Credit Card Issuers Consider Declining Cryptocurrency Purchases

January 30, 2018 by Adrian Thorpe

Credit Card Issuers Consider Declining Cryptocurrency PurchasesIf you are thinking of buying any cryptocurrency, then all you need to get to be able to do so is a digital wallet, and then set about finding a digital currency exchange at which to buy you chosen qunatity of whichever cryptocurrency you wish to buy.

You will of course also need to have a payment method on hand to purchase your chosen cryptocurrency, and up until recently it has been possible to buy from all cryptocurrencies from any digital currency exchange using a debit card or a credit card.

However, it does look like that is about to change and change very soon, for a number of different credit card issuers in some countries of the world are looking at stopping their credit card holders from being able to use their credit cards to buy digital currencies.

As such if you do live in one of those countries and use a certain type of credit card then you may fund it will start to prove difficult for you to be able to use those cards to make any type of purchase of cryptocurrencies in the very near future.

One company that has already decided to stop their customers being able to use their credit cards is Capital One Financial, and as mentioned above many other companies are also about to also ban their customers from using credit cards at any digital currency exchange. However, there are still other ways you will be able to buy cryptocurrencies so all is not lost!

Pros and Cons of Using a Credit Card to Buy Cryptocurrencies

As it is still possible to buy cryptocurrencies at a digital currency exchange with most credit cards, that may actually be a payment option you are thinking of using, and if so then I will now give you an insight into the pros and cons of doing so.

The first thing you will need to be aware of is that any digital currency exchange that does accept payments via a credit card is going to need to know that you are the legal owner of that card and as such will often require you to get your account with them verified by sending into them copies of your identification documents.

Digital currency exchanges do also add onto any purchases you make using a credit card a range of different fees and charge to cover their processing costs, and as such those fees and charges can add up over time so you will have to factor them into any purchases you do decide to make of any cryptocurrencies.

Also, it does of course go without saying that if you do not pay off your credit card bill in full at the end of each month then you are going to have to pay interest rate charges on the most you have outstanding on your card, and depending on just which card you have those credit card interest rate charges can be quite high in value.

Always Compare Different Digital Currency Exchanges

It is always worth keeping in mind that much like you do have a large range of different payment methods available to you when buying cryptocurrencies, and you do of course now have hundreds if not thousands of different cryptocurrencies you can buy, there are also lots of different digital currency exchanges that you can make use of too.

Therefore, it will always be worth your time and effort actually checking what each of them have to offer you, for there are going to be pros and cons of using any one specific digital currency exchange over any others.

One thing you will not want to be faced with having to pay are ridiculously high transaction fees and charges, so always make sure you check out just how much on top of the purchase price of your cryptocurrency you buy you are going to have to pay by way of fees and charges.

Also, do keep in mind that not all exchanges offer every single digital currency, so if you are looking for a coin or token that appeals to you then you may have to hunt around to find a digital currency that is going to have it listed as one of their available cryptocurrencies.

If you do not make some effort hen choosing a digital currency exchange then you could end up paying way more for your cryptocurrencies that you have initially intended to spend on them.