I have a couple of questions about using a credit card on Coinbase:
What types of cards do they accept? (Is it just Visa?)
What are the fees for using a credit card?
What is their refund policy for credit cards?
I'm probably being stupid, but I've had a look on their website and can't seem to find the answer. Thanks in advance!
It has been a while since I opened a Coinbase Account but here is my recollection and experience.
The real purpose of using a Credit Card with Coinbase is that if you have a Card on file, it increases your limits and transaction speed when purchasing out of your direct bank account link.
Basically, Coinbase will let your direct bank link purchases go much faster and at larger volumes if you have a Credit Card on file. This is sort of normal "insurance" for financial companies. My Paypal account does the same sort of thing I think. It's like increasing the level of your verification.
In regards to actually making a purchase of Bitcoins with a Credit Card - I don't actually see the ability to BUY with my Credit Card. It is clearly listed as a BACKUP funding source - in the event the bank funds aren't there. But even if I am wrong and you can
(it would be small limit) - it isn't Coinbase you have to worry about regarding the fees. I think their fee would be the same. BUT the Credit Card company DOES charge you a fee. Purchases of Bitcoin in the Visa/Mastercard financial system are treated as "Cash Advances" not retail purchases. So whatever your card charges for a Cash Advance is what you will be charged. Normally it ain't cheap.
Basically, buying Bitcoin with a Credit Card sounds nice, but isn't the best method. I just linked my bank account. I know all the paranoid delusionals on here get freaked out about that - but honestly, that is the way everyone does everything in almost all current systems - including Paypal.
IF you feel you really want "anonymous" bitcoins - go buy some "Local" bitcoins. But even the Bitcoin ATM's will require detailed info - especially as you get into larger amounts of bitcoin. And ultimately when you spend them they can track them eventually if they wanted to. Unless you get totally freaky and time consuming with excess security issues.
And in regards to use of cards - they accept Visa and Mastercard according to my internal "Add a Card" portal. I use Visa.
UPDATE: I checked my histories, and it is www.Circle.com that allows bitcoin purchases with Credit Cards, but everything above I wrote is still applicable... low limits and Credit Card Co treats it as a Cash Advance with higher fee. Not worth it in my opinion.Getting into Bitcoin is a new, sometimes scary and leery experience. Was for me. I don't trust anyone. And my 1st transaction was soooooo slow, and I was hyper paranoid, and I cussed out coinbase reps several times, fired off complaints etc. But everything went through after a nerve wracking week or so. Then it got quicker and quicker as I developed a history. Now I don't think about it much. They are huge.... and stealing from me or screwing up my money just gives them a black eye as I post trash about them all over the web. They don't want that. And they are regulated to hell and back so their higher ups can now go to prison if they act crappy.
Hope this helped. Good luck.
Peace,
- david
