4% back no fee Visa debit card

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typical.investor
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Re: 4% back no fee Visa debit card

Post by typical.investor »

bling wrote: Sat May 14, 2022 7:05 am
VictorStarr wrote: Sat May 14, 2022 12:04 am
nalor511 wrote: Fri May 13, 2022 11:11 pm Be careful using this card to pay just under $2500 tax bills, they shut off my card for "suspicious activity". That's the only significant charges I had on the card
Thank you for the warning. Coinbase may suspend my card but I am not willing to make a special effort to simulate "normal" spending patters. For me this card makes the most sense for large payments like estimated taxes. Otherwise the overall "cost" of this card would be too high.
4% is still better than everything else out there except for 5% categories. this could easily become a daily driver card.

since it's a debit card, it does take a little time to readjust to having to reload. however, deposits are instant and i've done it 2 minutes before paying and everything went through just fine.
4% is earned in what? Crypto?

Isn’t there a 2.49% conversion fee to spend from anything other than USD coin? Can you earn the 4% in USD coin?

If not, a normal 2% card is better unless you are spending in crypto.
bling
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Re: 4% back no fee Visa debit card

Post by bling »

typical.investor wrote: Sat May 14, 2022 7:09 am
bling wrote: Sat May 14, 2022 7:05 am
VictorStarr wrote: Sat May 14, 2022 12:04 am
nalor511 wrote: Fri May 13, 2022 11:11 pm Be careful using this card to pay just under $2500 tax bills, they shut off my card for "suspicious activity". That's the only significant charges I had on the card
Thank you for the warning. Coinbase may suspend my card but I am not willing to make a special effort to simulate "normal" spending patters. For me this card makes the most sense for large payments like estimated taxes. Otherwise the overall "cost" of this card would be too high.
4% is still better than everything else out there except for 5% categories. this could easily become a daily driver card.

since it's a debit card, it does take a little time to readjust to having to reload. however, deposits are instant and i've done it 2 minutes before paying and everything went through just fine.
4% is earned in what? Crypto?

Isn’t there a 2.49% conversion fee to spend from anything other than USD coin? Can you earn the 4% in USD coin?

If not, a normal 2% card is better unless you are spending in crypto.
you top it up with USD (free), spend with USD (free), earn 4% crypto. take that crypto and sell for USD (pay 0.4-0.6% fee), which works out to 3.95+%.

the only "cost" to all of this is extra time spent doing your taxes. every time you sell, it's a taxable transaction. even if the net gain is $0, you have to report it. coinbase generates a report at end of the year for you that you can use to import.

there's no good reason to use this card with anything other than USDC/USD, just like it doesn't make sense to make purchases on foreign purchases on a card that charges foreign exchange fees.
MrJedi
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Re: 4% back no fee Visa debit card

Post by MrJedi »

typical.investor wrote: Sat May 14, 2022 6:57 am
MrJedi wrote: Sun Apr 24, 2022 10:13 pm
JoMoney wrote: Sun Apr 24, 2022 8:03 pm
Impatience wrote: Sun Apr 24, 2022 7:52 pm
JoMoney wrote: Sun Apr 24, 2022 7:38 pm Those could be sticklers. "Up to 4%" doesn't mean 4% if it varies, and if there is a spread cost when you sell the coin I wouldn't be surprised if that's eating up a percent (or more) both ways, like -1% in the valuation spread you get as the ask price when buying or receive as a reward, and -1% when you sell to redeem it.
All my transactions have been exactly 4%. The app transparently reports the estimated and then finalized % and $ value back. The spread on selling the tokens is more like half a percent on Coinbase. You’re just making up bad sounding numbers with no basis in reality :confused
The "up to 4%" and "Reward rate is variable" is what they're claiming on their website.
They disclose they build a spread into the exchanges between crypto. 1% was just WAG at what the spread impact/cost might run, it probably also varies and could be much more or less depending on how volatile and how liquid the trading is on any particular crypto.
The trading fee is 0.4% or 0.6% depending if you have a maker or taker order (basically non marketable limit order vs market order).

If you spend $1000, you get $40 back in crypto

Then to sell the $40, you would have a 0.4% fee on a limit/maker order, about 16 cents. So you still net $39.84. Spreads are pretty thin from what I've seen. You can see the order books and spread is usually a basis point or two, pretty negligible if you are just looking to sell your reward as soon as you get it.

Say you even eat a spread of 0.1% on a bad trade, that will be an extra 4 cents. So you net $39.80 reward on $1000 spend, effectively 3.98% cash back.

This is all by using the Advanced Trade or Pro interfaces. The fees and spread is much more favorable than using the basic trading interface.

There were questions about basis earlier. Coinbase shows the crypto as having a basis of market value at time of reward. Any gain or loss from that basis is taxable when you sell and Coinbase will also show that to you.

How is the trading fee 0.4 to 0.6%?

If you get cash or spend in other than USD coin, it says the fee is 2.49%.

Are you earning and staying in USD coin?

The agreement says under spending;
Coinbase Wallet Currency Conversion
2.49% of Card transaction amount
This fee is per transaction and is determined and assessed by Coinbase under your agreement with Coinbase governing your Coinbase Wallet account. This fee applies if your linked Coinbase Wallet account is in a digital asset currency
other than USD Coin. This is a third-party fee and is subject to change.
I spend with USD and earn 4% with XLM. Then about once a month or so I sell the XLM for USD using Advanced Trade for 0.4-0.6% fee.

