Banks Ban Purchases Of Cryptocurrency With Credit Cards

If you use Bank of America, JP Morgan Chase, or Citigroup issued credit cards to buy cryptocurrency, then you may want to find an alternative quick. According to Bloomberg, the banks have banned crypto purchases using their cards due to the virtual coins' "volatile nature". Bank of America has already started declining credit transactions with known exchanges. But their debit cards will not be affected.

JPMorgan spokesperson Mary Jane Rogers said the bank has decided to impose a restriction on crypto purchases, because it doesn't want to deal with the risks associated with it. In addition to the difficulties of keeping an eyes on purchases, associated with crypto coins, there's also always the risk of somebody buying more than they can afford to pay. In addition, identity thieves could use stolen credit cards to buy cryptocurrency, and banks have little chance to get that money back.

These aren't the only banks backing away from crypto. Capital One Financial and Discover also don't allow cryptocurrency purchases with their credit cards.

Discover chief David Nelms described people using virtual cards as "crooks... trying to get money out of China or wherever."

Major credit card networks and providers recently changed the terms of digital currency purchases. The new terms allow them to treat those purchases as a cash advance, which carries additional charges and have higher interest rates.

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