Crypto card glossary
Plain-English definitions of the terms you’ll meet when choosing and using a crypto card.
ATM fee
A charge for withdrawing cash at an ATM. Crypto cards often give a small free monthly allowance, then charge a percentage above it.
Apple Pay / Google Pay
Mobile wallets that let you add a card and pay by tapping your phone. A crypto card that supports them is far more useful day to day.
BIN (Bank Identification Number)
The first digits of a card number that identify the issuing bank or programme. Some merchants restrict certain BINs.
Cashback
A reward paid back as a percentage of what you spend — on crypto cards, usually in crypto or a stablecoin rather than cash.
Chargeback
A reversal of a card payment, typically for fraud or a dispute. Availability varies by card and network and is often limited on crypto cards.
Collateral
Crypto you pledge to back a credit line on a crypto-backed card. If its value falls too far, it can be sold (liquidated) to cover the balance.
Conversion spread
The gap between the market price and the rate at which a card converts your crypto to local currency. A hidden cost even when there is "no fee".
Credit card
A card that lets you borrow and repay later. A "crypto credit card" either pays rewards in crypto or lets you borrow against crypto you own.
Custodial
A card that spends from a balance the provider holds for you, like an exchange card. Simpler to use, but you are trusting the provider with your funds.
Debit card
A card that spends money you already hold. Crypto debit cards draw down your own crypto or stablecoin balance — no borrowing.
EMI (Electronic Money Institution)
A regulated licence that lets a company issue cards and hold customer funds. A sign a card programme operates within a regulatory framework.
FX fee (Foreign transaction fee)
A charge on purchases made in a currency other than your card’s base currency. For stablecoin cards this can apply to most purchases, so it matters a lot.
Gas fee
The network fee for a blockchain transaction. Relevant when a self-custodial card settles on-chain; layer-2 networks keep it low.
Interchange
The fee merchants’ banks pay to the card issuer on each transaction. It partly funds cashback programmes.
KYC (Know Your Customer)
Identity verification required before a card is issued. Reputable providers require it to comply with regulations — genuinely "no-KYC" cards are rare and riskier.
Layer 2
A network built on top of a blockchain (e.g. Base, Arbitrum, Optimism on Ethereum) that makes transactions faster and cheaper.
Liquidation
The forced sale of collateral on a crypto-backed credit card when its value drops below a threshold. The main risk of borrowing against crypto.
Loyalty tier
A level that unlocks better rewards or fees, often based on how much of the provider’s token you hold or stake.
MPC wallet
A wallet secured by multi-party computation, splitting the key so no single party holds it. Used by some self-custodial cards.
Mid-market rate
The real exchange rate between two currencies, with no markup. Fair-fee cards convert at or near this rate.
Off-ramp
Converting crypto back into traditional money. Spending with a crypto card is a form of off-ramp.
On-ramp
Buying crypto with traditional money (e.g. topping up a card from your bank).
Prepaid card
A card you load with funds in advance and spend down, like a gift card. Caps your exposure but often has top-up fees.
Private key / Seed phrase
The secret that controls a self-custodial wallet. Whoever holds it controls the funds — lose it and no one can recover it for you.
Self-custodial (non-custodial)
A card that spends from a wallet you control, so you keep the keys and no provider holds your balance. Removes counterparty risk.
Smart-contract wallet
A wallet run by on-chain code (such as a Safe), which many self-custodial cards spend from.
Stablecoin
A crypto token pegged to a stable value, usually the US dollar (USDC, USDT) or euro (EURe). Predictable to spend, unlike volatile coins.
Staking
Locking up a crypto token, often to unlock a card’s higher tier or rewards. The locked value is at risk if the token falls.
Top-up fee
A charge for loading funds onto a card. It applies every time you reload, so it adds up on prepaid cards.
USDC
USD Coin, a widely supported dollar-pegged stablecoin, common on crypto cards for predictable spending.
USDT
Tether, the largest dollar stablecoin by volume, common on exchange-issued cards.
Virtual card
A card number issued instantly with no physical plastic — ideal for online purchases and adding to a mobile wallet.