This is the key statement:
This is all by using the Advanced Trade or Pro interfaces. The fees and spread is much more favorable than using the basic trading interface.
For spending, USD also does not have fee, not just USDC. USD spending was not an option before but they added that like a year ago.

Also I believe they actually revamped the card a few weeks ago so that spending with crypto does not incur this fee. This is in their recent blog post: https://blog.coinbase.com/meet-the-refr ... fc07046e50

I don't hold/spend crypto so I do not have first hand experience. I always just sell it to USD, which I use Advanced Trade for the lower fee. I think if you spend with crypto, while there is no "fee", I think you end up eating a pretty crummy spread, that is why I do the advanced trade so I know exactly what I'm getting.
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

bling wrote: Sat May 14, 2022 7:05 am
VictorStarr wrote: Sat May 14, 2022 12:04 am
nalor511 wrote: Fri May 13, 2022 11:11 pm Be careful using this card to pay just under $2500 tax bills, they shut off my card for "suspicious activity". That's the only significant charges I had on the card
Thank you for the warning. Coinbase may suspend my card but I am not willing to make a special effort to simulate "normal" spending patters. For me this card makes the most sense for large payments like estimated taxes. Otherwise the overall "cost" of this card would be too high.
4% is still better than everything else out there except for 5% categories. this could easily become a daily driver card.

since it's a debit card, it does take a little time to readjust to having to reload. however, deposits are instant and i've done it 2 minutes before paying and everything went through just fine.
Deposits of up to $1k (per 24h) are instant, amounts over $1k take 4-6 business days
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VictorStarr
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Re: 4% back no fee Visa debit card

Post by VictorStarr »

bling wrote: Sat May 14, 2022 7:05 am
VictorStarr wrote: Sat May 14, 2022 12:04 am
nalor511 wrote: Fri May 13, 2022 11:11 pm Be careful using this card to pay just under $2500 tax bills, they shut off my card for "suspicious activity". That's the only significant charges I had on the card
Thank you for the warning. Coinbase may suspend my card but I am not willing to make a special effort to simulate "normal" spending patters. For me this card makes the most sense for large payments like estimated taxes. Otherwise the overall "cost" of this card would be too high.
4% is still better than everything else out there except for 5% categories. this could easily become a daily driver card.

since it's a debit card, it does take a little time to readjust to having to reload. however, deposits are instant and i've done it 2 minutes before paying and everything went through just fine.
Yes, 4% is great but overheads are substantial, here is my list:
- I have to maintain USD/USDC balance with Coinbase
- Reward coins may lose value in a matter of days
- Overhead of doing taxes, multiple small transactions
- Debit card is less secure than a credit card
- I have BoA Premium 2.625% card, incremental benefit is only 1.375%

For paying taxes cash back with Coinbase card is 3.9% (4% - 100*($2.50/$2500)) while with BoA Premium it is only 0.75% (2.625% - 1.87%).
Personally I will use the card only to pay taxes, tuition or other big expenses with substantial service fee for credit cards, but YMMV.
Last edited by VictorStarr on Sat May 14, 2022 1:15 pm, edited 2 times in total.
nonamer800
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Re: 4% back no fee Visa debit card

Post by nonamer800 »

Couple of questions
1. Is this account FDIC insured?
2. my understanding from this thread is that, since this is a debit card, IRS does not apply any fees for tax payments from a bank account, and moreover we get a 4% cash back from coinbase. Is that understanding right?
czaj
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Re: 4% back no fee Visa debit card

Post by czaj »

nonamer800 wrote: Sat May 14, 2022 12:46 pm Couple of questions
1. Is this account FDIC insured?
2. my understanding from this thread is that, since this is a debit card, IRS does not apply any fees for tax payments from a bank account, and moreover we get a 4% cash back from coinbase. Is that understanding right?
Yes, the USD position is held in a FDIC insured bank account with Meta Bank.

No, but fees are only $2-$3 for a debit card. (I have not used it to pay taxes yet, but have heard issues with payments not going through with certain processors).

I am concerned that Coinbase will eventually see a lot of people using the card to pay their taxes and exclude the category, but their exclusion list is pretty short as of now.
Weathering
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Re: 4% back no fee Visa debit card

Post by Weathering »

Would this debit card work for college tuition purchases?
I’d go through some hoops if I could get even 3% back on $40k this Fall (then I’d use the cash back for student travel stuff).
Weathering
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Re: 4% back no fee Visa debit card

Post by Weathering »

Weathering wrote: Sat May 14, 2022 1:11 pm Would this debit card work for college tuition purchases?
I’d go through some hoops if I could get even 3% back on $40k this Fall (then I’d use the cash back for student travel stuff).
For college tuition payments, I would need to use the routing number&accountnumber rather than a debit card. So, that may not work. Anyone with experience doing this?
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VictorStarr
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Re: 4% back no fee Visa debit card

Post by VictorStarr »

Weathering wrote: Sat May 14, 2022 1:11 pm Would this debit card work for college tuition purchases?
I’d go through some hoops if I could get even 3% back on $40k this Fall (then I’d use the cash back for student travel stuff).
It will take a long time (16 days) to pay $40K with this card, daily limit is $2,500.
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VictorStarr
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Re: 4% back no fee Visa debit card

