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Why You Don't Want To Put These 6 Things On Your Credit Card!April 14, 2020
Many consumers consider credit cards a substitute for cash, and for good reason.
Virtually anything can be purchased with a credit card – from jewelry to plane tickets!
Having said that, there are certain things which cannot be bought with this piece of plastic, a list of which is provided below.
The primary reason why these purchases are disallowed is that, in such cases, there may be a high risk of fraud - or, they may be deemed illegal by the U.S. government.
1. Mortgage payments
If you could make mortgage payments with your credit card it would be a great opportunity to earn reward points, as such payments are usually quite hefty!
Unfortunately, even though Mastercard and Visa allow consumers to make their mortgage payments with a credit card, most card issuers do not.
And in case your issuer permits you to make your mortgage payment with your credit card, your mortgage company may not accept such a payment.
So, it is only in rare cases that consumers can make mortgage payments using a credit card, and many times this is possible only after paying a service fee to a third-party payment processor.
2. Payment to another card
Let’s say you have a payment due on a certain credit card tomorrow, but don’t have enough funds in your bank account to pay the bill in full.
Wouldn’t it be wonderful if you could use a second credit card to make the payment on the first credit card?
Unfortunately, this is not allowed – if you go online to pay your credit card bill, you’ll find there’s no place where you can provide the number of a second credit card and use it to make good your dues.
3. Money Orders
If you want to buy a money order, you’ll likely have to go the old-fashioned way and fork out cash for it.
This is because most businesses that sell money orders refuse to accept payment by credit card.
Even if a merchant agrees to accept your card for the purpose, the issuer company will probably treat the transaction as a cash advance.
That means you’ll have to pay a fee and a high interest rate for the same.
If you were thinking of purchasing Bitcoins with your credit card, think again!
Bank of America, JP Morgan Chase, Citigroup, Capital One, and Discover have banned card purchases of cryptocurrency.
Even if you find an issuer who allows you to conduct such a transaction, odds are Mastercard and Visa would treat it as a cash advance.
For those who invest in stocks through full-service brokerages, using a credit card to fund the account is not an option.
Having said that, some micro-investment platforms like Acorns and Stockpile do let users invest with their credit cards.
However, on these platforms, sale proceeds of stocks need to be transferred to a checking account – they are not refunded to the credit card.
6. Online gambling, casino chips, and lottery tickets
Online gambling has been illegal in the U.S. since 2006, so credit card companies will not allow you to make such transactions through your card.
As far as casino chips are concerned, most states do not allow consumers to use their credit cards for this transaction.
Mastercard and Visa too disallow such transactions.
So, if you want to purchase casino chips with your card, you’ll need to go the cash advance way.
Even in case of lottery ticket purchases, credit cards are prohibited in 29 out of the 50 states.
Whether allowed to or not, it is never a good idea to gamble through your credit card - because if you lose, you’ll still need to pay off your credit card bill.
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