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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

Frequently asked questions

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