Can You Earn Rewards or Cashback When Buying Crypto With a Credit Card?
Many people wonder if they can snag credit card rewards or cashback when purchasing cryptocurrency. On paper, it sounds logical—spend money, earn points—but the reality is much more tangled. This article dives into how credit cards process crypto purchases, what card issuers and crypto exchanges actually allow, and whether anyone’s really getting those sweet points or cashback. I’ll walk you through real experiences, regulatory documents, and a couple of missteps I hit along the way. Finally, I’ll compare international standards and wrap up with clear next steps.
Why This Problem Matters
Buying crypto with a credit card feels like a shortcut: easy, instant, and—if you’re lucky—rewarding. But the lines blur quickly. Can you really earn airline miles or cashback? Or will your bank slap you with a cash advance fee, draining any potential benefit? I ran into this headfirst last year, thinking I’d double-dip on rewards and Bitcoin—turns out, not so fast. Here’s what you need to know before you try this at home.
Step-by-Step: Actually Trying to Buy Crypto With a Credit Card
Step 1: Picking an Exchange (and Getting Surprised)
My first attempt was on Coinbase. I loaded up my Visa card, expecting a smooth checkout. But the option was greyed out. After a quick search, I found their support page: as of 2024, Coinbase only allows debit cards for crypto purchases; credit cards are not supported for buying digital currency (source). Apparently, this isn’t unique—many exchanges block credit cards altogether.
Step 2: Finding an Exchange That Allows Credit Cards
Next up: Binance. Binance lets users buy crypto with credit cards in some countries, but there are restrictions. I tried adding my MasterCard. It worked, but with an instant warning: "Your card issuer may treat this as a cash advance."
Step 3: Placing an Order (and Facing Fees)
I bought $100 worth of USDT. Transaction went through, but the receipt looked suspicious—no sign of reward points, and my bank app showed a $5 "cash advance fee." I called my card provider (Chase), and the representative confirmed: "Crypto purchases are treated as cash advances. No points or cashback apply." A quick scan of Chase’s official rewards policy revealed the same.
Tip: Always check your card’s terms before buying crypto. Many issuers—especially in the US, UK, and EU—explicitly exclude digital currency from rewards categories.
Step 4: Looking for Cards That Might Allow Rewards
Is there a loophole? I scoured forums like Reddit’s r/CreditCards and found a few old posts from 2021. Some users claimed Capital One and American Express briefly awarded rewards for crypto buys—until their policies changed. As of 2024, most major US card issuers (Chase, Citi, Amex, Discover, Capital One) explicitly exclude cryptocurrency purchases from rewards.
Outside the US, I checked with friends in Singapore and Germany. The result? Similar story. Most banks treat crypto as cash-like, so no rewards. If you find a small, local card issuer that allows it, consider yourself lucky—but it’s rare.
Step 5: What About “Crypto Credit Cards”?
Here’s where it gets interesting: Some fintechs offer cards that give crypto rewards for everyday spending (not for buying crypto). For example, the Crypto.com Visa card gives cashback in CRO tokens when you buy groceries or pay for Netflix, but not when you use it to buy more crypto.
Digging Into the Rules: What the Official Docs Say
Regulators aren’t silent on this. The US Consumer Financial Protection Bureau warns that most credit cards treat crypto as a cash advance, which means higher fees and zero rewards. In the EU, the European Central Bank has flagged the high-risk nature of credit card crypto purchases and recommends against using them for such transactions.
Exchanges themselves also have policies. Binance’s help center says, “Please note: the bank may treat the purchase as a cash advance, and you may incur additional charges.”
Comparing International Standards: A Quick Table
| Country/Region | Policy Name | Legal Basis | Implementing Body | Rewards Allowed? |
|---|---|---|---|---|
| United States | CFPB Credit Card Rules | CFPB Guidance | CFPB, Card Issuers | No |
| European Union | MiCA Regulation | MiCA Regulation | ECB, National Regulators | No |
| Singapore | Payment Services Act | MAS Guidance | MAS, Card Issuers | No |
| Australia | ASIC Crypto Policy | ASIC Guidance | ASIC, Card Issuers | No |
Case Study: Dispute Over “Verified Trade”—US vs. EU
Let’s say Alice in the US and Bob in Germany both try to buy crypto with their credit cards. Alice’s bank (Chase) blocks the purchase, citing the CFPB’s guidance. Bob’s Sparkasse bank in Germany lets the payment through, but flags it as cash-like, with no rewards. When Alice asks, “Why don’t I get points?” her bank refers to their rewards policy; Bob’s bank points to MiCA regulations. The difference boils down to how each region defines “verified trade”—in both cases, crypto is not considered a standard merchant purchase.
Expert View: What the Industry Says
I reached out to a fintech compliance officer, “Jack,” who’s worked with both US and EU card issuers. His take: “The reputational risk of rewarding crypto buys is too high for most banks. There’s no appetite to encourage what regulators consider a high-risk, cash-like transaction.”
In fact, the Bank for International Settlements notes in their 2023 report that financial institutions worldwide are moving toward harmonized standards—most treating crypto purchases as non-rewardable, cash advances.
Personal Experience and Honest Mistakes
Here’s the awkward part: The first time I tried this, I assumed I’d get my usual 2% cashback from my Citi Double Cash card. Instead, I got a $10 cash advance fee on a $500 buy, plus instant interest charges. Ouch. No points, no cashback, and a grumpy call to customer service. Lesson learned—always read the fine print.
If you’re tempted to try anyway, double-check your card’s terms. Some fintechs have slick marketing, but even they rarely allow rewards for actually buying crypto itself. The only exception I’ve found? If you buy gift cards with your credit card and use those to buy crypto—a convoluted and usually expensive workaround that most exchanges now block.
Conclusion: No Free Lunch, But Crypto Rewards Cards Exist
To wrap up: While the marketing sounds tempting, the reality is that virtually all major credit cards exclude cryptocurrency purchases from earning rewards or cashback. Regulatory bodies in the US, EU, Singapore, and Australia have pushed banks to treat these as cash advances—so you pay more and earn nothing extra.
If you want crypto rewards, look for “crypto credit cards” that give you cashback in digital coins for everyday spending, not for buying crypto. Otherwise, stick to debit cards or bank transfers for crypto purchases, and always read the latest issuer terms. Don’t make my mistake—double-check before you buy.
- Review your card’s rewards policy before any crypto purchase.
- Consider using bank transfers or debit cards for buying crypto to avoid cash advance fees.
- If you want crypto-based rewards, get a crypto credit card for regular spending—but not for buying more crypto.
- Stay updated with regulatory changes by checking reputable sources like the CFPB or ECB.
If you’ve had a different experience, or if you’ve found a legitimate loophole, I’d love to hear about it—because as far as the current rules go, the points game just doesn’t work for credit card crypto purchases.