Coinbase Card Review – Fees, Withdrawal Limits, Supported Coins, Cashback

Name: Coinbase Card
Item: Coinbase Card Review - Fees, Withdrawal Limits, Supported Coins, Cashback
Rating: 8
Author: Torsten Hartmann

Torsten Hartmann 0 Cards, Journal

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Coinbase Card Review – Fees, Withdrawal Limits, Supported Coins, Cashback

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It acts as the middleman between your coinbase account and the real world. Therefore, there is no need to fund the card separately.

It builds on the reputable security features that Coinbase offers and adds an AES 256 level encryption to boost security further.

It provides rewards for users in terms of cashback up to 4% on every crypto purchase.

It has wide coverage with support in over 30 countries, the US included.

It gives the user much purchasing power with a €10,000 daily spending limit(or $2500 for US citizens).

It is easy to use, even for beginners.

Coinbase is one of the largest crypto exchanges in the world. It has been around for a while, being launched on June 20, 2012, and currently is the second-largest crypto exchange in terms of spot trading volume.

Being an old-timer, the exchange continually makes itself relevant by introducing innovative ways to make it easier to buy, sell, understand, and use cryptocurrencies. In April 2019, Coinbase launched its crypto debit card, one of these ways. We will talk at length about that card in this article and explain how it can be helpful for you.

What you'll learn 👉

INTRODUCTION: What is the Coinbase debit card?

The Coinbase debit card is the result of a collaboration between two financial giants – Coinbase and Visa. It was launched on April 11, 2019, and was first open to only European citizens before being extended to US citizens on October 28, 2020.

It was introduced to make it easier to spend your crypto on everyday purchases, facilitating mainstream crypto adoption. You don’t have to preload the card before using it because it’s connected to your Coinbase account. This makes it more unique than many other cards of the same type.

Coinbase Card

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PROS

It acts as the middleman between your coinbase account and the real world. Therefore, there is no need to fund the card separately.
It builds on the reputable security features that Coinbase offers and adds an AES 256 level encryption to boost security further.
It provides rewards for users in terms of cashback up to 4% on every crypto purchase (1% for Bitcoin and 4% for Stellar Lumens)
It has wide coverage with support in over 30 countries, the US included.
It gives the user much purchasing power with a €10,000 daily spending limit(or $2500 for US citizens).
It is easy to use, even for beginners.

CONS

There is a 2.49% liquidation fee on top of the standard transaction fees when you make purchases with any other cryptocurrency apart from USDC.

HOW THE COINBASE DEBIT CARD WORKS

The Coinbase card connects to your personal Coinbase account. Therefore you can only have one card per account. There are no annual or sign-up fees, but there is an issuance fee of £4.95(or €4.95 or $4.95). Once you get your card, you can activate it with the Coinbase app or the website using the activation code in the letter accompanying your card.

How can you use the Coinbase card to:

Spend Crypto? Presently, there are 100+ cryptocurrencies supported on the Coinbase Debit card. When you make a crypto purchase, the selected crypto is instantly converted to the native currency(Pounds or Euros or Dollars), and a cashback is given as a reward.

The coinbase debit card is also connected with Google Pay and Apple Pay, facilitating even faster crypto payments with the touch of a button.

Earn Crypto? The rewards system in the Coinbase debit card works regardless of the cryptocurrency you spend. However, it gives you the option to toggle between what kind of rewards you want. You can either choose to get 4% cashback in XLM tokens or 1% cashback in BTC.

Rewards are sent to your account within 1-5 days of your transaction, depending on the payment merchant. However, ATM withdrawals are not eligible for rewards.

COINBASE DEBIT CARD SUPPORTED COINS

The vast array of cryptocurrencies is one of the exciting things about the Coinbase debit card. Because the card is linked to your Coinbase account, you can use the card to make payment in any of the cryptocurrencies supported on Coinbase. At present, there are 108 coins, and still counting. The only issue is that you would have to pay a conversion fee(2.49%) for any crypto purchase involving coins other than USD Coin(USDC).

GENEROUS CRYPTO REWARDS

As a Coinbase card user, you can earn up to 4% in cashback rewards. The rewards come in two ways: earn 1% cashback as BTC or 4% cashback as XLM. The cashback is sent directly to your Coinbase account in a matter of days.

COINBASE CARD FEES

The fee structure on Coinbase Card is in two categories:

For US residents:

There is no issuance fee
There is a 1% charge on withdrawals that exceed the daily limit of $2500.
There is a 2% fee on transactions that take place outside the US
There is a 2.49% liquidation fee on all other cryptocurrencies transactions apart from USDC.

