Debit Card Payouts: A Faster, but Costlier Option for Crypto Cashouts
Crypto users often think bank transfers are their only option for cashing out. However, card payouts offer an alternative that can deliver funds within an hour or even ten minutes.
The mechanism behind card payouts is a push payment, which sends money directly to the card instead of pulling from it. This approach avoids queuing behind business hours and allows transactions to occur at any time, including Saturdays.
Card networks charge higher fees for push payments compared to traditional transfers, but this service fee is disclosed by platforms. A more insidious cost comes from the spread between market rates and conversion services' quotes, which can eat into users' funds without being explicitly stated.
Choosing the correct card network and currency is crucial. The article notes that debit cards are generally more reliable for receiving crypto payouts, while credit cards may be limited or blocked by issuers. Prepaid cards are a gamble, with some accepting push payments but others not.