Can anyone explain why it is bad to to buy Bitcoin with Credit Card? - page 2.

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Quote from: An0nyMoose on September 17, 2017, 05:40:26 PM

It is bad to buy Bitcoin with a credit card because credit card companies don't like Bitcoin and maybe they will block your card or something? Actually, I don't think this would happen.

I am confused, why credit card companies don't like the purchase of bitcoin?
They must have good reason to refuse the purchase of bitcoin

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Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

Mostly many are afraid due to the credit card fraud and we dont want the same issue with us in the future. There are many such scam sites which would stole your credit card numbers abd wont give bitcoins in returns. We should keep away from such sites.

Also credit card purchasing takes a lot time for the confirmations and we get the amount of bitcoins after a huge time. In that time the price for bitcoins can go down or can go up and could prove to not be profitable. This is what keeps peoples away from purrchasing bitcoins with their credit cards. Instead it is good to purchase bitcoins with cash from a dealer.

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Quote from: JaredStein on September 17, 2017, 06:09:55 PM

Who says it is bad to buy Bticoins with a credit card? Not me! I think it is smart.

I agree

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Who says it is bad to buy Bticoins with a credit card? Not me! I think it is smart.

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Quote from: An0nyMoose on September 17, 2017, 05:40:26 PM

It is bad to buy Bitcoin with a credit card because credit card companies don't like Bitcoin and maybe they will block your card or something? Actually, I don't think this would happen.

I have heard of plenty of bank accounts being closed because of bitcoin buying. i have never, ever, ever heard of a credit card account being closed because of it but that's probably because buying bitcoin with a credit card is extremely rare.

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It is bad to buy Bitcoin with a credit card because credit card companies don't like Bitcoin and maybe they will block your card or something? Actually, I don't think this would happen.

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Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

You should avoid credit cards to avoid inflected interest charging in which will decreased your possible gaining in bitcoins. If you have earnings already in bitcoin then you must pay immediately the credit cards to avoid interest charging. Why you want to use credit cards if you have alreay created a capital from bitcoins earnings?

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Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

It's because bitcoin payments are irreversible and the seller can't be sure if the credit card owner will not file chargeback.It also does not help credit card owner too because your credit card company will know what you spend your money on(in this case bitcoin) so you won't be anonymous with bitcoins.

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Quote from: synapsisxxx on September 17, 2017, 05:10:25 PM

Interesting, my bank or country hardly supports this chargeback option I think. I use PayPal which has the chargeback option though I have never used it to buy bitcoin.

are you sure? i guess it depends on who issued your card but i'm pretty sure it's an intrinsic feature of all visa and mastercard cards, but of course there are other credit card issuers in other parts of the world.

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Quote from: European Central Bank on September 17, 2017, 05:03:01 PM

Quote from: synapsisxxx on September 17, 2017, 03:52:18 PM

Yes that is a general disadvantage when buying anything with Credit card though. Anyway, while trying to buy Bitcoins, all credit card options are either extremely sparse or overpriced. It's extremely difficult to buy with Credit, why though? Is there a economic reason to this?

bitcoins are 100% irreversible. once they're gone, they're gone. there's no way of getting them back. credit cards are often stolen or can be charged back.

bitcoin merchants who sell to credit card holders either have to be extremely diligent or put up with a significant amount of theft. i presume that's why fees are so high as they're taking a regular hit.

if i was in the bitcoin selling business there's no way in hell i'd ever accept them.

Interesting, my bank or country hardly supports this chargeback option I think. I use PayPal which has the chargeback option though I have never used it to buy bitcoin.

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Quote from: synapsisxxx on September 17, 2017, 03:52:18 PM

Yes that is a general disadvantage when buying anything with Credit card though. Anyway, while trying to buy Bitcoins, all credit card options are either extremely sparse or overpriced. It's extremely difficult to buy with Credit, why though? Is there a economic reason to this?

bitcoins are 100% irreversible. once they're gone, they're gone. there's no way of getting them back. credit cards are often stolen or can be charged back.

bitcoin merchants who sell to credit card holders either have to be extremely diligent or put up with a significant amount of theft. i presume that's why fees are so high as they're taking a regular hit.

if i was in the bitcoin selling business there's no way in hell i'd ever accept them.

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Quote from: valucash on September 17, 2017, 04:52:52 PM

Buying with a credit card is a very hard option, doesn't work for me

What kind of card have you got? Can you use PayPal?

I have a visa card and I am able to transact at almost any exchange albeit at extremely high price.

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Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

Typically it comes down either to do with interest on the credit that you take out when you use your credit card, or it has something to do with the chance of their being a refund/chargeback if someone is trying to scam you by taking the Bitcoin and the money. Not that's something that is more common with paypal and less of an issue when it comes to most credit card companies. If you have made a profit then good for you, don't overuse it and get into serious debt.

