SwissBorg Card Rulebook v0.1

1. Introduction

1.1 About the SwissBorg Card

The SwissBorg Card is a cryptocurrency debit card that allows the SwissBorg community to spend their digital assets in the real world. This rulebook outlines the terms and conditions governing the use of the SwissBorg Card, including card activation, rewards, fees, security measures, and other important information.

1.2 Issuer and Regulatory Information

The SwissBorg Card is issued by Monavate. UAB Monavate is a company incorporated under the laws of Lithuania and authorised by the Bank of Lithuania to issue electronic money and provide payment services.

1.3 Acceptance of Terms

By applying for and using the SwissBorg Card, SwissBorg users agree to the terms outlined in this Rulebook and detailed in the Cardholder Terms & Conditions provided before ordering. These terms are binding and govern how the card and its services are used.

2. Card Features and Usage

2.1 Eligibility

To be eligible for the SwissBorg Card, SwissBorg users must:

Have a valid SwissBorg account:
- Must be a retail account (corporate accounts are not eligible for the SB Card).
- The account has unrestricted permissions and is not under investigation for fraud or money laundering.
Have completed identity verification to Level 2:
- Verified Photo ID
- Verified Address
Reside in one of the following countries:
- United Kingdom, Switzerland, Austria, Belgium, Cyprus, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.d.
Agree to the SwissBorg Card legal terms

In the first stage, only one virtual card can be ordered at a time. A SwissBorg user can request a new card only if they do not have an active card. If the existing card is canceled, the SwissBorg user will be eligible to order a replacement.

2.2 Supported Fiat Currencies

The SwissBorg Card is accepted at over 90 million Mastercard merchants worldwide and supports spending in multiple fiat currencies.

Each card is assigned a base currency based on the cardholder’s country of residence. Cardholders residing in Europe will have EUR as their base currency, those in Switzerland will have CHF, and those in the UK will have GBP. After issuance, the base currency of the card cannot be changed.

The SwissBorg Card supports EUR, GBP or CHF as base currencies. When transactions are made in a currency different from the card’s base currency, the amount is converted using the Mastercard Scheme’s exchange rate: https://www.mastercard.co.uk/en-gb/personal/get-support/convert-currency.html.

2.3 Supported Cryptocurrencies

In the initial phase, the SwissBorg Card will support spending in the following designated cryptocurrencies:

VCHF
USDC
BTC
ETH
SOL
BORG
USDG
EUROP

The cardholder can select a primary cryptocurrency along with an optional set of backup currencies.

For example, if VCHF is selected as the primary currency with EUROP and USDC as backups, the card will automatically use one of the backup currencies if the VCHF balance is insufficient during a purchase. The backup currencies do not have a pre-defined order, the system will dynamically select the one that can fulfill the payment requirements the fastest.

Note that payments cannot be split across multiple cryptocurrency accounts, even if the combined balance across accounts is sufficient to cover the transaction.

2.4 Cryptocurrency Conversion

When making a purchase with the SwissBorg Card, a real-time conversion will occur from the selected primary cryptocurrency (or backup, if applicable) to the card’s base currency.

As outlined in section 2.2, if the local currency differs from the card base currency (EUR, CHF or GBP), the purchase amount will be converted to the card currency using the applicable Mastercard exchange rate.

Each currency conversion is subject to an exchange fee.

Live rate: please note that an additional real-time market-liquidity adjustment may be applied to the exchange price to increase the likelihood of execution and ensure the successful completion of the card transaction.

Note that using the SwissBorg Card through third parties, such as Google/Apple Pay, Curve, PayPal, and others, may be subject to additional fees, depending on the respective third party’s policies.

2.5 Spending Limits

The SwissBorg Card has daily, monthly, and annual spending limits, as well as limits on single transactions and the number of transactions per day or month. These limits are subject to regulatory requirements and risk assessments and may be adjusted at any time based on risk and regulation.

In addition, the card spend contributes to the SwissBorg total account withdrawal limits, which are tied to the SwissBorg user’s account level.

2.6 Virtual and Physical Cards

In the initial stage, only virtual cards will be available for ordering.

At a subsequent phase, depending on community demand, physical cards may become available with an additional issuance and shipping fee.

2.7 Online and In-Store Purchases

The SwissBorg Card can be used for both online and in-store purchases wherever Mastercard is accepted.

For online purchases, cardholders may be required to approve a 3DS authentication request through the SwissBorg App for enhanced security.

