Of course banks want that interest, but if the customer defaults they incur a big loss, so they also need to manage their risk.
With regards to cash advances, they come with much higher APR rates, to account for the increased risk and are often not available to card holders with low credit.
Perhaps Wells Fargo would be more amenable to their customers buying crypto if they were able to charge a higher APR for such transactions, but I imagine this isn’t such a simple change given the many parties and agreements involved.
As others have pointed out, the other aspect is fraud. Perhaps the anonymous nature of crypto currencies attracts more fraud payments than bullion?
However, I am highly skepticle that you can buy silver with a credit card and then sell it for cash “down the street” without incurring huge transaction costs in the process. I’d be surprised if the process was even 80% efficient.
If you are in a dense coin/jewelry district of a medium-sized city, you can get darn close to the posted spot prices for mainstream coins. They will charge a bit extra but probably closer to a 5-10% rake than 20%.
Source: I once negotiated a cash price for a jewelry piece in downtown Portland, Oregon and the jeweler accepted bullion I wanted to liquidate at quoted spot bid in lieu of cash for part of the price.
If you are talking about getting "SAR levels" of USD folding green, though, you're going to need to make an appointment in advance. Plus, heavy. So the "walk 1600 oz of silver down the street" strategy has a number of practical impediments beyond the spread.
If you are buying 1600 oz. of silver, why not just buy 21 ounces of gold instead? lighter! But honestly I doubt too many people even have limits that high on their cards.
Anyways, as an American who's grandfather landed on Normandy in WWII and who actually has roots back to the Mayflower (I do!) the very idea of an "SAR level" makes me fricking sick. Disgusted. People should be free to do what they want with their money and not have to tell anyone anything, period. Not only with their money, either..with their free time, the communications, their travels, their bodies and souls...LIBERTY should not just be an empty slogan on cheap metal coins and in songs and engraved on old stone statues.
It is really too bad what the USA has become, and I hope that the future will see a brighter day for "we the people"..
Silver and gold "rounds" (as they are called) minted by South Africa (Krugerrands), USA (Eagles), Canada (Maple Leafs), Australia, New Zealand, and so on are nearly as liquid as $100 bills, and you'd probably only lose at most 5% . 90% silver US coins minted before 1964, as well as very common date and poor condition US gold coins also are easily bought and sold fairly close to spot.
(Edit, adding: I just did a quick peek around the web and found spreads as low as 0.6%, if you buy and sell with that same particular company. In fact they also will hold it for you so you don't even have to physical take possession and deal with mailing or transporting it at all. While I would expect they may have some rules about that, it does show how competitive the market is and gives some idea of the situation.)
If you buy gold and resell it whereever then you have cash. The casinos in Vegas don't ask a lot of questions, nor does anyone else, really...(yes, this includes the good ol' Moonlite Bunny Ranch too..lol)
All I'm saying is that you can easily get cash from credit cards which you can then buy whatever with, so I just don't see the point (well, I may...) of them limiting your usage of their cards.
With regards to cash advances, they come with much higher APR rates, to account for the increased risk and are often not available to card holders with low credit.
Perhaps Wells Fargo would be more amenable to their customers buying crypto if they were able to charge a higher APR for such transactions, but I imagine this isn’t such a simple change given the many parties and agreements involved.
As others have pointed out, the other aspect is fraud. Perhaps the anonymous nature of crypto currencies attracts more fraud payments than bullion?
However, I am highly skepticle that you can buy silver with a credit card and then sell it for cash “down the street” without incurring huge transaction costs in the process. I’d be surprised if the process was even 80% efficient.