Fold Card

Fold Visa Prepaid Debit Card: Bitcoin Rewards on Everyday Spending

Basic Information

The Fold Card is a Bitcoin rewards prepaid debit card designed for everyday consumers who want to earn Bitcoin ("sats") on routine spending instead of traditional points or cash back. The card links to a USD cash balance with FDIC insurance on deposits up to $250,000. Users spend dollars via a familiar debit card experience while passively accumulating Bitcoin rewards.

Since its launch in 2020 as one of the first Visa co-branded Bitcoin reward debit cards, Fold has processed nearly $1 billion in transactions and distributed over $30 million in BTC rewards to users as of 2023.

Rewards and Benefits

Cashback Structure

The Fold Card offers a unique rewards structure that varies by tier:

• Free Tier: Variable Bitcoin rewards via spin wheel (typically ranges from ~0.25% to occasionally 100% back)
• Fold+ Tier:
  • Base rate: Guaranteed 0.5% Bitcoin back on all signature debit transactions
  • Category Boosts: 1.5% back on rotating top spending categories (changes quarterly)
  • Merchant Boosts: Up to 5% back at select popular merchants through rotating offers
  • All Fold+ rewards are in addition to spin wheel rewards

Spin Wheel Rewards

Fold's primary differentiator is its gamified "spin wheel" reward system. After each purchase, users spin a virtual wheel in the app to win prizes in satoshis. Rewards range from as low as 5 sats up to a possible 100% rebate or even 1 full BTC on a purchase, though the largest prizes are extremely rare.

Fold+ members have improved odds and exclusive access to higher-tier prizes, including eligibility for the full 1 BTC jackpot.

Gift Card Cashback

The Fold app includes a gift card marketplace where users can purchase gift cards to dozens of retailers and earn enhanced Bitcoin rewards:

• Free tier: "Medium" level rewards (e.g., ~1% on Amazon)
• Fold+ tier: "Highest" level rewards (e.g., 2.25% on Amazon, up to 20% at select partners)

ACH Bill Pay Rewards

Fold+ members can earn Bitcoin rewards on bill payments made via ACH from their Fold account:

• Earn 0.25%-1.50% in BTC on bill payments up to last month's qualified spend
• First $2,500 each month gets the boosted rate; remainder earns 0.25%
• Anything above last month's spend earns 0%

Additional Benefits

• Daily Spin: Free daily spin for small rewards with streak bonuses
• Auto-Stack: Automatically convert a percentage of deposits or round up purchases to buy Bitcoin (fee-free for Fold+)
• Referral Program: Earn $5 in Bitcoin for each referral plus 1-50 sats randomly every time your referral makes a purchase for one year
• Early Access: Fold+ members get early access to new features and products

Fees and Limits

Card-Related Fees

Transaction Fees

Spending and Withdrawal Limits

Loading (Deposit) Limits

Instant Withdrawal Limits (Fold+ Only)

Card Tiers and Options

Both tiers offer the same physical card design and contactless capability. The primary differences are the guaranteed rewards rates, fee waivers, and additional features available to Fold+ members.

Top-Up Methods

Users must pre-load the Fold Card with US Dollars (USD) using ACH bank transfer, direct deposit, or instant debit card funding within the Fold app. All top-ups require moving funds from an external bank account or debit card to a custodial USD balance held by Sutton Bank, with a 1.5% fee for instant debit card deposits and no fee for ACH or direct deposit. The account balance cannot exceed $30,000, and instant debit card deposits are limited to $1,500 per deposit, $10,000 per day, and $20,000 per 30 days, while ACH transfers allow up to $40,000 per 30 days. Funds are generally available immediately for instant deposits and within 1-3 business days for ACH transfers, and all funds are fully custodial once loaded (users lose self-custody). Only USD is accepted for top-up—no direct crypto deposits or top-ups via Bitcoin or other cryptocurrencies are supported; Bitcoin can only be bought or earned as rewards after loading USD.

