Crypto debit cards allow users to spend Bitcoin (BTC) and other popular cryptocurrencies, such as Ethereum (ETH), Tether (USDT) and Ripple (XRP), anywhere Visa and Mastercard are accepted. Using crypto cards to spend your coins is more convenient than converting crypto to fiat currency. Moreover, you can benefit from cheaper transactions, blockchain-based security, and many attractive rewards.
What is a Crypto Card?
Let’s begin with the fundamentals of a crypto card. Specifically, let’s look at common types of crypto cards in the current market.
Crypto Debit Cards
Like a traditional debit card tied to a checking account, a crypto debit card is linked to a cryptocurrency wallet. Thus, you can use your crypto card to make purchases everywhere standard debit cards are accepted, whether online, in-store or at an ATM. When you make a purchase, your funds will be deducted from your crypto balance and converted into fiat at the card’s conversion rate. Depending on your crypto card, it is possible to get crypto incentives for spending.
Crypto Credit Cards
With this type of crypto card, the card issuer will grant you a credit line based on your creditworthiness. As such, it functions similarly to other types of credit cards. You use the crypto card to make purchases and pay back what you owe, with interest charged per the card’s terms and conditions. The main distinction resides in how incentives are earned. You earn cryptocurrency instead of reward points to redeem within the reward program, often at a tiered percentage rate based on your crypto card type.
Crypto Prepaid Cards
With a prepaid crypto card, you preload funds from your crypto wallet onto the card. These funds are converted into your preferred fiat currency to use for in-store, online, or ATM transactions. Like a prepaid card, you can only use the funds on the crypto card; however, most cards make it simple to load additional funds as needed, with real-time transfer options. It’s also possible to reap cryptocurrency incentives from your transactions.
Depending on the crypto card issuer and the card you select, you may receive either a physical card, virtual card, or both. The actual card will resemble standard credit or debit cards and will be available in plastic or metal for in-person payments. The virtual card would be stored in your digital wallet to be used online or in person via your device.
Pros and cons of crypto cards
Crypto debit cards are new financial products with many advantages and disadvantages. Here’s a breakdown of some of the pros and cons of crypto cards:
Pros
You can spend cryptocurrencies with merchants who do not often accept them.
Numerous crypto cards support a wide range of currencies.
Advanced security measures protect your account.
Some cards provide cash-back rewards in bitcoin for transactions.
Cons
Due to volatility, the value of cryptocurrencies is far less stable than that of fiat currency.
Some crypto cards have monthly fees, conversion fees, ATM withdrawals, etc.
Not all credit cards are accepted everywhere.
- When you convert a cryptocurrency, you incur a capital gains tax.
How are Crypto Payments Processed?
Regarding credit crypto cards, “crypto” refers exclusively to the crypto rewards you get for spending. The card is funded by the credit extended to you by the card issuer. When you use the card regularly, your line of credit is funded in fiat currency rather than bitcoin.
The operation of crypto debit cards and prepaid cards somewhat differs. Using crypto credit cards, you can withdraw bitcoin from your crypto wallet and convert it to fiat cash at a rate established by the card. The fiat cash is then spent or withdrawn via the Visa, Mastercard, or EFTPOS network.
As a result, crypto cards do not permit direct bitcoin spending. This may change as both Visa and Mastercard are implementing direct-spend cryptocurrency trials this year. Depending on the results of these trials, crypto cards and their offerings may grow substantially in Australia and other crypto-friendly countries.
11 Best Crypto Debit Cards in Australia: A Curated List 2023
CoinSpot Mastercard
The CoinSpot prepaid debit card is compatible with Apple Pay® and Google Pay®, allowing clients to spend any cryptocurrency holdings on their mobile devices. It is important to note that this crypto card is digital only since CoinSpot stated they have no plan of releasing any physical cards.
CoinSpot’s fee structure is very competitive, given that numerous crypto cards are reducing users’ benefits and charging new fees. CoinSpot MasterCard doesn’t require users to pay any monthly, annual, or activation fees, except for a minimal 1% conversion fee.
In addition, you can access several in-app security features, including the ability to set spending limitations, “freeze” your card, and switch the crypto card on and off. You can read our comprehensive CoinSpot review to learn more about the services of this well-reputed crypto trading platform.
Binance Visa Card
The CoinSpot prepaid debit card is compatible with both Apple Pay® and Google Pay®, allowing clients to spend any of their cryptocurrency holdings right on their mobile devices. It is important to note that this crypto card is digital only since CoinSpot stated they have no plan of releasing any physical cards.
