The rise of cryptocurrency has changed the way people buy goods and services. Businesses are increasingly accepting the use of crypto cards as a payment method. The Binance Visa card is a crypto card. With the card, it is now possible to pay for a cup of coffee with the crypto you own.
How does this work? Well, when you use a crypto card, you do not send your crypto coins to the merchant. What happens is that the card converts your crypto to fiat currency (USD, EUR, etc) and pays that to the business. So instead of giving the business you are purchasing from Bitcoin or Ethereum, you pay them in normal money which is deducted from your crypto. All this happens so quickly that you won’t know it is even happening.
The Binance Visa card works in the same manner. It is a crypto debit card issued by Binance that you can use to make transactions from your crypto account. Binance released the card in 2020 and it is now supported by more than 60 million merchants across the world. How does the Binance Visa card work?
How Does The Binance Visa Card Work?
The Binance Visa card is linked to a user’s Binance account. Just like a normal debit card connected to an account with money in it, you must have crypto in your account before you can use the card to make transactions.
Binance has two types of wallet in your account: Funding and Spot. The Funding wallet is the default wallet that the Binance Visa cards debit from. However, if there is not enough money in the funding wallet to make a payment, the card then uses the Spot wallet. All of this is done automatically in seconds.
The card supports only a selected number of cryptocurrencies. However, all the popular crypto coins including Bitcoin and Ethereum are supported. It uses a Payment Priority system to select the crypto to pay with.
You can arrange the order of the Payment Priority in your Card Dashboard. What this means is if you select Bitcoin before Ethereum, the card converts your BTC to make a payment. If your BTC balance is insufficient, it uses the next cryptocurrency in your Payment Priority which is ETH in this case.
Online Transactions and Cash Withdrawals
Just like normal debit cards, you can use the Binance Visa card to make payments online. All you need to do is to enter your card details on the checkout page. Binance will then send you a notification via email or in-app. You will then have to verify your account and the transaction will go through.
Cash withdrawals via ATM are not supported worldwide, unfortunately. Only certain locations currently support cash withdrawals with the Binance Visa card and it works just like other debit cards. You can see your pin on your card dashboard.
The Binance Visa card is a game-changer in today’s technological world. Before, you’d need to sell your crypto, then send the money to your normal bank-issued debit card before you can make transactions. Now, you make those transactions on the spot while cutting all the other steps.
Unlike banks, Binance does not charge you usage fees which makes the card free to use. Another benefit is that the Binance Visa card is protected under the same high-security procedures used by Binance. It is, therefore, a must-have in today’s crypto-rich world and you should not miss out on this.