After promising the official release of Bitcoin-based debit cards, Xapo became a crypto-currency darling. Sadly, however, the bloom went off the rose once users received word that their debit cards, connected to Xapo bitcoin wallets, would incur a number of transaction fees. The original issue came up when company posted a fees schedule imposed by their debit card partner. This included a monthly fee as well as a surprisingly high ATM fees ranging from $3.50 to $4.50. However, there are no fees for debit card use.
California-based bitcoin wallet provider Xapo is facing community backlash following the release of its latest product, the Xapo Debit Card. Xapo started shipping the cards on 30th July, roughly one month after itsoriginal estimated launch date. Yet the news has largely been overshadowed by the company’s recently published fees and limits schedule. The schedule eventually found its way to reddit, evoking a strong response from customers who were upset to find the product would be more expensive than they originally believed. Xapo has now formally responded to the situation via a company blog post, stating that the fee schedule is the product of its partnership with the third-party issuer of the cards. This partner, Xapo says, requires a monthly service fee, card replacement fee and currency conversion fee, among other additional charges.
