Educational only · Crypto & payments
Crypto-linked credit cards &
how they really work.
Crypto-linked cards let you “spend” digital assets through ordinary card networks. In practice, this means a provider converts your crypto to traditional currency behind the scenes and then settles the transaction like a normal card purchase.
This guide walks through typical conversion flows, fees and spreads, reward structures and risk points to be aware of before using crypto-connected products for everyday spending.
- On-ramp / off-ramp basics for crypto cards.
- Where spreads and fees are usually hidden.
- Why rewards may look generous but still net out lower.
Informational only. Not investment advice, not a recommendation to hold or use crypto assets. Tax treatment and rules vary widely between countries.
Typical crypto card building blocks
- A standard card network (Visa, Mastercard or similar).
- An exchange or platform wallet holding your assets.
- A conversion engine that sells crypto into fiat money.
- Fee and spread logic on top of FX and network fees.
- Rewards paid as cash, points or platform tokens.
What happens when you tap or swipe
At the terminal, a crypto-linked card behaves like any other card. The merchant sees a normal authorization request in local currency. The difference lies behind the scenes:
- The card issuer or partner checks your linked crypto or stablecoin balance.
- Enough assets are sold to cover the purchase plus fees.
- Converted fiat is used to settle the transaction through the network.
Some products convert “just in time” for each purchase, while others ask you to preload a balance in advance. This timing affects which price you get and when you lock in gains or losses on the underlying asset.
Fees, spreads & headline rewards
Many crypto cards advertise high reward rates, especially when you hold or “stake” a platform token. It is important to read how rewards interact with:
- Conversion spreads: small percentage differences between market rate and what you receive.
- Network and FX fees: charges on top of crypto conversion when paying in foreign currency.
- Platform fees: monthly fees, account fees or higher ATM withdrawal costs.
A card offering “3% back in tokens” may be less attractive if you effectively lose 2–3% in spreads and fees every time you spend. Rewards and costs should be viewed together.
Volatility, platform risk and tax questions
Using crypto for everyday purchases adds moving parts that do not exist with traditional card products. Some examples:
- Asset prices may move between the time you deposit, convert and spend.
- Every conversion can be treated as a taxable event in some jurisdictions.
- Your usable balance depends on both exchange operations and card network uptime.
It is important to consult official guidance or a professional advisor if you are unsure how tax rules apply to frequent, small crypto conversions in your country.
For more structured overviews, see the Crypto & Web3 Cards hub and the Technology & Payments hub on Choose.Creditcard.