Xapo Bank Visa/Mastercard Debit: Bitcoin-Integrated Banking Card with Cashback Rewards

Basic Information

The Xapo Bank Card bridges traditional banking with cryptocurrency, allowing users to seamlessly spend both USD and Bitcoin without typical conversion hassles. As a product of Xapo Bank—a fully licensed Gibraltar-based institution regulated by the Gibraltar Financial Services Commission—the card provides a secure and compliant way for crypto holders to access their digital wealth for everyday transactions.

The card features a sleek minimalist design with Xapo branding. The metal card version features laser-etched details without printed numbers for enhanced security and aesthetic appeal.

Rewards and Benefits

Cashback Structure

Xapo Bank Card offers up to 1.1% Bitcoin cashback on all qualifying purchases. The rewards are:

• Paid in satoshis (BTC units)
• Applied to all purchases automatically
• Not tied to any staking requirements
• Credited to the user's Bitcoin balance

Interest Program

A standout feature of Xapo Bank is the interest paid on both fiat and cryptocurrency balances:

• USD Balance: ~4.1% APY (paid in Bitcoin)
• Bitcoin Balance: 1.0% APY (up to 5 BTC)

Interest details:

• Accrues daily and is paid monthly
• All interest is paid in Bitcoin, even on USD balances
• USD interest is funded by Xapo's investments in low-risk liquid assets like US Treasury bonds
• No lock-up period required; funds remain fully accessible

Additional Benefits

• Airport Lounge Access: One free visit per year via LoungeKey (additional visits $35)
• Referral Program: Standard program offers $4/month for 12 months per referral; promotional offers have included $42/month for 12 months ($504 total)
• Dedicated Account Manager: Personalized support for all members
• Lightning Network Integration: Instant Bitcoin deposits and withdrawals with minimal fees

Fees and Limits

Membership and Card Fees

ATM and Transfer Fees

Spending and Withdrawal Limits

These limits apply per individual card (virtual, plastic, or metal).

Card Tiers and Options

All card types share these common features:

• Up to 1.1% Bitcoin cashback on all purchases
• Zero fees on international transactions
• First $100/month free ATM access, then 2% fee
• $10,000 daily spending limit (adjustable to $50,000)
• $1,000 daily ATM limit (adjustable to $2,000)

Top-Up Methods

Users add funds to the Xapo Bank Card by depositing USD (via ACH, Fedwire, or SEPA), Bitcoin (BTC, including Lightning Network), or supported stablecoins (USDT, USDC) through the Xapo Bank app. All funds are credited to the user's Xapo account, with crypto and stablecoin deposits automatically converted to USD (a variable spread applies on conversion, but no explicit fee is listed for card top-ups). Deposits require moving funds from self-custody or external wallets to Xapo's fully custodial bank account, meaning users relinquish direct control once funds are credited. Bank transfer fees apply (e.g., ACH: $0.50 + 0.10%; SEPA: €0.15–€0.20), and stablecoin deposits may incur network fees and FX spreads; funds are generally available after standard network or banking settlement times. There is no option for on-demand spending directly from external wallets—all card transactions draw from the pre-loaded Xapo account balance, and only USD is held as fiat, with other currencies converted upon deposit.

Self-Custody Custodial

The Xapo Bank Card uses a custodial model, meaning all crypto and fiat assets are held and managed directly by Xapo on behalf of users. While users can direct transactions and choose whether to spend from their USD or Bitcoin balance, they do not have access to the private keys for their crypto holdings at any point. This setup offers strong security and seamless integration with both traditional and crypto payment networks, but users are dependent on Xapo for access to their funds. If Xapo Bank were to cease operations, users would not be able to independently retrieve their assets, though USD balances are protected up to €100,000 under Gibraltar's deposit guarantee scheme (crypto holdings are not insured). The model prioritizes convenience, regulatory compliance, and enhanced features like interest and rewards, but comes at the cost of self-sovereign control over one’s crypto assets.

