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.

[tweet_box design=”box_02″]Coinmama offers a solid service that will hopefully become more affordable in the near future.[/tweet_box]

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 plunged up to 12 percent. 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%)

            10 Comments

            1. 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!!!

            2. 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

            3. 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

            4. 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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