For example a bank returns 1%.
Customer A spent 100$ and customer B spent 1000$. The total cashback is 1+10 = 11$. On open market, a bank bought 1 LTC with 2 orders:
1 order - 0,6 LTC (price was 10$) = a bank spent 6$
2 order 0,4 (price was 12,5$) = a bank spent 5$
After that, the total amount of cryptocurrency is distributed across all customers based on proportion X/Y * Z, where X – the cashback of a customer, Y is the total cashback of all customers, Z is the amount of cryptocurrency
Customer A will be eligible to get 1/(1+10) * 1= 0,09 LTC
Customer B will be eligible to get 10/(1+10) * 1 = 0,91 LTC
All fees could be paid from a customer cashback or bank could reduce % of cashback to pay all fees.
Topic: Is there any creditcards with cashback in cryptocurrency (Read 316 times)
The problem with volatility is the industry problem and may be it's because the crypto market cap is very small compared with fiats cap. But still, any bank could afford it now without any loss.
A bank could establish some ground rules to return fixed amount on fiats 1% but in cryptocurrency it could be any amount based on "average" exchange rate on a given date. A bank could by X amount of cryptocurrency during a month and distribute across all eligible customers in a proportion.
A bank could establish some ground rules to return fixed amount on fiats 1% but in cryptocurrency it could be any amount based on "average" exchange rate on a given date. A bank could by X amount of cryptocurrency during a month and distribute across all eligible customers in a proportion.
My mistake. I am interested definitely in debit cards which allow me to spend money as usual but instead of shitty loyalty points or flight miles obtain some crypto currency (btc, ltc). I found only Byteball Bytes cashback program that allows it. And I am curious why any other "modern" bank couldn't do it. Why couldn't they issue a card that returns 1% but in crypto?
I don't think there are any credit/debit card bonus or loyalty programs that pay out cryptocurrency. The essential problem is that legacy banks don't deal in cryptocurrency (yet). So in order to provide such bonuses, they would literally have to buy it on the open market to pay it to customers. That's not scalable for any large bank, and it would expose them to massive volatility. They could end up losing a lot of money by offering such bonuses, if market supply dries up.
They can offer direct cash back bonuses in e.g. $ because their payment processing fees and interest rates are denominated in $. Cash back rewards just slice a bit of profits off the top and give it back to the customer.
My mistake. I am interested definitely in debit cards which allow me to spend money as usual but instead of shitty loyalty points or flight miles obtain some crypto currency (btc, ltc). I found only Byteball Bytes cashback program that allows it. And I am curious why any other "modern" bank couldn't do it. Why couldn't they issue a card that returns 1% but in crypto?
Hello.
Is there any credit cards with cashback in cryptocurrency (btc\ltc\eth ...)?
Is there any credit cards with cashback in cryptocurrency (btc\ltc\eth ...)?
Firstly, i'm not aware of any crypto credit cards. It is so easy for someone applying online for a credit card to fake all his personal details using illegally obtained details of other people that it is simply unfeasible for any company to issue a crypto-based credit card.
I don't know any bitcoin debit card that have rewards points/cashback either. Debit cards in real life usually don't have this either, only credit cards do.
Remember that bitcoin debit cards are essentially an exchange, that issues you a card that you can fund by transferring BTC into it. They therefore need to make money off charging you fees, not giving you cashback rewards.
Hello.
Is there any credit cards with cashback in cryptocurrency (btc\ltc\eth ...)?
Is there any credit cards with cashback in cryptocurrency (btc\ltc\eth ...)?
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