Prepaid Card

Prepaid Card

Prepaid Card Service At present, only a few merchants accept cryptos whether online or at the point of sale. As of 1st February 2018, only 13 major retailers are accepting cryptocurrencies. Customers must exchange their cryptos into their local fiat currencies to make their everyday purchases.

Using existing exchanges to convert to local fiat currencies is both time-consuming and may be costly. Even though some firms have created products that allow merchants to accept crypto payments, they are only available at selected locations. The CoVEX Prepaid Card Service Platform’s goal is to allow the exchange to take place in real-time, in any location where credit cards are accepted with minimal fees that are comparable to the transaction costs in cryptocurrencies. For instance, the average confirmation time for Ethereum transactions is 24 seconds which can be applied to the prepaid cards.

CoVEX Prepaid Cardholders will be able to use any of the blockchain assets to purchase goods and services from merchants who accept the global credit cards. The Platform will apply the cross-chain payment channels to facilitate the buyer to settle any incoming payment requests from a credit card network in real-time.

Here are steps that illustrate the payment flow:

  • The buyer pays at the merchant using his/her physical/virtual CoVEX Prepaid Card
  • The card system sends an authorization request to CoVEX platform for the amount to be spent
  • The buyer receives an invoice from the cross-chain payment channels
  • The buyer selects which blockchain asset to use for paying the product/service and sends the precise amount to CoVEX platform via the cross-chain payment channels and
  • Upon getting the corresponding value for the invoice, CoVEX Platform approves payment to the merchant

For every prepaid card transaction that the merchant accepts, the merchant will pay a fraction as a merchant discount fee. The CoVEX platform will reward users with tokens on every purchase to enable them to become token holders. CoVEX coin holders will automatically receive a fraction of the entire payment on the platform as an incentive.