Everyone loves cashback and rewards. And if cashback is paid in cryptocurrency, what else can you think of! Crypto cards offer cashback in cryptocurrency on your purchases.
How to Get Cash Back on Purchases Made by Crypto Cards?
In this blog, we will discuss how to get cashback on purchases made by crypto cards.
What are crypto cards?
To discover cryptocurrency cards, you need to compare them with traditional bank cards and find out all perks they offer. One of the main advantages that crypto cards offer over traditional ones is the rapidity of transactions, which is explained by the fact that these cards aren’t connected to any bank account and are free from the control of financial institutions.
While in the case of regular cards, transactions can be canceled by the bank, transactions with cryptocurrency cards are irreversible. Similar to regular cards, when using crypto cards, you can make everyday purchases and even get rewards and cashback from them. These cards can be crypto credit and debit cards.
Crypto cards are supported by Visa and Mastercard. Therefore, these can be used across millions of merchants worldwide.
How do crypto cards work?
You have to connect your wallet with a crypto card to fund it and start using it for shopping.
When you make payment with a crypto card, your card issuer reaches your wallet linked to the card and fetches cryptocurrency equal to the amount of purchase. The cryptos are converted into fiat currency and then paid to the retailer.
How to get cashback on purchases made by crypto cards?
Whenever you make purchases with a crypto card, you get back a fraction of what you spent in crypto, which is called crypto cashback.
The idea of crypto cashback is getting highly popular among the crypto community as it gives cashback directly into digital wallets, which is over and above the discount on purchases.
In most cases, cardholders can select the cryptocurrency for cashback at the time of account creation, or some cards offer cash back only in one cryptocurrency such as Bitcoin. There are many crypto cards available in the market which offer different cashback percentages.
However, it can be up to 8% of the transaction. The cashback amount gets automatically deposited into the cardholder’s account.
Let’s consider an example to see how this cashback system works.
Let’s say your card issuer company offers 6.38% cashback on purchase. Suppose you spent $1,000 at Walmart using your crypto card. You earned $60 in crypto cashback. If you spent this cashback of $60, you would earn $3.6 at a 6% rate, again. It means you have earned $63.4 cashback on spending $1,000 which is 6.38%.
Let’s consider another aspect.
Unlike other rewards cards, with crypto cards you earn cashback in crypto, actually. If you have spent $1,000 and have earned 6.38% cash back, then it is $63.4 worth cryptocurrency.
Some crypto cards offer different cashbacks on different types of transactions. For example, Gemini has a unique cashback structure. It offers:
3% back on dining
2% back on groceries
1% back on all other purchases
Depending upon cashback rate, you can prioritize your crypto card usage for purchases.
How to get higher cash backs with crypto card purchases?
Some crypto card providers allow cardholders to earn higher than usual cashback for a specific period, after opening an account. For example, with BlockFi crypto credit card, you can earn up to 3.5% cash back for the first 90 days, after this the cashback rate will be 1.5% on each purchase.
Some crypto cards increase the cashback percentage for your card, if you spend higher than a certain amount within a year. For example, BlockFi offers 2% cashback if you spend more than $50,000 each year using a BlockFi credit card.
Top crypto cards and their cash backs
The following are the top crypto cards with their cashback percentage.
|Crypto card||Card Type||Cashback|
|Wirex||Debit||Up to 2%|
|Gemini||Credit||1% – 3%|
|Swipe Visa||Debit||1% – 5%|
|Shakepay Visa||Debit||1% – 3%|
Figure: Crypto cards & cashback
Crypto cards that do not offer cashbacks on purchases
You will be amazed to know there are some crypto cards that do not offer cashbacks on your purchase. They do charge a small fee similar to other crypto cards. The following are some crypto cards that do not offer cashbacks.
|Crypto card||Card Type||Cashback|
Figure: Crypto cards with zero cash back
Crypto cash backs are the most attractive aspect of crypto cards. But to earn maximum cashback, you must read the reward structure of your card before using it for purchases. It will also be helpful if you compare different crypto cards and then choose one that best matches your requirements.