While Bitcoin ATMs are making it very easy to purchase and sell Bitcoin right from the terminal, your payment option could cause you to have some difficulties. With cash being one of the easiest payment methods to use, you can also pay with a debit of credit card. However, if you are wanting to buy Bitcoin with a credit card, here are some reasons to reconsider.
Penalties From Your Card Issuer
Because most credit card issuers consider the purchasing of digital currency to be a cash advance, you might find yourself dealing with related fees. The fees for a cash advance are typically around 5% of the amount being withdrawn or in this case purchased.
Additional Fees
Not only is there the issue of a cash advance fee from your card issuer, you might also incur exchange fees as well. As with your card issuer, the exchange might also charge a percentage of your transaction amount.
No Rewards
If you enjoy receiving rewards for your credit card purchases, using you card to purchase Bitcoin can cause you to miss out on these perks. This is mainly because your card issuer might consider Bitcoin to be equivalent to a cash advance, in which case it wouldn’t qualify.
While you can buy Bitcoin with a credit card, it might not be the best form of payment to use. Of course, any fees you might incur would all depend on your card issuer; however, you might want to check with them to be sure.
For more information, contact RockItCoin Bitcoin ATM.
