|Feb 15, 2018 11:51 PM||By: Guest Author | 19469 Views|
Coinbase,declared Tuesday that it damaged the facility for customers to attach new credit cards as a payment method for those in the U.S.
In a blog post, the company announced debit cards are unaffected by this change, which was motivated by the achievement that it can’t guarantee customers that they will have a successful experience purchasing cryptocurrency via credit card. In recent weeks credit card firms have announced they are banning the use of their cards to buy digital tokens.
“We know several customers have continued credit cards as their primary payment method; we did not make this decision easily. We are actively running with card networks and card issuers to find a long-term answer,” Coinbase wrote on its corporate blog. “For customers in the UK, EU, Canada, Australia, and Singapore, we are getting feedback and assessing similar changes.” For clients that have a credit card linked to their Coinbase account, they can proceed to make purchases, granted the credit card issuer provides it. Coinbase warned the bank could charge cash advance fees for using it to buy cryptocurrencies. To circumvent that, Coinbase announced, U.S. customers should switch their payment method to debit card or a bank account.
Citigroup stated beginning in February that it will no longer allow credit card consumers to purchase bitcoin with a credit card assigned by Citigroup. “We will continue to evaluate our policy as this market grows,” declared a bank spokeswoman reported The Wall Street Journal. Meantime, Bank of America and JPMorgan Chase declared they, too, wouldn’t allow users to buy bitcoin among their credit cards anymore. According to The Wall Street Journal, banks are getting more concerned about the risks connected with customers using their credit cards to buy cryptocurrency, namely Bitcoin. A big organization is that bitcoin purchases will result in more card needs for the companies. Added concern is that credit card companies will have more fraud damages as a consequence of customers using them for bitcoin purchases. When there is fraud, it’s the card issuer and/or the merchant that takes the hit. With more exchanges selling bitcoin, there is an enhanced risk of fraud for the credit card firms. Capital One has been checking customers from doing that since January, while Discover Financial banned it back in 2015.