Tags: credit | card | provider | morals

CNN Money: Credit Card Providers Are Watching Your Morals

By    |   Wednesday, 07 May 2014 09:20 PM

It seems financial institutions do have moral standards and they may try to impose them on you by dictating how you use your credit cards.

Try to put poker chips, lottery tickets or mug-shot removal services on a credit card and there's a good chance the transactions will be denied, says CNN Money.

Marijuana is legal to some degree in over 20 states, but it's still illegal according to federal law. That creates a tricky situation for banks, so many will not allow their clients to purchase pot with credit.

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Discover is one of those companies, telling CNN Money that the federal law is the reason it bars marijuana purchases for both medical and recreational use.

American Express prohibits transactions for all of the above mentioned products and services considering them either “illegal or high risk.” And the company has a similar view of online pornography.

Because of the controversial nature of online adult entertainment, American Express doesn't want anything to do with it, CNN Money reports.

JP Morgan Chase was also put on blast earlier this month for abruptly distancing itself from its porn industry clients. The bank is reportedly closing bank accounts belonging to members of the adult film industry without explanation.

In justifying the action, the notice Chase sent simply said, “Your account agreement says that either of us may close your account at any time, without notice and without reason,” reported Business Insider.

But some of those affected by Chase's decision said the bank's telephone and branch representatives told them the action was due to their roles in the adult film industry.

With so much scrutiny around financial institutions and their activities, it appears that many are making efforts to head off certain regulatory and reputational risks.

“It's a matter of these banks being a little leery to get into some of these areas where there is ambiguity about law or areas that the public may see as unsavory or unseemly,” Matt Schulz, a senior industry analyst at CreditCards.com told CNN Money.

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It seems financial institutions do have moral standards, and they may try to impose them on you by dictating how you use your credit cards.
credit, card, provider, morals
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2014-20-07
Wednesday, 07 May 2014 09:20 PM
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