For residents in the UK and EU:

There is a plastic card issuance fee of €4.95 or £4.95
ATM withdrawals are free up to €/£ 200 per month. After that, a 1% fee is charged on the requested amount
International cash withdrawals are free up to €/£ 200 per month. After that, a 2% fee is charged on the requested amount.
International purchases come with a 3% fee in addition to the requested amount
Card replacement attracts a fee of €4.95 or £4.95.

INTUITIVE MOBILE APP

The coinbase mobile application, available on iOS and Android, works with the Coinbase debit card to deliver a seamless financial experience. You can use the application to:

Request for the Coinbase card and use the Virtual card until you get the Physical one.
Toggle between different crypto assets you’d like to spend and track your crypto assets.
Toggle between choosing 1% BTC cashback and 4% XLM cashback
Activate your debit card after you get it
Integrate Apple Pay and Google Pay with your Coinbase card.

SUPPORTED COUNTRIES

As of writing, the Coinbase debit card is present in the following countries: Austria, Belgium, Denmark, Italy, Liechtenstein, Portugal, Bulgaria, Poland, Greece, Finland, Latvia, Netherlands, Cyprus, England, Norway, Spain, Croatia, France, Estonia, Ireland, Finland, Iceland, Romania, Hungary, Slovakia, Lithuania, Slovenia, Luxembourg, Sweden, the United Kingdom, and the United States. As time goes on, more countries will be added.

It’s important to note, though, that while the Coinbase card can be used at any store where Visa cards are accepted in the above countries, it has some restrictions by law. For example, you can’t use the card at gambling sites, nor can you use it for dating services, wire transfers, firearm-related businesses, etc.

SPENDING LIMITS

As you may have suspected, the spending limits of the card in the US are quite different from that of the UK/EU.

In the UK/EU:

Daily spending limit: €10,000 or £10,000
Monthly purchase limit: €20,000 or £20,000
Yearly Purchase Limit: £100,000 or € 100,000
Daily ATM withdrawal: £500 or €500

In the US:

Daily spending limit: $2500
Maximum Daily ATM Withdrawal limit: $1000

HOW TO APPLY FOR AND VERIFY A COINBASE DEBIT CARD

Follow the steps outlined below:

Create a Coinbase account if you have not already done that
Register for and pass the KYC(know your customer) verification
Apply for the card on the application by going to the PAY tab, selecting APPLY NOW, and signing up. You won’t instantly get the card, though, as you would be added to a waiting list from which select individuals are chosen periodically to get their cards
Pay the issuance fee of £/€4.95 for UK/EU residents. The fee can be paid in any of the accepted cryptocurrencies from your coinbase account.
Once you’ve done that, you can begin to use the virtual card, which has the exact details as the physical card. Once your physical card has arrived, you do not need the virtual anymore.
After being approved, you will receive the card in 7-10 business days. If you do not receive it within that period, log in to your coinbase account and report the card as stolen. You will then be sent another card at no cost
Activate your card on the app, and you’re good to go!

Coinbase Card

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HOW DOES COINBASE DEBIT CARD COMPARE TO…

BITPAY CARD:

CRITERIA	COINBASE CARD	BITPAY CARD
Supported Crypto	Over 108 cryptocurrencies are supported by Coinbase.	Bitcoin, Bitcoin Cash, Ethereum, Wrapped Bitcoin, Dogecoin, Litecoin, and five USD-pegged stablecoins
Supported Fiat	USD, EUR, GBP	USD
Card Type	Visa card	Mastercard
Contactless Payments	Apple Pay, Google Pay	Apple Pay
Fees	No monthly fee. Issuance fee of £/€4.95 for UK/EU residents. Currency conversion fee of 2.49% ATM withdrawal fee could go as high as 2%.	No monthly or maintenance fee. Issuance fee of $10. Currency conversion fee of 3%. ATM withdrawal fee could go as high as $3
Limits	As high as £10,000 daily withdrawal limit	As high as $6000 daily withdrawal limit

BLOCKFI CARD

CRITERIA	COINBASE CARD	BLOCKFI CARD
Supported Crypto	About 108 cryptocurrencies	Only Bitcoin
Rewards	1% BTC or 4% XLM cashback	1.5% cashback in BTC
Fees	No annual fees. International fees up to 3%	No annual or international fees.
Beginner and Special rewards	None	Beginners earn 3.5% cashback up to $100 during the first 90 days they own their card. After crossing a yearly milestone of $50,000, users earn 2% cashback
Supported fiat	EUR, GBP, USD	USD

