travisrauh wrote:You are unlikely to find a merchant selling bitcoins to accept American Express - and if they are, they're in breach of our merchant agreement. We consider Bitcoin to be a cash equivalent, and would therefore need to charge you the "Cash Advance" fees and APR. The problem is someone could buy bitcoin with their card as a purchase, sell the bitcoin for the cash, pay the bill, and get the points without having made any real spend. It devalues our rewards programme. I hope this helps to explain why you've been having such difficulty.
I'm wondering if this will change with the IRS's decision to treat bitcoin as property? I guess Amex's definition of cash advance is pretty arbitrary.
puppy: there's a far more practical reason that merchants don't sell bitcoin. merchants that allow bitcoin purchases don't keep bitcoin. they use a middle man like Coinbase, who accepts the bitcoin and then pays out the merchant. they're held mostly by private individuals and exchanges.