Starting at the beginning of this month Bank of America and JP Morgan Chase, as well as Citigroup, will reportedly no longer allow customers to purchase bitcoin or other cryptocurrency with either personal of business credit cards. The move comes as concerns mount that customers purchasing cryptocurrency with credit in a speculative move could rack up huge amounts of debt if the market retreats on them. Fraudulent charges were also a concern, citing the ease in which stolen credit card information could be laundered through exchanges.
Numerous other card processors have already block their customers from purchasing crypto with their cards. Some banks are beginning to process crypto purchases as “cash advances,” which could result in additional fees. Time will tell if the trend will continue of banks limiting purchase opportunity, but it remains a likely scenario given the friction between crypto and traditional finance.
