Coinbase Card is a Visa prepaid debit card product tied to a Coinbase account that enables eligible users to spend a USD-denominated balance at merchants that accept Visa debit. The card supports spending from cash or crypto holdings in a Coinbase account, with Coinbase converting supported cryptocurrency to U.S. dollars for card purchases and ATM withdrawals. The product is positioned as a bridge between a crypto portfolio and everyday payments, and it includes an optional rewards program that pays cryptocurrency based on rotating reward offers.
Overview
Coinbase Card is marketed as a prepaid debit card rather than a credit card. Users typically create a virtual card in-app and can order a physical card. Coinbase states there is no credit check and no requirement to stake assets to become eligible. In the United States, Coinbase indicates the card is available to Coinbase customers who live in the U.S., excluding Hawaii, and that the card can be used anywhere Visa debit is accepted.
History and Background
Coinbase introduced card-based spending as part of its broader effort to expand beyond spot trading into consumer financial tools. Over time, Coinbase has updated card partners, disclosures, and benefits to align with payment network requirements and evolving compliance expectations. The card’s current structure emphasizes conversion to USD at the point of spending and a variable rewards program rather than fixed, universal cash-back rates.
Core Products and Services
- Prepaid Visa spending: Purchases are authorized against available funds rather than a revolving credit line.
- Cash or crypto funding: Users can spend local currency balances or spend crypto, which is converted to USD for settlement.
- Virtual and physical cards: Users can create a virtual card for online or mobile wallet use and request a physical card.
- Optional crypto rewards: Rewards are offered through rotating reward options that can change over time.
- Card controls and security: Coinbase highlights features such as card freezing, PIN management, and account security tools such as two-factor authentication.
Technology and Features
Coinbase states the Coinbase Card is issued by Pathward, N.A., pursuant to a license from Visa U.S.A. Inc., and that the program is powered by Marqeta. Card acceptance follows Visa debit network rules, and the Coinbase app serves as the primary interface for card management, funding, and reward selection.
For crypto-funded spending, Coinbase indicates that it automatically converts cryptocurrency to U.S. dollars for purchases and ATM withdrawals. This approach generally means merchants receive fiat settlement even when the user chooses to spend from a crypto balance.
Fees, Taxes, and Limits
Coinbase’s current disclosures state there are no Coinbase transaction fees for spending U.S. dollars, USD Coin (USDC), or supported cryptocurrencies with Coinbase Card, and there is no annual fee. Coinbase also notes that it may include a spread when buying or selling cryptocurrency, which can affect the effective conversion rate when spending from crypto.
For ATM withdrawals, Coinbase indicates it does not charge an ATM withdrawal fee, although the ATM operator may charge its own fee. Spending limits and other constraints are governed by the cardholder agreement and may vary based on user verification status and program rules.
Coinbase also emphasizes tax considerations for U.S. users. The IRS generally treats cryptocurrency as property, so spending crypto can be treated as a taxable disposition, similar to selling crypto on an exchange. Coinbase notes that spending USD or USDC generally does not have the same tax implications, and USDC transactions at par with USD may not generate a taxable gain or loss.
Rewards Program
Coinbase describes crypto rewards as an optional offer available to Coinbase Card users in the U.S., and it states the reward rate is variable. Users can select from a list of rotating reward options, and Coinbase indicates that reward offers can expire. Coinbase also states that rewards earned do not expire, but if an offer ends and the user does not select a new one, Coinbase may select an available reward on the user’s behalf.
Use Cases and Market Position
Coinbase Card is primarily used by customers who want a familiar card payment experience while holding crypto in a Coinbase account. Common use cases include routine retail purchases, online spending, and ATM cash access, particularly for users who prefer to keep part of their balances in stablecoins such as USDC. The card competes with other crypto-linked payment cards by emphasizing broad Visa acceptance, app-based controls, and the ability to earn crypto rewards on eligible purchases.
Restrictions and Considerations
Like many fintech card programs, Coinbase Card includes restrictions on where and how it can be used. Coinbase lists country restrictions that include sanctioned and higher-risk jurisdictions, and it also restricts use at certain merchant categories. Examples include gambling-related merchants, money services businesses, some cryptocurrency businesses, and certain regulated or high-risk categories. Users should review current restrictions and program terms before relying on the card for international travel or specific purchase types.
