Discontinuation of Card Services by Visa and MasterCard to crypto currency

xypos

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Quote from: audaciousbeing on October 13, 2017, 03:40:41 PM

I just read about this article, don't know how true though but its something of concern to me because it seems no one is talking about it and with the three months time line, a sure lot of people might lose their funds. Also, a lot of projects are coming up and they pride themselves as card providers to make you spend your bitcoin. How do they want to pull this off? However, the discontinuance of service is for citizens outside the EEA what will be the outcome of this? Will there be alternative around this since a lot of population will be shut out.

https://themerkle.com/mastercard-joins-visa-in-removing-cryptocurrency-debit-card-availability-outside-of-the-eea/

It was only Wavecrest. However, the majority of debit card providers atm use Wavecrest which is why so many people are being effected and so many businesses are not able to get ahead with their usual game anymore. Now it seems like everyone's doing it?

It should just a temporary thing, in my opinion. Hopefully.

I don't think that people in the US will be affected much, since they have coinbase and shift cards. However, outside of the EU and the US will be an issue.

audaciousbeing

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Quote from: warningsigns on October 14, 2017, 03:48:23 AM

These are sad developments. Not sure what solutions there are for crypto companies such as Wirex and Cryptopay. I bet the government played a role in Visa's and MasterCard's decision to discontinue card services for crypto services.

A potential solution in distant future would be to introduce a new card system unique to crypto services. But then again no ATM will offer fiat withdrawals for such cards if, again, Visa and MasterCard puts pressure on their affiliate banks.

I'm surprised though. WageCan offers their own cards and they are not banned. The card is a MasterCard. I have it and it works nicely.

You see that's exactly the point. Even bitcoin ATMs still needs the facilities provided by the two giants in other to thrive but I feel the issue can be solved by the time they are convinced that proper KYC has been done in those other countries because offering the services to EEA countries means they still trust them over them to do proper documentation.

But on the other hand I see this a opening another room for more illegality because people who wants to do the right thing with the provision of these cards would be frustrated to look for alternative means and that alternative route is not always the right one.

warningsigns

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These are sad developments. Not sure what solutions there are for crypto companies such as Wirex and Cryptopay. I bet the government played a role in Visa's and MasterCard's decision to discontinue card services for crypto services.

A potential solution in distant future would be to introduce a new card system unique to crypto services. But then again no ATM will offer fiat withdrawals for such cards if, again, Visa and MasterCard puts pressure on their affiliate banks.

I'm surprised though. WageCan offers their own cards and they are not banned. The card is a MasterCard. I have it and it works nicely.

crazyivan

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Most of respectable card companies have already found replacements for that. I think is more to do with EU companies serving EU citizens to prevent money laundering inside EU.

btcton

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I don't quite understand what the truth is here at all. Many providers, Wirex included, have indicated of ways to allow these cards to be issued globally under different contracts, so it would not seem as if Visa and Mastercard were actually banning crypto debit cards in its entirety. Furthermore, in the comments of that article there are individuals claiming that this author does not have a solid history reporting things like this. This makes me question his credibility along with the fact that I was recently able to order one of these cards without a problem. What do people here know about this source?

Potato Chips

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Quote from: TryNinja on October 13, 2017, 10:30:05 PM

Quote from: pinkflower on October 13, 2017, 10:13:39 PM

Theres really no need for a cryptocurrency debit card if the merchants start accepting BTC. Online merchants could also integrate shapeshift.io to automatically do the job for them to convert everything to BTC.

But too bad most of them want or need fiat currency. Maybe that will all change if BTC reaches $10,000?

I don't think that's all about the price.

Imagine that I'm the owner of a restaurant and want to accept Bitcoin as payment method. Someone buys an ice cream worth $5 and pays with Bitcoin. How am I going to pay my my ice cream supplier if he only accept USD? And even if he accepts Bitcoin, how would he pay the company that provides his milk if they don't accept Bitcoin?

Bitcoin is still far for being used as a real currency. For now, almost every merchant that accepts Bitcoin will convert his coins to dollars almost instantly to avoid losses due to Bitcoin's volatility.

Well yeah, The point is merchants--most of them-- ain't gonna be accepting bitcoin/cryptocurrencies anytime soon actually its still far imo thats why theres a decent demand on bitcoin debit cards, look at the companies who established their own.

@OP yeah this is legit some people talked about this on reddit. Wirex has even released their stance on this https://wirexapp.com/will-my-wirex-card-still-work-oct-15/. Apparently there'll be no loss on wirex card users as the funds on the card will be transferred on their wallet there.

TryNinja

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Quote from: pinkflower on October 13, 2017, 10:13:39 PM

Theres really no need for a cryptocurrency debit card if the merchants start accepting BTC. Online merchants could also integrate shapeshift.io to automatically do the job for them to convert everything to BTC.

But too bad most of them want or need fiat currency. Maybe that will all change if BTC reaches $10,000?

I don't think that's all about the price.

Imagine that I'm the owner of a restaurant and want to accept Bitcoin as payment method. Someone buys an ice cream worth $5 and pays with Bitcoin. How am I going to pay my my ice cream supplier if he only accept USD? And even if he accepts Bitcoin, how would he pay the company that provides his milk if they don't accept Bitcoin?

Bitcoin is still far for being used as a real currency. For now, almost every merchant that accepts Bitcoin will convert his coins to dollars almost instantly to avoid losses due to Bitcoin's volatility.

pinkflower

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Theres really no need for a cryptocurrency debit card if the merchants start accepting BTC. Online merchants could also integrate shapeshift.io to automatically do the job for them to convert everything to BTC.

But too bad most of them want or need fiat currency. Maybe that will all change if BTC reaches $10,000?

audaciousbeing

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I just read about this article, don't know how true though but its something of concern to me because it seems no one is talking about it and with the three months time line, a sure lot of people might lose their funds. Also, a lot of projects are coming up and they pride themselves as card providers to make you spend your bitcoin. How do they want to pull this off? However, the discontinuance of service is for citizens outside the EEA what will be the outcome of this? Will there be alternative around this since a lot of population will be shut out.

https://themerkle.com/mastercard-joins-visa-in-removing-cryptocurrency-debit-card-availability-outside-of-the-eea/

Topic: Discontinuation of Card Services by Visa and MasterCard to crypto currency (Read 425 times)