Review: Coinmama – Is it 100% legit? (Reddit users speak out)

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One of the first services I’ve ever reviewed on 99Bitcoins, back in January 2014, was Coinmama. What was special about it back then is that it allowed you to buy Bitcoins with Western Union. Recently I’ve decided to revisit the site an saw that a lot has changed for Coinmama, so you can call this a renewed review of the service.

Goodbye, Western Union. Hello, credit cards!

simplex logoOne of the major changes in the Bitcoin industry throughout 2014 is how easy it has become to buy Bitcoins with a credit card. This is mainly due to the fact that companies like Simplex have allowed exchanges and brokers to verify users with less risk, thus allowing the acceptance of credit cards.

This is a much welcomed change since without this you’d be bound to the old methods of actually going to your local Western Union counter and depositing money. Coinmama integrates Simplex in its system and allows you to pay with any Visa or Mastercard you might have.

Fees are lower thanks to credit cards

Since the process has become much more advanced, the fees are lower as well. Just so you’ll get a perspective: before the change to credit cards was made, one Bitcoin would cost you $310 when the corresponding Bitstamp rate was only $257. That’s a whooping 22 percent fee. Ouch!

After changes were implemented, the same Bitcoin would cost you only $287. Meaning fees are around 7%. Now that may still sound like a lot, but if you look around at companies selling you Bitcoin with credit card as a payment method you’ll see that it’s basically the same fee everywhere. This is due to expensive measures these companies have to deploy in order to avoid fraud and chargebacks.

“We’re aware that the current commission can be considered pretty high to the average customer and we’re constantly looking for ways to lower it in order to give our customers more value for their money.”

Nimi, Coinmama’s CEO

You get your Bitcoins instantly, of course

What are inputs of a Bitcoin transaction?Last thing that gets dramatically improved is the speed at which you get your coins. In the past you’d have to wait for a wire confirmation to arrive from Western Union. Today, as soon as your payment has cleared, you can withdraw your coins, which is completely awesome.

This is crucial, since sometimes a day or two can mean wide price fluctuations in Bitcoin and you end up buying coins for more or less than you intended. Keep in mind that for first time users there is a limit on how much you can buy (at the time or writing this limit is $520).

What does the reddit community think of CoinMama?

As always I make sure to cross reference my review with Bitcoin’s subreddit and the Bitcointalk forum. I’ve been looking around the web to try and find other reviews of Coinmama, but all I found on Reddit was this thread, which has several users saying they are happy with the site.

Going through Bitcointalk I couldn’t find any more useful information, except for one post stating that the site is not that well-known and another one stating it has high fees (this was before the change to a lower fee structure).

Hands-on tutorial: How it’s actually done…

If you’re considering using Coinmama, I made a short screen capture of the whole process to help you out.

Conclusion – Would I use Coinmama?

The short answer is yes. It seems to be a reputable company with the only downfall being its high fees. Unfortunately, this can’t be avoided when using a credit card at the moment.

On the other side, the long answer is “it depends”. If you have the option to use a different payment method other than a credit card then I’d avoid paying the high fees and go elsewhere.

All in all, the service is solid and hopefully will become more affordable in the near future. If you’ve had your own experience with Coinmama, I’d love to hear it in the comment section below.

Find the best exchange to buy Bitcoins


Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

Coinmama

Coinmama
8.56

Price tag

8/10

    Ease of use

    9/10

      Support

      9/10

        Reputation

        8/10

          Security

          9/10

            Pros

            • Great user interface
            • Secure transactions
            • Fast delivery
            • Good support

            Cons

            • High fees (~12%)

            18 Comments

            1. angry customer on

              don’t bother, non existing support uploaded my ID multiple times and was rejected every try. so I’ve tried to buy at least 50 buck worth of Bitcoin but it wouldn’t let me so this site has the harshest KYC of all sites that accept cc

            2. Coinmamma – scam – coin mama is NOT a scam.

              I purchased 1.5 btc on my credit card from Canada, few hiccups but got my money within 48hours.

              I signed up for coin mamma, sent in my documents.
              My documents were rejected due to poor image quality.

              I resent my verification documents.

              My documents were approved within 1 hour.

