Xapo Bank Card

Xapo Bank Card Visa/Mastercard Debit Review: Fees, Rewards & Availability

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

The Xapo Bank Card offers tiered Bitcoin cashback on eligible card purchases, with rates varying based on merchant location and card type. All cashback is paid in satoshis (BTC units) and credited to the user's Bitcoin balance.

Cashback rates:

• 1.0% BTC on purchases made outside SEPA with the metal card
• 0.5% BTC on purchases made outside SEPA with plastic or virtual cards
• 0.2% BTC on purchases where the merchant is located in SEPA (European Economic Area, UK, Switzerland, Gibraltar), regardless of card type

Key details:

• Cashback is calculated on the final billed USD amount
• Applied automatically to qualifying purchases
• Not tied to any staking requirements
• Some merchant category codes (MCCs) are excluded, including gambling and certain financial services

Interest Program

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

• USD Balance: ~3.5–3.75% APY (paid in Bitcoin)
• Bitcoin Balance: 0.5% APY on the first ~2 BTC

Interest details:

• Accrues and is paid out daily in Bitcoin
• All interest is paid in BTC, 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
• Rates are variable and subject to change over time

Note: Historic marketing materials mentioned 4.1% APY on USD and 1.0% APY on up to 5 BTC; current rates as of late 2025 reflect the figures above. Always confirm current rates in-app.

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
• Universal Money Address (UMA): Every approved member receives a free UMA address for instant cross-border payments in USD or BTC

Fees and Limits

The Xapo Bank Card has a competitive fee structure for international transactions, though the annual membership represents a significant cost.

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:

• 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; can be deposited and withdrawn on-chain
• Ethereum (ETH): Available for buying, holding, and selling within the app (cannot be withdrawn on-chain)
• Cardano (ADA): Available for buying, holding, and selling within the app (cannot be withdrawn on-chain)

Stablecoins

• USD Coin (USDC): Supported for deposits/withdrawals on Ethereum network only (auto-converts to USD with blockchain fee + variable FX spread)
• Tether (USDT): Supported for deposits/withdrawals on Ethereum network only (auto-converts to USD with blockchain fee + variable FX spread)

Note: Xapo does not maintain separate USDT/USDC balances; deposits are automatically converted 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

The Xapo Bank Card is available in 100+ countries worldwide, making it accessible to users across most major markets outside the United States. Feature availability (such as US stock trading, ACH transfers, and loan products) may vary by country.

Supported Regions

Europe
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom

Americas
Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru

Asia-Pacific
Australia, India, Japan, New Zealand, Singapore, South Korea

Middle East & Africa
Israel, Kenya, Morocco, Qatar, South Africa, United Arab Emirates

This is a representative sample; see the Xapo app's country dropdown at signup for the complete current availability list.

Restricted Countries

Primary Exclusion:

• United States: US residents and US passport holders are not eligible for Xapo Bank services

Sanctioned/High-Risk Jurisdictions:
Belarus, Cuba, Iran, North Korea, Russia, Syria, Venezuela, and other jurisdictions subject to international sanctions

The exact exclusion list is not fully disclosed publicly and may change. Confirm availability in the Xapo app's country selector during signup.

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.

Wealth and Investment Features

Xapo Bank has evolved beyond basic banking to offer a comprehensive wealth platform integrating traditional and cryptocurrency investment products.

US Stock and ETF Trading

Available to non-US residents, Xapo Bank offers access to US stock and ETF markets with:

• 0.5% trade fee
• SIPC coverage through partner broker
• Trade execution through the Xapo Bank app
• No minimum investment requirements
• Access to thousands of US-listed securities

Bitcoin-Backed Loans

Members can access liquidity without selling their Bitcoin through collateralized loans:

• Loan amounts up to $1 million
• Loan-to-value (LTV) ratios of 20–40%
• No origination fees
• No early repayment penalties
• Competitive interest rates
• Bitcoin remains in custody earning interest during loan term

BTC Credit Fund

The BTC Credit Fund is now open to all eligible members as a regulated institutional-grade credit product:

• Target annualized return: 2–4% net on BTC
• Returns generated through collateralized lending to vetted institutions
• Institutional-grade risk management
• Bitcoin remains in Xapo's custody
• Transparent reporting on fund performance

Technical Details

Payment Network Integration

The Xapo Bank Card's technical architecture integrates with:

• Visa and Mastercard payment networks globally
• Bitcoin's Lightning Network for near-instant deposits and withdrawals
• Universal Money Address (UMA) protocol for instant cross-border payments
• Major payment processors including PayPal
• SEPA network for Euro transfers
• SWIFT network for international wire transfers

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 (BTC, ETH, ADA)
• Transfer capabilities (domestic and international)
• Real-time balance and transaction updates
• US stock and ETF trading interface
• Loan application and management
• BTC Credit Fund investment access

Interest and Rewards

Interest on USD and BTC balances is paid daily in Bitcoin. Recent materials and third-party reviews show ≈3.5–3.75% APY on USD and 0.5% APY on BTC up to ~2 BTC, with the bank investing USD primarily in low-risk assets (e.g., US Treasuries). Exact rates are variable and change over time.

Payment Rails

Xapo Bank positions itself around three complementary payment methods:

• Lightning Network for instant BTC deposits/withdrawals
• UMA (Universal Money Address) for instant cross-border payments in USD or BTC
• Xapo Card for global spending with 0% FX markups and BTC cashback

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 paid daily
• Comprehensive wealth platform

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, interest, and investment features
• 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
• Wealth builders seeking access to US stocks, Bitcoin-backed loans, and institutional-grade BTC yield products

Pros and Cons

Pros

• Zero foreign exchange fees make it ideal for international use
• Up to 1.0% Bitcoin cashback on eligible purchases
• Competitive interest rates on both USD and Bitcoin balances, paid daily in BTC
• Military-grade security with institutional custody
• Lightning Network integration for fast Bitcoin transactions
• Comprehensive wealth platform with stocks, loans, and yield products
• Available in 100+ countries including Canada, Australia, and India
• Universal Money Address (UMA) for instant cross-border payments

Cons

• High annual membership fee ($1,000) prices out casual users
• Not available to US residents and US passport holders
• Fully custodial model means users don't control their private keys
• Limited free ATM withdrawals ($100/month)
• Strict compliance requirements may feel intrusive
• Cashback rates lower for SEPA merchants (0.2%) and non-metal cards (0.5%)

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 tiered 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 paid daily in BTC, robust security through Xapo's military-grade storage facilities, and a comprehensive wealth platform offering US stock trading, Bitcoin-backed loans, and institutional-grade yield products. 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. While geographic availability has expanded to 100+ countries, US residents and US passport holders remain ineligible.

For users who can justify the annual fee through rewards, interest, investment features, 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.