Bitcoin start-up Xapo is feeling pressure from the community this week following a string of posts on Reddit.com condemning the company for charging fees — something one would expect any business to do in order to remain afloat.
And Xapo has taken the opportunity to go on the record and make clear what’s going on with fees and shipping in this blog post, which you can click here to view.
On acquiring the card:
[blockquote style=”2″]When we announced the Xapo Debit Card a few months ago, we noted that there would be a one-time fee of US$15 in connection with ordering the card. That is still the case. Users who order the debit card will be charged US$15. This amount will be debited from your Xapo Wallet in bitcoins.[/blockquote]
But when it comes to usage fees, Xapo says they have consumers covered.
[blockquote style=”2″]We do not, however, intend to charge monthly fees or fees for everyday spending. If our users are charged a monthly service fee, Xapo will reimburse that amount in bitcoins. So, if you use the Xapo Debit Card and are charged a monthly service fee by our third party provider, we will directly reimburse your Xapo Wallet.[/blockquote]
Xapo also indicates that their initial plan did not include ATM capabilities, but that feature has since been added, and no surprise here, it includes extra fees. As does card replacement and foreign currency conversion.
America excluded for now
But perhaps one of the biggest slices of news here is that Xapo has left out what could possibly their biggest market at the moment: the United States. The exclusion relates to regulatory issues.
[blockquote style=”2″]One other important point: We have been advised that we cannot ship cards to the United States or India at this time. We were initially advised that these were approved markets. But after some initial invite emails were sent, we were notified that those markets had been reassessed, and that we cannot ship to them at this time. We will begin shipping to those two countries as soon as possible, and we will keep you notified of future developments. [/blockquote]
It’s unknown to us common folk just when the cards will ship to the United States, but it could very well be a while. As a new company in a new industry, though, you’ve got to give them some slack as they navigate these choppy waters.