Secured Credit Cards

How it works

Avici offers secured credit cards. These credit cards let you use your crypto to spend funds in fiat. The native currency for these cards is USD

The way these cards works is simple–

  1. User deposits USDC in a Loan Escrow smart contract

  2. We use the deposited USDC to create USD Credit balance on the card.

  3. When user spends, we deduct the USD credit balance from the card.

  4. And in frequency of 1-2 days or sometimes a week, we liquidate the spent USDC amount from the card contract.

Lets consider an example–

  1. User deposits 100 USDC in a smart contract

  2. $100 credit balance is created on the card

  3. User spends $20, the balance of the card is changed to $80

  4. Depending on the frequency 20 USDC is liquidated and $20 is settled with Visa.

An important thing to note here is that these contracts are self-custodial and neither Rain or Avici or Visa controls the loan contract.

This is how the contract works–

  1. Escrow Smart contract is created on the blockchain

  2. User wallet is the owner of the smart contract

  3. Whenever there is a spend on the Card, we put a “charge” using the spend attestation. We don't hold custody but can only withdraw funds linked to the charges.

  4. Only user's wallet can withdraw funds from escrow contract after deducting the spends.

Where can you use it

Avici credit card can be used at more than 100 million merchants worldwide. Basically at any merchant that accepts Visa international credit cards. For more info on available/prohibited regions, please go here.

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