Coinbase Stops Accepting New Credit Cards from US Customers/US Banks Blocking Crypto Buys With Cards

Coinbase announced Tuesday that many US acquiring banks are blocking cyryptocurrency transactions for credit cards although most debit cards are still working. For now, customers will not be able to add any new credit cards to their account to use as payment options, but will be able to use existing cards as long as the customer's bank allows the transactions to go through.

Currently, there are at least 4 major US banks that are barring their cards from being used to purchase cryptocurrency. Debit cards are still being allowed because these cards pull the funds directly from the cardholder's bank account.

Coinbase also stated that they are working with the card associations and networks to come to a long solution. They also stated that they are evaluating similar situations in the UK, EU, Canada, Australia and Singapore, to find solutions for their customers in those countries as well.

The U.S. banks that have already barred the transactions are: Capital One, Citi, Bank of America and JPMorgan Chase.

In Australia, Commonwealth Bank is blocking credit card purchases of cryptocurrencies, and in the U.K., Lloyds Banking Group issued a block for several of its member banks.

Interestingly, rumor in the payments industry is that a new China UnionPay card/wallet combo may be coming out soon that will allow crypto purchases and be available internationally.

We'll keep you posted!