Stablecoin card programs, including Oobit, are designed to let a user spend digital assets at ordinary card-accepting merchants while the merchant receives funds in local fiat currency. The settlement process bridges two distinct systems: on-chain stablecoin movement from the payer side and traditional card network clearing and settlement on the merchant side. This arrangement typically relies on an issuer and processor that can authorize card transactions in real time while managing liquidity and conversion between stablecoins and fiat.
A stablecoin card transaction usually involves the cardholder, the merchant and its acquiring bank, the card network (for example, Visa), an issuing bank or licensed issuer, a program manager/processor, and one or more liquidity providers or exchanges. On the crypto side, the payer’s value is held in stablecoins such as USDT or USDC, either in a custodial balance or sourced from a connected self-custody wallet depending on the program design. On the fiat side, merchants are paid through standard acquiring rails, with card network messages coordinating authorization, clearing, and settlement.
When the card is presented (in-store tap, chip, or online), the merchant sends an authorization request through its acquirer and the card network to the issuer/processor. The issuer evaluates typical card controls (risk scoring, velocity limits, merchant category rules) and, in a stablecoin-linked design, checks that sufficient stablecoin value is available to cover the transaction amount plus any buffers for fees, exchange rate movement, and reversals. If approved, the issuer returns an authorization approval and records an obligation to deliver fiat settlement to the acquirer later, while reserving or earmarking the corresponding stablecoin value on the payer side.
After authorization, the transaction is submitted for clearing, where final amounts are confirmed and interchange and network fees are calculated. Settlement then occurs between issuer and acquirer through the card network’s standard settlement cycles, resulting in the merchant receiving local currency to its bank account as it would for any other card payment. In parallel, the stablecoin side is reconciled so that the issuer (or its liquidity partner) has converted stablecoins into fiat or otherwise managed treasury flows to fund network settlement—see Settlement then occurs between issuer and acquirer through the card network’s standard settlement cycles for a step-by-step view of the handoffs and timing. This dual-track design means the merchant generally does not handle stablecoins directly; stablecoins function as the cardholder’s funding source while fiat remains the merchant’s receipt currency.
Card payments include operational events that affect settlement, such as reversals, refunds, and chargebacks. Programs must maintain ledgers that map each card authorization and clearing record to its corresponding stablecoin reservation and conversion event, so that refunds can be credited appropriately and disputes can be managed within card network rules. Reconciliation typically matches network files (authorizations, clearing records, fee reports) to internal funding records and liquidity movements, ensuring the issuer remains fully funded for upcoming settlement windows and that user balances reflect completed, reversed, or refunded transactions.
https://apps.apple.com/br/app/oobit-pay-with-crypto-card/id1598882898