GEMINI CARD

CRITERIA	COINBASE CARD	GEMINI CARD
Supported Crypto	Over 108 coins traded in the coinbase exchange	Over 40 coins supported in the Gemini exchange
Cashback	1% BTC cashback, 4% XLM cashback.	3% cashback on dining, 2% cashback on groceries, 1% cashback on other transactions.
Fees	No annual fees	No annual fees
Card type	Visa Card	Mastercard
Supported countries	US, UK, and the EU	US

CRYPTO.COM CARD

CRITERIA	COINBASE CARD	CRYPTO.COM CARD
Supported countries	United States of America, European Union Countries, United Kingdom	The United States of America, European Union Countries, Singapore.
Cashback	1% BTC cashback, 4% XLM cashback	1-8% cashback depending on how much Crypto.com coin(CRO) you have. No CRO: 1% cashback5,000 CRO: 2% cashback50,000 CRO: 3% cashback500,000 CRO: 5% cashback5,000,000 CRO: 8% cashback
Card type	Visa debit card	Visa Prepaid card
Supported coins	108 coins	121 coins
Supported fiat Currencies	EUR, USD, GBP	Over 20 fiat currencies are supported.

FREQUENTLY ASKED QUESTIONS

IS THERE A COINBASE DEBIT CARD❓

Yes, there is. It was launched in April 2019 for residents in the European Union and the United Kingdom but extended to residents of the United States on October 28, 2020. As of writing, it is available to all the states in the US except Hawaii.

The Coinbase debit card was produced in Collaboration with Visa to encourage more adoption of cryptocurrencies in day-to-day transactions. It doesn’t need to be preloaded, therefore eliminating the need for a middle man. It also has wide coverage across most EU countries and covers a vast array of cryptocurrencies.

HOW TO CALCULATE TAXES WHEN USING THE COINBASE DEBIT CARD❓

When you make transactions with the Coinbase debit card, you are engaging in profit-or-loss trade because the crypto assets and digital assets you select from your coinbase portfolio are sold at the point of purchase and used to buy the goods. This is why Coinbase applies a 2.49% liquidation fee which can be reported to the IRS as a tax paid on your purchases.
The story is quite different with stablecoins.

Because these coins are pegged to the US dollar and relatively stable compared to other cryptocurrencies, they are not considered profit-or-loss trades. Therefore, no tax is expected on them. That is why the Coinbase card does not charge any liquidation fee when you trade with USDC.

HOW DO I GET A COINBASE DEBIT CARD❓

1. Set up an account on Coinbase. You can skip this step if you already have one.
2. Pass the KYC verification process. You may need to submit sensitive information like your identity documents, your social security number, your billing address, etc.
3. Apply for the card. You can do this by going to the ‘Pay’ tab on the Coinbase mobile app, selecting ‘Apply now’, and signing up to receive the card.
4. Pay the issuance fee if you are from the United Kingdom or one of the supported European Union Countries. If you’re from the United States of America, you don’t need to pay.
5. The issuance fee mentioned above is £4.95 or €4.95. You can pay using any of the supported coins that you have in your coinbase account.
6. You will receive your card within seven to ten business days if you are approved. Before you get it, you can pay online with the virtual card(it has the same details).

If you do not get the card within 7-10 business days, report the card as ‘Lost’ or ‘Stolen’ on your coinbase account, and a new one will be sent to you at no cost.

IS THE COINBASE DEBIT CARD SAFE❓

Yes, it is safe. It is no secret that Coinbase is one of the top cryptocurrency exchanges in the world today. This company has been around for a long time and has a reputation for excellent security. It is not surprising, therefore, that we express a high level of confidence in the Coinbase debit card. Consider additional reasons for this confidence:

Coinbase is duly licensed in all the countries it operates, even the United States of America. Now, if you are familiar with the relationship that usually exists between governmental authorities and crypto exchanges, you would agree that it’s not that easy. This makes us certain that Coinbase(and associated products) is here to stay.

Coinbase enforces strict KYC regulations for all its customers. Thus, every trader is known, to an extent, before they can be allowed to use the Coinbase card. While this waters down the principle of decentralization that cryptocurrencies are supposed to be based on, it also gives a level of confidence to Coinbase’s security claims.

