Bitcoin for credit card Review
Got Visa? MasterCard? Amex? Well....good!
With the Bitcoin craze building up day by day, new investors are always looking for easier ways to buy Bitcoin. Bitcoin is a digital enterprise in a sense, and young investors who are looking for easy money are peeping towards Bitcoin. Such investors would not have the patience to wait till their account is verified and then accumulate money and then invest. Instead, wouldn’t it be amazing if one could buy the Bitcoin with a Credit Card? Just a swipe at the local Bitcoin group meeting or even a simple credit card data entry page which helps you buy Bitcoin, would increase the number of investors in the Bitcoin market.
However, the use of credit cards brings in a whole set of uncertainties such as the uncertainty of credit card bill payment (in lesser regulated markets). But, the ease of buying Bitcoin with a credit card is unmatched. Let’s see some websites where we can buy Bitcoin using a credit card:
UPDATE: 9/30/2014 - Circle has launched!! >> 3 Reasons You Should Buy Bitcoin with your credit card
1. Purse.io: This website is a marketplace that connects bitcoin "Spenders" and bitcoin "Buyers" by leveraging Amazon wishlists. Basically, one can buy Bitcoin using a credit card and one can spend Bitcoin through this website to get unprecedentedly high discounts on Amazon merchandise. The website offers an innovative way to buy Bitcoins using credit card after undergoing a simple registration process that asks for basic details such as email, name and password (one can also register using Facebook). It also provides the Bitcoin conversion rate in USD. But, there’s a catch here! One doesn’t directly buy Bitcoins using a credit card. Basically, a spender (seller) orders Amazon merchandise through the Purse website and pays in Bitcoins, these Bitcoins are then transferred to the buyer who pays for the Amazon merchandise by credit card. Therefore, the spender pays in Bitcoin for the merchandise and the buyer pays for the merchandise by a credit card and gets bitcoins in return.
2. TinkerCoin: TinkerCoin is a comparatively simpler website to buy bitcoins using credit card. It requires a simple registration process using an email id. The website was released in a limited version to access the potential for this service. With a better than expected response, the website is preparing itself for an unlimited public release soon. However, the website offers Bitcoins in multiples of $25, payable both with Visa and Mastercard cards.
3. btcQuick: The website offers perhaps the simplest way to buy Bitcoins with a debit or credit card. The website requires a simple registration process followed by a verification of the account by a specialized card called the miiCard. The website is secure as it implements a robust policy of AML (Anti-Money Laundering) to prevent the bypass of records by fake accounts and third parties. Started in March 2013, the website already has 26,000 users worldwide, though the company is based in Denver, Colorado. The website offers transaction fees as low as 1%.
4. Meetpays: Available in two versions (English and Spanish), the website allows the users to to purchase bitcoins by using a credit card and also by a wire transfer. However, the credit card option is the fastest. The website requires a simple registration process, followed by a verification process. Official documents such as Passport (identity proof) and utility bills (address proof) are required for account verification. The website shows the ticker of the total market capital of the Bitcoin and is also available as an Android App in the Google Play.
5. Coinmama: Available in three versions (English, Italian, French), the website allows easy transactions of Bitcoins and Litecoins through a credit card. The exchange rates however are higher when compared to major Bitcoin Exchanges. However, this website doesn’t accept payments from individuals or companies based in USA. This is again an indirect use of credit cards. A credit card is used via Western Union or Money Gram to pay online. In an effort to provide a secure transaction, CoinMama’s AML policy requires the users to provide their personal details. Bitcoins and Litecoins can be ordered in multiples of 0.1 and 2 respectively. The website also provides a cash payment option for easier transactions.
6. Fastcoins: The website allows indirect buying of Bitcoins using a debit or a credit card via Western Union. After a simple registration, the user can buy Bitcoin using the website by providing the Bitcoin wallet address and the MTCN number (Western Union Transaction ID). This easy-to-use interface website also offers a referral bonus of 5% off on the first transaction for affiliates of the website. Promising a weekly payment of 0.05 BTC per referred customer, the website provides a referral link for affiliates.
7. Coin.Mx: The most intuitive website in this list, Coin.Mx provides an easy-to-use interface for buying Bitcoins using a credit card. One can see Bitcoin rates, recent transactions, buy and sell orders and also buy bitcoins using Visa, Mastercard and Discover cards. The website is made secure by using a 256 bit encryption that runs behind SSL. The website also uses an uptime management and an advanced database system for providing faster processing of transactions. The user has to go through a simple registration process for using the website. The website also provides a free digital wallet with every sign up.
8. VirWox: The Virtual World Exchange (VirWox) allows users to buy SLL (Second Life Lindens) with all major credit cards linked to Paypal. These SLLs can then be exchanged for Bitcoins on the same website. The website is widely popular and has about 225,000 registered users. The exchange commission listed on the website for every transaction varies between 1% and 3%. This rudimentary and easy-to-use website requires the user to undergo a simple registration process to be able to use the website.
9. BTC Dealer: This website uses an intermediate voucher website (Simple Voucher) and allows users to indirectly buy Bitcoins using a credit card. For every transaction, this website redirects the user to Simple Voucher, where one can buy vouchers using a credit card. These vouchers can be later redeemed at BTC Dealer for Bitcoins. However, all this process happens in the backend of the process. The website uses LiqPay for processing all payments. If a transaction is suspicious, the funds may be freezed for several days. The website exchange rate is comparatively higher than the market rates.
The use of credit cards makes it easier for users to get their share of the Bitcoin pie. But, one should be careful in the credit card world as it is subjected to several frauds and third party interventions. Also due to the nature of chargebacks and fraud companies need to mitigate these risks with additional checks and balances including premiums above the spot price of Bitcoin.