For in-store purchases, contactless payments can be made by linking the virtual card to digital wallets such as Apple Pay, Google Pay, or Curve (country restrictions may apply).

2.8 Cash Withdrawals

Cash withdrawals at ATMs are not initially available with the SwissBorg Card. This feature might be considered in a future iteration.

2.9 Reversals and Refunds

Reversals or refunds for purchases made with the SwissBorg Card will be credited to the SwissBorg user’s fiat account in the corresponding card base currency (EUR, CHF, or GBP).

If a transaction is reversed or refunded, any fees charged from the original transaction will not be credited back to the SwissBorg user’s account.

2.10 Chargebacks

To request a refund or dispute a transaction, cardholders can contact SwissBorg via the App (Profile > Support) or by emailing support@swissborg.com, within eight weeks of the transaction being deducted from their balance. SwissBorg will assist with resolving the dispute or forward the request to the Card Network for further processing.

3. Managing Card

3.1 Checking Balance

The cardholder can check their card balance in the SwissBorg app. The primary cryptocurrency balance is highlighted, while secondary cryptocurrency balances are viewed upon selection

In some cases, a payment exceeding the primary balance may still be processed if sufficient funds are available in one of the secondary cryptocurrencies.

When checking your card balance, make sure to leave a small buffer to allow for successful crypto conversion.

ATM balance checks for the card are not currently available.

3.2 Transaction History

The cardholder can view their card transaction history in the app, including details of purchases and fees.

Transactions can have different statuses depending on the payment flow. The table below outlines them.

Note: The table above outlines the typical transaction statuses and processing flows. However, exceptions may occur, such as offline purchases (without authorization) or extended processing times.

3.3 Card Expiry and Renewal

The card will expire on a specified date, visible in the card details. A new virtual card will be automatically issued before the expiration, and cardholders will receive a notification once it’s ready.

3.4 Security

3D Secure

3DS protocol adds an additional level of payment protection to an online transaction. In order to complete an online purchase, the cardholder is asked to approve the transaction in their SwissBorg app.

Card Freeze

Cardholders can temporarily block their card at any time through the SwissBorg app. This action is reversible and can be performed as needed.

Reporting Stolen Virtual Card Details

If a virtual card’s details are stolen or compromised, cardholders can report it by logging into their account and using the app, or by contacting support via email. Additionally, cardholders can temporarily block the card at any time using the “freeze” functionality.

3.5. Termination and Closure

Card Cancellation

Cardholders can cancel/delete permanently their card at any time through the SwissBorg app. This action is irreversible.

Account Closure

If a cardholder's SwissBorg account is closed, their SwissBorg Card will also be terminated.

4. Rewards and Benefits

Every card purchase is rewarded with cashback in BORG.

When a user pays with the card, a real-time crypto-to-fiat trade is executed. Depending on the user’s Rank, a cashback reward is generated. A user can receive up to 99% cashback on the trading fee.

The cashback received from card usage falls under the Paid to Trade program, which means:

BORG rewards are locked for a certain period.
The same buyback model is applied to the underlying trades triggered by card usage.

In the future, additional benefits may be introduced, such as rewards linked to specific tasks or periodic achievements.

5. Fees and Charges

6. Compliance and Regulatory

6.1 Restricted countries

The SwissBorg Card cannot be used in the following countries due to compliance and regulatory reasons: Afghanistan, Belarus, Central African Republic, Cuba, Darfur (Sudan), Dem. Rep. of the Congo, Haiti, Iran, Iraq, Lebanon, Libya, Mali, Myanmar (Burma), Nicaragua, North Korea, Russia, Somalia, South Sudan, Syria, Venezuela, Yemen, Zimbabwe.

Please note that this list is subject to change and is continuously updated through our real-time monitoring systems.

6.2 Prohibited merchant categories

Commonly prohibited categories include gambling and betting, adult content and services, cryptocurrency purchases, financial services like money transfers, and illegal goods such as drugs or weapons. High-risk businesses, cash advances, and certain government services may also be restricted. These limitations are in place to prevent fraud and ensure compliance with anti-money laundering (AML) regulations. Cardholders should review their card's terms and conditions for detailed information.

Please note that this list is subject to change and is continuously updated through our real-time monitoring systems.

7. Example Scenarios and Edge Cases

7.1 Regular In-Store Card Usage

The following example illustrates how a SwissBorg Card is used for purchases at physical retail locations.

