When you try to buy cryptocurrency using a credit or debit card on our on-ramp, your transaction might be declined, not by us, but by your bank or card issuer. This is increasingly common, as many financial institutions apply restrictions on cryptocurrency-related payments due to risk, compliance, or internal policies.
Here’s why this happens, and what you can do about it.
Why Do Banks Block Crypto Purchases?
Banks and card networks (like Visa and Mastercard) classify cryptocurrency transactions as high-risk or “cash-like” activities. As a result, some institutions choose to restrict or block them entirely. Common reasons include:
1. Risk Management Policies
Many banks view crypto purchases as speculative or prone to fraud. To reduce exposure, they may:
- Block all crypto-related merchant categories (MCC 6051 – “Quasi-Cash”)
- Flag transactions to crypto platforms as suspicious
- Automatically decline payments without prior notice
2. Regulatory or Compliance Concerns
In some countries, regulators have issued guidance urging caution around crypto. Banks may:
- Restrict transactions to comply with anti-money laundering (AML) rules
- Avoid facilitating activity they cannot easily monitor
- Apply blanket bans until clearer regulations exist
3. Card Network Rules
Visa and Mastercard classify crypto purchases as “quasi-cash” transactions, similar to gambling, wire transfers, or money orders. This means:
- Your bank may treat them like cash advances (even on debit cards)
- Some issuers disable quasi-cash spending by default
- Prepaid or virtual cards often block these categories entirely
4. Internal Card Restrictions
Certain card types are more likely to be blocked:
- Prepaid cards: Often exclude high-risk categories
- Corporate or business cards: May prohibit personal or investment-related spending
- Student or basic-tier cards: May have stricter controls
- Cards from conservative or state-owned banks: More likely to enforce crypto bans
Signs Your Bank Blocks Crypto
You might experience:
- Instant payment declines with messages like “Transaction not permitted” or “Restricted merchant”
- No error message at all, just a failed payment
- Successful small test purchases but blocks on larger amounts
- Ability to deposit via bank transfer but not via card
What You Can Do
1. Contact Your Bank Directly
Call your bank’s customer service and ask:
Do you allow cryptocurrency purchases using my card? Are there any restrictions on ‘quasi-cash’ or merchant category code 6051?
Some banks will lift the restriction upon request, especially if you explain you’re using a regulated platform like ours.
2. Try a Different Card
- Use a personal debit card instead of a credit or prepaid card
- Switch to a card from a bank known to be crypto-friendly (e.g., many digital or neobanks in Europe)
- Avoid corporate, student, or anonymous prepaid cards
3. Check for Regional Differences
Banks in some countries (e.g., parts of Eastern Europe, Asia, or the Middle East) are more likely to block crypto transactions. If you’re travelling or using a foreign-issued card, this could trigger extra scrutiny.
4. Use an Alternative Payment Method
If your card is consistently blocked, consider:
- Bank transfer (SEPA, Faster Payments, etc.) often lower fees and fewer restrictions
- Apple Pay or Google Pay, sometimes bypass card-level blocks (though not always)
Important: Never attempt to disguise a crypto purchase as another type of transaction. This violates card network rules and may result in your bank account suspension.
“But I’ve bought crypto before, why Is It blocked now?”
Banks can change their policies at any time. A card that worked last month might be restricted today due to:
- New internal risk assessments
- Regulatory updates in your country
- Unusual spending patterns on your account
Always reconfirm with your bank if a previously working card suddenly stops functioning.
While we are fully licensed and compliant with EU financial regulations, we don’t control your bank’s decision to approve or decline a card transaction. Payment authorisation happens in real-time between your card issuer and the payment processor, outside our system.
If your transaction is declined, the most reliable solution is to contact your bank or try an alternative card or payment method.
We’re here to help with everything on our end, but when it comes to your card, your bank holds the final say.