26 January 2021, 19:01
2 min reading
Learn about the best crypto debit cards, their limitations, and perks, and choose the right product to start converting your digital assets into real things.
Dabbling in the cryptocurrency world and looking for ways to put your digital funds into real-world use? The best tactic to leverage your virtual tokens for worldly goods is obtaining a crypto debit card, a physical piece of VISA or MasterCard plastic or metal, giving you the opportunity to reckon with both online and POS merchants using your digitalized capital. Good idea? Indeed.
As cryptocurrencies are making a splash and earning overall trust, businesses are no longer skeptical about crypto, and many of them have already begun to accept e-coins as a valid payment. Yes, crypto seems to stay for quite long (if not to say forever), and, in order to meet the demands of tech-savvy clients, merchants face the necessity to support the newest payment methods; otherwise, they will simply lose potential profits.
So, customers have electronic coins to spend, and vendors are eager to accept them. The question: is there a legal solution to facilitate transactions between both parties? Yes, there is. Debit crypto cards. Broadly speaking, it is a prepaid payment card connected to your cryptocurrency wallet that performs the same functions as a traditional debit/credit thing issued by a bank. But, instead of supporting fiat currency, a crypto card allows you to buy goods and services, exploiting your electronic funds.
Many crypto debit cards instantly convert your e-tokens to fiat money when you need to pay for daily spending or withdraw from an ATM. Replenishing the balance is also as simple as with a classical piece: via ATMs, online or mobile banking, or the website/app of the provider. It is also possible to top up a card from an e-wallet or link it to a popular payment processor like ApplePay or Google Pay to pay anywhere in the world.
It works the same way as a debit one in a shop or ATM. However, instead of taking money from your bank account, the crypto card takes coins from the connected virtual wallet. When you transact, cybercash in your account is converted to fiat money, and then this fiat is sent to the bank account of the merchant.
The whole transaction process is instant, seamless, and fully legal as if with a classical debit item. You can use your crypto card with any vendor that accepts cashless payments, and the merchant does not receive tokens, but fiat money converted from your token holdings. Such a card can be swiped, chipped, or tapped on any POS-terminal as surely as used for online shopping and cash withdrawals from ATMs.
Some debit crypto cards come with a virtual counterpart. The virtual duplicate provides a prepaid usable card number existing in your smartphone for Internet transactions. Many cryptocurrency platforms issue both physical and virtual cards for greater convenience.
Since crypto debit cards fully mimic the performance of regular ones, they do have some limitations and fees. You may encounter limits on daily/monthly withdrawals, restrictions on online & offline spending, commissions on balance refills, maintenance fees, conversion fees, and other charges depending on the card provider.
To promote mass adoption of cryptocurrency payments, many providers offer nifty benefits and perks for holding a crypto debit VISA/MasterCard. The bright sides of keeping such a card include: