My Credit Card Company has Declared War on Cryptos
This morning I went to buy a couple of LTC on a credit card which I've used to make well over a dozen crypto purchases since September and I received the following purchase failure message from Coinbase.
I would have just used one of my regular bank accounts but I was curious how much of a fee they would charge on the credit card side as it was recently announced that crypto purchases via CC would be subjected to higher fees going forward.
I opined about the higher fees recently in this post.
https://steemit.com/cryptocurrency/@cryptokeepr/credit-card-crypto-purchase-fees-to-increase
One of the commenters gave me some perspective that the card companies do have legitimate reason to up their fees and I can agree with that point of view. They can charge what they want as they're providing a service BUT...
An outright ban by this particular card company on crypto purchases? I'm not OK with that at all.
Now I don't feel bad at all receiving over $350 in cashback rewards from this card over the course of the year and I'm now really glad I was able to take that much from the bloodsucking bastards. The APR is 24% despite my credit score being in the top 15% of all US residents. I've not paid them a dime of interest since I got the card because I always pay my balance in full every month.
This is just another development in the banking industry's hate-on for cryptos. Too bad for them they're gonna lose this war eventually even though this small scuffle was a victory on their part--or so they think it is. If they were smart they'd charge me a higher fee and allow me to make the purchase. But they're behaving like cornered animals in a sense.
Many in the financial industry are acting like cornered animals as far as cryptos are concerned. But cryptos are a bubble and a scam anyway according to them, so what are they so afraid of? Why not just let me make my purchase and hope I don't have enough to pay the balance at the end of the month (lol fat chance of that happening).
So I'll just use one of my bank accounts to make the modest sized buy today and will not be prevented from engaging in legitimate commercial activity in this supposedly "free market" that we have in the U.S.
I'll also continue to use the credit card for everything else that I can so I can continue to reap the 2% cash back rewards. The only things I can't pay for with it are my mortgage, cryptos, and lottery tickets to the best of my knowledge.
My concern is, what will be the next roadblock? Will they disable crypto purchases from certain big banks and with debit cards?
I can understand that some people may get themselves into a financial nightmare buying more crypto than they can pay for on a credit card but people do that with many other things such as Christmas, vacations, etc. So the card issuer can claim this is of noble intent but I suspect they have other reasons and I don't think they've quite thought this through because they're behaving like cornered animals.
I know what a cornered animal looks and acts like. And many in the financial industry are acting like cornered animals as far as cryptos are concerned. But cryptos are a bubble and a scam anyway according to them, so what are they so afraid of?
Citibank--you can enjoy your little victory today. The only effect it had on me was it gave me something to write about this morning.
This changes nothing as I just made that same purchase using a bank account I have at a LOCAL credit union that does allow people to make their own financial decisions. Hopefully the banking industry as a whole will get over their fear of cryptos and at least let us make our own financial decisions. I doubt they will though because cryptos could very well be the beginning of the end of their choke hold on the consumer and even the government and politicians.
You banks at the top of the industry may enjoy your standing now. Being at the top is great isn't it? But if you look down off that precipice it's a long way down and if you do get pushed over the edge some day....well, that's a loooong way to fall before you hit the ground.
I am not advising anyone to use credit to buy cryptos or anything else for that matter. This post is for informative and entertainment purposes only and should not be construed as financial advice. Credit cards can ruin people's lives if not used properly / with prudence. Never buy anything on credit that you can't pay off immediately.
I think cashback are the biggest scam out there. Does anyone even consider where the money for these cashback schemes comes form? I'll tell you: from the obscene, usurious interest rates the Banks charge the working poor.
The war on crypto is just getting started. You watch what happens once the stocks market bubble pops and everyone starts abandoning traditional markets for cryptos. That's when the real war will begin!
I've been waiting for the stock market to come down out of the stratosphere for a few years now honestly. Who knows how much longer it can go on and you make a valid point. That could cause a massive rally in cryptos and precious metals (kind of like the 2008-09 financial crisis did for PM's at the time with gold hitting around $1900 and silver over $40 oz).
They don't know what to do more in order to avoid the next blockchain supremacy, that wil come, sooner than later
This is so crazy. It is sad that banks are doing this kind of thing. I have resorted to just keeping a little bit of money in my Coinbase USD wallet at any given time so I can make immediate purchases if the price gets to a point I like. Regular purchases from a bank account can take 1 to 2 weeks. It doesn't make anything quicker, but Ally is a great online bank that hasn't seemed to put any restrictions on working with crypto yet. -@bozz
That's what I liked about using a CC was that the funds were available instantly and I could send whatever I bought to another exchange and buy what I really wanted to trade for immediately, not a week later. In this case it was an experiment to see if my card company was going to charge a fee for crypto purchases. I had no idea they'd disable them altogether! I have plenty of credit cards (most of which I don't use because the rewards are lower) so that's not an issue, it was just very surprising.
well said. credit card and bitcoin debit card companies are going crazy because the big dogs want all the money in the world for themselves. having said that world is changing faster and more legal loopholes are poping out every day. you just have to look at the right corner and get the job done. the best place i have been buying my alts are on localbit. most of them traded in person with cash or bank deposits. simple. dont stress cryptos are here to save mankind not peoplekind lol
I'll have to check that (localbit) out sometime. I'm sick of having to buy one a few cryptos and then sending it to another exchange just to buy some altcoin that I want. Plus I think the big banks are probably going to be helping the IRS chase down people who aren't reporting huge gains and even though I'm not rich (though I do have some nice gains) at some point via reporting purchases made on major exchanges like Coinbase. I really need to find another entry point...thanks for the suggestion!
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i think it is an fader disition for them...crypto can not stoped...
now crypto are rowly matured and have a huge market...
if you stop credit card another are open @cryptokeepr
I typically disagree with banks on most things crypto related but I don't really have a problem with them making it more difficult to buy tokens on credit as long as a debit card is still an option. Someone like yourself might always pay your balance on time but that, unfortunately, is not the norm. It could potentially bankrupt them when people are unable to payback even the interest because they went all in something like Tron. In a centralized system, they will always cater to the lowest common denominator.
Yes unfortunately many do make bad decisions and go in way too heavy. When I was in my 20's I got in a lot of credit card debt and at one point was paying a few hundred dollars in interest alone per month. So I get that side of the argument.
But the credit card companies thrive on people who get in over their heads much like I did when I was younger. I guess cryptos could drive people to make even more hasty buying decisions and going all in on something as you said. But it does make me wonder if eventually we'll see restrictions come with debit cards and even bank accounts with fiat backing them.
I don't think they want that battle....if a bank said, "no because I said so", people would start to realize they're really not in control of their money, which is largely why cryptocurrency exists in the first place. Personally, I would close my account with that bank immediately.
I can accept the terms & conditions if I'm borrowing their money - your house, your rules, and that's fine; but they're be poking the bear when they start telling people what they can and can't do with their own money.
Banks are getting increasingly scared of cryptocurencies. And they should be.
Intreresting to read @cryptokeepr. A lot of banks in Ireland and England have announced that they are monitoring cryptocurrenices, but have not made a decision on anything just yet.
I would really appreciate your feedback on my latest project!
I think banks are starting to fear the growing interest in crypto currency and see themselves loosing control and hence are making moves like this which just turns more people against them