Most digital asset cards can cause headaches at hotel check-ins or when exchanging currency. Even if they advertise "0% FX fees", hidden exchange rate spreads often quietly eat your rewards. Given that most of these cards are prepaid, they are frequently rejected by hotels and car rentals that require a credit line for deposits.

With stablecoins becoming more common for everyday spending, it's important to understand how different card types work and which fits your lifestyle best. There are three main models: pre-funded debit, self-sovereign debit, and the newer credit-linked model used by providers like DeCard.

What Kind of Spender Are You? 

• The Global Traveler: Spend overseas often? Need a card that handles hotel "holds" without freezing your cash.
• The Digital Native: Hold stablecoins (USDC/USDT) and want to spend them on coffee, groceries, or daily needs without topping up every time.
• The Premium User: Prefer high limits, premium perks, and don't mind paying an annual fee for convenience.

Travelers and premium users usually benefit from credit-linked cards. For digital natives, pre-funded or self-sovereign cards are likely a better fit.

The 3 Stablecoin Card Types

1. Pre-funded Debit
   Pre-funded debit cards are the most common model. You convert your digital assets into cash (USD, SGD, etc.) in an app before spending it. 
   While this approach is simple, it comes with a few friction points: if you forget to top up your balance, your card will decline, and the conversion fees can accumulate over time. Pre-funded cards are also often rejected by hotels and car rental counters, which usually require a credit line for security deposits.
    
2. Credit-Linked Model
   DeCard works like a traditional credit card, with an assigned credit limit determined after application review. Cardholders can spend on credit, receive monthly statements, and increase their available limit through repayments or prepayments made in fiat or supported stablecoins (USDT/USDC). As it uses a standard credit BIN, the card is widely accepted, even for hold-heavy transactions like hotel deposits and car rentals, making it ideal for both everyday spending and travel.
    
3. Self-sovereign Debit
   Self-sovereign debit cards never take custody of your funds. Instead, a smart contract checks your wallet in real-time when you swipe, approving the transaction if you have enough balance. 
   This model gives you maximum control over your assets, but transactions can be slower depending on blockchain network speed. To avoid high transaction fees, daily limits are often lower than those of credit-linked or pre-funded cards.

Rewards Compared - Cashback vs Miles vs Token Rewards

Rewards aren’t just numbers — they influence how you spend. DeCard offers two distinct examples of how this works: the DeCard (points-style) and DeCard Luminaries (cashback-style).

Cashback

Cashback is the simplest and most predictable option. You spend money, and a percentage comes back to your account. 

For example, DeCard Luminaries offers up to 10% cashback, capped at US$200 monthly. While the card has an annual fee of US$388, the cashback earned over a year can easily offset this cost. 

Lower overseas transaction fees also play an important role in preserving your cashback. With DeCard, your overseas transaction fees are only at 1.8%, compared to the 3.25% commonly charged by bank cards. For anyone who prefers simplicity and steady returns, cashback is usually the easiest choice.

Miles & Points

Many rewards programs let you earn points or miles instead of cashback. With DeCard, you can turn everyday spending into KrisFlyer miles and other rewards through DePoints.

Every eligible transaction automatically earns 1 DePoint for every US$1 spent. Points remain valid for two years, giving users plenty of time to accumulate and redeem them. DePoints can then be redeemed for KrisFlyer miles, travel perks, dining, lifestyle experiences, and exclusive offers. More information about DePoints can be found here. 

For those who enjoy strategizing to maximize rewards, points can be very appealing. For casual users, cashback often remains the simpler and more predictable choice.

Token Rewards

Token-based rewards are less common and carry more risk. Some cards pay in volatile tokens instead of cash or points, which means the value of your rewards can change depending on the token price.

Headline reward rates—like “8% back”—may require holding large amounts of a provider’s token or meeting tier requirements, and issuers can change rates periodically. These programs are best suited for experienced users who understand digital asset volatility and are comfortable with fluctuating reward values.

Understanding FX Fees and Hidden Costs

Many cards advertise “0% FX fees,” but the real cost of spending overseas can be hidden in the exchange rate. There are usually two ways you end up paying: either a clear, upfront fee charged by the issuer, or a hidden markup built into the currency exchange rate itself. DeCard, for example, charges a straightforward 1.8% admin fee, which is transparent and easy to understand.

For example, imagine spending $1,000 on a weekend trip. Card A might charge a 2% fee but use the real wholesale exchange rate, costing $20. Card B could claim no fee but apply a 2.5% markup in the rate, bringing your cost to $25. While the difference may seem small, it adds up and can quietly reduce the rewards you earn.

The takeaway is simple: don’t just trust “no fee” claims. Check both the stated fees and how the card calculates exchange rates to understand the real cost of your overseas spending. 

Travel Card Limitations

Travel can quickly expose the limitations of standard digital asset cards. Hotels often place a hold for incidentals when you check in. With prepaid cards, this hold freezes your actual money and makes it unavailable until you check out. Car rentals present another challenge. Many rental counters view prepaid cards as high risk and require a credit BIN for security deposits. Credit-linked cards handle this differently: the hold sits on your credit line, leaving your assets untouched and fully available.

Even accessing cash can require planning. Most cards enforce daily or monthly ATM withdrawal limits, typically ranging from US$200 to US$1,000. Knowing these restrictions in advance helps you avoid surprises and ensures you can access cash when needed during your trip.

Is DeCard right for you?

For frequent travelers or users who spend in high volumes, DeCard Luminaries offers premium perks like airport lounge access, travel insurance, and higher cashback caps, making it ideal for maximizing rewards and enjoying a smoother experience abroad. 

For casual spenders or those who want a simple, everyday card to manage and spend their stablecoins, DeCard provides a simple and reliable solution without an annual fee, giving you frictionless access to your digital assets. Learn more about DeCard and DeCard Luminaries in our in-depth overview.

FAQ

• Do stablecoin cards really have “no FX fees”?
  • Often no. While they may charge 0% transaction fees, many hide costs in the exchange rate spread.
• Why was my card declined at a hotel check-in?
  • Hotels often reject prepaid debit cards for deposits. Credit-linked cards like DeCard use a credit BIN, which is accepted for holds.
• What is the difference between DePoints and Cashback?
  • DePoints are earned per dollar spent and redeemed via the DePoints rewards catalog. Cashback (on DeCard Luminaries) is credited to your account, subject to a US$200 monthly cap. For a more detailed breakdown of DePoints, see our article here.
• Is this regulated in Singapore?
  • Yes. Stablecoin activities in Singapore are overseen by the Monetary Authority of Singapore (MAS), which has finalized a framework for stability and user protection.
• Are there fees for spending non-stable assets?
  • Yes. Most programs charge a conversion fee or spread when you liquidate a volatile asset to pay a merchant.

Ready to start spending your stablecoins seamlessly? Get a S$5 welcome bonus when you sign up for DeCard today.