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The Almighty Buck Businesses EU

Bitcoin Debit Cards Suspended After Upstream Visa Rules Infraction (thenextweb.com) 76

At least four pre-paid debit cards that accept cryptocurrencies abruptly suspended service on Friday. An anonymous reader quotes TheNextWeb: Speaking to their customers on Twitter, the affected companies have said the move is the result of actions from their card issuer, [WaveCrest], who was acting on behalf of Visa Europe... A statement from Visa Europe obtained by The Daily Beast reporter Joseph Cox said the action was taken due to WaveCrest's "non-compliance" with VISA's membership regulations... In its statement, Visa makes clear that this isn't a crackdown on cryptocurrencies, but rather action against one company that broke its rules.
"All funds stored on cards are safe and will be returned to your Cryptopay accounts ASAP," one of the affected debit card companies assured users on Twitter, adding "Sorry for all the inconvenience caused..."

According to the article, "Some users on Twitter are reportedly stranded abroad without funds."
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Bitcoin Debit Cards Suspended After Upstream Visa Rules Infraction

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  • Lies (Score:1, Troll)

    I've been into the bitcoin community since around 2010 so let me just be the first to say, yes, this is a crackdown on crypto and other alternative payment systems that are superior to Visa in every way. That's the same reason paypal business debit cards are magically getting declined on Coinbase.
    • Re:Lies (Score:5, Insightful)

      by cmseagle ( 1195671 ) on Saturday January 06, 2018 @03:26PM (#55876147)

      alternative payment systems that are superior to Visa in every way

      Except for processing speed, cost, merchant adoption...

      Doesn't the fact that Bitcoin holders want a Bitcoin Visa card indicate that there are at least some downsides of using Bitcoin as a day-to-day payment system?

      • by mjwx ( 966435 )

        alternative payment systems that are superior to Visa in every way

        Except for processing speed, cost, merchant adoption...

        Doesn't the fact that Bitcoin holders want a Bitcoin Visa card indicate that there are at least some downsides of using Bitcoin as a day-to-day payment system?

        Accepting credit cards are not cheap... or particularly fast. Merchant adoption is the only real reason you've got there.

        Serious about the not cheap bit, for many small businesses, they're paying more in merchant service fees than staffing costs (hell, I've seen a case study that Chevron's US retail arm is paying more in interchange fees than staffing costs).

        This is why I'll never give up cash, its really is the cheapest, fastest and most accepted form of payment.

    • crypto and other alternative payment systems that are superior to Visa in every way

      If they are superior to Visa, why do they need Visa?

      Anyone know what the actual infraction was?

      • by jrumney ( 197329 )

        Anyone know what the actual infraction was?

        Does Visa have a cap on transaction fees the card issuers are allowed to charge perhaps?

    • by Anonymous Coward

      If you've been into the Bitcoin community since 2010, prove it by sending a whole block of 50 Bitcoins to 18awryFxpSG2C1PRHWCteoak94HfdFbnfD.

      After all, 50 Bitcoins was nothing back then and you should have thousands of Bitcoins in your wallet. Fifty less Bitcoins won't make any difference.

    • something nobody else knows, how?

    • this is a crackdown on crypto and other alternative payment systems that are superior to Visa in every way

      If they are so superior, why do people want a pre-paid Visa card?

    • ... or it's the people trying to process the transactions for you getting tired of getting fucked by the wild fluctuations in exchange rate.

  • by quonset ( 4839537 ) on Saturday January 06, 2018 @03:10PM (#55876091)

    Some users on Twitter are reportedly stranded abroad without funds."

    If only there was some form of exchangeable item these people could use. Something accepted everywhere which could easily be carried on their person to pay for goods and services.

    If only such an item existed. That would solve their problem of having no "funds".

    • Well there's the problem! They only had Bitcoin! What they should have been using is Bitcoin Cash.
    • Well, strange enough some travelers actually make sure they have more than one card from more than one company...

      Well and having some Euros along as you suggest is a good thing too, but cumbersome to pay with as you need to first usually convert them to local currency whereas cards work directly.

  • Unreal (Score:5, Interesting)

    by jwymanm ( 627857 ) on Saturday January 06, 2018 @03:13PM (#55876109) Homepage
    It's unreal how much anti crypto talk there is here. This used to be a site for nerds and now it's just frigging negative crabby assholes. Bitpay in the USA was not hurt by this it was the VISA partner in Europe that wasn't following rules. If it were a crack down on blockchain it'd be everywhere and every partner of VISA dealing with it.
    • by Anonymous Coward

      This is a site for nerds. Nerds who have seen it all before.

    • This used to be a site for nerds and now it's just frigging negative crabby assholes

      It's still a site for nerds.

      However it's also a site for people who like to get flogged by nerds. Some kind of sad-masochistic thing, I think... anyway those people come on, knowing their stupid ideas will get pounded by someone with a low-count UID and I think they look forward to it.

      Just ignore them and read the nerd posts if they bother you. Would be nice if we could sandbox them a bit though.

    • I think it's just a bunch of people pointing out something stupid that's being done with crypto.

    • It's unreal how much anti crypto talk there is here. This used to be a site for nerds and now it's just frigging negative crabby assholes. Bitpay in the USA was not hurt by this it was the VISA partner in Europe that wasn't following rules. If it were a crack down on blockchain it'd be everywhere and every partner of VISA dealing with it.

      Ok, so baring some breakthrough in technology describe to me the state of cryptocurrencies in 20 years.

      Because right now they won't be currencies, nothing I've seen suggests they can scale to the necessary number of transactions.

      And they won't be gold either. Right now some unknown relative could die, will me a house, and if I found a pile of gold inside I could turn that into currency.

      There's a lot of people who can't access their own cryptocurrencies from 5 years ago.

      In 20 years I can see cryptocurrencies

      • In 20 years, there will be lots and lots of blockchain technologies used under the covers in ways most people will not notice, and only a few crypto currencies that anyone cares about, but the pure vaporous/fiat ones will not be considered important. Bitcoin specifically will be deader than dead, as in worth exactly zero, killed by later generation crypto currencies which were technically superior.
      • > Because right now they won't be currencies, nothing I've seen suggests they can scale to the necessary number of transactions.

        The top 5 currencies are processing about 3 million transactions per day: https://bitinfocharts.com/comp... [bitinfocharts.com]

        That is about 2% of VISA's network average, and Bitcoin Cash alone can scale up to ~11 million per day.

        Those 5 currencies have the equivalent value of South Korea's M1 money supply.

        • > Because right now they won't be currencies, nothing I've seen suggests they can scale to the necessary number of transactions.

          The top 5 currencies are processing about 3 million transactions per day: https://bitinfocharts.com/comp... [bitinfocharts.com]

          That is about 2% of VISA's network average, and Bitcoin Cash alone can scale up to ~11 million per day.

          Those 5 currencies have the equivalent value of South Korea's M1 money supply.

          So that's not as big a gap as I thought, but there's still the delay it takes for a transaction to go through, which in my understanding is restricted by the ability of the network to authenticate and agree on the transaction.

          Is the assumption that retailers basically won't bother to wait and eat the fraud risk? Or that they'll still be using credit cards to do the transaction?

    • by inking ( 2869053 )
      God forbid people will say booboo things about a payment system that consumes as much energy as Denmark and is largely powered by Chinese coal power plants. Hate the planet much, bud?
  • Because they thought backpacking with only a sketchy non transaction oriented currency was a good idea.

    Shows that crypto currencies aren't just being used by bright people.

  • First there is denial, then push back, then finally acceptance.

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