I noticed that people often call any cards credit cards even when they actually mean debit cards. Anyway, it seems like a card costs only 10 dollars, and there one can convert Bitcoin into USD and use it anywhere where Visa is accepted. That sounds to good to be true, honestly. I feel like there should be a catch. Is it, say, only for online payments, and one actually cannot use it to pay in a random not bitcoin-friendly supermarket or cafe? Are there some high regular fees or terrible exchange rates? Is it working only for people living in the US, because it only converts the money into dollars and not into any kind of fiat? The website says it works in 240 countries, and that the fee is 1%.
Okay, I can see now that there are various kinds of fees, expecially for people outside US. But still, though, one can really just pay for goods in, say, Aldi, with this card, and perform virtually any online payments? Is there anything I am missing here?
Oh, and is the money fixed in fiat once you load it on the card or does one hold it in btc and a certain amount is converted into fiat when one is trying to pay? Basically, would a cardholder benefit/lose from bitcoin fluctuations, just like everyone else?
While its true VISA/MC have both credit and debit cards, it is also true you can use a credit card almost like a debit card.
Imagine you are issued a credit card with a (ridiculously low) 10$ limit, and you want to purchase something that costs 200$ What do you do? You pay it in advance, that is, pay your currently 0 debt credit card 200$, and then you can use it to buy the 200$ item.
A debit card is a bit different, since is tied to your bank account, it lets you spend whatever you have in there. It may have a transaction limit depending on bank and country being used.
Not sure what type Bitpay uses, but now you are paying: Bitcoin tx fee, Bitpay fee, visa/mc fee.