Crypto debit card

Quick definition

A crypto debit card is a card that is linked to a cryptocurrency account or wallet, allowing you to spend your crypto as you would a traditional currency.

Key details

• Crypto debit cards offer a way to use your crypto holdings to fund everyday purchases
• Crypto cards are available as virtual cards or in physical form
• Many crypt debit cards provide a way to spend against your holdings without selling any

What is a crypto debit card

Crypto cards are linked to a cryptocurrency account or wallet, and work much like normal credit/debit cards, which are linked to a bank account. When you make a purchase, the funds are deducted from your crypto balance at the current market rate.

For instance, if you buy a product worth $10 (whether online or in a shop), the card exchanges $10 worth of crypto and transfers that $10 to the merchant. The transaction happens in pounds, but you hold your money in crypto.

There are two different types of crypto debit cards that you can get. These are:

• Virtual. A virtual crypto debit card is one that exists only for online spending – you don’t have a physical card. Once you order your card, you receive it instantly and are expected to activate it via email. A virtual debit card works the same way as a physical card when shopping online: all relevant details such as cardholder name, card number, CVV number, and expiry date are visible online, you just don’t have a physical plastic version to use in shops and ATMs. You can usually link your crypto debit card to Google Pay or Apple Pay on your phone and pay with it through that.
• Chip + pin (plastic). This is the physical plastic card that is delivered to your residential address via mail and comes with a chip and an ATM pin number. Unlike the virtual card which is used online, the card can be used both online and in real shops.

Do you have to verify your identity to sign up for a crypto debit card?

When signing up for a Bitcoin debit card, you’ll usually have to register with details such as your name, date of birth, and address. After this most providers will ask for extra verification in the form of proof of address and proof of identity (a passport and a driving license are most common).

You don’t always have to verify your account in this way, but unverified accounts have lower spending limits.

What are the limitations of a crypto card?

Depending on the service you use and your verification status, your card may have set limits on how much you can spend at a time (although verified accounts tend to have unlimited spending). It is also common for unverified cards to have lower maximum balances than verified ones. The possible limits on bitcoin debit cards are:

• Maximum/minimum balances. Depending on the card provider, there are maximum and minimum balances that you’re allowed to hold in your account at any time. Usually, the maximum balance can range anywhere from $5,000 to $10,000, whereas the minimum can range from $1 – $10. However, some services have no such limits and can hold and spend as many bitcoins as you want.
• Spending limits (per transaction). The spending limits can also range depending on the service provider and your verification status. If your account is unverified, you might be limited to around $1000 per transaction, but if you go through the verification steps, spending limits are much higher or completely removed.
• Load amount limits. Loading your cryptocurrency account is usually unlimited, but there are a few services that have a limit of around $2,500 for unverified accounts.
• ATM withdrawal limits. The ATM withdraw limit also depends on your verification status. If you are unverified, you can usually withdraw up to $200 in a single transaction, but if you are verified this rises to around $1,000.

How much does a crypto debit card cost?

Most providers will charge fees relating to the delivery and use of their bitcoin debit cards. We’ve made a list of all the possible fees here, but most providers will only charge some of these fees rather than all of them:

• Card fee. Most card providers charge a flat fee of around $5 – $30 for production of the card.
• Monthly fee. Some providers will charge a monthly account management fee, which typically ranges between $1 and $5. It’s usually possible in these circumstances to pay the fee on an annual basis if you wish, which can work out cheaper than paying monthly.
• Online purchases. If you purchase goods or services online with your bitcoin debit card, you will usually not be charged a transaction fee. In the rare case that a card charges a fee for this, it will typically be under $1.
• Retail/store purchases. The fees for using a card in a shop are typically the same as those using the card online.
• Declined transactions. If you attempt to make payments with insufficient funds, you will be charged a very small fee (around 5 cents) for the declined transaction.
• Administration/support. If you are looking to recall or trace a payment, you will be required to pay administration/support fee for the operation. This is typically a flat fee of around $20 – $30. It’s possible to trace payments in this way because at the point of sale the card transacts in fiat currency – spending bitcoins directly is completely anonymous.
• Currency exchange rates. In order to facilitate the conversion of your bitcoins to fiat currency, which the card then spends, card providers charge a currency exchange rate fee. This can range anywhere from 0.7% – 5% depending on the card provider.
• Delivery fee. Usually, any delivery fee is combined with the card production fee, meaning that you only need to pay a one-time payment to have the card produced and delivered to your address. However, there are some service providers that charge a flat fee of around $5 – $20 extra for delivery of the card, particularly if getting it delivered overseas.
• Foreign transaction fee. If you use your card internationally, you could be charged between 2% – 5% extra on transactions depending on the card.
• ATM fees (domestic/international). If you use your card to withdraw money from an ATM domestically, you will be charged a flat fee of around $2 – $3. However, if you’re using an ATM outside the country where the service provider is based, you will usually be charged a higher amount. The ATM fees for international transactions can range anywhere from $3 – $5.