Self-Custody Custodial

The Fold Card uses a fully custodial model, meaning both your USD balance and any Bitcoin rewards are held and managed by the platform and its partner bank on your behalf. Users interact with funds through the Fold app, but do not control the private keys for their Bitcoin or have direct access to the underlying assets outside the platform's systems. All spending is done from a USD cash balance, with up to $250,000 FDIC insurance, while Bitcoin rewards are credited to an in-app custodial wallet and can be withdrawn to an external wallet (processed weekly). If Fold or its banking partner ceased operations, users would lose access to their funds unless the company facilitated withdrawals. This arrangement offers convenience, FDIC-insured USD funds, and seamless rewards, but users sacrifice independent control and self-custody of their crypto assets.

Supported Currencies and Conversion

Supported Cryptocurrencies

• Bitcoin (BTC) only
• Supports both on-chain Bitcoin transfers and Lightning Network withdrawals
• No support for other cryptocurrencies for rewards or storage

Supported Fiat Currencies

• US Dollars (USD) only
• All spending and loading of the card are in USD

Currency Conversion Capabilities

• BTC to USD conversion available within the app
• No multi-currency support for fiat (USD only)
• The Fold Card is a USD-denominated card; no crypto is spent directly
• Bitcoin rewards are credited to the in-app wallet after transactions
• Users can convert BTC to USD via "Push to Card" feature when desired

Geographic Availability

Supported Regions

• Currently available only in the United States (all 50 states and D.C.)
• Must be 18+ and a U.S. resident to apply
• Fold has announced plans to expand to Europe and Latin America through its Visa partnership

Restricted Countries

The Fold Card cannot be used in over 75 countries due to banking regulations and restrictions, including major regions such as:

• Most of Africa and the Middle East
• Many Asian countries including China, Russia, and North Korea
• Several Latin American countries
• Various European nations under sanctions

A comprehensive list includes Afghanistan, Albania, Algeria, Angola, Argentina, Azerbaijan, Bahamas, Bahrain, Bangladesh, Belarus, Bolivia, Brazil, China, Cuba, Egypt, Hong Kong, Iran, Iraq, Mexico, North Korea, Pakistan, Russia, Saudi Arabia, Singapore, South Africa, Syria, Turkey, Ukraine, United Arab Emirates, Venezuela, and many others.

Compliance and Security

Identity Verification Requirements

• Full KYC process required: name, address, date of birth, Social Security Number
• Some users may need to upload government ID for verification
• Verification is performed at account opening only

Custody Model

• USD funds: Held by Sutton Bank in a pooled account (custodial)
• Bitcoin: Custodial wallet provided by Fold
• Users can withdraw BTC to external wallets for self-custody

Insurance Coverage

• USD balances: FDIC insured up to $250,000 through Sutton Bank
• Bitcoin holdings: No explicit insurance coverage mentioned
• Card transactions: Protected by Visa's Zero Liability policy for unauthorized charges

Security Features

• Two-Factor Authentication (2FA) via authenticator app
• Real-time transaction alerts
• Ability to freeze card instantly via app
• PIN code for ATM/POS transactions
• Encrypted data transmission and storage
• Integration with mobile wallets adds tokenization security

Technical Details

Settlement Timing

• Card purchases settle in 1-3 business days
• Bitcoin rewards appear immediately after spinning the wheel
• BTC withdrawals to external wallets are processed weekly in batches

Payment Priority Options

• Fold recommends running the card as "credit" (signature) for maximum rewards
• PIN-based transactions may not earn rewards or count toward certain bonuses

Currency Display and Exchange Rate Sources

• App displays both USD and BTC balances
• Exchange rates for BTC/USD conversions are set by Fold's liquidity providers
• No explicit spread information provided, but Fold claims competitive rates

Payment System Integrations

• ACH transfers via Plaid/Astra
• Direct deposit capability
• Mobile wallet integrations with Apple Pay, Google Pay, and Samsung Pay

User Experience

Mobile App Features

• Available for iOS and Android
• Card management (activate, freeze, view transactions)
• Bitcoin wallet with buy/sell functionality
• Gift card marketplace
• Spin wheel rewards interface
• Daily Spin mini-game
• Account funding and withdrawal options
• Biometric authentication (Touch ID/Face ID)

