Crypto card ‘0% FX fee’ is a marketing claim, says Cryptotesters founder

The ‘0% foreign exchange fee’ promoted by many crypto cards and neobanks is not as straightforward as it sounds, according to Lito Coen, founder of Cryptotesters. In a detailed post on X, Coen explained that these services simply do not add an extra fee on top of the exchange rate already set by payment networks like Visa or Mastercard. The actual currency conversion still includes the network’s markup, meaning users are not getting a truly fee-free exchange.

How crypto cards handle foreign exchange

All current crypto neobanks operate on existing payment infrastructure. When a user makes a purchase in a foreign currency, the transaction is processed by Visa or Mastercard, which apply their own exchange rates. These rates typically include a small margin—often around 0.5% to 1%—that the cardholder pays without seeing it listed as a separate fee. Coen’s point is that ‘0% FX fee’ only means the card issuer does not add an additional charge on top of that hidden network cost.

What true 0% FX would require

To achieve a genuine 0% foreign exchange fee, a company would need to convert currency at interbank rates—the rates banks use among themselves. This requires building a proprietary currency conversion engine, similar to what Revolut and Wise have done. Coen noted that even these services have limitations. They typically only support major currencies due to the high cost of hedging against exchange rate fluctuations, and they often cap the 0% fee benefit at around $1,000 per month. Beyond that limit, additional fees apply.

The on-chain solution

Coen projected that moving the foreign exchange market onto a blockchain could solve these limitations. By granting neobanks access to wholesale liquidity through decentralized networks, unlimited, global 0% exchange rates could become possible. ‘This is the way to surpass traditional finance,’ he added. Such a shift would require significant infrastructure development and regulatory clarity, but it represents a potential future where crypto-native payment systems compete directly with traditional banking rails.

Why this matters for crypto card users

For consumers using crypto cards for international spending or travel, the distinction is important. A ‘0% FX fee’ card may still cost more than expected if the underlying network rate is unfavorable. Users should compare the effective exchange rate offered by the card against interbank rates or services like Wise. The crypto industry’s promise of lower fees is real, but the current infrastructure still relies on traditional networks that charge their own costs.

Conclusion

The ‘0% FX fee’ claim on crypto cards is accurate in a narrow sense—no extra fee is added—but it does not mean users avoid all currency conversion costs. The underlying Visa or Mastercard rate still applies. As Coen highlighted, true zero-fee foreign exchange would require either proprietary engines like those of Revolut and Wise, or a future shift to on-chain liquidity. Until then, users should read the fine print and compare effective rates.

FAQs

Q1: Does a ‘0% FX fee’ crypto card mean I pay no foreign exchange costs?
No. It means the card issuer does not add an extra fee, but Visa or Mastercard still apply their own exchange rate, which includes a small markup.

Q2: How can I find the true cost of using a crypto card abroad?
Compare the exchange rate shown on your card statement with the interbank rate published by sources like XE or Google. The difference is the effective fee.

Q3: Could on-chain forex really eliminate FX fees?
In theory, yes. Decentralized liquidity could provide wholesale rates to all neobanks, removing the need for proprietary engines and caps. However, this technology is still emerging and faces regulatory hurdles.