Post by VictorStarr »

Weathering wrote: Sat May 14, 2022 1:13 pm
Weathering wrote: Sat May 14, 2022 1:11 pm Would this debit card work for college tuition purchases?
I’d go through some hoops if I could get even 3% back on $40k this Fall (then I’d use the cash back for student travel stuff).
For college tuition payments, I would need to use the routing number&accountnumber rather than a debit card. So, that may not work. Anyone with experience doing this?
For one of my children I can pay tuition either with direct debit from a bank account or credit/debit card. Fee for credit card is 2.4%.
Check payment methods with your university.
Weathering
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Re: 4% back no fee Visa debit card

Post by Weathering »

VictorStarr wrote: Sat May 14, 2022 1:20 pm
Weathering wrote: Sat May 14, 2022 1:13 pm
Weathering wrote: Sat May 14, 2022 1:11 pm Would this debit card work for college tuition purchases?
I’d go through some hoops if I could get even 3% back on $40k this Fall (then I’d use the cash back for student travel stuff).
For college tuition payments, I would need to use the routing number&accountnumber rather than a debit card. So, that may not work. Anyone with experience doing this?
For one of my children I can pay tuition either with direct debit from a bank account or credit/debit card. Fee for credit card is 2.4%.
Check payment methods with your university.
In your example is there a fee for a debit card (or debit and credit cards pay the same fee)?
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VictorStarr
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Re: 4% back no fee Visa debit card

Post by VictorStarr »

Weathering wrote: Sat May 14, 2022 1:37 pm
VictorStarr wrote: Sat May 14, 2022 1:20 pm
Weathering wrote: Sat May 14, 2022 1:13 pm
Weathering wrote: Sat May 14, 2022 1:11 pm Would this debit card work for college tuition purchases?
I’d go through some hoops if I could get even 3% back on $40k this Fall (then I’d use the cash back for student travel stuff).
For college tuition payments, I would need to use the routing number&accountnumber rather than a debit card. So, that may not work. Anyone with experience doing this?
For one of my children I can pay tuition either with direct debit from a bank account or credit/debit card. Fee for credit card is 2.4%.
Check payment methods with your university.
In your example is there a fee for a debit card (or debit and credit cards pay the same fee)?
In my example the 2.4% service fee is for credit card payments but there is a separate option for debit cards.
My guess that payment by Visa/Master debit card is possible but will incur 2.4% fee. I will have a definitive answer closer to the fall semester.
patrick
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Re: 4% back no fee Visa debit card

Post by patrick »

nonamer800 wrote: Sat May 14, 2022 12:46 pm Couple of questions
1. Is this account FDIC insured?
2. my understanding from this thread is that, since this is a debit card, IRS does not apply any fees for tax payments from a bank account, and moreover we get a 4% cash back from coinbase. Is that understanding right?
Coinbase's terms don't guarantee the USD balance is in an insured account, and the prepaid card terms only do for money loaded on the card which only happens when a transaction is authorized. However, this is probably not a big risk because one should not keep much money in the account anyway, and if Coinbase gets in trouble I'd expect them to drop the 4% rewards well before going bankrupt.

Paying taxes by card doesn't have any fee from the IRS but the payment processors have fees, which is a flat $2.20 with the lowest cost processor. Be warned that Coinbase has reportedly shut down some card accounts for this -- see
https://www.doctorofcredit.com/coinbase ... nt-1339394 for example.
patrick
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Re: 4% back no fee Visa debit card

Post by patrick »

czaj wrote: Sat May 14, 2022 12:54 pm Yes, the USD position is held in a FDIC insured bank account with Meta Bank.
I do not believe that is correct.

The regular Coinbase terms at https://help.coinbase.com/en/coinbase/o ... se-insured list insured deposit accounts as only one of the options they might use for the USD balance.

The card terms at https://static-assets.coinbase.com/card ... eement.pdf do say "Your funds that are transferred from your Coinbase USD Wallet are eligible for FDIC insurance" but note the reference to funds that are transferred. When does the transfer happen? Later on the terms say "At the time a transaction is authorized, Coinbase will load the required amount of U.S. dollars from your Coinbase USD Wallet to the Card to complete the transaction" suggesting the money isn't in the card's insured account before then.
Impatience
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Re: 4% back no fee Visa debit card

Post by Impatience »

bling wrote: Sat May 14, 2022 7:20 am
typical.investor wrote: Sat May 14, 2022 7:09 am
bling wrote: Sat May 14, 2022 7:05 am
VictorStarr wrote: Sat May 14, 2022 12:04 am
nalor511 wrote: Fri May 13, 2022 11:11 pm Be careful using this card to pay just under $2500 tax bills, they shut off my card for "suspicious activity". That's the only significant charges I had on the card
Thank you for the warning. Coinbase may suspend my card but I am not willing to make a special effort to simulate "normal" spending patters. For me this card makes the most sense for large payments like estimated taxes. Otherwise the overall "cost" of this card would be too high.
4% is still better than everything else out there except for 5% categories. this could easily become a daily driver card.

since it's a debit card, it does take a little time to readjust to having to reload. however, deposits are instant and i've done it 2 minutes before paying and everything went through just fine.
4% is earned in what? Crypto?