The cardholder initiates a payment by tapping their mobile phone, smartwatch, or any digital wallet linked to the card on a point-of-sale (POS) terminal for a contactless transaction. The payment is authorized, triggering a real-time crypto-to-fiat conversion, and the corresponding crypto amount is deducted from the cardholder’s account.

7.2. Regular Online Card Usage

The following example illustrates how a SwissBorg Card is used for online purchases.

When shopping online, the cardholder enters their card details at checkout. Unlike in-store contactless payments, online transactions often require 3D Secure (3DS) verification for added security. This means the cardholder may need to authenticate the payment via a biometric approval through their SwissBorg app.

Once verified, the transaction is authorized, triggering a real-time crypto-to-fiat conversion, and the corresponding crypto amount is deducted from the cardholder’s account.

7.3 Card Reversal

A reversal occurs when a merchant cancels a previous purchase authorization, either fully or partially. The system charges the authorization amount in crypto and refunds the corresponding amount in fiat.

Note: If a merchant reverses a purchase, any fees charged by SwissBorg for the crypto-to-fiat conversion at the time of authorization will not be refunded, but they will still be eligible for cashback.

7.4 Card Refund

A refund is the process of returning funds to a cardholder’s account after a previous transaction has been completed. It typically occurs when a customer returns a product, cancels a service, or disputes a charge. Processing a refund credits the amount back to the cardholder’s fiat account in the card’s base currency.

The refund amount may include the full or partial value of the original purchase, depending on the merchant’s policy and the nature of the refund request. Refunds can take several business days to appear in the cardholder’s account, depending on the merchant's bank or payment processor.

Note: If a merchant refunds a purchase, any fees charged by SwissBorg for the crypto-to-fiat conversion at the time of authorization will not be refunded, but they will still be eligible for cashback.

7.5 Using the Card for Public Transportation

When using a card for public transportation with automated contactless payments, the process begins at the access gates. The cardholder taps their mobile device on the reader, and an initial authorization for an estimated fare is triggered. This ensures the cardholder has sufficient funds to cover the journey. Once the trip is completed, the system recalculates the fare based on the actual distance traveled or zones crossed.

The final charge may result in:

Partial Reversal: If the actual fare is lower than the authorized amount, the difference is refunded to the cardholder’s fiat account (illustrated in 7.3 Reversal).
Incremental Charge: If the fare is higher (e.g. due to traveling through additional zones), the cardholder is charged the difference (illustrated below).

7.6 Using the Card at Automated Fuel Pumps

When a card is used at an automated fuel pump, a minimum spending balance of 150 EUR is required, as recommended by the Card Networks.

These merchants are typically categorized under the following Merchant Category Codes (MCC):

Automated Fuel Dispensers (MCC 5542)
Service Stations with or without Ancillary Services (MCC 5541)

This requirement ensures sufficient funds to cover the purchase and mitigates the risk of a negative account balance due to the way these merchants process transactions.

To avoid issues, make sure you have extra Spending Balance beyond the amount you plan to spend when fueling your car.

7.7 Overdraft Account

In certain cases, a cardholder’s account may enter an overdraft state, commonly referred to as having a negative balance, meaning one or more card transactions were processed without sufficient funds to cover the full amount. The overdraft is recorded in the same currency as the SB Card’s base currency (CHF, EUR, or GBP).

This situation may occur in scenarios such as:

A merchant charges more than the available spending balance (e.g. an offline transaction during a flight).
An incremental charge is applied, as outlined in section 7.5: Using the Card for Public Transportation.

Under normal circumstances, if the crypto assets selected as the primary or backup payment method are insufficient to cover the full transaction amount, the transaction is declined. However, in exceptional cases, such as those described above, the transaction may still be processed despite insufficient funds due to the nature of the purchase, and must be honored.

In such cases, SwissBorg will attempt to recover the full or partial amount from the user’s fiat account, specifically the one corresponding to the base currency of the card.

If the account still enters an overdraft state after these recovery attempts, the cardholder will be contacted by SwissBorg’s support team to collect the outstanding amount and resolve the situation.

What happens when an overdraft occurs:

The cardholder will receive a notification and SwissBorg’s support team will follow up directly to help clear the situation.
SwissBorg will temporarily freeze the SB Card and restrict the following functionalities in the SwissBorg account: (i) withdrawals of digital and fiat assets, (ii) Smart Send.

How to resolve the issue:

To clear the overdraft, the cardholder should add sufficient funds to their fiat account balance in the SB Card’s base currency, either by swapping another asset or making a deposit.

