What Is a Bitcoin Debit Card? The Beginner’s Guide
What is a bitcoin debit card?
Bitcoin debit cards are the easiest way to use bitcoin worldwide.
A bitcoin debit card is a prepaid debit card. It is generally considered the easiest way to convert bitcoin into fiat currencies (such as US dollars, British pounds or Euro) for the purpose of making everyday purchases and payments. Like a normal debit card, it comes with four key pieces of information: the name of cardholder, the card number, an expiry date and a CVV number (card verification value). It is usually linked to payment processors such as Visa or MasterCard.
Bitcoin debit cards are very useful. They provide users with more freedom and a wider selection of merchants. As of 2015, only around 100,000 retail merchants accepted bitcoin as payment, while more than 50 million merchants and ATMs worldwide accept bitcoin debit cards linked with Visa or Mastercard.
Types of bitcoin debit cards
Bitcoin debit card providers typically offer two types of bitcoin debit cards — virtual and plastic. The range of services vary from provider to provider.
How to a use bitcoin debit card
You can use a plastic bitcoin debit card like a normal bank-issued card. Swipe it in shops, or use it at ATMs for cash withdrawals. It comes with a chip and PIN number.
Virtual cards, on the other hand, can be used by inserting any or all key pieces information (name of cardholder, card number, expiry date and CVV number) during checkout at online shops. Virtual cards cannot be used offline, as they do not come with a chip or PIN number.
What makes a good bitcoin debit card?
A good bitcoin debit card easily converts bitcoin into fiat currencies. This is its main function.
However, there are qualities that make some bitcoin debit cards truly exceptional, such as:
- Virtual and plastic — Can you get both virtual and plastic cards?
- Great support — Do they have a dedicated, multi-lingual support team?
- A mobile banking app — A must for easy checking, and transactions on the go.
- BitGo Instant integration — To get instant fund transfers to your wallet, instead of the usual 30-minute+ confirmation.
- High security — Must have 2FA (two-factor authentication), multi-sig, and email confirmations.
- Instant card load — Turn bitcoin into fiat currencies immediately (some services take days!).
- Two-way card — Convert bitcoin to fiat and back to bitcoin with ease.
Fees of bitcoin debit cards
Different bitcoin debit card providers will have different fee structures. They typically include some or all of the following: activation fees, delivery fees, loading fees, ATM fees, point-of-sale (POS) fees, foreign transaction fees, and monthly fees.
How to get a bitcoin debit card
You can get bitcoin debit cards from bitcoin debit card providers. Here are some sources to get you started:
- Bitcointalk 2016 Bitcoin Debit Card Reviews: https://bitcointalk.org/index.php?topic=1410577.0
- BitReview: http://bitreview.com/debit-cards
- CryptoCompare: https://www.cryptocompare.com/wallets/guides/compare-and-choose-a-bitcoin-debit-card/
Disclaimer: The author is pro-Wirex (formerly E-Coin), however this article was written neutrally and includes this disclaimer for transparency. She would also like to share that new Wirex users can get a free virtual bitcoin debit card (Visa; worth $3) via Wirex app (for Android and iOS).