fluctuating fashion - coming and going away. Currently there are more news about cards being blocked and I am hearing they are blocking the crypto-involved banks accounts in my country too. I am sure that this wave will pass too as so many did pass before it.
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February 13, 2018, 06:33:17 PM
 #5

Are credit cards are okay in spending the funds out of it in investments??? I don't think it is okay with them. I heard that there were 3 accounts in USA who are using credit cards were close because of that activity. And these pioneers will use it? I don't think they are doing fine this time around :/




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mammothine
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February 13, 2018, 06:36:42 PM
 #6

They are blocking small investor entry so they can scoop them up even as the move legitimizes bitcoin as currency. Good signs all around because it could indicate their admission that crypto is the future, not gov't fiat. Sucks if you only acquire with credit card tho.
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February 13, 2018, 07:08:37 PM
 #7

That is for protecting the people from bad investments and debt...Is it? Well from banks angle they see that large money fllowoing from fiat market to crypto.
Is that good for them? Well their system is based on FIAT'a, what do you think?
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February 13, 2018, 07:42:14 PM
 #8

it's about time they do that. investment by spending credit card limit is just plain too much risk for cc issuer.
credit card is made for conveniently paying normal purchases, not for paying risky investment deposit.
but it seems BOA is blocking money transfer to gdax/coinbase too, a few users have complained about it

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February 13, 2018, 08:08:56 PM
 #9

banks dont care about 'debt risk' of thier customers

after all a credit card limit is in place to cover what the card holder can afford to pay back. so it doesnt matter if its a car, or a bitcoin. the credit limit secures the debt risk limit.

the real reason is to avoid costing the banks lots of money because of chargeback scammers.
they wont say that though because it would be just advertising to scammers that performing a chargeback is an option to get bitcoin and money back

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
allthebitandbobs
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February 13, 2018, 08:18:02 PM
 #10

It does make some since .Image the amount of chargebacks and  hassle  they have to when dealing with in crypocurrency .

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February 13, 2018, 08:29:41 PM
 #11

As said already chargebacks are a key issue but there are two other issues, point/rewards programs & cash advances.

If you buy a bunch of BTC on your CC you're earning points/cash back depending on the cards reward program. Sell the BTC before price changes & you wind up with enough points for a free flight/cash back/other rewards.

Similar issue with cash advances. If you use a CC to buy BTC, sell the BTC for fiat, then pay back the CC at some point with that fiat, you preformed a cash advance without the bank being able to charge their ridiculous fees on it.
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February 13, 2018, 11:03:59 PM
 #12

...

after all a credit card limit is in place to cover what the card holder can afford to pay back. so it doesnt matter if its a car, or a bitcoin. the credit limit secures the debt risk limit.
...
That's for sure, when you have your limit, it meas you are good for that amount of credit, because of your credit history, your incomes, your spending habits and your payback habits, etc...
Banks allow you to spend their money by that limit, because according to their system, you're able to handle that amount of debt. So this means you can spend that amount of money (buying anything, or just cashing out the money from an ATM and you can even literally throw the money into a river from the bridge...) banks don't care, because according to their calculations, you are able to pay back that amount of money from your future incomes...
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February 13, 2018, 11:11:12 PM
 #13

There are so many uneducated investors who would easily invest the debt money and if they would lose they would recover very hard that in some way damages the banks by not paying their debt, so it is a good move for the markets overall health I guess.
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February 13, 2018, 11:17:54 PM
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I don't know if this is bad or good for us, but from their point of view, this is a perfectly understandable decision.
LeonardoDiCrypto
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February 14, 2018, 12:01:56 AM
 #15

I guess that all these news are releases only for reasons of market manipulations. Maybe these giants just want to buy cheap coins. Who knows. However, the problem of people buying bitcoins on credit, with money that they don't have, in the US is a real problem.
richardsNY
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February 14, 2018, 12:11:31 AM
 #16

I don't know if this is bad or good for us, but from their point of view, this is a perfectly understandable decision.

Perfectly understandable decision? It would be if these financial institutions would also prevent people from using credit to gamble with, use credit to invest on futures and options platforms, etc. Gambling is more than anything a risk for people to end up with a hefty debt after a serious losing streak, or just an ignorant idiot thinking it's fine to put $5000 (could be any large amount) on black to potentially double his money. Don't forget that credit debts are the worst possible debts that you can have. It depends per financial service, but the interest over your debt could even exceed 20% in some cases. It means debt on top of more debt, and this will continue as long as the debt stays open. These financial institutions are a bunch of hypocrites....
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February 14, 2018, 02:31:44 AM
 #17

As said already chargebacks are a key issue but there are two other issues, point/rewards programs & cash advances.

If you buy a bunch of BTC on your CC you're earning points/cash back depending on the cards reward program. Sell the BTC before price changes & you wind up with enough points for a free flight/cash back/other rewards.

Similar issue with cash advances. If you use a CC to buy BTC, sell the BTC for fiat, then pay back the CC at some point with that fiat, you preformed a cash advance without the bank being able to charge their ridiculous fees on it.

Unless an exchange is defrauding banks by lying about what the charges are for, customers can’t avoid cash advance charges and interest. Any credit card purchase of BTC is definitely treated as a cash advance; I’m not aware of any exchange that processes the charges more favorably. That’s not to say that fraud can’t happen though. I remember back in 2010 or so when Pokerstars’ bank was processing poker deposits as purchases for golf balls, etc.

And if I could get cash back for BTC purchases, I definitely would. But no CC issuer pays out rewards for cash advances. Rather, they ream you on fees and interest. Last time I checked (last year), Bitstamp was charging 8% on top of spot prices when using credit card. Cash advance fees tack on another 3-5%. Who the hell is paying 10-15% above spot for the privilege of using credit cards? People charging back — that’s who. Not sure who is dumb enough to pay those prices otherwise.

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February 14, 2018, 03:23:10 AM
 #18

I don't know if this is bad or good for us, but from their point of view, this is a perfectly understandable decision.

It's bad in a sense that it will be sensationalized and spun into an anti-crypto narrative, when that's really not the case, as others have already clarified. It's going to be yet another banks vs crypto news item, and those are often not good for crypto.

Other than that, I don't believe it's a big deal. I don't think people should be buying crypto with credit cards in the first place, with the fees and all.

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February 14, 2018, 03:29:57 AM
 #19

That's not the worst thing in the world if you think about it. Buying crypto on credit card is really risky, and banks like to reduce their risk. It is the same reason why you cannot usually buy stocks on a credit card, for example.
buying crypto currency using credit card for me is a big big no you are putting your self on very high risk situation. you pay interest in credit card + penalty and what if your investment  was going down? you are lossing double.

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