How to use crypto credit cards?
Bogdan LashchenkoIntroduction
It is not a secret that with the development of the cryptocurrency world, the payment system sector also changes. We can see headlines of the news more and more frequently how Visa or Mastercard, or any other payment systems announce their partnership with various blockchains, cryptocurrencies, and exchanges.
It means that as was supposed and intended by the creators of crypto projects, digital assets can have a big influence on the financial sector and impact this world. By the way, the opposite is also correct. We notice how digital gold and other cryptocurrency investors begin following the financial news to predict the next steps of the market players and act, according to the announcements made by the US Federal Reserve and other structures responsible for the financial situation in the USA and other countries.
As a result, we can see how crypto credit and debit cards emerge. Such events allow users to not separate their fiat money savings from what they collect in cryptocurrency and pay for various services, using only one bank card. In such a way, people can take their crypto assets and go shopping, spending their crypto money and also making purchases in other sectors, whether it is plane tickets or hotel booking, or something else. Further, we will tell you what remarkable figures in the world of finances or the crypto industry have already started providing such an opportunity.
Binance
Like in any material that discusses this cryptocurrency exchange, first of all, we would like to note that Binance is the biggest platform, serving customers who invest their money into buying digital assets. Providing an opportunity to make a card, which can save digital assets, sounds like a logical and very progressive decision.
At the moment, Binance gives these cards, not in all countries but the majority of them are already included to the list of privileged clients who can order these cards.
The Binance card gives a few interesting advantages. First and most interesting, regarding all such cases, every client can have his crypto assets on these valets and pay in many shops. According to Binance, there are more than 60,000,000 shops, which receive payments from the card of the biggest exchange all over the world.
Other advantages include the 8% cashback, which is used for all purchases. According to Binance, they give their clients the lowest commission on the cryptocurrency market if they decide to cash their money from ATMs, and they are right because there is nothing below 0%. In other words, the crypto exchange does not charge anything if clients want to withdraw money from a cash machine.
Among other important advantages of owning this card, it is worth noting its high security. Binance states they use the SAFU (Secure Asset Fund for Users) technologies, which were developed in July 2018 to guarantee a high level of security for the client’s money.
To use the card correctly, Binance clients should have a registered account, and complete the KYC (Know Your Customer) verification procedure there, after which deposit money on the exchange and purchase digital assets, after which they can order a card, if it is available in your country, and connect it to your exchange account. The process of receiving a card may seem pretty complicated at first glance, however, in fact, it is easier and after you have ordered a card, you will get a lot of advantages. This Binance card can be used to pay in all shops and locations that accept Visa credit cards. The cashback can be received in the form of the BNB coin, which could help to earn good money with the ability to withdraw, pay, or reinvest in the long run.
If you greatly simplify all of the above-said, if you get a card from Binance, then you will be able to solve two issues at once. First of all, you get rid of the situation of dividing your crypto assets and fiat money. Digital assets are converted into fiat 24/7 and the payment is processed. Secondly, if you have a Binance card, you will not need to have the other card (excluding Mastercard) because money is accepted in all shops, which have a Visa logo.
The disadvantages include the conversion of money. If you are more interested in investing, then spending your money in a bear market will not be the best solution. The situation will change drastically once we get into the bull movement. However, you can invest money in a stablecoin and have a strict fixation on a fiat currency and receive the 8% cashback in BND at the same time, which also sounds good.
Someone can also be disappointed by the limitations of the Binance card. The digital version has a spending limit of 870 euros per day, while with the physical card, this limit is 10 times higher. However, clients can spend 8,700 euros per day using a physical card but they can withdraw from ATMs only 290 at the moment. The last relative drawback is the absence of credit limits. For now, Binance cards work as debit, however, this function is likely to be added in the future because the biggest crypto company does not have money issues at all and the introduction of the credit fund system can help them earn even more finances.
Gemini
The cryptocurrency platform Gemini, just like Binance, allows clients to make a credit card. Unlike the first member of our today’s list, Gemini specializes in the credit element in working with its clients.
The procedure of ordering in this cryptocurrency platform is almost similar to the one in the biggest exchange. Users still need to create their account on the crypto platform, after which they will need to confirm their identity, having completed the KYC (Know Your Customer) procedure to get permission to receive services. After this, they will need to order a card and connect it to their account on the exchange. The rest is just like in the case of Binance.
The Gemini has a row of features. The cashback system is more modest, compared to Binance. Gemini offers a 3% cashback from visiting restaurants, cafes, and other establishments, in which you can eat. 2% return after making purchases in shops and Gemini provides 1% cashback in other cases.
Just like with Binance, Gemini does not charge any commissions for transfers or withdrawals, and the conversion takes place 24/7 with the desired fiat currencies.
