Wells Fargo Bans Buying Crypto With Credit Cards
As of Monday, Wells Fargo customers seeking to purchase cryptocurrencies with credit cards will now have to turn to other means of payment.
Wells Fargo joins JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. who, according to statements released in February, said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards. These banks are doing so out of the credit risk associated with the transactions.
In 2017, LendEDU polled 672 active Bitcoin investors and discovered that 18 percent used a credit card for funding. 22 percent of them were unable to pay off their balance after their investment.
While the majority in this study rely on a debit card to fund a purchase, the population relying on credit will need to find a supportive bank or another method of funding. With Bitcoins highly volatile track record in 2018, it will be interesting to see how the statistic changes over time.
The future of this matter is uncertain as Wells Fargo “will continue to evaluate the issue as the market evolves,” Shelley Miller, a spokeswoman, said in an emailed statement.