Isn’t there a 2.49% conversion fee to spend from anything other than USD coin? Can you earn the 4% in USD coin?

If not, a normal 2% card is better unless you are spending in crypto.
you top it up with USD (free), spend with USD (free), earn 4% crypto. take that crypto and sell for USD (pay 0.4-0.6% fee), which works out to 3.95+%.

the only "cost" to all of this is extra time spent doing your taxes. every time you sell, it's a taxable transaction. even if the net gain is $0, you have to report it. coinbase generates a report at end of the year for you that you can use to import.

there's no good reason to use this card with anything other than USDC/USD, just like it doesn't make sense to make purchases on foreign purchases on a card that charges foreign exchange fees.
You don’t need to report a $0 gain. That would be crazy. Just because Coinbase reports it to you doesn’t mean you need to enter it in your taxes.
Johndoefire65
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Re: 4% back no fee Visa debit card

Post by Johndoefire65 »

Last year I made $1,027 in rewards/bonuses using checking accounts and credit cards.

This year at $1,700 using same.

I dunno, even after squeezing ever lemon dry thinking fidelity credit card.

I was listening to a fraud expert. He said you never want to use debit card. You also don't build credit. He talks about it 43 minutes in https://www.youtube.com/watch?v=vsMydMDi3rI
bling
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Re: 4% back no fee Visa debit card

Post by bling »

nalor511 wrote: Sat May 14, 2022 11:45 am Deposits of up to $1k (per 24h) are instant, amounts over $1k take 4-6 business days
you can spend it (or buy crypto) immediately. you just can't withdrawal anything until that money clears.
Impatience wrote: Sat May 14, 2022 4:28 pm You don’t need to report a $0 gain. That would be crazy. Just because Coinbase reports it to you doesn’t mean you need to enter it in your taxes.
if you bought and sold VTI for the exact same price, do you need to report that to the IRS? i believe the answer is yes. either way, the likelihood of it being exactly zero is close to zero, so you're going to have gains/losses of +/- cents anyway which you're supposed to report. for those who use crypto a lot they'll just use crypto tax software, import the hundreds/thousands of transactions done over the year and be done with it.
Last edited by bling on Sat May 14, 2022 4:58 pm, edited 1 time in total.
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

bling wrote: Sat May 14, 2022 4:44 pm
nalor511 wrote: Sat May 14, 2022 11:45 am Deposits of up to $1k (per 24h) are instant, amounts over $1k take 4-6 business days
you can spend it (or buy crypto) immediately. you just can't withdrawal anything until that money clears.
You can not spend deposits over $1k/24h immediately, you must wait 4-6 biz days. You can spend deposits under $1k/24h immediately
bling
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Re: 4% back no fee Visa debit card

Post by bling »

nalor511 wrote: Sat May 14, 2022 4:50 pm
bling wrote: Sat May 14, 2022 4:44 pm
nalor511 wrote: Sat May 14, 2022 11:45 am Deposits of up to $1k (per 24h) are instant, amounts over $1k take 4-6 business days
you can spend it (or buy crypto) immediately. you just can't withdrawal anything until that money clears.
You can not spend deposits over $1k/24h immediately, you must wait 4-6 biz days. You can spend deposits under $1k/24h immediately
yes you can, i literally did this a month ago paying taxes. maybe it has to do with verification levels. i have the highest.
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

bling wrote: Sat May 14, 2022 5:10 pm
nalor511 wrote: Sat May 14, 2022 4:50 pm
bling wrote: Sat May 14, 2022 4:44 pm
nalor511 wrote: Sat May 14, 2022 11:45 am Deposits of up to $1k (per 24h) are instant, amounts over $1k take 4-6 business days
you can spend it (or buy crypto) immediately. you just can't withdrawal anything until that money clears.
You can not spend deposits over $1k/24h immediately, you must wait 4-6 biz days. You can spend deposits under $1k/24h immediately
yes you can, i literally did this a month ago paying taxes. maybe it has to do with verification levels. i have the highest.
*Shrug*, has not been my experience, nor the case of anyone I've heard on the CB Reddit. I'm L3 verified. My instant send limit has been $1k/24h since day 1, and it's the number everyone talks about. Glad to hear your card is working for what you need it to
bling
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Re: 4% back no fee Visa debit card

Post by bling »

nalor511 wrote: Sat May 14, 2022 5:23 pm *Shrug*, has not been my experience, nor the case of anyone I've heard on the CB Reddit. I'm L3 verified. My instant send limit has been $1k/24h since day 1, and it's the number everyone talks about. Glad to hear your card is working for what you need it to
yea, not sure what's going on. tried again right now just to make sure i'm not insane. put in 2k, hit 'preview', and it says available to buy = instantly, available to send or cash out = 1k instantly, the rest in 10 days.
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

bling wrote: Sat May 14, 2022 5:32 pm
nalor511 wrote: Sat May 14, 2022 5:23 pm *Shrug*, has not been my experience, nor the case of anyone I've heard on the CB Reddit. I'm L3 verified. My instant send limit has been $1k/24h since day 1, and it's the number everyone talks about. Glad to hear your card is working for what you need it to
yea, not sure what's going on. tried again right now just to make sure i'm not insane. put in 2k, hit 'preview', and it says available to buy = instantly, available to send or cash out = 1k instantly, the rest in 10 days.
Right. That's how I understand it to work.
MrJedi
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Re: 4% back no fee Visa debit card

Post by MrJedi »

There's an instant send limit of $1000 that you may or may not have. Not everybody gets this, it seems to be part of their algorithm that adjusts the other limits on your account, like ACH limits, etc.

