The Real Cost of Using a Crypto Card: Fees Explained

Using a crypto card feels simple - tap, pay, done. But behind that smooth experience are small, necessary costs that make it all work. They’re not always hidden or unfair; they’re part of what keeps the system fast, secure, and global.

Understanding these fees helps you make smarter spending choices - and get the most value out of every transaction.

Network Fees

When you transfer crypto to your card, the blockchain charges a network fee, also known as a gas fee. This isn’t a fee from your card provider - it’s paid to the blockchain to confirm and record your transaction.

• On faster, lower-cost chains like Solana or Polygon, it’s often just a few cents.

• On high-demand networks like Ethereum, fees can rise when the network is busy.

Pro tip: You can check live gas prices by using a gas tracker. This helps you pick the most cost-efficient time to make a transaction.

How to minimize it:

• Choose low-fee networks when possible.

• Fund your card during off-peak hours when gas prices are lower.

• Use stablecoins (like USDC or USDT) on efficient chains for the best balance of speed and cost.

Several platforms, like KAST, support multiple networks - giving users the flexibility to choose where to send from and helping reduce gas fees.

Conversion Spreads

Every time you spend with your crypto card, your assets are converted into local currency so the merchant can be paid in regular money.

The rate you get might look close to the live market rate - but it’s usually not identical. That small gap between the market rate and the rate applied at checkout is called a conversion spread. It’s how providers cover the instant exchange process. Most spreads range between 1–2%, and they’re usually included in the exchange rate rather than listed as a separate fee.

Why it matters:

Spreads aren’t necessarily bad - they make real-time conversion possible - but knowing they exist helps you understand the true cost of a transaction. Providers that keep spreads low and consistent give you a fairer experience when spending your crypto.

FX and Cross-Border Fees

If you spend in a currency different from your card’s base currency (for example, your card is in USD but you’re paying in EUR), you’ll likely see a foreign exchange (FX) fee. This covers converting one fiat currency into another and is standard across all payment systems.

Some platforms convert crypto to USD first, then USD to the transaction currency, adding unnecessary costs. Modern providers avoid this by converting directly into the needed currency. KAST, for example, applies a flat FX rate on non-USD transactions and converts in a single step, making spending abroad more predictable.

DCC (Dynamic Currency Conversion)

Some fees happen at the terminal, not from your card provider. One common example is Dynamic Currency Conversion (DCC). When a terminal asks, “Pay in USD or local currency?”, choosing USD triggers DCC - meaning the merchant’s processor does the conversion instead of your card.

This almost always costs more. Terminal rates can add a 6–16% markup compared with Visa or Mastercard rates.

Example: You’re in Europe with a €100 bill.

That’s a $14 difference on a single meal, simply for picking the right currency.

How to avoid it:

Always select the local currency when prompted. Let your card handle the conversion - it typically uses a fair, consistent rate instead of the terminal’s inflated one.

ATM and Withdrawal Fees

Sometimes you just need cash, even in a world where you can pay for almost anything with crypto. When withdrawing cash with your crypto card, you’ll usually encounter:

1. A fee from the ATM operator

2. A withdrawal fee from your card provider.

These exist for traditional cards too. Costs vary by region and network but are typically a flat fee or small percentage. For example, withdrawing $100 might include a $2–$3 ATM fee plus any provider withdrawal fee.

Tip: Use ATMs only when you need to. You’ll almost always get a better rate paying directly with your card since ATM withdrawals add extra network costs that regular transactions don’t.

Other Fees (Maintenance, Inactivity, and More)

Some providers include small administrative fees. They’re easy to ignore but good to know upfront. These might include:

• Inactivity fees: charged after months of no use

• Card replacement fees: for lost or reissued card

• Maintenance or subscription fees: for premium perks like higher cashback

• Shipping fees: for expedited delivery of card

These aren’t unique to crypto cards, but it’s worth checking before signing up. Many newer crypto card providers now keep these costs minimal or remove them entirely, focusing on transparency and rewards instead. Checking the fees before signing up helps you avoid surprise charges later.

Crypto Card Rewards: Balancing the Cost

While every transaction comes with a small fee, many crypto cards give something back in return. Rewards programs can offset those costs - sometimes even outweigh them - depending on how often you spend.

For instance, KAST offers up to 10% back in KAST Points on eligible purchases, with occasional boosted rewards. Over time, these rewards help balance out typical spending fees.

Before You Tap Again

Before your next spend, it helps to know what’s happening behind the scenes. Every card comes with fees - that’s just how payments work.

Understanding those small costs helps you use your card more efficiently and make choices that fit how you spend. A good crypto card makes that easy with simple conversions, predictable rates, and no surprises.

That’s what platforms like KAST aim for - giving you clarity, control, and a smoother way to use your crypto day to day. Sign up with KAST and experience how simple, transparent, and rewarding crypto spending can be.**