CoinSpot’s fee structure is very competitive, given that numerous crypto cards are currently reducing their users’ benefits and charging new fees. CoinSpot MasterCard doesn’t require users to pay any monthly, annual, or activation fees, with the exception of a minimal 1% conversion fee.
In addition, you can access several in-app security features, including the ability to set spending limitations, “freeze” your card, and switch the crypto card on and off. You can read our comprehensive CoinSpot review to learn more about the services of this well-reputed crypto trading platform.
Crypto.com VISA Debit Card
The Crypto.com VISA Debit Card is a prepaid crypto card that offers a variety of high-end metal cards with no fees, up to 5% cash back, unrestricted access to airport lounges, and subscription reimbursements for streaming services. Although numerous rivals, like TenX, questioned Crypto.com’s value, Crypto.com dominated in terms of its continued community and Crypto.com Visa Card usage.
You can benefit from Crypto.com’s competitive interest rates and incentives by simply stacking CRO. This crypto card is available with varying CRO Stakes, with each level conferring progressively more fantastic rewards. The rewards include discounts from Spotify, Netflix, Expedia, and Airbnb. This is an excellent option if you’re searching for a card with a higher cashback rate and many features.
CoinJar Mastercard
The CoinJar Card was initially debuted in 2015 (under the name CoinJar Swipe), then reintroduced in August 2021 under the name CoinJar Card. As a Mastercard-powered debit card, it enables you to spend your digital currency anywhere in Australia, supporting EFTPOS.
You can enable both virtual and actual payments with the app and the crypto card. With the physical card, you can withdraw funds from any ATM or retailer that offers cash-out services. A 1% conversion cost from crypto to fiat for every transaction is reimbursed to your CoinJar rewards account.
Coinbase Debit Card
Powered by your Coinbase account balance, the Coinbase Debit Card makes your bitcoin as spendable as fiat currency. You can use your crypto card at millions of locations globally, uninhibited by the local currency exchange rate or inconvenience.
The Coinbase app allows you to pay with any of your available cryptocurrencies, saving you time as you choose between nine alternatives, including BTC, REP, ZRX, ETH, XRP, BAT, LTC, BCH, and XLM.
You can also monitor all types of spending and transactions and receive quick notifications on your spending limits. If you are concerned about your security, the card has a two-step authentication mechanism, and you can freeze it quickly via the app.
Bitpay Crypto Debit Card
Bitpay was founded in 2011 as a startup that witnessed the potential of the bitcoin industry and aimed to simplify global financial efficiency and time consumption. Bitpay crypto card is an excellent fit for the cryptocurrency community since it allows for rapid balance reloads with no conversion costs based on Bitpay’s exchange rate.
Bitpay Debit Card’s features include balance viewing, PIN modification, fast balance reloading, and much more, all within the Bitpay application. The Bitpay card is fitted with an EMV chip for enhanced protection, which locks your crypto card and restricts spending.
EFTPOS Crypto Debit Card
The new Cryptocurrency Debit Card is an excellent method to make POLi Payments purchases from the comfort of your home or to make in-person cash purchases at one of their retail partners. This cryptocurrency debit card can be loaded with multiple cryptocurrencies, including Bitcoin, Ether, Litecoin, etc.
The crypto card is compatible with EFTPOS, allowing you to make purchases and cash withdrawals at EFTPOS terminals. It’s free to apply for and will be issued the same day through rapid delivery. Your crypto debit card will handle your funds, which you can use to pay your bills.
Wirex Visa Card
Wirex Visa cards provide Bitcoin incentives for in-store purchases and the ability to spend cryptocurrencies in the real world. You can use this crypto card globally in stores, for online purchases, or at local ATMs. Using a Wirex Visa card eliminates unnecessary bank fees when travelling and paying in a foreign currency.
The card offers 1.5% cash back in BTC for every in-store transaction, which is a nice bonus. The Cryptoback smart reward is ideal for individuals who want to spend, as it will reduce your expenditures. This is a terrific card for storing your bitcoins and offers an excellent reward.
Cryptopay Visa Card
The Cryptopay Visa Card is an excellent option to spend your cryptocurrency anywhere and at any time, owing to the widespread acceptance of Visa cards. You can also enjoy high spending restrictions and manage your cash online or in-app at any time. Since this crypto card is Visa-verified, it’s easy to use bitcoins to purchase large transactions online. The card is prepaid, so there are no overdraft fees or charges.
You can rapidly lock or unlock the card for usage via the app or website. The card’s notification function helps you follow your transaction history and costs and exchange currencies using your wallet anytime. Other data, such as card statements, are readily accessible from your wallet, allowing you to manage your money correctly.