If you hold cleared crypto in your account, you can also spend earlier because they will effectively hold your crypto as collateral instead of the cash until funds clear. For example:

$2000 in crypto with cleared funds, $0 USD

Now ACH transfer in $3000 USD.

You will be able to spend $2000 USD because you have $2000 of crypto cleared. If you spend the $2000 USD, then your crypto will be held (can't transfer it out) until the ACH clears. You have $2000 in crypto and $1000 USD being held while the original $3000 transfer clears.
czaj
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Re: 4% back no fee Visa debit card

Post by czaj »

patrick wrote: Sat May 14, 2022 4:14 pm
czaj wrote: Sat May 14, 2022 12:54 pm Yes, the USD position is held in a FDIC insured bank account with Meta Bank.
I do not believe that is correct.

The regular Coinbase terms at https://help.coinbase.com/en/coinbase/o ... se-insured list insured deposit accounts as only one of the options they might use for the USD balance.

The card terms at https://static-assets.coinbase.com/card ... eement.pdf do say "Your funds that are transferred from your Coinbase USD Wallet are eligible for FDIC insurance" but note the reference to funds that are transferred. When does the transfer happen? Later on the terms say "At the time a transaction is authorized, Coinbase will load the required amount of U.S. dollars from your Coinbase USD Wallet to the Card to complete the transaction" suggesting the money isn't in the card's insured account before then.
Ah yes, you are correct. “Partially” FDIC-insured, but I guess we don’t know how much that is. I would hope it’s a large proportion.

In any case, I think it’s a good idea to not hold much in Coinbase for very long.
MrJedi
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Re: 4% back no fee Visa debit card

Post by MrJedi »

I agree. I only load in what I'm going to use within the next 1-2 weeks. I would not be comfortable with much more than that.

Their terms are a bit cryptic. It seems they can put your USD into custodial bank accounts, but they can also invest it into treasuries or money market funds. I think the funds are conservatively invested but I'm wary of how much you would be entitled to if coinbase were to bankrupt. I think the custodial accounts may go to you but I'm not sure about the treasuries or money market funds. I just assume the worst and don't hold significant amount there.
bling
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Re: 4% back no fee Visa debit card

Post by bling »

MrJedi wrote: Sat May 14, 2022 8:10 pm I agree. I only load in what I'm going to use within the next 1-2 weeks. I would not be comfortable with much more than that.

Their terms are a bit cryptic. It seems they can put your USD into custodial bank accounts, but they can also invest it into treasuries or money market funds. I think the funds are conservatively invested but I'm wary of how much you would be entitled to if coinbase were to bankrupt. I think the custodial accounts may go to you but I'm not sure about the treasuries or money market funds. I just assume the worst and don't hold significant amount there.
this has been making the rounds in crypto news the past week or so because they had to declare what happens in the event of a bankruptcy. "not your keys, not your crypto". if they were to go bankrupt, they'd have to pay off all of their creditors first before they pay their customers.

that being said, it's definitely prudent to only top-up what you intend to spend right away. there's no reason to put any significant amount of anything on coinbase (USD or crypto).
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ClevrChico
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Re: 4% back no fee Visa debit card

Post by ClevrChico »

I'm happy to report that I successfully made an estimated tax payment with my Coinbase Visa on Pay1040.com. On a $2500 charge, I was able to net $97 in USD rewards after fees and trading.

Once you understand the process, it's all very easy, and worth it in my opinion. The main caveat is that it takes a week for money to settle and be available in Coinbase before using the debit card. Also, be aware of the $2500 transaction limit.

I initially tried to use ACI to make the tax payment, but it didn't work. Most likely it user error on my part somewhere.
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

Does anyone know if I can use this card for HOA fees and get the 4% back?

Can I choose USDC for the 4% back?

The 4% back reward is not taxable right? In theory, USDC is always $1, so I shouldn't have to pay tax when I cash the rewards out, right?
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

OK. Just signed up for the card. 4% is only for XML or Graph. I chose XML because I am more familiar with it.

But it says I will get the reward for the next 12 days. Not sure what happens after that.

Still not sure about the tax situation...
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jh
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Re: 4% back no fee Visa debit card

Post by jh »

I use www.sofi.com for my main credit card and I get 2% cash back on all transactions. Then I take that and deposit in my brokerage account at SoFi into one the various 3x leveraged ETFs like TQQQ and UPRO.

I bet I end up getting more than 4% back due to using the 3x leveraged ETFs. There are also no tax hassles this way. No need to exchange *bad word* coins for US dollars, and pay a fee for doing so and taxes.

If you setup direct deposit at sofi you get 1.5% on your checking account too.

By the way, if you want to use my referral link send me a private message. We will both get some free bonus money.
Retired in 2022 at the age of 46. Living off of dividends.
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

ClevrChico wrote: Sat May 28, 2022 8:26 am I'm happy to report that I successfully made an estimated tax payment with my Coinbase Visa on Pay1040.com. On a $2500 charge, I was able to net $97 in USD rewards after fees and trading.

