Bank transfer or card: which is the better way to pay for crypto?
Cards are fast, but they usually cost more. Here’s why, and how paying by bank works in New Zealand.
By Eli Hylands
· 1 min read
Paying for crypto by card is usually faster. It also usually costs more, because card payments carry processing and fraud costs that providers pass on.
Why cards cost more
Card payments cost the business a processing fee. Crypto purchases also carry a higher risk of disputed or fraudulent payments, because crypto can’t be taken back once it is sent. Services that accept cards usually cover those costs through a card fee or a less favourable rate.
Some card issuers also treat crypto purchases as cash advances, which can mean extra fees and interest. Check with your issuer.
“Compare the amount of crypto you receive for the same NZD, not just the advertised fee.”
Paying by bank in New Zealand
Flow accepts bank payments only: manual bank deposit, POLi or Akahu Open Banking, depending on the order. Each order shows the methods available for it, with the exact amount and a unique reference.
Pay from an account in your own name. A payment from someone else’s account can be held for review or returned.
What your quote shows
Because you pay by bank, your Flow quote shows the 0.79% Flow fee, including GST, the rate and the estimated network cost, with no card surcharge.
And the usual rule applies: only pay using the details shown on your own order in the Flow dashboard.
This article is general information only and is not financial advice. Crypto-assets can be volatile, and blockchain transfers are generally irreversible.
Eli Hylands
Eli is the founder of Flow Crypto and editor of Flow News, covering crypto for New Zealanders.
