Let's review its disadvantages before its advantages 👀
In this thread, I will discuss the following 3 matters:
1- Its disadvantages
2- Its features
3- How can I use it personally? (I am speaking for myself)
First, a brief introduction about it:
The Redotpay card is a virtual card and a tangible plastic card used for purchases or withdrawals from ATMs.
1️⃣ First: Let's understand how the Redotpay card works?
The Redotpay card operates in two sections.
A section related to the entity of the issuer, which is Red dot technology, and a section related to the entity of the custodian for cryptocurrencies.
These entities have an agreement between them, but as a user, you are not a party to the agreement with the custodian of the cryptocurrencies.
The terms also state the following:
(As mentioned in the terms of use which I don't think anyone actually reads)
Your deposited virtual assets are held in a custodian wallet with a third party. The issuer has established a contractual relationship with the custodian to ensure the secure management of your virtual assets. By using the custodian wallet, you confirm that you understand the inherent risks associated with using a custodial wallet, including, but not limited to:
(a) System risks: Risks related to the operation and security of the custodial systems and platforms;
(b) Market risks: Risks arising from the volatile nature of cryptocurrencies and their fluctuating market values;
(c) Regulatory risks: Risks associated with changes in regulations and legal compliance for custodians;
(d) Security risks: Risks related to the potential loss or theft of virtual assets due to cyberattacks or breaches by the custodian.
(e) Operational risks: Risks arising from operational failures, mistakes, or disruptions in the custodial wallet.
2️⃣ Second:
We are now using the Redotpay card and dealing with the first section, the section responsible for the application and its management, etc., the technical section, which is a company according to their statements located in Hong Kong 🇭🇰 Red dot
As for the other party responsible for holding the cryptocurrencies, I found no information about it and I don't know it.
Why did I mention all these details?
Because it was mentioned in the terms of use that the issuer (Red Dot) is not responsible for the security of your stored assets (cryptocurrencies) in the custodian's wallet:
The clause in the terms of use states the following:
The custodian will be responsible for the security of your virtual assets held in the custodian's wallet. The issuer and its affiliates shall not be liable to you or any other person for any losses, damages, or liabilities related to your custodian wallet or any virtual assets held therein or resulting in any way from the actions or omissions of the custodian or attributed to it.
The information gained from all this talk is as follows:
As a user, in the event of theft or loss of your digital assets (cryptocurrencies), you do not have the right to return to Red Dot Company.
3️⃣ Third:
The problem with companies that create Visa cards like RedotPay lies with the providers, which are Visa and MasterCard, as they unfortunately stop the service after a while.
I am talking about many previous examples from 2017 to today.
And RedotPay is considered new, having been around for less than a year, just a few months.
Now let's see the features of RedotPay!!
What are the features of the RedotPay card?
1- Easy to use, honestly the app is simple and easy and supports the Arabic language.
2- The KYC is quick.
3- Its service provider is Visa. This means that when you issue the card, it will be a Visa card like the ones most of you have, so you can use it almost anywhere in the world.
4- Freedom to choose between a virtual card or a plastic card. Or both.
5- The speed of processing (the virtual card) that you will be able to add to Apple Pay.
6- You can withdraw from most ATMs if you request the plastic card.
4️⃣ Fourth:
Now, what are the fees of RedotPay accurately.
The fee is 2.2% on your purchases divided as follows:
1.2% is the currency conversion fee because the currency in the wallet is US dollars and you are purchasing, for example, in Kuwaiti dinar or Saudi riyal, etc., so the currency conversion will incur this 1.2%.
And 1% is the fee charged by RedotPay on each transaction.
So the total is 2.2%
Regarding the limits currently:
100 thousand dollars is the daily withdrawal limit.
200 thousand dollars is the monthly withdrawal limit.
5️⃣ Fifth:
After reviewing the disadvantages, advantages, and fees, now I will tell you about my experience.
How to use the RedotPay card personally.
Initially, I applied for the virtual card and added it to my Apple Pay.
I use it for regular purchases if I need it.
And I only transfer the amount that I will use for purchases only. Simple purchases.
So I don't think I will transfer more than $3000 at once and leave it there unless I have a specific item I want to buy now and its price is high.
Regarding whether it is accepted or not.
Any place that supports VISA, you will be able to use the card there.
5️⃣ Fifth:
I hope I was able to clarify all points regarding the RedotPay card in this thread.
In conclusion, you can download their app called RedotPay on the Apple Store and Google Play.
And if you like, this is a special code for me that I will benefit from if you register through it: 01n75
You will receive a welcome credit of $5.