Important: If the overdraft is not resolved within a reasonable timeframe, SwissBorg reserves the right to recover the outstanding balance from other available digital or fiat assets in the user’s account.

8. Frequently Asked Questions (FAQs)

1. What is SwissBorg’s Crypto Debit Card?

It’s a Mastercard debit card that lets you spend your cryptocurrency at merchants by converting it into fiat currency (e.g., EUR, CHF) in real time. It works just like a traditional debit card, but is linked to your crypto wallet.

In the first stage, the SwissBorg Card will be virtual, meaning you can use it for online purchases as well as in physical stores by adding it to your digital wallet (e.g., Apple Pay, Google Pay, Curve).

2. How Does a SwissBorg’s Crypto Debit Card Work?

When you make a purchase, the crypto debit card automatically converts your cryptocurrency into the merchant’s accepted fiat currency at the current exchange rate. The transaction is processed instantly, and the amount is deducted from your crypto balance.

3. Who can get the SwissBorg Card?

To be eligible for the SwissBorg Card, SwissBorg users must:

Have a valid SwissBorg account:
- The account has unrestricted permissions and is not under investigation for fraud or money laundering.
Have completed identity verification to KYC Level 2:
- Verified Photo ID
- Verified Address
Reside in one of the following countries:
- United Kingdom, Switzerland, Austria, Belgium, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
Agree to the SwissBorg Card legal terms

Note: The card will be rolled out gradually. If your region isn’t available on day one, it will be enabled shortly after.

4. How do I order the SwissBorg Card?

Log in to the SwissBorg app, go to the Portfolio section, tap on the Card button, and follow the instructions. In just a few seconds, you’ll have your virtual card ready to start using for payments.

5. Where Can I Use a SwissBorg Card?

You can use SwissBorg Card anywhere traditional debit cards are accepted, including:

Retail and Dining
- Supermarkets: Pay for groceries at stores like Carrefour, Tesco or Lidl
- Restaurants and Cafes: Use your card at chains like Starbucks, McDonald’s, or local eateries.
- Department Stores: Shop at retailers like Fnac, Galleries Lafayette, or IKEA
Online Shopping
- E-commerce Platforms: Use your card on Amazon, eBay, or Temu.
- Subscription Services: Pay for Netflix, Spotify, or gym memberships.
- Digital Marketplaces: Buy games, apps, or in-game purchases on platforms like Steam or the App Store
Travel and Transportation
- Airlines and Hotels: Book flights or accommodations on platforms like Expedia or Booking.com
- Ride-Sharing Services: Pay for Uber, Lyft, or Bolt rides.
- Public Transportation: Use your card for buses, trains, or subways in cities with contactless payment systems
Entertainment and Leisure
- Movie Theaters: Purchase tickets at cinemas
- Event Tickets: Buy concert or sports event tickets on platforms like Ticketmaster
Fuel Stations: Use your card at gas stations
Cross-Border Payments: Use your card while traveling abroad for shopping, dining, or transportation

6. What Cryptocurrencies Can I Use with the Card?

At launch, the SwissBorg Card will support BTC, ETH, SOL, BORG, and stablecoins such as USDC, USDG, EUROP, EUROP, and VCHF. More cryptocurrencies may be added over time.

Please note that only crypto wallets are supported, it won’t be possible to use fiat wallets with the card.

7. Are There Fees Associated with the Card?

Yes, fees apply to real-time crypto-to-fiat conversions. For full details, please refer to our website: https://swissborg.com/legal/swissborg-app-fees.

Additionally, foreign exchange fees may apply if you use your SwissBorg Card to make purchases in a currency different from your card’s base currency (e.g., EUR, CHF, or GBP).

If a merchant reverses or refunds a purchase, the amount will be refunded in Fiat currency. Any fees charged by SwissBorg for the crypto-to-fiat conversion at the time of authorization will not be refunded to the cardholder.

8. How Do I Fund My SwissBorg Card?

You can fund your card just by holding supported cryptocurrencies in your SwissBorg wallet. Initially, the supported cryptocurrencies are BTC, ETH, SOL, BORG, USDC, USDG, EUROP, VCHF.

Over time, additional cryptocurrencies may be added or removed from the list depending on regulatory requirements and market conditions. Some currencies may also be unavailable to users in certain regions (for example, VCHF is currently not available to EEA users).You can choose one primary cryptocurrency for your card and set multiple backup cryptocurrencies from the list above. If your primary balance isn’t sufficient, the card will automatically use your backup cryptocurrencies so your purchase goes through seamlessly.