Once you understand the process, it's all very easy, and worth it in my opinion. The main caveat is that it takes a week for money to settle and be available in Coinbase before using the debit card. Also, be aware of the $2500 transaction limit.

I initially tried to use ACI to make the tax payment, but it didn't work. Most likely it user error on my part somewhere.
It's not use error, ACI is blocked, does not work for fed payments. Pay1040 and payUSA both work for fed payments. For now. Until CB blocks them too. ACI works for CA state payments at the present time. Pay too many taxes and CB will shut off your card
MrJedi
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Re: 4% back no fee Visa debit card

Post by MrJedi »

jh wrote: Sat May 28, 2022 6:17 pm I use www.sofi.com for my main credit card and I get 2% cash back on all transactions. Then I take that and deposit in my brokerage account at SoFi into one the various 3x leveraged ETFs like TQQQ and UPRO.

I bet I end up getting more than 4% back due to using the 3x leveraged ETFs. There are also no tax hassles this way. No need to exchange *bad word* coins for US dollars, and pay a fee for doing so and taxes.

If you setup direct deposit at sofi you get 1.5% on your checking account too.

By the way, if you want to use my referral link send me a private message. We will both get some free bonus money.
Instead of 2%, you could do 4% and then invest the cashback in the same way and literally earn double.

Yes, there are more steps involved, no argument there. I have a 3% on everything card and I prefer using that since it's so much easier than dealing with the Coinbase/crypto stuff, it is not worth the extra 1%.
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ClevrChico
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Re: 4% back no fee Visa debit card

Post by ClevrChico »

nalor511 wrote: Sat May 28, 2022 6:30 pm
ClevrChico wrote: Sat May 28, 2022 8:26 am I initially tried to use ACI to make the tax payment, but it didn't work. Most likely it user error on my part somewhere.
It's not use error, ACI is blocked, does not work for fed payments. Pay1040 and payUSA both work for fed payments. For now. Until CB blocks them too. ACI works for CA state payments at the present time. Pay too many taxes and CB will shut off your card
Good to know, thanks!
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ClevrChico
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Re: 4% back no fee Visa debit card

Post by ClevrChico »

frugalor wrote: Sat May 28, 2022 5:17 pm Does anyone know if I can use this card for HOA fees and get the 4% back?

Can I choose USDC for the 4% back?

The 4% back reward is not taxable right? In theory, USDC is always $1, so I shouldn't have to pay tax when I cash the rewards out, right?
You most likely can use it for your HOA if they accept debit cards. Here are the blocked categories:

Securities Broker-Dealers
Dating/Escort Services
Massage Parlors
Gambling (Including Casinos)
Money Orders
Wire Transfers
Government Owned Lotteries
Government Licensed Online Casinos (Online Gambling)
Government Licensed Horse/Dog Racing
Internet Gambling
Money Services Businesses
Cryptocurrency Businesses
Firearm-Related Businesses (Manufacturing and Selling)
Marijuana-Related Businesses

The 4% currencies rotate, and you're limited on what earns 4%. Just sell the reward immediately after receiving it if you want. I believe you're only taxed on the spread between the asset price when given and when you sell. Taxes should be minimal if you immediately sell.
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ClevrChico
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Re: 4% back no fee Visa debit card

Post by ClevrChico »

frugalor wrote: Sat May 28, 2022 5:50 pm OK. Just signed up for the card. 4% is only for XML or Graph. I chose XML because I am more familiar with it.

But it says I will get the reward for the next 12 days. Not sure what happens after that.

Still not sure about the tax situation...
I believe the reward currency will automatically rotate to the next 4% kind.

If it's like other credit cards, the rewards are not taxable. You'll pay capital gains on the difference between the price when acquired and sold. (Someone correct me if that's not right.)
tj
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Re: 4% back no fee Visa debit card

Post by tj »

MrJedi wrote: Sat May 28, 2022 6:38 pm
jh wrote: Sat May 28, 2022 6:17 pm I use www.sofi.com for my main credit card and I get 2% cash back on all transactions. Then I take that and deposit in my brokerage account at SoFi into one the various 3x leveraged ETFs like TQQQ and UPRO.

I bet I end up getting more than 4% back due to using the 3x leveraged ETFs. There are also no tax hassles this way. No need to exchange *bad word* coins for US dollars, and pay a fee for doing so and taxes.

If you setup direct deposit at sofi you get 1.5% on your checking account too.

By the way, if you want to use my referral link send me a private message. We will both get some free bonus money.
Instead of 2%, you could do 4% and then invest the cashback in the same way and literally earn double.

Yes, there are more steps involved, no argument there. I have a 3% on everything card and I prefer using that since it's so much easier than dealing with the Coinbase/crypto stuff, it is not worth the extra 1%.
How do you have a 3% card?
MrJedi
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Re: 4% back no fee Visa debit card

Post by MrJedi »

tj wrote: Sun May 29, 2022 8:53 am
MrJedi wrote: Sat May 28, 2022 6:38 pm
jh wrote: Sat May 28, 2022 6:17 pm I use www.sofi.com for my main credit card and I get 2% cash back on all transactions. Then I take that and deposit in my brokerage account at SoFi into one the various 3x leveraged ETFs like TQQQ and UPRO.

