From Stablecoin Wallet to Card Payment, Step by Step
Even when you pay with a crypto card, the merchant usually does not receive stablecoins. It accepts a card payment as usual, and the card program handles conversion and settlement behind the scenes.
Four steps of a payment
- Payment request: the merchant requests an authorization over the card network.
- Authorization decision: the issuer checks card status, limits and risk.
- Funds check and conversion: the linked funds are checked and converted if needed.
- Settlement: the merchant is settled in fiat currency.
Card authorization vs on-chain transfer
A card authorization completes in moments, while the time and cost of an on-chain transfer depend on network conditions. That is why cards fund payments in different ways: prefunding, a card balance, or a wallet connection.
What to check
Check when funds leave your wallet, what conversion costs, and in what form refunds come back. For a comparison of the models, see the Self-Custodial Crypto Cards guide.
Note: This article is general information, not financial or legal advice. Xerovan is not a bank; card and payment services are provided by licensed partners. Availability and fees vary by country, and merchants and issuers decide whether to approve a payment. Digital assets involve risks, including price volatility, network disruptions and possible loss of funds.