Bank Australia has created a controversy by announcing it will no longer allow its credit cards to be used for gambling services. Customers can still use debit cards for gambling transactions, the bank said.
In a press statement, that bank said it was being “responsible” by banning the transactions,
Criticism of the move came swiftly as critics asked what other businesses – such as McDonald’s, which many feel sells unhealthy food – will be next.
Chief executive of the Australasian Association of Convenience Stores, Jeff Rogut, told the Courier Mail the bank should not be controlling how customers behave.
‘I don’t think the companies that are offering the service should decide where consumers are spending their money,’ Mr Rogut said.
He questioned if the bank could “take it to another extreme” by not processing payments for alcohol, tobacco or lottery tickets.
Director at The Centre for Independent Studies, Peter Kurti, also told the paper it was “odd” that a bank would dictate moral decision’.
‘What’s next? If you go to Dan Murphys or McDonalds and make four trips in a week is the bank going to say “no it’s bad for you”?’ Kurti said.
Bank Australia is customer-owned and has no external shareholders. The ban’s website says: “We return our profits to our customers through pursuing our purpose of doing good for people and the planet as well as offering competitive and fair rates, fees and services.”
A Bank Australia spokesperson said any money loaned from savings and deposits by customers needs to be used responsibly.
‘As part of our commitment to responsible banking we want to make sure that the money we lend is used in ways that minimize potential harm to our customers and others,’ he said according to reports, adding that a majority of the bank’s customers support the ban.
