What Is the Difference Between Crypto Cashback Cards and Yield Cards?

👉Yield Model
🌟BenPay Yield Card:
Utilizes a self-custodied Web3 on-chain yield mechanism. Card account balances can participate in on-chain yield strategies, with annualized returns starting from 3% (actual yield levels depend on the selected on-chain protocols and prevailing market conditions). Yields are settled in real time, and funds can be withdrawn or spent at any time.
This model is built on blockchain technology and DeFi protocols in a fully decentralized manner, ensuring transparency and security while avoiding reliance on centralized intermediaries.
🌟Traditional Crypto Cashback Card:
Relies on cashback programs, returning a certain percentage of spending in cash or reward points. Cashback typically comes with caps, and the reward rates are generally modest.
This model does not involve blockchain-based or decentralized yield strategies and, therefore, cannot generate additional returns through on-chain protocols.

👉Risk Management
🌟BenPay Yield Card:
Risks primarily arise from fluctuations in DeFi protocols and changing market conditions. To mitigate these risks, the platform selects established blue-chip DeFi protocols and applies multiple security measures, such as smart contract audits and on-chain self-custody.
User assets remain under self-custody at all times, with private keys fully controlled by the user, ensuring complete ownership and control.
🌟Traditional Crypto Cashback Card:
Generally considered lower risk, with risks mainly related to card security and the financial stability of the card issuer or partner banks. Since cashback rewards depend on merchant partnerships and card limits are subject to bank approval, users have limited control over fund security and risk management.

👉Asset Control
🌟BenPay Yield Card:
Users retain full control over their assets through a self-custody model. Private keys are held by the user, and all actions—such as deposits, withdrawals, or yield claims—require user authorization. Card balances remain fully under user control, minimizing reliance on third parties.
🌟Traditional Crypto Cashback Card:
Card issuers maintain significant control. Spending limits, cashback structures, and reward rules are determined by the issuing institution.
Users do not have full custody of their funds, and card usage terms may be affected by policy or regulatory changes from banks or payment providers.

👉Value Accrual & Payment Functions
🌟BenPay Yield Card:
Supports both on-chain yield generation and global payments. Funds can be used for everyday spending while simultaneously participating in on-chain value accrual.
Card balances can earn yield through DeFi protocols and be flexibly transferred for payments.
🌟Traditional Crypto Cashback Card:
Rewards are primarily provided through spending-based cashback. This model does not support asset yield generation and is limited to consumption-driven incentives.