Hi there. In this post I take a look at the Netcoins Pay Prepaid Visa card. Netcoins is a Canadian crypto exchange and this prepaid Netcoins Pay Prepaid Visa card is only for Canadians Netcoins users except those in Quebec. (Why exclude Quebec!!?)
With every purchase made with this card the user receives 3% back in Bitcoin as a reward. The Netcoins Pay card has no annual account fees. Users can choose between a physical card or a virtual card. This Netcoins Pay card can be used anywhere that accepts Visa cards, Apple Pay, Google Pay or Samsung Pay.
How It Works
If you scroll down a bit on the website there is information on how it works with using Netcoins Pay.
- Sign Up For Netcoins Pay
- Fund Netcoins Pay card (Top up) by Interac, bank wires or selling crypto into Canadian Dollars (CAD)
- Spend with Netcoins Pay Card and earn BTC
The rewards are initially in Canadian dollars and then converted into Bitcoin on a set date each month. Bitcoin amounts are credited to the users Netcoins account.
Screenshot from Netcoins website.
Three Percent Back In Bitcoin For First 3 Months Only
Yes there is a catch with the rewards. The 3% return in BTC is only for the first three months after the card is activated. This three months is their promotional period. Another catch is that the total reward that can be earned from the 3% rate is capped at $100 CAD. I did the math and determined the maximum spending amount that is linked with the capped rewards of 100 CAD is $3333.33. Spending more than 3333.33 does not give extra rewards past the capped $100 CAD at 3%.
After the initial three months, users will receive 1% back in Bitcoin for purchases made on the card.
My Notes
This Netcoins Pay card is not a credit card as it a prepaid VISA card. Users have to be aware of how much funds are there in the account. The activation fee is $0 but be careful of an inactivity fee of $1.00 CAD.
There is a Q&A section for virtual vs physical card. The physical card takes about 10 business days for delivery.
I think each time Bitcoin is rewarded to the Netcoins account that is a taxable event according to the Canada Revenue Agency (CRA).
This is something to consider.
Rewards in Bitcoin from purchases sound nice but do mindful of price swings and volatility of Bitcoin.
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