Bitcoin and Crypto Debit and Credit Cards
Cryptocurrency credit cards are one of the hottest trends in the fintech and credit card marketplace. Crypto debit and credit cards are payment cards that allow users to earn rewards (usually in cryptocurrencies like Bitcoin) with eligible purchases. These cards may also allow users to spend their cryptocurrencies like cash, making them a great way to find real-world uses for digital and blockchain currencies like Bitcoin, Litecoin, Ethereum, Dogecoin, etc.
Which Credit Card Issuers Allow Crypto Payments?
Not every credit card payment network or issuer allows crypto transactions on their networks. American Express made changes to its cash advance language in 2020 to include digital currency purchases. While both Visa and Mastercard are making strides towards allowing their customers to use their digital currencies and other digital assets as a form of payment
on their payment networks, not every card issuer allows their cards to be used for crypto purchases. Chase is one example of a major lender that allows cryptocurrency purchases with its credit cards. Chase announced the change to its cash advance rules beginning in April, allowing Chase credit cardholders to purchase Bitcoin, Dogecoin, Ethereum, and other cryptocurrencies – with the additional costs associated with cash advances. Related Article: Can You Buy Cryptocurrency with a Credit Card?
Crypto and Bitcoin Rewards
One of the most attractive aspects of crypto debit and credit cards is earning rewards in Bitcoin or other cryptocurrencies with every eligible purchase. There are plenty of crypto debit cards, including offers from Crypto.com (the Crypto.com Visa Card), the Fold Card, Coinbase Card, and the BlockCard, amongst others. The number of crypto credit cards is smaller in comparison, but that looks set to grow in the coming months. The BlockFi Card was the first Bitcoin credit card to be announced, though others are in the works, including the Gemini Mastercard and the Salt Card.
Crypto Prepaid and Debit Card Rewards Structure
Most crypto cards offer tiered rewards programs that provide greater return and rewards with bigger CRO stakes (crypto balances) in the user’s digital wallet on the platform. The Crypto.com Visa Card (a hefty metal card) offers five tiers: Obsidian, Frosted Rose Gold/Icy White, Royal Indigo/ Jade Green, Ruby Steel, and Midnight Blue, for instance. Obsidian is the highest tier, requiring a CRO stake of $400,000 and a CRO rewards rate of 8% back on eligible purchases in Bitcoin.
Crypto Credit Card Rewards Structure
Crypto credit cards operate slightly differently than crypto rewards debit cards. Many Bitcoin and crypto credit cards plan to provide real-time cash back rewards on every purchase, with no CRO stake tiers. The Gemini Mastercard, for example, plans to offer 3% back on dining, 2% on groceries, 1% on other purchases, with rewards applicable as any cryptocurrency available on the Gemini platform (including Bitcoin). BlockFi is another upcoming crypto card, offering a similar rewards structure:
- 5% Bitcoin rewards on all purchases.
- $250 in Bitcoin after making $3,000 in purchases with the card within the first three months of opening an account.
- $30 in Bitcoin for every client referral.
- 5% Bitcoin rewards on all purchases from month four through six of card membership. This perk applies to up to $100 in Bitcoin.
- An additional 2% APY on the cardholder’s average daily Stablecoin balance, up to $200.
- 25% Bitcoin rewards on eligible BlockFi trades, up to a maximum of $500 in Bitcoin per month.
Both the BlockFi and Gemini credit cards benefit from real-time rewards, an excellent way for consumers to take advantage of the best rewards rates possible. Cryptocurrency valuations fluctuate significantly, meaning cardholders will want to receive their Bitcoin rewards immediately instead of waiting – which brings the risk of devaluation. Related Article: Is Bitcoin the Future of Credit Card Rewards?
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