How does the Nexo Card work?

This information comes directly from Nexo's help center

The Nexo Card functions as a credit card and is tied to Nexo’s Instant Crypto Credit Lines. All purchases are deducted automatically from your Available Credit, using your digital assets as collateral for the loan. The borrow interest rate depends on your Loyalty tier, and you can make repayments at any time, without fixed instalments required.

How to make repayments on my Nexo Card?

Every time you make a purchase, the amount is added to your outstanding loan. Therefore, you just need to make a repayment the usual way – select the “Repay” button on the Account page or the Dashboard inside the Nexo app and choose your preferred repayment method. You can find more detailed instructions here.

Our standard policy of charging additional interest for repayments made within 30 days of the last loan withdrawal doesn’t apply to loans generated from the Nexo Card. This means that if you’ve only made purchases with the card without withdrawing from your credit line using the “Borrow” facility on the platform, no additional interest for the remainder of the 30 days will be accrued in case of early repayments.

If you have taken out a loan from the platform within the last 30 days, the Nexo Card purchases will not reset the 30-day period. However, keep in mind that the outstanding credit from spending with the Nexo Card will merge with your open credit line. Thus, if you are to repay your outstanding credit in full less than 30 days after your last loan withdrawal, the additional interest will be applied on the total amount being repaid, including the loan generated from the Nexo Card purchases.

Example:

You take out a $100 loan via the Borrow facility on Jan 1.
Afterwards, on Jan 10, you make a purchase with the Nexo Card that generates a loan of $200.
If you are to make a repayment for the total outstanding amount of $300 on Jan 25, the additional interest charge will be calculated on that same repayment amount – $300, but for 5 remaining days only since the Nexo Card purchase didn’t reset the 30-day period.

Why is there an internal transfer from the Savings to the Credit Line Wallet when I make a purchase with my Nexo Card?

Assets may be automatically transferred from the Savings Wallet to the Credit Line Wallet if you don’t have enough collateral assets in the Credit Line Wallet to support the loan generated from the purchase.

If you would like to choose the crypto that will be used to back the loan before making the purchase, you can manually move the preferred assets to the Credit Line Wallet. Simply follow the steps in this article.

Why was my Nexo Card purchase deducted from my Available Credit, but I can’t repay the amount?

Whenever you make a purchase with the Nexo Card, the merchant has up to 45 days to claim the funds. This process usually takes no more than a few days, but until it happens, the card transaction will be pending in your Transactions tab, and the amount won’t be added to your outstanding loan. Тhis is why you might notice that the purchase has been deducted from your Available Credit, but the amount is not available for repayment yet.

Please note that during this time, the loan generated from the purchase will accumulate interest which will also be added to your outstanding loan once the card transaction is approved.

If the merchant doesn’t claim the funds within the 45-day period, the transaction will be rejected, and no loan or interest will be accrued.

The above also applies to the cashback following the purchase – your BTC or NEXO reward will be credited to the respective balance after the card transaction is approved.

Why did I not receive cashback on my purchase?

The minimum cashback payout is $0.01 and amounts lower than that cannot be processed – so it might be that the value of your purchase generated a cashback that is less than $0.01.

Source: How does the Nexo Card work?
August 23, 2022
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