Mark Mason
Well-known member
3 Reasons Credit Cards Are Blocking Cryptocurrency Purchases
Recently, several major card issuers have banned cryptocurrency purchases with credit cards. While it can be easy to think that this is a move specifically to attack crypto, let’s not forget that debit card and bank transfer purchases are still allowed. So why ban credit cards? Well, there are three main reasons why card companies would be very hesitant to allow this sort of exchange.
1: Chargebacks when buying a one-way currency is a recipe for disaster
Credit card transactions can be reversed. Cryptocurrency cannot. Trading one for the other all but guarantees that there will be those trying to game the system by buying cryptocurrency and later performing a chargeback, essentially getting something for nothing. Because of this inherently disadvantageous setup, as well as the inability for banks or other authorities to reverse cryptocurrency transactions, card companies have a very strong disincentive to allow this kind of activity.
Read more: https://www.dashforcenews.com/3-reasons-credit-cards-blocking-cryptocurrency-purchases/
Recently, several major card issuers have banned cryptocurrency purchases with credit cards. While it can be easy to think that this is a move specifically to attack crypto, let’s not forget that debit card and bank transfer purchases are still allowed. So why ban credit cards? Well, there are three main reasons why card companies would be very hesitant to allow this sort of exchange.
1: Chargebacks when buying a one-way currency is a recipe for disaster
Credit card transactions can be reversed. Cryptocurrency cannot. Trading one for the other all but guarantees that there will be those trying to game the system by buying cryptocurrency and later performing a chargeback, essentially getting something for nothing. Because of this inherently disadvantageous setup, as well as the inability for banks or other authorities to reverse cryptocurrency transactions, card companies have a very strong disincentive to allow this kind of activity.
Read more: https://www.dashforcenews.com/3-reasons-credit-cards-blocking-cryptocurrency-purchases/