CoinJar has released a new bitcoin debit card, CoinJar Swipe. It allows users to pay in bitcoins anywhere where ordinary cards are accepted and to use it at any ATM for withdrawals.
To order the bitcoin debit card, customers need to sign in and verify their identity and to pay a fee of AUD 29. CoinJar launched the new product after they beta-tested it among 100 people and received positive feedback from them.
“People are already using their cards daily to pull out cash or make everyday purchases, but it will be fantastic to give everyone the ability to use their CoinJar everyday,”
The Swipe cards can be used at any EFTPOS terminal and any ATM in Australia. Purchases and cashouts are free, but different ATMs might charge fees for transactions. For now, the debit card does not function overseas because it cannot connect to the International Cirrus network that other Australian cards use to work in other countries. CoinJar is looking for ways to expand globally, though.
To load funds to their Swipe accounts, CoinJar users can transfer bitcoins from one of their other CoinJar accounts, Everyday Bitcoin or Cash Account. The latter need to be topped up with Australian dollars via bank transfer. You can also add fiat currency to the Swipe account with a concersion fee of 1%.
The use of the debit card is limited by a maximum card balance of $500 and a maximum of 25 transactions per day including both payments and ATM cash withdrawals.
CoinJar moved its head office to London last year, citing a more favourable regulatory climate in the UK than in Australia. The startup plans to launch their services in the UK later this year. The relocation took place in December following the Australian Tax Office's announcement of a 10% Goods and Services Tax (GST) that would apply to bitcoin exchanges.
“Bitcoin payments made to you by customers will become part of your taxable income. You may also be charged GST when receiving Bitcoin in return for goods and services,”