Secure bitcoin wallet provider Xapo grabbed the attention of cryptocurrency users across the U.S. earlier this year when it announced plans to release a new bitcoin-backed debit card. The card would instantly withdraw a given dollar amount from a Xapo wallet, selling the bitcoin via an exchange in seconds. While some standard interchange fees would still apply for using the exiting debit card system, a major element of the Xapo card’s appeal was that there would be no additional fees for the service. After Xapo releases its initial round of cards this weekend, however, a change to the terms of service has prompted many in the bitcoin community to cry foul.
Last week, Xapo updated the terms of service to its new card, adding a variety of new fees. While the fees themselves aren’t extreme given the standard amounts of most payment processors, it does represent a reversal of Xapo’s earlier “there won’t be a fee for the customer” claim.
Many would-be card users took to popular bitcoin forums to vent about the change. One user posted the changes to the terms, highlighting the clear differences to the proposed card and the final product. The fees don’t seem to be the major sticking point for most users, and many instead noted the quiet reversal of the company’s previously stated policy as a breech of trust in the already jittery and frequently burned bitcoin user community.
Xapo has yet to comment on the situation.