              I am in Canada, and was wondering what was taking so long…

              They operate during romainian and isreali business hours.

              AHA! They weren’t ignoring me…they will just respond when I am sleeping, as I sent them a message in the middle of the night, for them.

              Coin mamma uses another company “Simplex” for payments.

              Coinmamma was waiting from communication from simplex.

              Simplex needed to verify the same documents I sent coin mama. I re sent them.

              I also needed to call my bank, as they were blocking the transaction.

              I received my BTC and they responded to my queries during their business hours.

              I think there is disconnect between the business hours vs western hours leaves people thinking they are not being responded to, and the third party simplex processing the payments also adds a bit of confusion.

              Their geographic location leaves much to question when you’re making your decision whether to trust these guys.

              Overall you are able to buy MUCH MORE btc with coin mama than any other wallet once verified.

              Coinbase has been taking literally months to verify me to buy 1 measly btc.
              Idacoin, same deal.

              • Thank you for the kind words!

                Providing a great service is a priority at Coinmama, and it’s always nice to hear that our efforts are paying off. We operate in 182 countries and realize that in order to provide the right quality of support, we need to support 24/7. This is an ambition for us and while we’re not there yet, we are improving day by day.

                Regarding whether we’re safe and secure, I would advise anyone reading this to look around and do your own due diligence – we’ve been around since 2013, so there are a bunch of reviews and anecdotes out there. Of course, I’m happy to answer any questions, but I don’t think my words would hold the same sway as the those of hundreds of thousands of our customers.

                If that research meets your expectations, sign up and give us a go :)

            3. Not worth my time. Casnt firgutre out how to transfer my funds away from coinmama. Not only that multiple transactions did not go through AFTER talking to a vendor….WTF

              I just want my product or money. Instead you take both

            4. dinesh roy on

              Price tag

              1.7

              Ease of use

              0.2

              Reputation

              0.4

              Security

              0.3

              DONT USE 15hours ago i paid untill now nothing happened, they are just scam stay away!!!

            5. No, don’t use it ever. I was hacked through their site. They wracked up charges on my credit card i didn’t know about, therefore was late paying and starting investigation. They accept stolen cards if necessary, that’s what I’m trying to explain to you. After that, there is no way to get your money back, because they have no support. Keep a watchful eye at your email from anything coming from them.

              • Hi Alex,

                You sent the card processor a picture of you holding the card (in 3 different occasions) and you also continued purchasing from us even weeks after the time you claim you had problems with us so why would you do that if what you say is correct? Also, as you noticed, we are very communicative and answering your emails fast.
                Furthermore, what you mentioned (being hacked “through” Coinmama) simply doesn’t make any sense from a technical point of view. This has been explained to you thoroughly by email.

                We do not accept stolen cards, this is a ridiculous argument and in any case an illegal use of card is detected the payment will be declined. More than that, if a use of stolen card is detected by the payment processor or anyone else in the chain, the real owner of the card will get his money back. Credit card companies insure their customers from these cases so if indeed there has been any illegal use of your card, your card issuer will refund you any stolen funds if you simply notify them. If you need assistance with that we would gladly help you.

                You sent us the last email about it on April 14th and we responded within 6 minutes. You haven’t replied since then so we are still awaiting your reply. Please write back if you still need assistance on this matter!

                Thanks and have a nice day,
                Coinmama

            6. i have been tying to use coinmama to buy bit coin with two types of credit cards 1. is a virtual credit card that secures my credit card they stated that they do not accept that kind of payment because i was having a bit of a trouble , the order kept declining. the other card 2 is a physical card they ask me to send a video of me holding the card and call out the last and first four digits of the card and they still decline my payment now i think that this site is a damn scam how can i be following your policies and instructions to the T and your still declining my order and i am scared to go to western union because what will happen if they decline that two???? i wont be able to get that money back i will advise you guys not to use coinmamam they are the worst and they do not have anyone for you to talk to when your having issues understanding what the he wlll is going on

            7. Price tag

              8

              Ease of use

              10

              Support

              9.1

              Reputation

              10

              Security

              9.1

              Pretty good website, easy to use, and seems to have good reputaion

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