What you need to know about Bitcoin plastic cards
The idea of creating plastic cards linked to Bitcoin has been in the air literally since the advent of cryptocurrency. In 2011-2012, the community began to actively discuss the real possibility of issuing cards and their prospects. The attractiveness of the idea was obvious to investors, developers and users: maps could greatly simplify the use of distributed currency in everyday life, and, accordingly, popularize the Coin.
Several startups beat at the same time to realize the idea, it was clear that the first one to enter the market would hit the bank in the form of a crowd of active users and receive significant investments from inspired venture funds. The arms race began, in 2014 the news sites were replete with the headings “First Bitcoin plastic card almost issued”, “A little more and we are on the market”, “An innovative method of payment was announced”. Toward the end of the year, the organizers of startups still delivered a product and issued their cards to the joy of the waiting crypto owners.
In 2015-2016, the number of cryptocurrency card projects began to grow at a speed close to a geometric progression. Today, the Coin holder has a choice among 20-30 companies. About 10 more startups promise to enter the market. It remains to figure out how to choose the right card, why such cards are generally needed and on what basis they work.
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So, you go into any Bitcoin plastic card service and order a card for yourself. It will be issued by the service itself, if it has a banking license, or by a partner bank, if there is no license. The card is linked to the payment system (VISA, MasterCard, Unitpay, etc.), can have accounts in one or more fiat currencies (dollar, euro, yuan, etc.) and cryptocurrencies (Bitcoin, Litecoin). If the card accounts are only in fiat currency, then to replenish it you need to change the bitcoins to the card currency and transfer to the account. For cards with accounts in the crypt, such an exchange occurs automatically at the internal rate of the service (or the exchange to which it is attached) at the time of the transaction.
Now about payments, commissions and conversions. For what you can write off money:
It is worth noting that a plastic card is not tied to a Bitcoin address directly, but tied to a Bitcoin account (wallet) in the service that issued the card. This allows you to conduct transactions almost instantly, because, as we all know, the blockchain does not provide such an opportunity. The risks of the method are obvious: your bitcoins, in fact, are at the disposal of a third party and if this third party closes for some reason or is robbed, the funds will disappear.
Alas, the idea of popularizing Bitcoin among ordinary people by issuing plastic cards failed miserably. If the growth of the community was, it is very small. Even with a card, even without, and a simple housewife from Alabama could not explain why the hell she gave up bitcoin. But among active users, cryptocurrency cards are quite popular. This is evidenced by the massive discussion of the cards on the thematic forums, the presence of clients at the card issuing services and the fact that these services have not yet been closed.
How can Bitcoin plastic cards be useful for a regular coin holder? Perhaps the most popular answer is “Just for fun”, members of the Bitcoin community like to have the opportunity to use coins, for example, to buy a bottle of cola in the store or pay for dinner in a restaurant.
The second reason is the reduction in the conversion time of cryptocurrency to fiat. If not only a bitcoin account is attached to the card, but also accounts in Fiat, and also within the service, it is possible to change Bitcoins into dollars, euros or rubles at a favorable rate, replenishing the card account with them, then you do not need to spend time on a long withdrawal of money to the bank or third-party payment system.
Another dubious advantage of Bitcoin cards is anonymity. A number of services allows you to order and use cards without confirming your identity with the help of document scans and other tedious procedures. However, for anonymous users, the highest commissions are in force and strict limits are set on operations, payments and cash withdrawals.
Perhaps the most compelling reason for using plastic cards attached to a crypt is the ability to have easy and constant access to your funds and quickly use them when there is a strong need. For example, if you are on a trip and your regular bank card has been blocked or stolen, and you need to urgently pay for something and you do not have time or the ability to change the cryptocurrency by other means, you can safely get a coin card from your pocket and make a payment.
If we are talking about everyday use of cards linked to a Bitcoin wallet and we are talking about a card, the account of which can only be replenished with Bitcoins, then the benefit of this option is very doubtful. You will have to change Bitcoin at the rate at the time of the transaction, and this may not be the most profitable rate for the market (for example, the internal rate of the service). Regular bitcoin rate jumps can make a transaction completely unprofitable. It is much easier to wait for a good rate, quietly exchange bitcoins on the stock exchange and withdraw to one of the payment systems or to a bank account. In addition, cryptocurrency plastic card services use additional fees for conducting transactions of their clients.
If you still decide to get a plastic card in the coin, you must seriously approach its choice. The debate about which card is better and more profitable has been conducted by the community at various venues for more than a year. We will not be based on personal opinion or promotional materials of card companies. Better we give a summary table with the basic data and figures of the most popular companies:
It should be noted that all card issuing services have a very tricky system of currency conversion and service fees. Moreover, this system may change with time or depending on some conditions. Before ordering a card, carefully read the agreement with the service and the bank, as well as the terms of use. And do not forget to follow the updates of the service.
Several startups beat at the same time to realize the idea, it was clear that the first one to enter the market would hit the bank in the form of a crowd of active users and receive significant investments from inspired venture funds. The arms race began, in 2014 the news sites were replete with the headings “First Bitcoin plastic card almost issued”, “A little more and we are on the market”, “An innovative method of payment was announced”. Toward the end of the year, the organizers of startups still delivered a product and issued their cards to the joy of the waiting crypto owners.
