Wells Fargo Will Not Have People Buying Bitcoins On Credit Cards They Didn’t Know They Had And Then Defaulting

Make sure there’s enough space on your debit card for all that Ether.
Image adapted from Flickr User Aranami.

Image adapted from Flickr User Aranami.

In its time, which is to say in the last few years, Wells Fargo has (allegedly) screwed over lots of people: Its customers. Whistleblowers. Military families. The SEC. Other customers. Small-business owners. Still more customers. Maybe its foreign-exchange counterparties? Customers who were potentially victims of fraud other than the fraud allegedly perpetrated on them by Wells Fargo. And, of course, its shareholders.

But let Wells Fargo be perfectly clear: No one screws over Wells Fargo except Wells Fargo. Not even the ones who don’t know they have a Wells Fargo credit card.

Wells Fargo joins Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp., which limited cryptocurrency purchases on their credit cards in February, citing market volatility and credit risks. Lenders have said they’re worried they’d be left on the hook if a borrower lost money on a digital currency bet and couldn’t repay.

A study conducted by LendEDU last year found that roughly 18 percent of Bitcoin investors used a credit card to fund the purchases. Of those, 22 percent couldn’t pay off their balance after buying the digital coin.

Wells Fargo Bans Cryptocurrency Purchases on Its Credit Cards [Bloomberg]