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Using a credit card to buy gold

You can usually buy gold with your credit card - but it might be more expensive.

Some gold dealers won’t accept credit cards for two main reasons: high processing fees and the increased risk of fraud. However, you’ll find some dealers, especially those online, who will accept credit cards as a method of payment – but the gold will likely cost you more than if you used cash, cheque or direct deposit to pay for it.

If you’re looking to use a credit card to buy bullion, watch out for potential restrictions.

  • The dealer may set purchase limits. The dealer may set minimum and maximum purchasing limits. For example, they may require a purchase between $100 and $5,000.
  • Some card networks may not be accepted. Some dealers may only accept Visa and Mastercard branded credit cards, while American Express may not be accepted due to higher processing fees.
  • You may pay more when paying with credit card. When you use plastic, the dealer pays a processing fee to their bank. This is why it’ll likely be more expensive to buy gold with a credit card or a service that uses credit cards such as PayPal. Paying with cash, direct deposit or cheque is usually cheaper.

Why you should and shouldn’t buy gold with a credit card

Buying gold with a credit card can often be summed up in one phrase: faster, but more expensive.

Why you might want to buy gold with a credit card:

  • Speed. It could take several days for a cheque to arrive and clear, but a credit card payment often clears within one business day. Paying by credit card is also typically faster than a bank wire transfer.
  • To meet your card’s minimum spend for a signup bonus. Many signup bonuses require a minimum spending requirement — sometimes thousands of dollars over a short time period. Buying gold with your credit card could help you get closer to the bonus. Just make sure the pricier cost of paying with a card doesn’t erase what you’ll earn in points, cash back or miles.
  • You don’t have the savings or cash on hand right now. Since your credit card comes with an interest-free grace period, you could potentially charge the gold to your card and pay it off in a few weeks time once your credit card bill is due.

Why you might not want to buy gold with a credit card:

  • Higher cost. Gold usually costs more when you purchase it with your credit card. This is because the merchant will be charged processing fees and will likely pass them on to you for the convenience of offering a credit card as a payment method.
  • You want credit card rewards. It may be fun to accumulate rewards points or cash back faster, but the pricier cost of paying with your card will likely decrease the value of what you earn. The exception to this could be signup bonuses, which can give you a big win in points, cash back or miles.
  • You won’t be able to pay off your balance. If you know you won’t be able to pay off your credit card balance in full, you should avoid charging the gold to your card. Find another method or reconsider your purchase.

How to buy gold with a credit card

Buying gold with a credit card is similar to paying for any other online purchase. Just fill out the checkout form with information including your name, contact details and your shipping and billing addresses. You’ll need to check off your payment method as a credit card and enter your credit card information. This information will include your full name, your credit card number, the expiry date and your CVV number.

Other payment methods to buy gold

  • Debit card
  • Wire transfer
  • Cheque
  • PayPal
  • Cash deposit at a participating bank branch
  • Money order

Compare credit cards

Name Product Welcome Offer Rewards Purchase Interest Rate Annual Fee Min. Credit Score Description
RBC Cash Back Mastercard
N/A
Up to 2% cash back
20.99%
$0
Min. recommended credit score: 650
Get 2% cash back on grocery store purchases, and up to 1% cash back on all other qualifying purchases and pre-authorized payments.
BMO CashBack Mastercard
5% cash back
Up to 3% cash back
20.99%
$0
Min. recommended credit score: 660
Get 5% cash back on all eligible purchases in the first three months of card membership (up to max. spend of $2,500). Plus, get a rate of 0.99% on balance transfers for 9 months. A 2% fee applies to transferred balances.
OFFER
Tangerine Money-Back Credit Card
10% cash back
Up to 2% cash back
19.95%
$0
Min. recommended credit score: 600
Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months. Valid until July 5, 2023. Plus, get a 1.95% interest rate on balance transfers for the first 6 months.
OFFER
Tangerine World Mastercard
10% cash back
Up to 2% cash back
19.95%
$0
Min. recommended credit score: 600
Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months. Valid until July 5, 2023. Plus, get a 1.95% interest rate on balance transfers for the first 6 months.
Neo Financial Mastercard
Get $25.00 + up to 15% cash back
Average 5% cash back
19.99% - 26.99%
$0
Min. recommended credit score: 600
Get $25 when you sign up for the Neo Financial Mastercard. Plus, earn bonuses like 15% cashback on your first purchase at most partners, and earn an average of 5% cashback at thousands of partners and at least 0.5% cashback guaranteed.
RBC Avion Visa Infinite
35,000 points
Up to 1 point per $1 spent
20.99%
$120
Min. recommended credit score: 650
Get up to 35,000 Welcome Points.
American Express Cobalt Card
30,000 points
Up to 5x points per $1 spent
20.99%
$155.88
Min. recommended credit score: 700
Earn up to 30,000 Membership Rewards points in your first year. Earn 2,500 Membership Rewards points for each monthly billing period in which you spend $500 in net purchases on your card (up to 30,000 points). That’s up to $300 towards a weekend getaway or concert tickets.
BMO Preferred Rate Mastercard
0.99% rate on balance transfers for 9 months
N/A
13.99%
$0 annual fee for the first year ($29 thereafter)
Min. recommended credit score: 660
Get a rate of 0.99% on balance transfers for 9 months with a 2% transfer fee. Plus, get the $29 annual fee waived in the first year.
RBC ION+ Visa
7,000 points
3 points per $1 spent
20.99%
$48
Min. recommended credit score: 660
Get up to 7,000 points. Get 3,500 Welcome Points on approval and earn 3,500 bonus points when you spend $500 in your first 3 months. Apply by May 29, 2023.
RBC ION Visa
3,500 points
1.5 points per $1 spent
20.99%
$0
Min. recommended credit score: 660
Get 3,500 Avion points when you get approved for the card. Apply by May 29, 2023.
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