There may be a lot of frenetic activity about BitInstant offering a bitcoin credit card, but I have to ask, WHY?
Does it make bitcoins any easier to get?
Why do you want to inject the huge security hole credit card numbers present to bitcoin, which is intrinsically immune to payer identity theft?
The only thing you can do with a Bitcoin address is send money TO it. Tying it to credit card lets anyone who steals the card number able to put charges on the account.

One of the best things about bitcoin is that it's NOT A FUCKING CREDIT CARD! Let's keep it that way!!

One of the best things about bitcoin is that it's NOT A FUCKING CREDIT CARD! Let's keep it that way!!

It does keep it that way. Bitcoins are a CURRENCY.

People can use currency however they see fit. That includes storing/using it safely or exchanging for other currencies.

This new debit card simply gives people another option. A HUGE option IMO. (side note: There is no way 5,000 initial cards will be enough)

Having said that, I understand your concern about security.

My own mother had her bank account linked debit card number compromised and thousands of dollars worth of fraudulent activity stolen before she realized it. Luckily the bank reimbursed her (tip: use Credit Unions, people!).

I told her it was a BIG mistake using her bank account linked debit card for things (swipe for groceries, gas, etc. = too many vulnerable spots, even dishonest gas station cashiers) in this digital age.

I told her first to get a NEW non-compromised card and account number. Then I told her to set up a SEPARATE free checking account somewhere, anywhere, one that comes with a debit card. Then put only a few hundred dollars at at time into that account and use THAT for her debit card. IMO everyone should use this technique (especially if non-tech savvy) at it limits your possible losses, and increases charges awareness.

This Bitcoin debit card would be PERFECT to use with my security method, as a fund-as-you-go debit card.

The fraudulent charges were intermingled with her legitimate charges over a span of 1-2 months (my mom isn't as to-the-penny balance aware as I am...). The total fraud was around 3K if I remember correctly. My mom had to file a police report and highlight the charges she claimed were fraudulent. Her credit union said they had insurance for that kind of thing, but I don't know how often they allow you to use it... I also don't know if regular greedy commercial banks would be as helpful. I've never had to go through that myself.

Remember, this is a DEBIT card, not a fee or interest paying credit card the bank makes money on.

It looks to me like it's how Bitinstant is ultimately going to destroy Western Union.

As long as MasterCard is accepted in the recipient country, and the cards can be used internationaly, it makes it very cheap to transfer purchasing power from people in developed countries to their relatives back home.

There's a 1% fee to fund it, right? Is there any exchange rate hit too, or is that included in the 1%?

And then I assume the merchant still pays the usual Mastercard fees?

There may be a lot of frenetic activity about BitInstant offering a bitcoin credit card, but I have to ask, WHY?
Does it make bitcoins any easier to get?
...

I am just wondering when MC/VISA shuts this card down on the grounds of drugs/terrorism/fraud risk/other BS.

I don't see why they would allow BTC to get very big... maybe the 1% fee is enough for them to forget how dangerous BTC is to them - you never know how stupid greedy folks can be.