I bet I end up getting more than 4% back due to using the 3x leveraged ETFs. There are also no tax hassles this way. No need to exchange *bad word* coins for US dollars, and pay a fee for doing so and taxes.

If you setup direct deposit at sofi you get 1.5% on your checking account too.

By the way, if you want to use my referral link send me a private message. We will both get some free bonus money.
Instead of 2%, you could do 4% and then invest the cashback in the same way and literally earn double.

Yes, there are more steps involved, no argument there. I have a 3% on everything card and I prefer using that since it's so much easier than dealing with the Coinbase/crypto stuff, it is not worth the extra 1%.
How do you have a 3% card?
Tiny credit union card. AOD Visa signature. It is no longer available for new applicants though.
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

Is there a minimum on rewards? Let's say I spend $2 on coffee, 4% is only 8 cents. Do they reward you 8 cents of xlm?
MrJedi
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Re: 4% back no fee Visa debit card

Post by MrJedi »

frugalor wrote: Sun May 29, 2022 1:06 pm Is there a minimum on rewards? Let's say I spend $2 on coffee, 4% is only 8 cents. Do they reward you 8 cents of xlm?
No minimum. Yes 8 cents.
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

MrJedi wrote: Sun May 29, 2022 1:14 pm
frugalor wrote: Sun May 29, 2022 1:06 pm Is there a minimum on rewards? Let's say I spend $2 on coffee, 4% is only 8 cents. Do they reward you 8 cents of xlm?
No minimum. Yes 8 cents.
Thanks for the info. Do they charge a fee to convert XLM into USDC or USD?
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ClevrChico
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Re: 4% back no fee Visa debit card

Post by ClevrChico »

frugalor wrote: Sun May 29, 2022 1:20 pm
MrJedi wrote: Sun May 29, 2022 1:14 pm
frugalor wrote: Sun May 29, 2022 1:06 pm Is there a minimum on rewards? Let's say I spend $2 on coffee, 4% is only 8 cents. Do they reward you 8 cents of xlm?
No minimum. Yes 8 cents.
Thanks for the info. Do they charge a fee to convert XLM into USDC or USD?
If you do an advanced trade, it's only .5% of the reward.
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

ClevrChico wrote: Sun May 29, 2022 1:22 pm
frugalor wrote: Sun May 29, 2022 1:20 pm
MrJedi wrote: Sun May 29, 2022 1:14 pm
frugalor wrote: Sun May 29, 2022 1:06 pm Is there a minimum on rewards? Let's say I spend $2 on coffee, 4% is only 8 cents. Do they reward you 8 cents of xlm?
No minimum. Yes 8 cents.
Thanks for the info. Do they charge a fee to convert XLM into USDC or USD?
If you do an advanced trade, it's only .5% of the reward.
I have never heard of Advanced Trade before. Just googled it and it says it's like Coinbase Pro but in the Coinbase platform. Why do they have to make things so complicated?

Is there a flat fee for Advanced Trade? Say I want to convert that 8 cents into USDC, will I be able to do it? Will I get 7 cents in USDC (rounding)?
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ClevrChico
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Re: 4% back no fee Visa debit card

Post by ClevrChico »

frugalor wrote: Sun May 29, 2022 1:28 pm I haven't never heard of Advanced Trade before. Just googled it and it says it's like Coinbase Pro but in the Coinbase platform. Why do they have to make things so complicated?

Is there a flat fee for Advanced Trade? Say I want to convert that 8 cents into USDC, will I be able to do it? Will I get 7 cents in USDC (rounding)?
I'm sure the pricing tiers on trades is all part of the business model. :-) On my trades, I haven't been able to liquidate 100% of a position, there's usually a few cents leftover. For advanced trades, it's my understanding it's a flat .5%.
Last edited by ClevrChico on Sun May 29, 2022 3:15 pm, edited 1 time in total.
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

Coinbase has a Tax Center page that you can download the tax reports.

Maybe filing tax is not too much of a nightmare?

I see a lot of positive things for this 4% back debit card.
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

frugalor wrote: Sun May 29, 2022 2:23 pm Coinbase has a Tax Center page that you can download the tax reports.

Maybe filing tax is not too much of a nightmare?

I see a lot of positive things for this 4% back debit card.
You can not download anything useful in tax reports. You have to use a third party like cointracker.io or koinly to get a useful capital gains csv. It's still free, but it's just one more step in a process that didn't need to have one. Starting in 2023 coinbase will be required to issue 1099, but for 2022 they are not required to.

The biggest issue with the CB 4% debit card is that they shut off cards with no notification, and no explanation (before, while, or after). You can send in an email ticket, which takes about 10 days, and all you'll get back is a "we turned it back on" or a "we're not turning it back on". I refuse to call, reportedly that takes less time, but with no more explanation. Lots of reports on the CB reddit, search around.
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

nalor511 wrote: Sun May 29, 2022 2:33 pm
frugalor wrote: Sun May 29, 2022 2:23 pm Coinbase has a Tax Center page that you can download the tax reports.

Maybe filing tax is not too much of a nightmare?