Spectrocoin Prepaid Card
Spectrocoin now offers prepaid cards that can be used at any ATM worldwide and as a standard payment card in stores. With a Spectrocoin blockchain wallet, your prepaid card will be instantly loaded with funds. In addition, the crypto card is contactless and more convenient than traditional cash, chip, or PIN purchases.
This card’s global acceptance at any ATM is one of its main features. Such a feature eliminates travel-related annoyances by keeping your funds with you wherever you go, eliminating the need to incur unnecessary fees and currency conversion.
In addition, the card’s high deposit and withdrawal limits make it easy to conduct large commercial transactions or expenditures when necessary.
TenX Debit Card
The TenX Debit Card enables instant Bitcoin spending, Ether, and Litecoin spending. It can Instantaneously convert bitcoin to fiat currency to facilitate quick payments. TenX was founded in 2015 and was once known as “one-bit” as a Bitcoin-only startup.
In 2016, they changed their name to TenX since they did not want to expand “one-bit” but 10x. You will have a flawless experience with this crypto card as it allows you to trade bitcoin quickly, withdraw local cash from ATMs worldwide, enjoy 24/7 security with notifications and the ability to lock your card, and trace your transactions whenever you choose.
How to Compare Crypto Cards?
When comparing different crypto cards, it’s essential to consider a few key features.
- Fees: Fees can vary and might include charges for monthly maintenance, foreign transactions, or ATM withdrawals. You should find a crypto card that charges as little as possible to minimise costs.
- Rewards: Some Bitcoin debit cards offer rewards such as cashback in cryptocurrency, so it’s worth looking for cards with generous bonuses to boost your earning potential.
- Coins supported: You should also ensure that the crypto card you choose supports the specific type of cryptocurrency you prefer and is available in your geographic area.
- Other perks: Some debit crypto cards offer additional perks, such as waived ATM fees or free memberships to services like Spotify. These perks can be a nice bonus when choosing your suitable crypto card.
How Can I Apply for a Crypto Card?
To get a crypto card, you must create an account and digital wallet with the crypto exchange that gives out the cards. Some exchange platforms require you to complete Know Your Customer (KYC) verification process to validate your identity.
After getting verified, you can register a crypto wallet and buy cryptocurrencies. Then, you’ll need to connect your crypto card to your wallet and fund it with digital assets.
Some crypto cards may require you to buy or invest in their own tokens to get better benefits. These costs can vary, with some cards charging $400, $4,000, or even more.
Once you have your crypto card set up and funded, you can use it to make purchases. Remember that you may need to transfer coins from the card to fiat currency via an exchange or crypto ATM to use it for certain transactions.
How to Buy Crypto With Debit Cards in Australia
You can buy Bitcoin and other digital assets in Australia with a debit card in 5 simple steps. We will detail each step with screenshots from the CoinSpot account.
Step 1 – Select the Exchange for Debit Card Deposits
The first step in buying crypto with a debit card in Australia is to choose a suitable crypto exchange platform. Obviously, select a licensed and regulated crypto exchange that lets you make deposits with a debit card. This ensures you can use any major debit card, like VISA, Mastercard, or Maestro, to buy crypto in a safe and trusted environment.
After evaluating the best cryptocurrency exchanges in Australia, we found that CoinSpot is the most popular one for crypto purchases with debit cards. This is due to its user-friendliness, 380+ coin selection, competitive fee structures, and 24/7 customer service. The exchange platform makes it simple and secure for users to fund their CoinSpot accounts with debit or credit cards in Australian dollars. All debit card deposits will be instant and incur a fee of 2.58% per deposit (Read the article about CoinSpot’s fees for further details).
Step 2 – Create a CoinSpot Account and Get Verified
To sign up for an account with CoinSpot, visit https://coinspot.com.au and select the “Register” icon in the homepage’s upper-right corner. You will be directed to a page to enter your email address, establish a password, and confirm that you are not an automaton before clicking “Create Account.”
Then get your account verified. After you click “Complete Verification,” follow the instructions to confirm your email address, fill out your information, and verify your driver’s license. While waiting for verification, you can investigate CoinSpot’s platform and familiarise yourself with how it works.
Step 3 – Deposit AUD into Your Account with Your Debit Card
After account verification, the next stage is to deposit AUD into your CoinSpot account. Click on the “Deposit Funds” option in the top-left corner, below the CoinSpot logo, to access the page displaying various deposit methods, where you can select “Card Deposit.”
Enter the deposit amount (1) and your app-based 2FA code (2), then click CONTINUE TO Card Deposit Process (3). You can tick the checkbox to store your card information for future deposits.
You will be redirected to the Card Deposit Payment Portal. Please verify that your contact information is accurate before continuing.
