Nationwide is making a huge change to credit card rules in months affecting millions of customers
NATIONWIDE will make some major changes to its credit card rules in the coming months.
The nation’s largest building society, serving approximately 17 million customers, will soon prohibit all account holders from using their credit cards for gambling.
Nationwide will also prevent customers from using these cards to purchase cryptocurrencies.
The changes affecting personal and business credit cards will take effect from February 3, 2025.
This decision to block such transactions follows the Gambling Commission’s introduction of strict gambling regulations four years ago.
Since April 14, 2020, all UK-licensed gambling operators have been banned from accepting credit cards for gambling.
This ban encompasses online betting, casino and bingo companies, as well as high street bookmakers and track bookmakers.
Nationwide’s new policy will serve as an additional safeguard, ensuring that no customer can use their credit card for gambling, even if a gambling firm were to ignore or violate the rules.
The new credit card blocking service will identify transactions containing merchant category codes (MCCs) associated with gambling.
The lender can then block these transactions before the money is transferred.
This block will apply to all online and bookmaker gambling, but it will not affect those wishing to buy lottery tickets or scratch cards in-store with their credit card.
However, it will also block any attempted transactions made to online gambling sites abroad.
What are the signs of a gambling addiction?
THE signs of a gambling problem are often the same as the signs of other addictions. Common signs of addiction include, but are not limited to, the following:
- Feeling the need to be secretive about gambling,
- Having trouble controlling gambling habits,
- Gambling when you cannot afford to,
- Your friends and family express concern about your gambling.
As with any other addiction, the hallmark sign of a gambling problem is that you feel you cannot stop.
If you feel like you need to try just one more time, or if you feel anxious when you think about quitting, it is highly likely you are suffering from a gambling addiction.
Excessive gambling often causes a multitude of emotional symptoms, including anxiety, depression, and even suicidal thoughts and tendencies.
If you need support, you can call the National Gambling Helpline on 0808 8020 133.
Barclays, First Direct, and HSBC have already introduced similar credit card blocks to their customers.
Before the ban on gambling firms accepting credit cards, most banks permitted the practice.
However, customers were often charged hefty additional fees on top of their usual interest rates.
Any interest charged would also have been applied as soon as the funds left your account.
CRYPTO BAN
Lloyds Banking Group, which includes Bank of Scotland, Halifax, Lloyds Bank, and MBNA, was the first major UK financial institution to ban credit cardholders from purchasing cryptocurrency with their cards back in 2018.
Virgin Money soon followed suit, and HSBC introduced a similar ban in February 2023.
Nationwide will implement the same restriction on February 3, 2025.
This means customers will no longer be able to use their credit cards to purchase digital currency on trading platforms such as Coinbase, eToro, and Uphold.
Bitcoin is a type of cryptocurrency, essentially digital money, which can be exchanged for goods and services.
They work using a technology called blockchain.
Blockchain is a decentralised technology spread across computers that manages and records transactions.
While there are various ways to invest in it, one of the most common methods is through an exchange – a platform where traders buy and sell Bitcoin using different currencies.
However, digital currencies are largely unregulated in the UK, making it highly unlikely that the Financial Services Compensation Scheme will cover any crypto-related losses. Therefore, investors should not expect any form of compensation for such losses.
The five risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.