Coinbase, an online exchange platform for buying and selling cryptocurrency, has been one mainstay within the ever-changing cryptocurrency landscape.
In 2019, Coinbase launched Coinbase Card, a Visa debit card, in the United Kingdom and the European Union. Currently, the card is only available to select customers in the U.S. If you want to apply for the card, you can join the card’s waitlist in all U.S. states except Hawaii.
What is Coinbase?
Founded in 2012, Coinbase is an online marketplace developed to buy, sell and manage cryptocurrency. Coinbase does not support all cryptocurrencies, but popular cryptocurrencies like Bitcoin, Ethereum and Dogecoin are accepted. Users can link their bank accounts or debit cards and then buy their preferred form of cryptocurrency through the site.
Although Coinbase’s Visa debit card initiative is exciting, debit cards for cryptocurrency aren’t a new idea. The Coinbase Shift Card, which was retired in April 2019, was available in 43 states across the United States.
How does Coinbase Card work?
Coinbase Card is connected to the cardholder’s online Coinbase account. Within the account, cardholders can store wallets with various forms of cryptocurrency. Cardholders are able to spend the cryptocurrency of their choice online or in brick-and-mortar stores that support their preferred form of payment.
When cardholders make a purchase with the card, the cryptocurrency is converted to the country’s fiat currency. This also allows cardholders to withdraw cryptocurrency in the form of cash at ATMs.
Fees and rewards
Issued by MetaBank®, Coinbase Card comes with no annual fee and a crypto rewards program, which allows you to earn 4 percent back in crypto rewards whenever you make a purchase. It should be noted that rewards offers may vary. You can see your current offers in your Coinbase account. Additionally, ATM withdrawals are not eligible for rewards.
There is no fee to sign up for the card. Other fees may apply, but this will be communicated during sign-up. There are no transaction fees when you shop with USD Coin, but all other purchases or ATM withdrawals include a flat 2.49 percent transaction fee.
You can view your daily spending and ATM limits in your Coinbase account. Currently, cardholders can take out a maximum of $1,000 per day from an ATM.
Where can Coinbase Card be used?
Generally, Coinbase Card can be used wherever Visa is accepted, except at prohibited merchants (like casinos) and for prohibited transactions like money orders, wire transfers and online gambling, among others.
How to apply for Coinbase Card
Eligible customers can sign up for Coinbase Card through the Coinbase app or website. To be eligible for the card, you must live in the U.S., complete all identity verification steps and read the Coinbase Card legal agreement. Once your card application is approved, you can use Coinbase Card instantly through your account. You’ll receive a physical Coinbase Card in the mail within seven to 10 business days.
If you would like to use Coinbase Card through Apply Pay or Google Pay, you will need to create a PIN. You can do this within the app or by calling Coinbase Support.
The Coinbase Card app
In addition to its new Visa debit card initiative, the company also has the Coinbase Card app. Through the app, cardholders can manage their crypto balance through a virtual card, change crypto, make purchases, view receipts, withdraw money from ATMs and more.
It should be noted that user reviews for the Coinbase Card app are still less than stellar. The app has numerous one-star reviews in the Google Play Store, with several users citing server issues and authorization problems.
The bottom line
Coinbase Card can be convenient for Coinbase users who want to easily shop with cryptocurrency or make withdrawals at ATMs. Just keep in mind you may not be immediately eligible to apply for the Coinbase Card and most transactions come with fees and strict terms.