Three Major Credit Card Companies Ban Bitcoin Purchases

Three credit card companies banned cryptocurrency purchases on Friday and Saturday. They do not want the risk.

JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards. JPMorgan, enacting the ban Saturday, doesn’t want the credit risk associated with the transactions, company spokeswoman Mary Jane Rogers said.

Bank of America started declining credit card transactions with known crypto exchanges on Friday. The policy applies to all personal and business credit cards, according to a memo. It doesn’t affect debit cards, said company spokeswoman Betty Riess.

And late Friday, Citigroup said it too will halt purchases of cryptocurrencies on its credit cards. “We will continue to review our policy as this market evolves,” company spokeswoman Jennifer Bombardier said.

This makes perfect sense to me.

Mike "Mish" Shedlock

Aw, geesh, This has already been decided. Bernanke already said "Gold is not Money". What part of that don't yall understand. Here's the link to Ron Paul questioning Bernanke, where he gives the definitive answer. Link: https://www.youtube.com/watch?v=NQc8iPxG8v4

How dare the new financial-adviser-as-fiduciary ruling come between a crypto currency issuer and his speculator, um, I mean, clients.

This seems entirely appropriate to me. I'm pretty sure that you can't buy stocks or commodities with your credit card, either.

Obviously, if people really want to buy bitcoin (or stocks or commodities) with their credit card, they can take a cash advance, and put that into an appropriate account, and make the purchase. Thus, it doesn't prevent people from being stupid, it just makes it take one more step.