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RE: SHOCKER: JP Morgan-Chase Bans Buying Crypto With Credit Card
A credit card means that you can "borrow" money from the bank easily. If you have 100 in a credit card, you can actually spend the 100$ that is yours and "borrow" another 500 from the bank.
Sure, but banks don't make money on credit cards if we pay our bills in full at the end of each month. They make money on the interest when people pay less than the full amount. I don't agree with it and always pay my credit card bill in full at the end of each month, but if the bank is happy for people to max out on their card for a widescreen tv, to intervene when they are maxing out on crypto instead is not letting people spend as they wish.
But that's the point, credit card companies give customers an interest-free loan until they pay their balance, even if you pay in full, it's an interest-free loan given to the customer.
Debit card ban would be different because that actually is your money immediately withdrawn.
Totally the right move in my opinion, and they should have done it a long time ago.