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Buying with a credit card is a very hard option, doesn't work for me

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Quote from: bitart on September 17, 2017, 04:35:05 PM

Quote from: synapsisxxx on September 17, 2017, 04:12:55 PM

Quote from: bitart on September 17, 2017, 04:07:28 PM

Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

You were lucky, that the price has not fallen by the end of the repayment period...
Just imagine, that you have no funds to buy bitcoin, just a credit card, with the credit line of e.g. $1,000
You have bought 0.33 bitcoin on 1st August, (price was ~$2,900), so you paid $957 with your credit card.
To make it easier, let's say you have 1 month period, when you can pay back your credit without interest.
On 1st September, bitcoin price was $4,850, it means you had $1,600 worth bitcoin. When you have paid back your credit, the net profit was $643. (nice profit for one month investment...)
But if you have bought 0.2 bitcoin on 1st September (paid $970 by credit card), and let's assume that on 1st October the price of the bitcoin will be about ~$3,500, that means that you have to pay back the $970 credit, but your bitcoin worth only $700 the net loss is $270. You have to pay this back from your own funds, or, if you have no funds available, bank starts to calculate interest from the 1st September, and on 2nd October, your $270 net debt starts to increase because of the ~30% interest rate (p.a.) of the credit card.

Still.. It's good long term isn't it? For now atleast when crypto is in its early years?

I mean I am salaried and I can just pay off the credit to encash a better amount a few months/year/decade later.

The financial part can be OK, but from the technical point of view, you won't find a seller, who wants to sell you bitcoin (with credit card payment) on a decent price (price is the key, you will find sellers, but they will calculate some extra % on the market price, because of the risk of the possible chargebacks)
The same applies for Paypal payments, because Paypal always decides the dispute in the favour of the buyer (in connection with bitcoin), so sellers take huge risks if they accept credit cards or Paypal.

I can vouch for that, all credit options are extremely overpriced. Except VirWox/linden, but my credit card doesn't allow it for some reason.

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Quote from: synapsisxxx on September 17, 2017, 04:12:55 PM

Quote from: bitart on September 17, 2017, 04:07:28 PM

Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

You were lucky, that the price has not fallen by the end of the repayment period...
Just imagine, that you have no funds to buy bitcoin, just a credit card, with the credit line of e.g. $1,000
You have bought 0.33 bitcoin on 1st August, (price was ~$2,900), so you paid $957 with your credit card.
To make it easier, let's say you have 1 month period, when you can pay back your credit without interest.
On 1st September, bitcoin price was $4,850, it means you had $1,600 worth bitcoin. When you have paid back your credit, the net profit was $643. (nice profit for one month investment...)
But if you have bought 0.2 bitcoin on 1st September (paid $970 by credit card), and let's assume that on 1st October the price of the bitcoin will be about ~$3,500, that means that you have to pay back the $970 credit, but your bitcoin worth only $700 the net loss is $270. You have to pay this back from your own funds, or, if you have no funds available, bank starts to calculate interest from the 1st September, and on 2nd October, your $270 net debt starts to increase because of the ~30% interest rate (p.a.) of the credit card.

Still.. It's good long term isn't it? For now atleast when crypto is in its early years?

I mean I am salaried and I can just pay off the credit to encash a better amount a few months/year/decade later.

The financial part can be OK, but from the technical point of view, you won't find a seller, who wants to sell you bitcoin (with credit card payment) on a decent price (price is the key, you will find sellers, but they will calculate some extra % on the market price, because of the risk of the possible chargebacks)
The same applies for Paypal payments, because Paypal always decides the dispute in the favour of the buyer (in connection with bitcoin), so sellers take huge risks if they accept credit cards or Paypal.

synapsisxxx

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Quote from: shursight on September 17, 2017, 04:02:43 PM

Well, that is simple to explain, most "digital thiefs" use bitcoin for launder the money, so they steal credit cards, banks accounts, and they do all their stuff in order to buy bitcoin with that money, and once that they have the bitcoins, they make a proccess and the money is fully-laundered. That is why buying bitcoin with credit cards is so difficult, and if you find one, you are not going to be able to buy more than 0.02 every 24 hours.

This I agree with. Alphabay had credit card autoshops lol.

finthebar

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Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

Are you referring to it being bad? or it being difficult?

The latter, I think has to do with the credit card chargeback system. If the credit card owner disputes the transaction there is a practically non-existent possibility of the bitcoin seller getting their BTC back.

synapsisxxx

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Quote from: bitart on September 17, 2017, 04:07:28 PM

Quote from: synapsisxxx on September 17, 2017, 03:33:31 PM

I have always seen the Internet advise against it. Although I have made profit in this way.

You were lucky, that the price has not fallen by the end of the repayment period...
Just imagine, that you have no funds to buy bitcoin, just a credit card, with the credit line of e.g. $1,000
You have bought 0.33 bitcoin on 1st August, (price was ~$2,900), so you paid $957 with your credit card.
To make it easier, let's say you have 1 month period, when you can pay back your credit without interest.
On 1st September, bitcoin price was $4,850, it means you had $1,600 worth bitcoin. When you have paid back your credit, the net profit was $643. (nice profit for one month investment...)
But if you have bought 0.2 bitcoin on 1st September (paid $970 by credit card), and let's assume that on 1st October the price of the bitcoin will be about ~$3,500, that means that you have to pay back the $970 credit, but your bitcoin worth only $700 the net loss is $270. You have to pay this back from your own funds, or, if you have no funds available, bank starts to calculate interest from the 1st September, and on 2nd October, your $270 net debt starts to increase because of the ~30% interest rate (p.a.) of the credit card.

Still.. It's good long term isn't it? For now atleast when crypto is in its early years?

I mean I am salaried and I can just pay off the credit to encash a better amount a few months/year/decade later.

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Buying bitcoins is very hard and you will need to do a lot of verification before they can even allow you, with the taxes and charges by your credit card company, it's really not worth it in the end. You will even end up spending about 10% more than the actual price of the bitcoin.

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