Support Channels

• In-app Help Center
• Email support
• Social media support (Twitter @fold_app)
• Limited phone support for card assistance
• English-only language support

Common User Feedback

Positive:

• Engaging gamified experience
• Easy Bitcoin accumulation through everyday spending
• Reliable Visa card functionality
• Strong community aspect through referrals and social media

Negative:

• Low odds on big rewards from spin wheel
• Premium fee may not be worth it for low-volume spenders
• Some users experience KYC and onboarding issues
• Occasional technical glitches with the app
• Variable rewards can be unpredictable (especially on free tier)
• Weekly schedule for BTC withdrawals (not instant)

Best Suited For

• Bitcoin enthusiasts who prefer earning BTC over traditional cashback or points
• Regular spenders who can maximize the guaranteed 0.5% base rate plus category boosts on the Fold+ tier
• Gamification fans who enjoy the excitement of variable rewards through the spin wheel system
• Gift card users who can take advantage of enhanced rewards rates up to 20% at select merchants
• U.S. residents looking for a fee-free way to start accumulating Bitcoin without direct investment

Pros and Cons

Pros

• Unique gamified rewards system adds excitement to everyday purchases
• No card issuance fee for either tier
• Guaranteed 0.5% Bitcoin back plus category boosts for Fold+ members
• Enhanced rewards on gift card purchases (up to 20% at select merchants)
• Lightning Network support for Bitcoin withdrawals
• FDIC insurance on USD deposits up to $250,000

Cons

• Currently limited to U.S. residents only
• Free tier has no guaranteed cashback rate (relies on wheel outcome)
• $100/year subscription fee for Fold+ may not be worth it for low spenders
• Rewards limited to Bitcoin only (subject to crypto volatility)
• Weekly batched Bitcoin withdrawals rather than instant transfers
• Cannot be used in over 75 restricted countries

Conclusion

The Fold Card successfully bridges traditional finance and cryptocurrency by offering a familiar debit card experience that rewards users with Bitcoin. Its standout feature is the unique gamified reward system that adds an element of chance to every purchase, potentially yielding significant Bitcoin rewards beyond standard cashback rates. For Fold+ members, the guaranteed base rate of 0.5% plus category and merchant boosts of 1.5-5% creates a compelling value proposition for frequent spenders.

The card's primary limitations include its U.S.-only availability, the reliance on Bitcoin as the sole reward currency (subjecting rewards to crypto volatility), and the fact that the free tier offers no guaranteed cashback rate. Additionally, the $100/year Fold+ subscription may not be justified for users with low monthly spending, as the rewards earned might not offset the fee.

The ideal Fold Card user is a U.S.-based Bitcoin enthusiast who makes regular purchases and values accumulating BTC over traditional rewards. The free tier serves as an excellent entry point for those curious about Bitcoin rewards with no downside, while Fold+ is best suited for high-volume spenders who can maximize the guaranteed rates and fee waivers. For someone spending $10,000+ annually, the Fold+ tier can easily justify its cost through enhanced rewards and eliminated fees.

Additional Information

Upcoming Features

Fold has announced a Bitcoin Rewards Visa Credit Card featuring:

• Metal card design
• Up to 2% unlimited BTC back
• $250 signup bonus for Fold+ members ($100 for free tier)

However, according to reports, the launch has been delayed due to infrastructure partner issues. The company is maintaining a waitlist for interested users while seeking a new partner.

Business Account Availability

Fold does not currently offer business accounts or cards. According to a Reddit AMA with the Fold team, business accounts are not available at this time, and the card is designed exclusively for consumer use.

Best Practices for Card Usage

• Run the card as "credit" (signature) rather than "debit" (PIN) to ensure rewards
• Set up recurring purchases of gift cards for merchants with higher rewards rates
• Use ACH transfers instead of instant debit card funding to avoid the 1.5% fee
• For large purchases: Use Fold+ to guarantee at least 0.5% back plus spin wheel
• For travel: Fold+ eliminates foreign transaction fees
• For recurring bills: Fold+ users can use ACH Bill Pay for up to 1.5% back