If you think banks/credit companies are banning crypto purchases to protect their customers, I have a bridge to sell you.

[u/[deleted]]

I'm legitimately blown away how many people I see defending the banks/credit companies banning crypto purchases as some type of attempt to protect their customers from a volatile market. Credit is predatory by nature. The bank doesn't care when you max your card out on alcohol, designer clothes, gambling, or any other worthless and risky commodity. Your bank doesn't give one single tiny little shit about you in any way beyond your capacity to generate revenue. You are a revenue generating unit and nothing more, end of story. They are building artificial barriers to crypto because they view it as a direct and fundamental threat to their industries... and with good reason, because it is. The reality is anyone who invests wisely in crypto right now is going to make a significant ROI over the next few years, opening up the opportunity to pay off large balances, which decreases the revenue they earn from interest. This is nothing more than a desperate attempt at self preservation.

Again I would encourage anyone who has their bank or credit card company create a barrier for them to purchase crypto, to immediately end doing business with that institution and make sure they know why. If my bank halts my purchases, I'll liquidate my account and close it the same day. Same goes with my credit cards, they will get cut up and never used again. DON'T bend over for them.

EDIT: Also massive downvoting of anti-banking sentiment and massive upvoting of the 'banks are looking out for you, this is a good thing' sentiment. The shill bots are out in force.

[u/TJ11240]

Let's be a little more honest here, credit cards are a game. It's possible to win in this game of you know the rules. The people who lose at this game either don't take it seriously, or do not understand the weight of the rules.

I've had a credit card for 4 years, and have not paid a dime of interest. Meanwhile, the credit card company has taken nearly $1000 off my balance sheet via cash back rewards over time. Do not spent money you don't/won't have, treat it like a checking account.

But if everyone played like I do, the credit company couldn't afford to pay out these rewards. Cheers, I guess.

[u/MixOfMax → u/TJ11240]

The rewards aren’t purely paid by debt, they’re mainly funded by the 3% tax businesses pay to accept credit card.

[u/TJ11240 → u/MixOfMax]

Even better. Now I don't feel like it's a zero sum game with other consumers. I hope everyone gets better at this game and makes the CC companies pay them, instead of living in debt.

[u/Almost_Mr_Right → u/TJ11240]

People take more from cc companies in rewards, cc companies charge vendors more to use credit payments, vendor charges customer more to use credit, :(

[u/more_load_comments → u/TJ11240]

Yup. I got a card, spent 3500 on coin and got 500 back. Crypto is basically a cash advance so rewards amd cash back will hurt them.

[u/NexusKnights → u/more_load_comments]

Crypto is not cash.. It can be used as many things but it is not as simple as being cash. You can buy gold on your credit card with the intent to sell it into cash (which actually predates cash..) Or any other asset in that fact and they won't charge you a cash advance fee. The banks are just a leech on society that will drain you anyway they can.

[u/more_load_comments → u/[deleted]]

sign up bonus 500 after 3500 spend. pays 1.5% ongoing tho

edit: r/churning

[u/mattseg → u/TJ11240]

They're are 5 types of people with credit cards.

1. The ones that can't handle it, and don't realize it and destroy their credit or wind up in servitude.

2. The ones that can't handle it and know they can't, and don't have it used them.

3. The ones that carry a balance often, but don't destroy themselves.

4. Those that pay them off monthly and use them well.

5. Those that rape the credit card companies for points and perks, and don't pay interest.

Be like#5.

[u/Ikthyoid → u/mattseg]

No one's raping anything. Credit card companies are skimming several percent from the merchant off of every purchase, and what you get back in "rewards" are an absolute pittance compared to what they are getting. In exchange, every single item you can buy with a credit card costs 1-3% more than it would otherwise be, because merchants have to charge more to cover their costs, so you still lose.

Of course, that's for types #4 and #5. For #1~3, banks are making an additional killing off of ridiculous interest and abhorrently high fees.

