Can You Earn Rewards or Cashback by Buying Crypto With Your Credit Card? A Deep Dive With Personal Experience

Solving a Real-World Dilemma: Can You Turn Crypto Buys Into Rewards?

Ever scroll through your card’s perks page and think, “Wait, it says 1.5% cashback on all purchases… so does that include crypto?” That was me not long ago. With the rise of mainstream investment in crypto (see the Statista 2023 crypto adoption survey), more people are thinking about earning something extra from their digital adventures. The incentives look tempting: Get $100 in cashback just for moving money into Bitcoin? Earn double Amex points? It would be amazing—if only it were that simple.

What Actually Happens When You Buy Crypto With a Credit Card?

Here’s where things get interesting. I decided to test this out, using a Chase Sapphire Preferred and a Coinbase account. Let me walk you through what happened, screenshots and all.

1. Chose the platform: I logged into Coinbase, selected “Buy Crypto,” and added my Chase Sapphire credit card as a payment method.
2. Checked the small print: There was a little warning: “Additional fees may apply.” Hm. I ignored it. Who reads those anyway?
3. Entered $200 to buy Bitcoin: The fee ballooned—Coinbase added a 3.99% “credit card processing fee.” Annoying, but I wanted to test for rewards.
4. Clicked Buy: The transaction processed within seconds, but then: My Chase app pinged me to warn this was classified as a “cash advance.” This is a credit card transaction type that (a) doesn’t earn rewards, and (b) hits me with higher interest plus a separate cash advance fee.

Screenshots:
(Sorry, due to privacy, actual screenshots are replaced with descriptions, but you can see similar ones on Reddit forums: Reddit: Why does buying crypto count as a cash advance?)

Why Are Crypto Purchases Often Treated as Cash Advances?

Through some frantic Googling (and a call to Chase support), I learned most major US banks classify crypto purchases as “cash advances.” Here’s what this means:

• No rewards or points—any category bonuses don’t apply.
• Cash advance fee: Up to 5% or $10 (whichever is greater) on top of the crypto platform's fee (Consumer Finance Protection Bureau on cash advances).
• Immediate high interest: Unlike purchases, there’s no grace period.

I even tried this with American Express and Capital One (just $20 test buys, to avoid more disasters). Both blocked the transaction and sent fraud alerts. So, in most real-use scenarios, you won’t get regular rewards from big-name US cards.

Banks and Card Networks: Official Statements & Experiences

Visa and Mastercard don’t ban crypto outright. But they let each bank set its own rules. According to their official FAQ pages (Visa's position on crypto), Visa allows crypto purchases if the merchant carries a proper Merchant Category Code (MCC). If your card issuer blocks crypto, their MCC database knows to decline or classify as a cash advance. In the UK, it’s the same story. Per the Financial Conduct Authority (FCA), several banks have blanket bans or harsh fees.

Are There Any Exceptions? Special Crypto-Focused Cards

Okay, not all hope is lost. While traditional cards block or penalize crypto buys, there are crypto-specific credit cards that legitimately offer rewards IN crypto. For example:

• BlockFi Rewards Visa (now paused, but illustrative)
• Crypto.com Visa Card

But pay attention: These cards give you crypto as cashback after regular spending; you don’t earn rewards for funding your card on an exchange with another credit card.

How About Overseas? A Quick Comparison Table

Let’s get a bit geeky—different countries have radically different rules about crypto card transactions and trade verification.

Country	"Verified Trade" Law	Legal Basis	Authority	Typical Crypto Card Policy
USA	FinCEN KYC Rules	FinCEN Guidance	FinCEN, SEC	Cash advance or block, no rewards
UK	FCA Cryptoasset Regulation	FCA PS19/22	FCA	Some banks block, some allow—with fees
Singapore	Monetary Authority Crypto Policy	MAS Digital Tokens	MAS	Banks set own risk; some allow rewards
EU (General)	MiCA Regulation	MiCA / EU Law	ESMA, National Banks	Varies—most no reward, some fintechs allow

Industry Expert’s Voice: What Insiders Say

“Treating crypto buys as cash advances is about risk mitigation. From a compliance angle, it prevents fraud and rapid loss events that can hit card issuers. Even if the MCC allows it, expect nearly all rewards programs to exclude this transaction type.”
— Mark G., Compliance Officer at a Major European Bank (from a LinkedIn industry Q&A)

Case Example: Crypto Rewards in Singapore vs. USA

Let me share an example from a friend (call her Emma) who tried buying ETH with her Singapore-issued DBS platinum card—she got both bank “points” and standard merchant rewards (with just the exchange’s 2.5% fee). But, buying from Singapore-licensed independent exchanges. When she tried the same with a US card (visiting family, using her Chase), it converted to a cash advance and cost her $17 in fees for a $300 purchase. She instantly hated me for recommending it.

Troubleshooting: Avoiding Mistakes While Chasing Crypto Rewards

Here comes my moment of confession: My early attempts really cost me. At least twice I didn’t realize I'd triggered cash advances—payments showed up on my card not as “purchase” but “cash-like transaction.” Rewards? Nada. In fact, my credit score dipped for a month due to a high utilization spike, plus the interest creeped up immediately. If your goal is to stack up miles or cashback through crypto buys, treat most current US and EU cards as a dead end. There are a few exceptions, mostly smaller international fintechs. But their programs are niche and can be revoked suddenly.

Quick Tips for the Adventurous

• Always check your card’s crypto policy: Look for “cash-like” transactions in your issuer’s rewards T&Cs.
• Try debit instead: Rewards programs don’t usually exist, but at least you avoid the double fees.
• If you want crypto rewards, get a true crypto rewards card, but know these only reward traditional purchases.
• If you find a working loophole, use it sparingly. Banks may close it!

Conclusion: No, You Usually Can’t Earn Standard Rewards From Crypto Buys With Regular Credit Cards

After all my experiments, forum dives, and a few expensive mistakes, here’s what the evidence shows: Regular credit cards from major banks generally will NOT earn you points/cashback for purchasing crypto, due to being treated as "cash advances." In some countries, specific banks or fintech startups might allow this, but terms can change without warning. If you’re determined to benefit, use cards designed for crypto rewards—but these only work for “normal” purchases, not for funding your next Bitcoin buy. And always read the fine print, check real-life reviews on Reddit or The Points Guy, and think twice about the fee structure. For more details on regulatory rules and how different countries certify crypto-related trades and card transactions, check:

• USA – FinCEN Official Site
• UK – FCA Cryptoassets
• Singapore – MAS
• EU – Markets in Crypto-Assets (MiCA)

Next steps: If maximizing rewards is your main goal, consider traditional spending or look for fintech card products explicitly designed for crypto rewards. Or just keep buying coffee—at least that earns you miles.