Cryptocurrency has taken the world by storm, but it’s still inaccessible to most people in terms of spending. Crypto credit cards are changing that, making crypto more than just an investment and opening up new opportunities for people to spend cryptocurrency on things they need and want as they go about their day-to-day lives. Here’s how crypto credit cards work and how businesses can use them to their advantage when accepting payments from customers.
What Is A Crypto Credit Card?
A Crypto credit card is a regular debit or credit card, with one main difference: it uses blockchain and cryptocurrency technology to allow users to process transactions on their cards. According to the experts at SoFi Invest, there are currently about ten different crypto credit cards available internationally.
More specifically, most of these cards operate using BTC or ETH as payment rails but can also support other cryptocurrencies. Some also charge a transaction fee when processing payments, while others don’t.
If you’re a business owner, you know that credit cards are essential to your business’s financial health. However, cryptocurrency is quickly becoming an increasingly popular form of currency.
Here are some excellent ways crypto credit cards could benefit your business:● There are fewer transaction fees. Many transaction fees are associated with credit cards, including foreign transaction fees and convenience fees. These can add up to a substantial amount over time, so many people prefer to use cryptocurrency instead.● They’re secure. Because crypto credit cards are digital, they can be more secure than traditional forms of payment. This is especially true if you use a cryptocurrency with built-in security features, such as Bitcoin or Ethereum.● They’re easy to use; you can use them just like any other credit card if you have a cryptocurrency credit card.● They’re easy to access. Because cryptocurrency credit cards are digital, you can access crypto credit cards anywhere. This is especially helpful if you frequently travel or do business internationally.● They’re easy to integrate. So if you want to accept cryptocurrency as a form of payment, it’s much easier to do so if you have a crypto credit card.
In addition to giving you access to your funds, there are also cryptocurrency-debit cards that come with perks like rewards points and cashback options on all purchases. These services are quickly growing because they fill a niche before their arrival.
Coinbase has revealed a range of new business banking services that make it easier for merchants to accept cryptocurrency payments. Announced on Monday, Coinbase Commerce hopes to help small and large businesses accept digital currency payments by extending its current offerings in user-to-merchant payment processing through an account with U.S.-based Cross River Bank. This collaboration allows customers to pay for their crypto purchases directly from their bank accounts with low transaction fees, speed, and security.
Cryptocurrency cards are just one more option businesses have to offer their employees. While it would be easier than paying in fiat, consider these critical considerations before issuing a cryptocurrency card to your employees.● Will you pay for exchange fees?● What is your company’s policy on volatility?● Will you tax them as income or capital gains?● Are you prepared to handle chargebacks and fraud?● Do you understand how cryptocurrency works with traditional payment systems?
In other words, there are two parts to every cryptocurrency transaction: The crypto part and then the traditional currency part. Make sure you keep track of both.
To find a crypto credit card that works for your business, there are several things you need to consider. Most notably, it’s important to use a service that connects you with a significant bank.