In 2015-2016, the number of cryptocurrency card projects began to grow at a speed close to a geometric progression. Today, the Coin holder has a choice among 20-30 companies. About 10 more startups promise to enter the market. It remains to figure out how to choose the right card, why such cards are generally needed and on what basis they work.
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How the world of Bitcoin plastic cards works
So, you go into any Bitcoin plastic card service and order a card for yourself. It will be issued by the service itself, if it has a banking license, or by a partner bank, if there is no license. The card is linked to the payment system (VISA, MasterCard, Unitpay, etc.), can have accounts in one or more fiat currencies (dollar, euro, yuan, etc.) and cryptocurrencies (Bitcoin, Litecoin). If the card accounts are only in fiat currency, then to replenish it you need to change the bitcoins to the card currency and transfer to the account. For cards with accounts in the crypt, such an exchange occurs automatically at the internal rate of the service (or the exchange to which it is attached) at the time of the transaction.
Now about payments, commissions and conversions. For what you can write off money:
- Card issue and delivery: usually within $ 10-20 per card, excluding delivery; some services offer a free edition;
- Withdrawing funds to the card (topping up the card account in the service);
- Card service: monthly or annual payments, sometimes 1 year free of charge;
- Cash withdrawal at ATM;
- Request for account status;
- Card reissue;
- Change PIN;
- Transaction and payments;
- Conversion (from bitcoin to fiat, from one fiat currency to another);
It is worth noting that a plastic card is not tied to a Bitcoin address directly, but tied to a Bitcoin account (wallet) in the service that issued the card. This allows you to conduct transactions almost instantly, because, as we all know, the blockchain does not provide such an opportunity. The risks of the method are obvious: your bitcoins, in fact, are at the disposal of a third party and if this third party closes for some reason or is robbed, the funds will disappear.
Who needs it and why?
Alas, the idea of popularizing Bitcoin among ordinary people by issuing plastic cards failed miserably. If the growth of the community was, it is very small. Even with a card, even without, and a simple housewife from Alabama could not explain why the hell she gave up bitcoin. But among active users, cryptocurrency cards are quite popular. This is evidenced by the massive discussion of the cards on the thematic forums, the presence of clients at the card issuing services and the fact that these services have not yet been closed.
How can Bitcoin plastic cards be useful for a regular coin holder? Perhaps the most popular answer is “Just for fun”, members of the Bitcoin community like to have the opportunity to use coins, for example, to buy a bottle of cola in the store or pay for dinner in a restaurant.
The second reason is the reduction in the conversion time of cryptocurrency to fiat. If not only a bitcoin account is attached to the card, but also accounts in Fiat, and also within the service, it is possible to change Bitcoins into dollars, euros or rubles at a favorable rate, replenishing the card account with them, then you do not need to spend time on a long withdrawal of money to the bank or third-party payment system.
Another dubious advantage of Bitcoin cards is anonymity. A number of services allows you to order and use cards without confirming your identity with the help of document scans and other tedious procedures. However, for anonymous users, the highest commissions are in force and strict limits are set on operations, payments and cash withdrawals.
Perhaps the most compelling reason for using plastic cards attached to a crypt is the ability to have easy and constant access to your funds and quickly use them when there is a strong need. For example, if you are on a trip and your regular bank card has been blocked or stolen, and you need to urgently pay for something and you do not have time or the ability to change the cryptocurrency by other means, you can safely get a coin card from your pocket and make a payment.
If we are talking about everyday use of cards linked to a Bitcoin wallet and we are talking about a card, the account of which can only be replenished with Bitcoins, then the benefit of this option is very doubtful. You will have to change Bitcoin at the rate at the time of the transaction, and this may not be the most profitable rate for the market (for example, the internal rate of the service). Regular bitcoin rate jumps can make a transaction completely unprofitable. It is much easier to wait for a good rate, quietly exchange bitcoins on the stock exchange and withdraw to one of the payment systems or to a bank account. In addition, cryptocurrency plastic card services use additional fees for conducting transactions of their clients.