Go to Payment Method and input your debit card information in the fields (1), then check the box (2) if you have read and accepted the payment processing fees and direct debit terms and conditions. Select “Process Payment” (3) to proceed with the deposit.
Note: CoinSpot only accepts debit or credit cards using Visa or Mastercard issued by an Australian financial institution. Using a debit card to make a deposit incurs a 2.58% fee. For instance, if you input $100 as the deposit quantity, a fee of 2.58% will be applied to the AUD 100. The total amount to be withdrawn from your bank account is $102.58.
Now, your card deposit has been processed successfully.
Check the status of your deposit by selecting “View Deposit History” under “Deposit Funds.”
Step 4 – Buy Cryptocurrency with Debit Card in Australia
Card transaction speeds differ between financial institutions, but card deposits are usually instant. Any unsuccessful transactions will be immediately declined, and all funds will be returned to your bank account. The maximum deposit quantity per 24 hours using a credit or debit card is AUD 200.
After funds have been deposited into your CoinSpot account, you can purchase your desired cryptocurrency. Start by clicking “Buy/Sell” in the top menu and browse for the cryptocurrency you wish to purchase. Cardano (ADA) is a prominent coin that CoinSpot users like to purchase, so let’s use it as an illustration. In this example, you must input ADA into the search bar and select the “Buy ADA” icon.
The price of one coin will be displayed in the middle of the purchase screen. Select the Australian dollar amount to spend on the coin, then select the “Buy” icon.
A pop-up window will display the number of coins you will receive, the price per coin, the commission, and the total amount to be paid. For instance, this information will be displayed if you input $500 worth of ADA. After reviewing the transaction details, select “Confirm Buy” to finish the crypto purchase.
Step 5 – Store Your Cryptocurrency After Your Purchase
On the crypto exchange, your coins will be promptly held in your in-built online wallet. However, as leaving currencies in your wallet is less secure, you can transfer them from your crypto exchange to your hardware wallet. Hardware wallets like Trezor, BitBox, and Ledger are the safest choice for long-term investors with large holdings.
Remember to verify that your wallet supports the specific altcoin before transmitting it to your wallet. Otherwise, you risk permanently losing it. For example, if you have a wallet that can only store Bitcoin and send ADA to an address that can only store it, you will lose it irrevocably and be unable to recover it.
There will also be a network/mining fee for transferring your coins to your wallet; therefore, you should verify the fees on your cryptocurrency exchange.
Frequently Asked Questions
How safe are crypto debit cards in Australia?
Most crypto debit cards are as safe as major credit cards because they have advanced security features like two-factor authentication, biometric recognition, and mobile codes. Crypto debit cardholders can suspend or revoke their cards instantly via mobile applications..
Which debit card is best for crypto?
CoinSpot, Binance, and Crypto.com offer some of the best-rated debit cards in Australia, backed by industry-leading and secure platforms. They provide various benefits, such as cashback rewards, a large number of cryptos supported and low ATM withdrawal fees.
Where to use a crypto debit card?
Crypto debit cards are issued together with major credit card services, typically Visa and Mastercard, and can be used wherever major credit cards are accepted online or in-store. Cardholders can withdraw currency from any ATM that the credit service supports. However, it’s worth noting that the cards charge cardholders some fees to convert cryptocurrencies into foreign fiat currencies.
Where to buy crypto with debit/credit cards?
A Visa or MasterCard debit card can be used to buy cryptocurrencies on several platforms, including CoinSpot, Binance, Swyftx, eToro, Crypto.com, and Coinbase. Depending on the exchange platform, you can fund your account with fiat before initiating a purchase transaction, or you can initiate the transaction first and then charge the card.
Is it safe to buy crypto with debit cards?
Yes. First, users must be verified before using these cards. Most crypto platforms that accept credit card purchases employ SSL data encryption. Ensure that the online platform where you use a credit or debit card to buy crypto is safe and not prone to fraud.
Is crypto purchase with debit card legal in Australia?
Yes. You can legally purchase, sell, and exchange crypto in Australia with a credit card, debit card, bank transfer, or other methods. After you complete your purchase, your crypto will be kept in your wallet.
Final Thoughts
Crypto debit cards revolutionise how we spend digital currencies and even bridge the gap between crypto and fiat currency. In addition to the ease of paying with cryptocurrency, several cards provide cashback for users to profit as they spend. The transaction costs differ across card issuers, but you can rest assured that they will not be excessive.
Several cryptocurrency exchanges have already leapt at the chance to provide their services to consumers. Therefore, it’s the right time to get a crypto debit card to unlock the full potential of cryptocurrency as a transactional currency.
