Giving a time frame of 6-8 weeks, Shrem said over an IRC chat session that the card shall function like any other credit or debit card and that it can be used at places where MasterCard is being accepted notes Coding In My Sleep.
BitInstant co-founder has also said that the initial 1000 odd cards will be given for free and subsequent cards will carry a charge of around $10. Any transaction that is carried out through the card shall be levied with a 1% Bitcoin transfer fee on top of the $1.50 ATM withdrawal fee.
So how will this whole mechanism work? Cards will be carrying a QR code in the front and a personal Bitcoin address printed address at the back. Users can transfer any amount under $1000 by simply scanning the QR code or by accessing the address on the back. Nothing above the $1000 mark shall be entertained said Shrem.
Users can have balance on the card in BTC till the time they decide to make a payment or withdrawal. The cards will initially be denominated for US Dollars, British Pounds and Euros. More foreign currencies could be soon added.
There is a sign-up form that has been made available through Google Docs but, it is not an actual signup form but more or less an expression of interest form.
[Editor's Note: BitCoin changed to Bitcoin @ 21:20 UT]
[Update @ 15:53 UT: MasterCard has denied working with BitInstant for a Bitcoin-funded card while Shrem is still claiming that the launch of card is still on track]
[Update @ 20:09 UT: BitInstant has officially announced its plans for BitInstant PayCard. Read more.]