I see a lot of positive things for this 4% back debit card.
You can not download anything useful in tax reports. You have to use a third party like cointracker.io or koinly to get a useful capital gains csv. It's still free, but it's just one more step in a process that didn't need to have one. Starting in 2023 coinbase will be required to issue 1099, but for 2022 they are not required to.

The biggest issue with the CB 4% debit card is that they shut off cards with no notification, and no explanation (before, while, or after). You can send in an email ticket, which takes about 10 days, and all you'll get back is a "we turned it back on" or a "we're not turning it back on". I refuse to call, reportedly that takes less time, but with no more explanation. Lots of reports on the CB reddit, search around.
I did a little googling. Koinly's free version doesn't provide any reports. Cointracker's free version is capped at only 25 transactions. Is Koinly's free version still useful when it doesn't produce any reports?
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

frugalor wrote: Sun May 29, 2022 2:49 pm
nalor511 wrote: Sun May 29, 2022 2:33 pm
frugalor wrote: Sun May 29, 2022 2:23 pm Coinbase has a Tax Center page that you can download the tax reports.

Maybe filing tax is not too much of a nightmare?

I see a lot of positive things for this 4% back debit card.
You can not download anything useful in tax reports. You have to use a third party like cointracker.io or koinly to get a useful capital gains csv. It's still free, but it's just one more step in a process that didn't need to have one. Starting in 2023 coinbase will be required to issue 1099, but for 2022 they are not required to.

The biggest issue with the CB 4% debit card is that they shut off cards with no notification, and no explanation (before, while, or after). You can send in an email ticket, which takes about 10 days, and all you'll get back is a "we turned it back on" or a "we're not turning it back on". I refuse to call, reportedly that takes less time, but with no more explanation. Lots of reports on the CB reddit, search around.
I did a little googling. Koinly's free version doesn't provide any reports. Cointracker's free version is capped at only 25 transactions. Is Koinly's free version still useful when it doesn't produce any reports?
Cointracker is not capped at 25, if you are on the Coinbase plan. Look again. I know, because I use it, have not paid a cent. :oops:
frugalor
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Re: 4% back no fee Visa debit card

Post by frugalor »

nalor511 wrote: Sun May 29, 2022 3:05 pm
frugalor wrote: Sun May 29, 2022 2:49 pm
nalor511 wrote: Sun May 29, 2022 2:33 pm
frugalor wrote: Sun May 29, 2022 2:23 pm Coinbase has a Tax Center page that you can download the tax reports.

Maybe filing tax is not too much of a nightmare?

I see a lot of positive things for this 4% back debit card.
You can not download anything useful in tax reports. You have to use a third party like cointracker.io or koinly to get a useful capital gains csv. It's still free, but it's just one more step in a process that didn't need to have one. Starting in 2023 coinbase will be required to issue 1099, but for 2022 they are not required to.

The biggest issue with the CB 4% debit card is that they shut off cards with no notification, and no explanation (before, while, or after). You can send in an email ticket, which takes about 10 days, and all you'll get back is a "we turned it back on" or a "we're not turning it back on". I refuse to call, reportedly that takes less time, but with no more explanation. Lots of reports on the CB reddit, search around.
I did a little googling. Koinly's free version doesn't provide any reports. Cointracker's free version is capped at only 25 transactions. Is Koinly's free version still useful when it doesn't produce any reports?
Cointracker is not capped at 25, if you are on the Coinbase plan. Look again. I know, because I use it, have not paid a cent. :oops:
Really?! Then it makes this 4% back card even better. The only way one can lose is that XLM crashes every time the rewards comes in, which should be very unlikely.
nalor511
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Re: 4% back no fee Visa debit card

Post by nalor511 »

frugalor wrote: Sun May 29, 2022 3:20 pm
nalor511 wrote: Sun May 29, 2022 3:05 pm
frugalor wrote: Sun May 29, 2022 2:49 pm
nalor511 wrote: Sun May 29, 2022 2:33 pm
frugalor wrote: Sun May 29, 2022 2:23 pm Coinbase has a Tax Center page that you can download the tax reports.

Maybe filing tax is not too much of a nightmare?

I see a lot of positive things for this 4% back debit card.
You can not download anything useful in tax reports. You have to use a third party like cointracker.io or koinly to get a useful capital gains csv. It's still free, but it's just one more step in a process that didn't need to have one. Starting in 2023 coinbase will be required to issue 1099, but for 2022 they are not required to.

The biggest issue with the CB 4% debit card is that they shut off cards with no notification, and no explanation (before, while, or after). You can send in an email ticket, which takes about 10 days, and all you'll get back is a "we turned it back on" or a "we're not turning it back on". I refuse to call, reportedly that takes less time, but with no more explanation. Lots of reports on the CB reddit, search around.
I did a little googling. Koinly's free version doesn't provide any reports. Cointracker's free version is capped at only 25 transactions. Is Koinly's free version still useful when it doesn't produce any reports?
Cointracker is not capped at 25, if you are on the Coinbase plan. Look again. I know, because I use it, have not paid a cent. :oops:
Really?! Then it makes this 4% back card even better. The only way one can lose is that XLM crashes every time the rewards comes in, which should be very unlikely.
Happened to me, lost $50 in xlm Price crash. Whomp. Lesson: don't set a limit order to sell your rewards and expect it will go through overnight like usual.
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