99% of assets under Coinbase’s command are stored in cold storage wallets, which are the most secure crypto wallets there can be.
Before using the mobile app and debit card, you must go through a two-step verification process
The coinbase mobile app has the option to of the instant card freeze assets on the debit card at the first sign of danger.

The debit card itself is equipped with AES-256 encryption protection that comes with Visa cards.

Are you now convinced? You should be. While it is not 100% safe to store all your assets online, you can be certain that the Coinbase debit card is one of the best there is out there.

What fees does the Coinbase debit card have❓

The Coinbase debit card charges different fees for residents of the US and residents of the UK/EU

For US residents:
There is no issuance fee
There is a 1% charge on withdrawals that exceed the daily limit of $2500.
There is a 2% fee on transactions that take place outside the US
There is a 2.49% liquidation fee on all other cryptocurrencies transactions apart from USDC.

For residents in the UK and EU:
There is a plastic card issuance fee of €4.95 or £4.95
ATM withdrawals are free up to €/£ 200 per month. After that, a 1% fee is charged on the requested amount
International cash withdrawals are free up to €/£ 200 per month. After that, a 2% fee is charged on the requested amount.
International purchases come with a 3% fee in addition to the requested amount
Card replacement attracts a fee of €4.95 or £4.95.
There is also a 2.49% liquidation fee on all crypto purchases using coins other than USDC.

WHAT IS THE CONVERSION RATE CHARGED BY COINBASE FOR ITS DEBIT CARD❓

The conversion or liquidation fee applied on all cryptocurrency transactions is 2.49% of the purchase amount. This is because the cryptocurrencies are sold at the point of purchase. The exception is in the case of USDC, a stablecoin. Because the coin’s value is pegged to the dollar, purchases with this coin are free.

WHAT IS THE CHARGEBACK FEE ON THE COINBASE DEBIT CARD❓

Chargebacks are a familiar concept in the world of card payments. It’s a protection mechanism for customers in which transactions are canceled and reverted to the original account because of issues with the payment merchant.

With the Coinbase debit card, chargebacks are processed with a £20 or €20 fee. Refunds are made in cryptocurrency and sent to the user’s coinbase wallet at the prevailing exchange rate at the time of refund.

WHAT IS COINBASE DEBIT CARD’S ATM WITHDRAWAL FEE❓

The ATM withdrawal fee is divided into two categories for residents in the United Kingdom and European Union countries. They are:

Domestic ATM withdrawal fee: When you use the debit card at a local ATM, you are not charged for the first £200 or €200 in the month. Further transactions beyond that incur a 1% charge of the transaction value
International ATM withdrawal fee: Just like with the domestic ATM withdrawals, you are not charged for the first £200 or €200 in the month using international ATM’s. Further transactions beyond that incur a 2% charge of the transaction value

WHAT IF MY COINBASE DEBIT CARD IS LOST OR STOLEN❓

If this happens, contact support immediately, either through email or the local support number that can be accessed from the mobile app.

Alternatively, follow these steps:

Log in to your Coinbase account
On the menu tab, select ‘Coinbase Card’.
In the top right corner, you’ll see ‘Manage Card’. Click on it.
Select ‘support’ and then ‘Report your card lost or stolen’.
The rest of the process is self-explanatory.

IS THE COINBASE CARD FREE❓

You do not have to pay an issuance fee if you live in the US. However, if you live in the UK or the supported countries in the EU, you’ll pay an issuance fee of £4.95 or €4.95.

BOTTOM LINE: COINBASE DEBIT CARD REVIEW

The Coinbase debit card is one of the best in terms of security and seamless financial experience. It also supports a vast array of cryptocurrencies and is accepted by merchants in a growing number of countries. The cashback rewards are small compared to other crypto debit cards, and the liquidation fee may also be discouraging to retail traders.

All in all, the fact that it is backed by one of the biggest names in the crypto industry makes it a good recommendation. Still, if you will use this card, be sure to know the risks as we have explained in this article and then decide if it’s the right card for you.

To learn more about crypto debit and credit cards, read the guides below:

Coinbase Card

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8 Total Score

Coinbase Card

PROS

It acts as the middleman between your coinbase account and the real world. Therefore, there is no need to fund the card separately.
It builds on the reputable security features that Coinbase offers and adds an AES 256 level encryption to boost security further.
It provides rewards for users in terms of cashback up to 4% on every crypto purchase.
It has wide coverage with support in over 30 countries, the US included.
It gives the user much purchasing power with a €10,000 daily spending limit(or $2500 for US citizens).
It is easy to use, even for beginners.

CONS