Another important distinctive feature of the card by Gemini from Binance is that Mastercard is a payment system, but not Visa. Of course, against Visa, this competitor looks a little weaker, however, Mastercard has its advantages. For example, some services support only Mastercard payments, but not Visa. If you do not know such examples, we can remind you about the partnership between Xiaomi and Mastercard, due to which the fitness tracker MiBand 6 can be connected to Mastercard cards, but not Visa, which creates issues for those who have Visa cards. In general, this is a more subject question but we could not help but name this difference.
According to the developers, the highest level of security has become another important feature of Gemini cards. The company uses a security algorithm they developed called Gemini's World-class Security. It is noteworthy that this method of protection has passed several audits and received a SOC2 Type 2 and ISO 27001 license. The high level of protection is presented by the high-class system, which uses security keys and the two-factor authentication system, however, in the case of using a credit card, the two-factor authentication system can be disabled for the client’s comfort. In addition, the security system appears not only thanks to Gemini but also Mastercard, which issues the card.
Gemini provides clients an opportunity to connect credit cards to their accounts and work with more than 60+ digital assets, receiving a reward in their equivalent. You can exchange cryptocurrencies and fiat assets anytime. There is no commission for both withdrawing funds and transferring to other accounts, including foreign wallets. Just like with Binance, Gemini can allow its clients to issue a digital card, which can be used in the same way as the physical one.
The obvious advantages of this card are the ability to borrow crypto assets and the implementation of such payments, as well as the ease of exchanging digital assets for fiat and vice versa. Another relative advantage can be the use of the Mastercard payment system. Drawbacks include the inaccessibility of the Gemini card in many countries. The main market for the company is American clients. The service of issuing a card is provided in all 50 US states. The absence of the ability to use Visa as a payment system can be a negative moment for many clients too. In the rest of the cases, clients will be satisfied because the comfortable use and the high protection should make the exploitation of the card as pleasant as possible.
Venmo
The American company Venmo, which specializes in the realization of mobile payments, also decided to not stay aside from the development of the cryptocurrency industry and added to its service the issuing of credit and debit cards, which use its clients’ digital assets. Unlike the above-mentioned competitors, Venmo has a drawback in the form of commission for purchases and transactions.
Just like Gemini, Venmo provides three types of cashback, which are equal to 3%, 2%, and 1%. In the case of the previous member of our list, the cashback was fixed for certain categories: catering establishments, shops, and other places that are not part of the first two categories. Venmo, in turn, allows its clients to choose the categories in which they would like to have such discounts. Users will have one sector where they will get 3%, another one will have 2%, and they will cash back 1% from each purchase in the rest of the cases.
Regarding a payment system, like in the case of Binance, Venmo allows users to purchase in any place where payments are accepted in the Visa payment system.
Despite Venmo cards being not in all countries of the world, the company still allows its clients to make foreign transactions and send crypto assets to other purses. The exchange of digital assets to fiat is available anytime and the conversion of funds when paying in stores is carried out automatically. In the rest of the cases, Venmo provides almost identical services for clients who want to order a cryptocurrency card. Allowing the issue of both credit and debit cards is a big advantage because some large companies can give their users only one of them.
Crypto.com
The company Crypto.com has become one of the cryptocurrency exchanges, which aims to help its clients not just to dive into the world of trading and investments but provide users an opportunity to pay for goods and services, using digital assets. The remarkable thing is that in the case of Crypto.com, the arsenal of cards is significant and each of them has its advantages and drawbacks.
The giant advantage of Crypto.com is its system, which they call not a debit or credit card but the prepaid one. According to their explanations, this is just like the debit one, which excludes the ability to use credit funds, however, a card does not require a connection to your bank account. However, you may think that the procedure of ordering a card from Crypto.com is easier than from their competitors but it is not. The representatives of the company introduced the service of ordering a card as a rewarding element for those clients who kept a certain amount in staking for six months. It also determines the type of card the user can receive.
Crypto.com presents five cards, which differ from each other with a level of privileges. The most common of them is Midnight Blue, which becomes available for users who kept the sum from $0 to $400 in staking for 180 days. The maximum sum clients can withdraw from ATMs without the commission is $200 and the maximum possible withdrawal amount from ATM is $5,000, which can be increased up to $25,000 if desired and properly requested. By the way, it is relevant for the rest of the cards issued by Crypto.com.
The second level in this ladder is Ruby Steel. It can be received by the clients who held the CRO staking equivalent in the range between $400 and $4,000 for 180 days. With this card, there is an opportunity to make a 1% cashback. Also, owners get bonuses on the Spotify platform. Besides, Crypto.com pays $25 bonuses. The situation with cash machines is better than with Midnight Blue. The limit on withdrawing money is $10,000 per month, which can be increased up to $25,000, and the monthly limit on withdrawing money without the commission is equal to $400.