9. What Happens If I Have a Negative Balance?

If your crypto balance is insufficient to cover a transaction, your primary cryptocurrency balance may go negative. The system will temporarily freeze the SwissBorg Card and limit certain functionalities in the SwissBorg account.

You’ll need to top up your account with crypto to restore the balance of your card default currency, either via crypto deposit or exchange. Failure to do so may result in automatic deductions from other assets in your account.

10. Is My SwissBorg Card Secure?

Yes, SwissBorg Cards come with security features such as 3D Secure (3DS) for online shopping with real-time in-app notifications.

11. Can I Use My Card for Online Purchases?

Yes, you can use your SwissBorg Card for online purchases. For added security, online transactions often require 3D Secure (3DS) verification, such as an in-app biometric authentication.

12. How Are Transactions Taxed?

Spending cryptocurrency may trigger taxable events, such as capital gains tax, depending on your jurisdiction. Consult a tax professional to understand your obligations.

Keep in mind that every purchase triggers a real-time crypto-to-fiat conversion, and the transaction will appear in your account statement, just like a trade.

13. What Happens If My Virtual Card Details Are Compromised?

If your virtual card details are compromised (e.g., exposed in a data breach or phishing attack), immediately freeze or delete the card using the SwissBorg app. Alternatively, you can contact us at support@swissborg.com, and we will assist you in blocking the virtual card to prevent unauthorized transactions.

Once the virtual card is deleted, you can issue a new one with updated details. Be sure to update any recurring payments or subscriptions linked to the old card with the new information.

14. Can I Use My Card Internationally?

Yes, the SwissBorg Cards can be used internationally wherever the card network (Mastercard) is accepted. Foreign transaction fees may apply (see here https://www.mastercard.co.uk/en-gb/personal/get-support/convert-currency.html). SwissBorg won’t charge additional FX fees.

15. How Do I Check My Card Balance?

You can check your balance directly through the SwissBorg app. Your balance is displayed in both your primary cryptocurrency and backup cryptocurrencies.

16. What Are the Spending Limits?

In addition, the card spend contributes to the SwissBorg total account withdrawal limits, which are tied to the user’s account level.

Refer to the card’s terms and conditions for specific limits, particularly Rulebook’s Section 2.5 on Spending Limits.

17. What are the benefits of the SwissBorg Card?

The SwissBorg Card lets you connect your crypto directly to real-life purchases, instantly, and without needing to withdraw funds in advance to a financial institution.

Depending on your Loyalty Rank, you may also earn cashback on each purchase. For full details, please check the Rewards section in the Rulebook.

18. How Do I Contact Customer Support?

Customer support is available through:

In-app chat
Email - support@swissborg.com
Help center or FAQ section

19. What Happens If a Merchant Doesn’t Accept Crypto?

Crypto debit cards convert your cryptocurrency to fiat currency in real time, so merchants do not need to accept crypto directly. The transaction is processed in the local fiat currency.

20. Can I Use My Card for Recurring Payments?

Yes, you can use your SwissBorg Card for recurring payments like subscriptions. Ensure you maintain sufficient funds in your account to avoid transaction failures.

21. How Long Does It Take to Receive My Virtual Card?

You can order a virtual card through the SwissBorg app, and it will be instantly available for use.

22. What Happens If My Transaction Is Declined?

Transactions may be declined due to:

Insufficient funds
Exceeding spending limits
Merchant restrictions
Security checks

Check your balance and limits, or contact customer support for assistance.

23. I’m changing my address to a new country - will my card still work?

It depends on the country of residence. The situation can fall into one of the following cases:

Moving within EEA countries (e.g., France to Germany): No impact, your current card remains valid.
Moving from Switzerland or the UK to an EEA country: No impact, your current card remains valid.
Moving from an EEA country to Switzerland or the UK: No impact, your current card remains valid.
Moving to a country outside the EEA, UK, or Switzerland: Your current card will be canceled, and we won’t be able to issue a replacement at this time. However, we’ll notify you as soon as support for other regions becomes available.Disclaimer: This rulebook is subject to change and should be used as a general guideline. For the most up-to-date information, please refer to the SwissBorg Cardholder Terms & Conditions published on the website and app.

Disclaimer: This rulebook is subject to change and should be used as a general guideline. For the most up-to-date information, please refer to the SwissBorg Cardholder Terms & Conditions published on the website and app.

SwissBorg Card Rulebook v0.11. Introduction