Capital One Financial Corp. (CapOne) has barred customers using its credit cards to clear buy-now-pay-later (BNPL) debt as the transactions bear unacceptable risk, it told Reuters, making it the first to distance itself from the finance alternative.
The third-largest U.S. card firm with 62 million accounts, plus more in Canada and Britain, said it would no longer allow “transactions identified as point of sale loans charged on its credit cards, regardless of the point of sale lender.”
“These kinds of transactions can be risky for customers and the banks that serve them,” a spokeswoman said in an email.
Source: Financial Post
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