Why is my bank blocking a card payment to Simplex?

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Simplex is a World-Leading Card Payment Processor

Simplex is registered and licensed in the European Union and is a principal member of Visa Europe. Simplex is also the card payment processor of choice by some of the largest cryptocurrency exchanges in the world.

 

Banks Act in Self Interest

A small number of banks do block card payments to Simplex. But it’s not because Simplex is illegitimate; it’s because they may have had cases of stolen credit numbers used illegally to buy crypto through Simplex. It’s the actions of users of stolen credit cards, not the company itself. Credit card fraud is an inherent risk of the card technology itself and is not unique to Simplex. Globally, card fraud losses totaled USD 28.65 billion in 2019 alone. Only a tiny proportion of those losses were to cryptocurrency transactions; most losses were to gift cards and high-value electronic devices. If the banks in question disagree, I challenge them to release their card fraud statistics publically. 

Individual banks’ decision to block payments to Simplex is an operational decision by that bank and usually linked to their general stance on cryptocurrencies. As recently as 2018, many New Zealand banks were still blanket de-risking and closing bank accounts of customers who made even a single cryptocurrency purchase. They have had to back down from this approach due to the tens of thousands of New Zealander’s trading cryptocurrencies and their position was immoral and untenable. Even so, they still target international transfers and card payments related to cryptocurrency transactions. 

The Future is Bright

Most New Zealand banks are behind the rest of the world, with major companies like PayPal and Tesla adopting cryptocurrencies in various ways. The only suggestion we can give you is shifting your business to a bank that doesn’t actively block cryptocurrency transactions. 

“Our philosophy on cryptocurrencies is straightforward: It’s about choice. Mastercard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value – traditional or crypto – however they want. It should be your choice, it’s your money.” – Source: Mastercard.com

Visa and Mastercard don’t block cryptocurrency transactions themselves. You can get cryptocurrency debit cards from places like Wirex and Crypto.com powered by Visa and Mastercard. 

“Banks and other financial institutions that embrace cryptocurrencies and other digital assets will flourish, while those that don’t will end up on the wrong side of history and fade into irrelevance.”  – Ross Carter-Brown, Chief Executive Officer, BitPrime.

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