Supported Currencies and Conversion

Cryptocurrencies

• Bitcoin (BTC): Primary cryptocurrency supported for holding, earning interest, and direct spending; Lightning Network enabled for instant transfers
• Ethereum (ETH): Available for buying, holding, and selling within the app
• Cardano (ADA): Available for buying, holding, and selling within the app
• Polygon (MATIC): Available for buying, holding, and selling within the app

Stablecoins

• USD Coin (USDC): Supported for deposits/withdrawals (auto-converts to USD)
• Tether (USDT): Supported for deposits/withdrawals (auto-converts to USD)

Fiat Currencies

• Primary Account Currency: U.S. Dollar (USD) - only fiat currency held as balance
• Payment Currencies: Card supports spending in any currency worldwide
• Transfer Currencies: Euro (EUR) via SEPA and British Pound (GBP) via local UK routes (converted to/from USD)

Conversion Process

When spending from a Bitcoin balance, Xapo converts to fiat at the time of transaction using their internal rate. There is no explicit fee, but a spread is applied during the conversion. Users can choose which account to debit (USD or BTC) for each transaction, and the app shows balances in both USD and BTC with real-time exchange rate information.

Geographic Availability

Supported Regions

Xapo Bank Card is available in over 150 jurisdictions worldwide, including:

• Europe: UK, EU countries, Switzerland, Norway, Iceland
• Asia: Japan, South Korea, Singapore, UAE, Qatar
• Americas: Brazil, Argentina, Mexico, Chile
• Africa: South Africa, Morocco, Kenya, Ghana
• Oceania: New Zealand

Restricted Countries

• Major Exclusions: United States, Canada, Australia, India, Israel, Nigeria
• Sanctioned Regions: Iran, North Korea, Syria, Cuba, Russia, Belarus, Venezuela

The restrictions are due to regulatory constraints, sanctions compliance, or business decisions. Xapo cannot accept applications from residents of unlisted countries; if a country isn't in the signup dropdown, service is unavailable.

Compliance and Security

Regulatory Framework

• Xapo Bank Limited licensed as a credit institution in Gibraltar
• Regulated by Gibraltar Financial Services Commission
• Xapo VASP licensed as a DLT provider (crypto custodian)
• Complies with AML/CFT regulations and international sanctions

Identity Verification

To obtain a Xapo Bank Card, users must complete a comprehensive KYC process including:

• Valid international passport or accepted national ID
• Live video selfie for biometric verification
• Proof of address (utility bill, bank statement)
• Additional documentation for large deposits (source of funds)

Custody Model

Xapo operates a fully custodial model where the bank holds private keys for crypto and manages fiat deposits.

Insurance and Protection

• Fiat deposits (USD) protected by Gibraltar Deposit Guarantee Scheme up to €100,000 per member
• If Xapo Bank fails, the GDGS administrator must pay valid claims within 7 working days
• Crypto holdings not covered by deposit insurance but secured in deep cold storage

Security Features

• Multi-layered security with deep cold storage in military-grade bunkers
• "Zero Trust" security model with multi-party computation (MPC) cryptography
• Biometric login (fingerprint/face recognition)
• Two-factor authentication (2FA)
• Hardware security key option for vault withdrawals
• Real-time transaction alerts
• In-app card freeze/unfreeze capability
• End-to-end encryption for sensitive data

Xapo works with major auditing firms (Big Four) for regular security and compliance audits.

Technical Details

Payment Network Integration

The Xapo Bank Card's technical architecture integrates with:

• Visa and Mastercard payment networks (region-dependent)
• Bitcoin's Lightning Network for near-instant deposits and withdrawals
• Major payment processors including PayPal

Mobile Wallet Compatibility

The card is compatible with:

• Apple Pay (confirmed by user reports)
• Google Pay
• Samsung Pay

Card Controls

Through the Xapo Bank app, users can:

• Generate or delete unlimited single-use virtual cards
• Freeze/unfreeze cards instantly
• Change PIN codes
• View full card details securely
• Set transaction alerts
• Adjust spending limits

User Experience

Mobile App

Xapo provides a modern mobile application available for iOS and Android with:

