US & UK Banks Blocking Bitcoin Purchase Transactions

Hi LCB'ers,

If you've been using your debit cards to purchase Bitcoins, things are about to come to a screeching halt. Banks in the U.S., and UK according to recent reports, are blocking transactions related to Bitcoin exchange. They think the virtual currency is too risky and makes it difficult for them to conduct the regulatory compliance monitoring required.

Banks first and credit card brands, such as Visa and Mastercard, are following suit making it impossible to get your hands on Bitcoin - or any virtual currency - using a card.

Scary stuff considering cryptocurrency has been the answer to online gambling for US players.

A few interesting articles...

Major Banks Ban Buying Bitcoin With Your Credit Card

Bitcoin Ban Expands Across Credit Cards as Big U.S. Banks Recoil

Lloyds Bank bans Bitcoin purchases on its credit cards

I read that news too and it was dissapointing to read. To me it sounds like the banks are scared of the potential of cryptocurrencies. 

I'm not sure about the UK, but I know there are loads of Bitcoin ATM machines all over the US and the rest of the world.  Super easy to buy and sell bitcoin (and other alt coins) at them for cash. 

Plus there is always localbitcoins.com where you can make cash deposits, paypal, bank transfers, bank deposits, and loads of other ways to buy and sell coins. 

Good luck how ever you deposit and withdraw when you play

As far as I know the ban does not apply to debit cards, at least not at the moment, so you can still exchange dollars for bitcoin if you have a debit card. 

sounds like a prime opportunity for a chain of bitcoin banks..

to really up the ante they could just use the paper money they recieve to heat the buildings until it disappears from the marketplace entirely ;-)

Interesting thought, bitcoin banks, but they'd still be subject to meeting regulatory requirements, wouldn't they? 

As far as the ability to continue using debit cards, it was up to the issuer (financial institution) at first. Big banks are blocking by the transaction type, which would include Bitcoin ATMs and exchanges. Debit cards are generally Visa or Mastercard branded, so if the brand places a ban, restrictions will be implemented across the board encompassing any card with either logo. I just read an article talking about the Visa CEO and the company's stance on Bitcoin - it's not really money and Visa won't touch it.

Bitcoin discussion starts at 2:25

Visa CEO Alfred Kelly weighs in on tax cuts, bitcoin and global transactions from CNBC.

Upay is blocking (or being blocked) by one of my cards by not the other.  Both are chase both are debit.  Next they'll tell me i cant buy heroin.

Lol we will see

Its interesting to me how scared the governments are to not be in control of your money.  The "more free" the country, the more against it they will be.

So now what?   we can't even spend our own money legally to buy Bitcoin?  If we can't use a bank debit card for purchases,   what are our choices?

I think you can still use debit cards, but not credit cards, I might be wrong. You can also find retail outlets and ATMs to exchange cash for coins directly.

I think it applies to both credit and debit.  I tried couple of my debit cards with no success.

If this trend continues,  how would we ever be able to "get " more Bitcoin(s)  that's my concern.  

The reason behind all of this is put simply "20K".  The reason for this was because Visa and Mastercard saw a huge uptick in credit card transactions to bit coin exchanges during this time.

Also within the month of the peak of BTC, during this same period they also saw a huge influx of charge backs once people had realized they had lost money in BTC heavily.

If you go to several BTC web sites you'll read post after post of people whining about how they lost big bucks by charging money to there cards.  Then loosing huge once BTC bottomed out.

If it wasn't for the huge boom BTC would probably fly still under the radar without much thought.   It's sad to see were back in the same boat because we've had a few people ruin it for us good people.

Bitcoin has its ups and downs. I have wasted tremdous money on it. Just a super rip off if your from the US. 25 dollars for barely 5 btc anyhow. I did have a successful cashout from Betchain back to bitcoin wallet. I was too pumped about being able to recieve my miney instantly

Yeah, this sucks... I was happily buying my crypto on Coinbase for like 2 years, then last year sometime my bank BMO Harris decided to block that luxury without warning. My bank account gets flagged and locked immediately when a Coinbase charge is attempted now. :-/

Your only option is to buy using skrill account or exchange PayPal balance with a trusted site that sells Bitcoin...might be stressful but worth it if you are in US