To buy gold with your credit card, you’ll probably have to pay for the convenience.
Many 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 who will.
If you’re looking to use a credit card to buy bullion, watch out for potential restrictions:
- The dealer may set purchase limits. For example, they may require a purchase between $100 and $5,000.
- Some card networks may not be accepted. Some dealers bar Amex and Discover, for example, citing high fees.
- You may pay a credit card surcharge. When you use plastic, the dealer pays a processing fee to their bank. They could choose to pass this fee along by adding a surcharge of up to 4% on your order.
To avoid a credit card surcharge, consider paying with a personal check or wire transfer. A possible perk: Your dealer might give you a discount for paying this way.
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: fast but expensive.
Why you might want to buy gold with a credit card:
- Speed. It could take several days for a check to arrive and clear, but a credit card payment often clears within a business day. Paying by credit card is also faster than a bank wire transfer, which requires more work to set up.
- You’re trying 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 specific period. Buying gold with your credit card could help you get closer to a bonus. Just make sure the processing fees don’t erase what you’ll earn in points, cash back or miles.
Why you might not want to buy gold with a credit card:
- Surcharges. You may pay a “convenience fee” of up to 4% just to use your credit card. If you buy $5,000 in gold, for example, it mean that you pay a $200 fee.
- You want credit card rewards. It may be fun to accumulate rewards, but credit card processing fees will likely erase what you earn. The exception is signup bonuses, which can give you a big win in points, cash back or miles.
When I buy gold with a credit card, will I need to provide ID?Dealers may require government-issued ID to authenticate your purchase. When you buy gold with a credit card, most dealers manually review your order before shipping it to you.
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 like your name, contact details and your shipping and billing addresses. Then enter your credit card information.
Other payment methods to buy gold
- Debit card
- ACH or wire transfer
- Personal check or e-check
- PayPal or other P2P app
- Cash deposit at a participating bank branch
- Money order