Are There Really Crypto Cards Out There?

Are They Really Crypto Credit Cards?

No. In fact, those are prepaid debit cards. In this model, the user “loads” the balance with cryptos, and at the time of purchase, the sale to the fiat currency occurs automatically.

In other words, the company offering the service acts as an intermediary in the sale of cryptos. It then transfers fiat currency to the card payment agent through the Visa or Mastercard brands.

However, cryptocurrency quotes when using these services may differ from conventional exchanges. Moreover, additional fees often apply.

The purchase amount is then charged, so nothing is left to pay on the card bill, as with conventional credit cards.

How to Use This Service?

Some companies and cryptocurrency exchanges already offer prepaid cards. In this case, the process is similar to traditional banks, as registration on the platform is required.

The difference is the use of Bitcoin or other cryptocurrencies as a balance in your card account. Some companies require the cryptocurrencies purchase to take place on the platform itself, while others accept transfers from other wallets.

Which Companies Offer This Card?

Coinbase, the largest exchange in the U.S., has offered a crypto debit card since 2019. Through a partnership with Visa, it allows the use of several cryptocurrencies, including Ethereum and Litecoin.

The card does not have an annual or registration fee, but some fees are charged and informed when the transaction occurs. The service is currently only available in the U.S. and some European countries.

Both Crypto.com and Binance offer a similar service under the Visa brand. However, before using any crypto card, it is recommended to verify that the company is appropriately regulated and analyze each product’s risks and fees.

Relationship with Visa and Mastercard

The two largest payment processors have recently taken a stand in favor of cryptocurrencies, in particular Bitcoin. For example, the CEO of Visa said the company would allow its customers to purchase Bitcoin.

In addition, Visa will integrate digital wallets to allow fiat currency conversion while being accepted at any affiliated merchant.

Similarly, Mastercard intends to fully integrate digital assets, giving clients the ability to buy and sell multiple cryptos.

Apple Pay and Google Pay

Apple Wallet and Google Pay are digital wallet services that allow one to shop online using credit and debit cards.

Recently, Coinbase has integrated its card on both platforms. Therefore, customers can make purchases using a card that automatically sells cryptos to fiat currency, and it even offers cashback.

Why use a Crypto Debit Card?

Using such a service is interesting for those who keep their savings in cryptos. This way, the user does not need to sell their coins first and then make purchases using fiat currency. In summary, the transaction takes place faster and simpler using the prepaid card.

In addition, some platforms feature cashback, returning a percentage in cryptos.

In short, crypto cards work at any establishment in the world that accepts the respective brand (Visa / Mastercard). Without a doubt, it is a practical way for those who want to travel, thus avoiding exchange offices and cash risks.

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