Overview of the main players in the market of plastic cards Bitcoin
If you still decide to get a plastic card in the coin, you must seriously approach its choice. The debate about which card is better and more profitable has been conducted by the community at various venues for more than a year. We will not be based on personal opinion or promotional materials of card companies. Better we give a summary table with the basic data and figures of the most popular companies:
| Company | Payment systems | Account currency | Commissions |
|---|---|---|---|
| Advcash | Mastercard | USD, EUR | Withdrawal to the card: $ / € 0.99 Service monthly: 0 ATM withdrawal: $ / € 1.99 Currency conversion: 2% Card issue: $ / € 4.99 Account Status Inquiry: $ / € 0.5 Card reissue: $ / € 9.99 PIN code change: $ / € 1 |
| Bitwa.la | Visa | EUR | Card withdrawal: 0.5% Monthly Maintenance: € 1 ATM withdrawal: € 2.25 Currency conversion: 3% Card issue: € 10 Transfer to card: € 8 PIN code change: € 0.8 |
| xapo.com | Visa | BTC, EUR, GBP, USD | Card withdrawal: 0 (BTC) Maintenance per month: $ 1 / € 1.5 /£1.08 For POS transaction: 0 ATM withdrawal: $ 2.50 / € 2.25 / [L1.75] Currency conversion: 3% Card issue: $ 20 / € 18 / £ 13 Card Reissue: $ 12 / € 10 / £ 7 Re-issue of the card upon expiration: $ 55 / € 50 / £ 35 PIN code change: $ 1 / € 0.8 / L0.6 |
| ANX | Visa | USD, BTC | Card withdrawal: 0 Service monthly: 0 For POS transaction: 0 ATM withdrawal: $ 3 Currency conversion: 3% Card issue: 0 Re-issue card: 0 |
| Bit plastic | Mastercard | USD, BTC | Card withdrawal: 0 (BTC) Service monthly: 0 ATM withdrawal: $ 2 Currency conversion: 6-8% Card issue: 0.25 BTC |
| moneypolo.com | Visa, Mastercard | USD, EUR, GBP | For Visa: Card withdrawal: $ 2-3 Service monthly: 0 Per POS Transaction: $ 0.72 / € 0.54 / [0.45] ATM withdrawal: $ 3.6 / € 2.7 / [a2] Currency conversion: $ / € / £ 2.75 Card issue: $ 19.99 / € 15.99 / £ 9 .99 Card Reissue: $ 9.99 / € 7.99 / £ 4.99 Reissuance of the card upon expiration: 0 Change PIN: 0 For MasterCard: Card withdrawal: $ 3-5 Service monthly: 0 For POS transaction: 0 ATM withdrawal: $ 2 Currency conversion: 0 Card issue: $ 20 PIN code change: $ 15 Account closure: $ 15 |
| E-coin | Mastercard | USD, EUR, GBP | Card withdrawal: 1% Maintenance per month: $ 1 / € 1.5 /£1.08 For POS transaction: 0 ATM withdrawal: $ 1 / € 1 / £ 1 Currency conversion: 3% Card issue: $ 12.5 / € 11.4 / £ 8.9 PIN code change: $ 1 / € 0.8 / L0.6 |
| Bitpay | Visa | USD | Card withdrawal: $ 4.59 Service monthly: 0 For POS transaction: 0 ATM withdrawal: $ 2 Currency conversion: 3% Card issue: $ 9.95 Card Reissue: $ 9.95 Reissue of a card upon expiration: $ 25 |
| satoshitango | Visa | USD | Card withdrawal: 2% For service per month: $ 1 For POS transaction: 0 ATM withdrawal: $ 3.50 Currency conversion: unknown Card issue: 0 PIN code change: $ 1 |
| Shift | Visa | BTC, USD | Card withdrawal: 0 Service monthly: 0 ATM withdrawal: $ 2.50 For POS transaction: 0 Currency conversion: 3% Card issue: $ 10 Re-issue card: $ 10 |
| Shakepay.co | Visa | 21 currency | Card withdrawal: 1% Service monthly: 0 ATM withdrawal: 3% Currency conversion: 3% Card issue: 0 |
| capitalist.net | Visa | USD, EUR, RUB | Withdrawal to the card: $ / € 0.99 Annual maintenance: $ 25 / € 22.99 Service monthly: $ 1 / € 1 For POS transaction: 0 ATM withdrawal: $ 1.99 / € 1.79 Currency conversion: 3% Card issue: 0 Card Reissue: $ 9.99 / € 9.20 PIN code change: $ 1 / € 0.8 The card is inactive for 6 months: $ / € 10 per month |
| unichange.me | Visa | USD, EUR | Card withdrawal: 2-5% Service monthly: $ 1 / € 1 ATM withdrawal: $ 3.5 / € 2.75 Currency conversion: 3% Card issue: $ 9 / € 8 |
| Wagecan | Mastercard | USD, EUR | Card withdrawal: 0 Service monthly: 0 For POS transaction: 0 ATM withdrawal: $ / € 3 Currency conversion: 0 .5% Card issue: 0.15 BTC Re-issue card: 0 |
| Coinomat | Visa | USD, EUR | Card withdrawal: $ / € 3 Service monthly: 0 Per POS Transaction: $ 0.75 / € 0.55 ATM withdrawal: $ 3.50 / € 2.80 Currency conversion: 2.75% Card issue: $ 19.99 / € 15.99 |
| Cryptopay | Visa | USD, EUR, GBP | Card withdrawal: 1% Maintenance per month: $ 1 / € 1 / £ 1 For POS transaction: 0 ATM withdrawal: $ 3.50 / € 2.75 / £ 2.25 Currency conversion: 3% Card issue: $ / € / £ 15 |
It should be noted that all card issuing services have a very tricky system of currency conversion and service fees. Moreover, this system may change with time or depending on some conditions. Before ordering a card, carefully read the agreement with the service and the bank, as well as the terms of use. And do not forget to follow the updates of the service.
Source: https://habr.com/ru/post/394149/
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