• Account management for both fiat and crypto
• Card controls and transaction monitoring
• Crypto exchange functionality
• Transfer capabilities (domestic and international)
• Real-time balance and transaction updates

Support Channels

• In-app live chat (7 days a week)
• Email support
• Scheduled calls with dedicated account manager
• 24-hour availability Monday-Friday (reduced hours on weekends)

User Feedback

Positive aspects frequently mentioned by users:

• Strong security features
• Bitcoin rewards system
• Zero foreign exchange fees
• Interest earned on balances

Common complaints include:

• Price increase from $150 to $1,000 annual fee
• Occasional support delays
• Withdrawal delays for large amounts
• Extensive source-of-funds documentation requests
• Merchant category restrictions (card blocked for certain MCCs including gambling and crypto exchanges)

Best Suited For

• Bitcoin enthusiasts who want to earn and spend BTC while maintaining a connection to traditional banking
• International travelers who benefit from zero foreign exchange fees and global acceptance
• High-net-worth individuals who can justify the $1,000 annual fee through rewards and interest
• Privacy-conscious users who appreciate the security features and single-use virtual card options
• Crypto investors who want to earn interest on both their fiat and Bitcoin holdings

Pros and Cons

Pros

• Zero foreign exchange fees make it ideal for international use
• Up to 1.1% Bitcoin cashback on all purchases
• Competitive interest rates on both USD and Bitcoin balances
• Military-grade security with institutional custody
• Lightning Network integration for fast Bitcoin transactions

Cons

• High annual membership fee ($1,000) prices out casual users
• Not available in major markets like US, Canada, and Australia
• Fully custodial model means users don't control their private keys
• Limited free ATM withdrawals ($100/month)
• Strict compliance requirements may feel intrusive

Conclusion

The Xapo Bank Card represents a sophisticated bridge between traditional banking and cryptocurrency, offering a unique value proposition for crypto-forward individuals with substantial assets. With its Bitcoin cashback rewards, zero foreign exchange fees, and integration with both major payment networks and Bitcoin's Lightning Network, it provides unparalleled convenience for those looking to use their crypto holdings in everyday life.

The card's standout features include competitive interest rates on both USD and Bitcoin balances and robust security through Xapo's military-grade storage facilities. These benefits make it particularly valuable for frequent travelers, Bitcoin enthusiasts, and those seeking a premium banking experience with crypto integration.

However, the $1,000 annual membership fee represents a significant limitation, effectively pricing out casual users with smaller balances. The strict compliance requirements and extensive KYC process may also deter those seeking maximum privacy or minimal friction. Additionally, the card's unavailability in major markets like the United States, Canada, and Australia restricts its potential user base.

For users who can justify the annual fee through rewards, interest, and zero FX fees, the Xapo Bank Card offers one of the most comprehensive regulated banking solutions with native Bitcoin integration available today.

Additional Information

Xapo's History

Xapo began as a Bitcoin custody solution founded by Wences Casares in 2014, known for its ultra-secure underground vaults in the Swiss Alps. In 2022, Xapo evolved into a fully licensed bank in Gibraltar, maintaining its focus on Bitcoin while expanding into traditional banking services. This history explains the company's unusually strong security posture and deep expertise in cryptocurrency custody, setting it apart from newer fintech offerings.

Business Account Features

Business accounts receive the same core card benefits but with additional features tailored to corporate needs:

• API access for programmatic account management and payments
• Multi-user access with permission controls
• Dedicated business account managers
• Higher transaction limits (negotiable based on business needs)
• Enhanced reporting for accounting and compliance

Business accounts must undergo enhanced due diligence during onboarding, and all card usage must be strictly for business purposes. The same $1,000 annual membership fee applies per business account.

Upcoming Features

Xapo has recently launched or is developing several new features:

• Stock trading capability for U.S. stocks and ETFs through the app
• Bitcoin-backed loans through an early access program
• Universal Money Addresses (UMA) to send money to email-like addresses across currencies
• Expanded card network support across more regions