What credit card issuers are refusing to process cryptocurrency payments

The world’s largest operator of payment cards Visa extremely negatively perceives cryptocurrency transactions because the firm’s President and other top managers are considering cryptocurrency as a speculative commodity, not a means of payment. However, sanctions against cryptocurrency issuers of cards are limited.

«We at Visa won’t process transactions associated with cryptocurrencies,» he said
Visa President Alfred Kelly (Alfred Kelly) in an interview with CNBC on 17 January 2018. «We will only process the transaction on the basis of traditional currencies. I believe that bitcoin today is not so much an investment product, how much is a matter of speculation».

Thousands of crypto-currency prepaid Visa cards issued by several companies, ceased operations on 5 January 2018, because Visa revoked
WaveCrest license to issue cards and WaveCrest lost membership in Visa. Suffered cryptocurrency company BitPay, Bitwala, Cryptopay, TenX and Wirex. Cards that fall under the sanctions, was not credit, but debit, which convert cryptocurrencies into the traditional currency like the Euro.

Cards allowed users to make purchases with cryptocurrency stored in a digital wallet, which is designed for the sale of crypto-currencies for the Euro. On exchanges is still possible to buy cryptocurrency with Visa and MasterCard, for example, on CEX.IO and through wallets like Coinbase. At the end of January 2018 CEX.IO still accepted credit card payments: Visa and MasterCard. Coinbase also accepts payments by credit and debit cards, but does not mention any specific brands.

Second, a global operator of credit cards, Master Card, to date, has not expressed its official position on cryptocurrency transactions.

American card issuers refuse to process purchases of cryptocurrencies

Worse is the case in the U.S. market. The Company Discover Financial Services
allows owners Discover credit card to buy bitcoin. This decision was made in an attempt to comply with the laws on combating money laundering, said CEO David Nelms (David Nelms) Bloomberg Technology. Nelms did not mention any specific reason for the ban, but did not say about the cryptocurrency:

«Scammers who are trying to get money from China or other countries. If someone steals the numbers of our credit cards, they demand a ransom in bitcoins. This is the only use of cryptocurrency, which I see today.»

Nevertheless, it is unclear whether the ban Discover to buy other cryptocurrencies. Credit card Discover is only available in the United States. Discover owns Diners ‘Club International, one of the oldest brands in the world of credit cards.

Capital One Financial Corporation, which issues credit cards of Visa and MasterCard in the United States, also ceased
to handle the purchase of the cryptocurrency. In a press release the Bank said that the decision was taken because of «increased risk of fraud, losses and volatility» associated with the cryptocurrency.

However, it should be noted that the blocking of credit card transactions differ somewhat from blocking debit card transactions because credit cards always involve risk, where the client can exceed the limit and due to problems the market will not be able to recover the funds.

Two other large credit card issuers in the United States, Bank of America and Citibank, are now evaluating the possibility of the cryptocurrency purchases with their cards. These banks have not yet outlined a new policy in relation to cryptocurrency transactions.

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