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Credit cards banning BitCoin
Irritated34
Posts: 6 Forumite
in Credit cards
I see today on the news that credit card company's are refusing to give customers credit for bitcoin. This is great news, however it's a shame that MBNA didn't refuse me credit for Binary Options, I was scammed out of £18,000 and I now have to pay off this debt! Who's the winner here? Option.FM certainly, and of course MBNA, me? No, I'm now a nervous wreck, and in debt up to my neck!
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Comments
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It is a tricky issue - the extent to which CCs, banks and others can get involved in protecting people from bad decisions. Where do you draw the line?
1) Stopping a transaction to a known fraudster?
2) Stopping a class of transactions where people have had problems - eg binary options
3) Stopping investments in volatile "instruments" - eg bitcoin
4) Limiting transactions on gambling sites because it can't be good for people
5) Stopping transactions in strip clubs, brothels (where legal), escorts etc
6) Limiting the use of CCs to buy fatty foods, cigarettes
Personally I'd probably I wouldn't go much further than (1). But I'd have systems in place so that people who have problems with, say, gambling can voluntary block those transactions.
The problem is that if banks start taking responsibility for this stuff, it adds to costs and then you get people claiming (perhaps as you feel) why didn't they stop the transaction that lost me money?
I'd be rather annoyed if my bank told me I couldn't use my debit card to buy, say, bitcoins. My answer would be: it's my money! But for a CC, I'd feel they are more entitled.0 -
Irritated34 wrote: »I see today on the news that credit card company's are refusing to give customers credit for bitcoin. This is great news, however it's a shame that MBNA didn't refuse me credit for Binary Options, I was scammed out of £18,000 and I now have to pay off this debt! Who's the winner here? Option.FM certainly, and of course MBNA, me? No, I'm now a nervous wreck, and in debt up to my neck!
Sorry but it's your own fault. Nobody made you gamble and no doubt if MBNA had blocked the transaction you would have been on here bleating about how "bad" the banks are for not letting you spend your money how you wanted.0 -
camelot1971 wrote: »Sorry but it's your own fault. Nobody made you gamble and no doubt if MBNA had blocked the transaction you would have been on here bleating about how "bad" the banks are for not letting you spend your money how you wanted.
That's harsh given the tenor of the OP's post. Also, we don't know the extent to which he was "scammed" or simply gambled and lost.
But given what you say, where do you stand on Lloyds blocking Bitcoin transactions on their CC?
Would you repeal S75? What about chargeback? Surely people buying those Uggs (or whatever they are) from China for $10 knew the risk they were taking?0 -
I can see their point of view. With the uncertainty surrounding cryptocurrencies they are probably seeing similar risks to them as with gambling.0
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chattychappy wrote: »It is a tricky issue - the extent to which CCs, banks and others can get involved in protecting people from bad decisions. Where do you draw the line?
Radio 4 was arguing that the banks are protecting themselves from people's bad decisions.0 -
So is it a case that some bank official thinks any loss could be covered by S75? They are only talking about credit card not debit card payments, so it has nothing to do with morality but the specific risk to CREDIT rather than DEBIT card payments0
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No the banks are protecting themselves from daft people gambling with the banks money and the highly likely outcome of daft people then defaulting on the debt.
With debit cards the money comes straight out of your bank account so only the ultra-high interest overdraft is at risk and this is already priced in to the insane fees / rates on overdrafts.
Makes sense to me0 -
Given CCs only make a tiny % on any transaction*, I don't blame them for avoiding transactions which could give them hassle - whether it's people demanding chargebacks/s75 (legitimately or not) or straightforward defaulting.
(* true they make more if people are paying interest).0 -
chattychappy wrote: »
Would you repeal S75? What about chargeback? Surely people buying those Uggs (or whatever they are) from China for $10 knew the risk they were taking?
There is a definite line between things going wrong with a "routine" transaction and some idiot buying fakes from China for $10 and then complaining they were scammed.
Some people really do need protecting from themselves but what is the solution?0 -
camelot1971 wrote: »
Some people really do need protecting from themselves but what is the solution?
IQ tests as part of the credit application...
:whistle:0
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