How do crypto debit and credit cards work?

A crypto card is a payment card, often on a major network such as Visa or American Express, that is linked to crypto in some way. With a crypto debit card you spend crypto or stablecoins from an account, and the card company converts them into regular currency. With a crypto credit card you borrow and repay in dollars as usual, but rewards are paid in crypto.

How does a crypto debit card work?

When you tap or swipe, the card provider checks your crypto balance, converts enough of it into regular money, and pays the merchant. Coinbase, for example, says its debit card automatically converts crypto to US dollars for purchases and ATM withdrawals. The store just sees a standard card payment.

Visa describes stablecoin-linked cards the same way. The program manager checks the stablecoin wallet balance, reserves the amount, and converts it for settlement, while the merchant receives normal currency. Visa reported about $5.2 billion of stablecoin-linked card volume in 2025, with more than 130 programs in over 50 countries. That is still a tiny share of its total volume. For background on these coins, see what a stablecoin is.

How do crypto credit cards and rewards work?

A crypto credit card is a line of credit like any other card. The difference is the reward. Instead of cash back or points, you earn crypto, often bitcoin, on purchases. The Coinbase One Card, for instance, runs on the American Express network and pays bitcoin back at rates that depend on how much a customer holds on the platform. The balance is still a credit card debt owed in regular currency.

Some debit cards also pay crypto rewards. Terms, rates and eligibility change often and differ by country and provider.

What fees do crypto cards charge?

Fees vary. Coinbase says it charges no transaction fee for card purchases with its debit card, but buying, selling or converting crypto includes a spread, and ATM operators may add their own charges. Other cards may charge conversion fees, foreign transaction fees or annual fees. The general picture is covered in what crypto fees are.

Are crypto card purchases taxable?

In the US, the IRS treats crypto as property. Its FAQ says that exchanging crypto held as a capital asset for goods or services creates a capital gain or loss, measured as the value of what you received minus your cost basis. Coinbase notes that each card purchase made with crypto is a taxable sale, while spending USDC that trades at par with the dollar should not normally create a gain or loss. How crypto rewards are taxed is a separate question. See how crypto is taxed in the US for the basics.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.