Cryptocurrencies have become an increasingly prominent feature in the world of consumer finance. First, crypto exchanges enabled peer-to-peer trading, and then ETFs opened the door for retail and institutional investors. Now, crypto Visa cards are blurring the lines between traditional finance and the world of crypto.
This guide will answer some of the most frequently asked questions about using a crypto Visa card, helping you decide if it’s the right choice for you.
Who’s Eligible For A Crypto Visa Card?
Eligibility for a crypto Visa card depends on the company offering the card. Generally, anyone can get one as long as they meet the standard requirements for obtaining a card, such as being 18 years or older and having a valid government ID.
Some cards may have additional requirements, such as staking. Staking involves holding a certain amount of the card provider’s cryptocurrency for a set period. This can unlock access to higher tiers of benefits, such as increased cashback rewards or higher ATM withdrawal limits.
To get a card, you’ll typically need to open a wallet with the company and deposit some cryptocurrency in that wallet. Crypto cards come in two main varieties: debit cards and credit cards.
- Debit Cards: These cards directly debit your cryptocurrency wallet when you make a purchase. This means you can only spend what you have available in your wallet.
- Credit Cards: These cards allow you to borrow against the value of the cryptocurrency in your wallet. You can then repay the borrowed amount with interest, similar to a traditional credit card.
How Do Crypto Cards Work?
Crypto cards work similarly to regular debit or credit cards. When you make a purchase, a message is sent to Visa stating the amount you’re paying. Visa then relays that message to your card company. Here’s what happens next:
- Debit Card: The card company debits the equivalent amount in cryptocurrency from your wallet and sends it to Visa.
- Credit Card: The card company extends you credit based on the value of your crypto holdings and sends the equivalent amount in fiat currency (traditional money) to Visa.
Visa then converts the cryptocurrency (for debit cards) or fiat currency (for credit cards) into the merchant’s local currency and sends it to their bank account. The entire process typically happens within seconds.
It’s important to note that the conversion rate between your cryptocurrency and the merchant’s local currency can affect the final amount you spend.
Choosing the Right Crypto Card
Here are some factors to consider when choosing a crypto Visa card:
- Debit vs. Credit: Decide whether a debit or credit card better suits your spending habits. Debit cards offer the benefit of only allowing you to spend what you have available, while credit cards offer more flexibility but come with the risk of accumulating debt.
- Fees: Compare annual fees, transaction fees, ATM withdrawal fees, and foreign transaction fees.
- Security Features: Look for cards with robust security features like two-factor authentication and purchase protection. Two-factor authentication adds an extra layer of security by requiring a second verification code when logging in to your account or making a purchase. Purchase protection can help reimburse you in case of unauthorized charges.
- Rewards Programs: Some cards offer rewards programs that give you cashback or other benefits for using your card.
- Supported Cryptocurrencies: Not all cards support every cryptocurrency. Make sure the card you choose supports the cryptocurrencies you want to spend.
- Staking Requirements: Some cards with higher rewards tiers may require you to stake a certain amount of the provider’s cryptocurrency.
- Customer Service: Consider the company’s reputation for customer service.
Do virtual and physical crypto Visa Cards Work the Same Way?
Both virtual and physical crypto Visa cards allow you to make purchases. However, there are some key differences:
- Virtual Cards: Typically used for online transactions where you only need to enter card details.
- Physical Cards: These come with a chip that allows you to use them at physical point-of-sale terminals and ATMs that accept Visa.
While virtual cards generally can’t be used for physical purchases, some providers offer virtual cards that work with contactless payment systems like Apple Pay or Google Pay, allowing you to make purchases at stores that accept these contactless payment methods.
FAQ About Crypto Visa Cards
1. What Are the Fees for Crypto Visa Cards?
Fees for crypto Visa cards vary depending on the provider. Currently, fees are generally low. Providers may charge an annual fee and transaction fees, although some firms offer zero fees. It’s essential to compare fees and other factors before choosing a card.
2. Can I Withdraw Cash with a Crypto Visa Card?
Yes, you can withdraw cash at any ATM worldwide that accepts Visa cards. Visa processes the transaction, and the ATM will dispense the cash.
3. What Should I Do If I Lose My Card?
If you lose your crypto card, contact your card provider immediately to prevent unauthorized access. Most providers offer a mobile app option to disable the card’s access to your account.
4. What Can I Buy with Crypto Visa Cards?
You can use your crypto Visa card to purchase anything you can buy with a regular fiat card, as long as it’s within your card’s credit limits. The card should work globally at any point of sale terminal that accepts Visa, except in jurisdictions with anti-crypto legislation.
5. Which Cryptocurrencies Can I Spend with a Crypto Card?
Crypto card providers typically support only the top cryptocurrencies, such as Bitcoin, Ethereum, and Dogecoin. The range of supported cryptocurrencies varies by provider, so check the options before choosing a card to ensure they meet your needs.
