Wells Fargo ends credit card crypto purchases
Wells Fargo joins a number of other multinational banks in banning credit card crypto purchases.
American multinational bank Wells Fargo issued a statement this week declaring that customers can no longer purchase cryptocurrencies using their credit cards due to the inherent risks associated with this activity.
Wells Fargo’s decision follows similar embargoes enacted earlier this year by Bank of America, Citigroup and JPMorgan Chase & Co. These financial institutions also pointed to market volatility as reason behind the ban.
Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency. We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.
Wells Fargo statement on banning cryptocurrency credit card purchases
“We will continue to evaluate the issue as the market evolves,” a Wells Fargo spokesperson said.
A new, upcoming credit card plans to reward customers with the cryptocurrency of their choice for purchases. The blockrize credit card will offer fee-free cryptocurrency rewards, in the form of either bitcoin (BTC) or Ethereum (ETH), to the value of 1% for each purchase made. These will be deposited into users’ accounts. Customers will reportedly be able to select their desired rewards cryptocurrency and change it at any time.
Canada’s Bank of Montreal (BMO) reportedly terminated digital currency merchant transactions for credit and debit customers in March, citing security reasons and the volatile nature of cryptocurrencies as justification.
Earlier this year, digital exchange Coinbase warned customers that, due to recent changes to the Merchant Category Code, credit card companies are able to charge additional cash advance fees on crypto purchases.
Coinbase also began preventing its users from adding new credit cards as a payment method in February.
Compare a range of options, including card type, features and providers to find the right credit card for you.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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