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Cashback is not a new idea.
High street banks, credit cards and stores have been providing incentives in the form of percentage returns as cash once transactions are confirmed for many, many years.
The percentage is usually fairly low and some cards have a limit to the amount of cash back that can be redeemed, but essentially acting as a free bonus it’s hard to complain.
With the introduction of crypto credit cards or prepaid debit cards, rewards are being introduced to entice customers to their products.
It may sound confusing but the cards work in much the same way as traditional credit cards and are accepted in most places that accept Visa or Mastercard.
Depending on the card, the reward will be different but most payout in a form of cryptocurrency.
For example Crypto.com’s prepaid debit card pays out rewards in their native ‘Cronos’ token.
With crypto credit cards you could be charged interest if you don’t clear your balance in full each month, and that could easily outweigh what you earn in rewards.
However, crypto debit/prepaid cards generally won’t charge you interest, because you’re drawing on money you already have in the account.
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