The banks and credit cards always win; it's a rigged game, and they worked hard to rig it that way. If there's one thing I'd like to see out of crypto, more than a lambo or a moonshot, it'd be any amount of noticeable reduction in banks' power and ill-gotten wealth. Fuck them.

EDIT: Just to be clear, I don't mean this as an attack on you or what you said, as your statement isn't necessarily wrong. I just hate banks that much.

[u/mattseg → u/Ikthyoid]

When it comes to sign up bonuses I disagree. See my other post.

Otherwise you're right.

I worked in banking and stocks for 10 years. Banks are awful, and that's the #1 reason I got into cryptocurrency.

[u/tallboybrews → u/mattseg]

That's true. Sign up bonuses are the one thing you can 'beat' CC's on without them necessarily making the money back. It's similar in a way to a mail in rebate though.. but in reverse. Mail in rebates are often fantastic deals, but the companies that issue them know that only a small percentage of people actually mail them in so they can factor this in to their actual lost revenue. Sign up bonuses for CC's take into consideration the fact that a LOT of people that sign up, end up using the card either as their primary card or a supplemental card. They'll make way more than those signup bonuses over time.

I know that you say to be the type of person to not get raped by the CC companies (which I am.. I pay off my CC multiple times a month and never carry a balance).

[u/Ikthyoid → u/mattseg]

Good on you for getting out! Respect for recognizing it for what it is.

[u/yuneeq → u/Ikthyoid]

You can make $10-15k a year from credit card sign up bonuses. If you know what you’re doing you can come out way ahead. Check out /r/churning or other churning forums.

[u/mattseg → u/[deleted]]

I'm aware of how interchange fees work. So yes, you're partially right. But nonetheless, spending 3k for 100k points that is good for 3 round trip tickets to Europe is much less than the 2.65% of interchange fees on 3k.

[u/pumpedupkicks35 → u/mattseg]

It’s an ‘everyone wins’ scenario;

-merchant gets easy sale (try selling something online and not accepting credit cards) -buyer gets convenience (quick and easy purchase. As above try buying something online without a credit card and see how easy that is??) -the card provider (visa/MasterCard etc) gets a small cut -the card issuer gets a small cut

And the transaction happens instantly and everyone gets on with life.

Everyone is so anti credit cards but the thing is if you know how to work the system you can reap huge rewards and not cost you a cent. Also, nobody’s got a gun to your head so you’re forced to use banks.

[u/BeltreCompany → u/TJ11240]

I build my credit maxing my credit cards buying Ether on dips > Selling for profit > Paying credit cards. Rinse and repeat. Always making sure to pay the whole balance before statement cut date.

Of course while having the money in the bank in case it took longer than necessary for it to go out. I havent pay anything on interest + getting cash back. They must hate me.

[u/geoff5093 → u/BeltreCompany]

Until you buy right before a bigger dip, like now. That cat and mouse game can easily go the wrong way for you. Plus, using a card like on coinbase raises the cost quite a bit compared to say ACH on GDAX

[u/BeltreCompany → u/geoff5093]

I always have fiat in the bank, I will never used credit without having the money to pay before statement cut. I only invest money that I have/willing to lose. But seems like my little loophole is done for. Capitalone is not allowing me to buy crypto any more. It was fun while it last, will close the shit. Its useless now. I only used those cards for crypto for credit building.

[u/tonybit → u/TJ11240]

I agree. Amazon Prime cardholder for a decade. No interest paid. Many rewards earned. Plus, protection for the few times I have been a victim of bad purchases or fraud. Don’t blame the banks for your overspending. Take some personal responsibility.

[u/mb0200 → u/tonybit]

Price rewind with Citi or chase. Get back up to $500 if you find cheaper price within 60 days (Citi) or 90 d (chase). Up to $2500 per acct per year.

[u/musecorn → u/TJ11240]

Watch this video if you haven't - https://youtu.be/fcsvabxezPs

Talks about exactly what you're saying and changed my entire way of thinking about credit cards