Banking and Finance Law Daily Wrap Up, CREDIT, DEBIT AND GIFT CARDS—Warren sends letters seeking info on credit card use, fees for gambling transactions, (May 1, 2026)
Organizations Mentioned:Ally Bank | American Express | Bank of America | Barclays | Boulevard Auto Trust 1993-1 | Capital One | Citi | Credit One Bank | First National Bank of Omaha | Goldman Sachs Group, Inc. | JPMorgan Chase | Learjet Inc. | Navy Federal Credit Union | Rockwood Casualty Insurance Company | Superior Telecom, Inc. | Synchrony Financial | The Goldman Sachs Group, Inc. | U.S. Bank | United Services Automobile Association | Wells Fargo | Windgen Power USA, Inc. | Windspeed Ventures III, LP | Wing Nutt Brewing Co., LLC
By Jeff Williams
The senator’s inquiry comes on the heels of similar letters she sent to sports betting platforms earlier this year.
Citing continued concerns about “junk fees ripping off Americans,” Sen. Elizabeth Warren (D-Mass.), ranking member of the Senate Banking, Housing, and Urban Affairs Committee, has sent letters to 15 credit card issuers seeking information about the use of their credit cards for wagers on sports betting and prediction market platforms and how associated transaction fees and other costs affect consumers.
“Many Americans have reported hidden, expensive, and compounding debts and fees that have accompanied sports betting credit card transactions, which may pose a threat to their financial health,” Warren wrote. “While Americans who gamble in states where it is legal should remain free to do so, they should not have to deal with undisclosed credit card fees that rig the odds against them.”
The letters sent to Ally Bank, American Express, Bank of America, Barclays, Capital One, Chase, Citi, Credit One, First National Bank of Omaha, Goldman Sachs, Navy Federal Credit Union, Synchrony, U.S. Bank, United Services Automobile Association, and Wells Fargo follow similar letters Warren sent to 11 major sports betting companies about the use of credit cards on their platforms and any fees associated with them (see Banking and Finance Law Daily, Feb. 9, 2026).
In both sets of letters, Warren pointed out that wages funded by credit card transactions on sports gambling platforms are “almost always” classified as cash advances, for which they are charged higher fees and interest. “Americans may be prepared to lose money on a bet they make—but most are not prepared to lose an extra 50% in credit card junk fees right off the top,” Warren said in the latest letters.
Warren noted that since she sent the letters to the betting platforms, five of them have started prohibiting the use of credit cards on their sites or are in the process of doing so, citing a "variety of reasons for their decision, including, 'to improve the deposit experience for our customers,' 'in light of evolving industry standards and responsible gaming considerations,' and 'to help customers ‘avoid cash advance fees and higher interest rates’ associated with credit card funding.’”
Some credit card issuers, the senator wrote, “have already moved to mitigate risks associated with online gambling using credit cards. Gambling transactions on card networks are considered high risk transactions and have increased risk of fraud, an increased rate of customers seeking chargebacks on their transactions, and are subject to extensive and complex regulatory environments.” Warren also highlighted legal concerns for credit card issuers that could be held liable for illegal bets placed using credit cards.
“The potential liabilities created when credit cards are used for sports gambling and prediction market platforms are not just bad for card issuers—they are also bad for consumers who are often saddled with unexpected, expensive junk fees,” she said.
Warren asked the credit card companies to provide responses to several questions by May 15, 2026, including, among other things, about whether they allow their credit cards to be used for in-person or online gambling transactions and, if so, to detail whether those transactions are classified as cash advances and what fees are associated with them. For those that do not allow use of credit cards for gambling transactions, Warren asked them to disclose the dates they stopped allowing them and provide a summary of their rationale for that decision.
The letter also asked the banks to provide any metrics they have tracked from April 2021 to present regarding gambling transactions with their credit cards, such as the percentage of users who have made a gambling transaction, the average value of such transactions, various demographic details, and the amount of fees associated with those transactions. Warren also asked the credit card issuers to provide details about any partnerships they have with crypto exchanges that accept credit card transactions and for a “comprehensive list of any and all fees associated with these transactions.”
In addition, the senator asked them to inform her whether there is a “material difference in the rates of fraud, chargebacks, attempted illegal activity, or similar behavior for gambling transactions compared to other high-risk transactions or general other transactions,” as well as how many complaints they have “received from consumers who are surprised to be charged a cash advance fee for a gambling transaction.”
Warren also asked the banks to provide details about any plans they have to change their policies related to allowing gambling transactions using credit cards.
Companies: Ally Bank; American Express; Bank of America; Barclays; Capital One; Citi; Credit One Bank; First National Bank of Omaha; The Goldman Sachs Group, Inc.; JPMorgan Chase; Navy Federal Credit Union; Synchrony Financial; U.S. Bank; United Services Automobile Association; Wells Fargo
LegislativeActivity: CFPB ChecksElectronicTransfers ConsumerCredit CreditDebitGiftCards FinTech OversightInvestigations UDAAP