The third level of cards is Royal Indigo and Jade Green. One of these cards can be received by the clients who held the CRO staking equivalent in the range between $4,000 and $40,000 for 180 days. The cashback saved in CRO is equal to 2% of all purchases. The clients who use the services Spotify, Netflix, and Lounge Key will have special bonuses in the form of covering the costs of $14 in such places. Besides, the owners of the Royal Indigo and Jade Green cards will have an opportunity to get a $50 bonus every month. The situation with withdrawing money from ATMs is equal to the Ruby Steel category.
Frosted Rose Gold and Icy White are the fourth-level crypto cards received by clients who stake CRO between $40,000 and $400,000. They can receive a 3% cashback. The bonuses on Spotify, Netflix, and Lounge Key are also accompanied by the rewards in the services Prime and Expedia, and also welcome bonuses in the form of exclusive merchandise. The owners of Frosted Rose Gold and Icy White also get a personal bonus and special access to Crypto.com Private. The last one allows you to receive invitations to special events, have fast client support, and have the highest priority in all cases, in which customers may ask. The service conditions in ATMs differ a bit too. You can withdraw up to $1,000 without fees and the maximum sum that can be withdrawn from cash machines is $10,000, which can be increased up to $25,000.
The last and most privileged level of cards in the form of Obsidian is received by the Crypto.com members who have staked more than $400,000 on the CRO exchange for six months. The owners of the Obsidian card receive 5% cashback on all purchases and all bonuses, which were available with the fourth level of cards. Besides, the most privileged persons will also receive bonuses on the Airbnb service and have an opportunity to use private flights.
As we can see, Crypto.com provides credit cards to its clients as a reward for the long partnership and trust relations. First of all, cards are intended for regular payments in shops, which is reflected in the low opportunities of withdrawing cash with the help of ATMs. However, crypto investors who are thinking about ordering cards and are not in a hurry to decide can consider working with this exchange. Crypto.com is one of those platforms that were able to withstand the blow that hit the world of cryptocurrencies in October 2022. For this reason, if crypto investors are somehow not interested in Binance and other exchanges, providing their services, Crypto.com is a nice option.
Coinbase
Coinbase is very similar to what we were talking about Binance. The company has almost the same conditions for cards, except for the cashback. Visa is used as a payment system, which allows you to make purchases in the shops that support this system. Coinbase provides users with transactions all over the world without fees and also makes purchases without spending their money on such commissions. However, it is worth noting that commission-free payments are made only if the fiat currency USD or equivalent stablecoins (USDC and others) are used as payment. If clients prefer using other digital assets, they will be automatically converted into USD at the current rate but will charge a fee.
The Coinbase administration also takes care of the security of the issued cards and the comfort of their use. As security factors, they use two-factor authorization, provide card freezing services, offer to change the pin code in case of suspicious activity, and use encryption to prevent funds from being stolen.
Regarding the digital assets Coinbase is working with, the list of the following cryptocurrencies such as XLM, BTC, DAI, AMP, ETH, ALGO, RLY, and DOGE is published on the official website. Besides, cards will support the cashback system, which will differ depending on the currency users prefer.
The remarkable thing is that the administration convinces users of the ease of ordering a card that skips the stage of checking the credit history. After all, it is worth noting that Coinbase is the top 2 crypto exchanges in the world of cryptography. For this reason, owning a Coinbase card is a good idea for those who think about this but do not want to deal with Binance.
Conclusion
There are lots of exchanges providing their clients with services for issuing cards in the world of cryptography. So how can you choose the right card, which will be useful and comfortable to use? This question depends on various factors and you should answer the necessary question. Does the payment system matter for you: Visa or Mastercard? Is cash back important for you? Is withdrawing money from ATMs important? Do you use the services of one or a few exchanges?
We think that it is worth paying attention to the exchanges, which have already proved themselves in the world of cryptography and have a strong financial foundation to continue their activity. If your products are strongly interconnected with one of the two competing payment systems represented by Visa or Mastercard, then you also need to pay attention to this, since their linking to the card will not matter and you will simply lose your time. If the cashback is vital for you, pay attention to the cashback rules from each purchase in our material or on the official website of the platform.
We would like to notice once again that every exchange provides relatively low abilities to withdraw money through cash machines because the idea of cryptography lies in non-cash payments. If you are interested in a debit or credit card with the ability to withdraw cash, you will likely go to banking institutions. However, if you are dedicated to the world of cryptocurrencies, experiments, and attempts to unite the financial structure with cryptography, such cards are just what you need!
Bogdan Lashchenko – content manager at EgamersWorld.Bogdan has been working at EGamersWorld since 2023. Joining the company, he began fillin the site with information, news and events.