What is a 'Cash Card'

A cash card is any electronic payment card that stores cash for various types of payments. Cash cards may include bank debit cards, prepaid debit cards, gift cards and payroll cards. They do not include credit cards since credit cards are a form of debt rather than cash.

BREAKING DOWN 'Cash Card'

Cash cards provide a convenient way for cardholders to make electronic payments. Standard branded cash cards are typically allowed for use at all merchants where the network processor is accepted. Alternative cash cards may have certain limitations on their use.

Standard Cash Cards

Banking debit cards are the most common type of standard cash card. These cards are typically linked to a bank account at a financial institution. They allow a cardholder to make electronic payments that deduct cash. Standard cash cards can also be easily used at an ATM to withdraw cash from an account.

Gift cards are another type of standard cash card. These cards are pre-loaded with cash. Some gift cards may only be used at a particular store such as Costco or Subway. Other gift cards may be available for use similar to a debit card. American Express is one company that provides gift cards with pre-loaded funds that can be used anywhere American Express is accepted. Most gift cards are not reloadable allowing the cardholder to only make purchases up to the pre-funded limit.

Alternative Cash Cards

A number of alternative cash cards also exist with varying terms and available uses. These cards are generally known as prepaid cards and help to support the underbanked population by providing a cash card that is not linked to a bank account. Payroll cards are also an alternative type of cash card that employers may provide for their employees

Square

Square is one of the leading providers of cash cards and prepaid cash card services. Services are provided through the Square Cash application. Square Cash users also have access to a Square cash card for making all types of electronic purchases. The Square Cash card can be obtained by mail and is linked to the balance in a user’s Square Cash account.

Payroll Cards

Payroll cards are a type of cash card that can be provided by an employer. Payroll cards are an employee benefit that employers arrange for through partnerships with prepaid debit card issuers. Payroll cards allow an employer to make scheduled payments to an employee’s payroll debit card. These payments are a simple form of direct deposit and provide the cardholder with immediate access to funds. Payroll cards can be easily integrated into an employer’s payroll system while also providing easy access to wages earned for the employee. These cards carry a balance from month to month and can be used the same way as a debit card.

RELATED TERMS
  1. Payroll Card

    A payroll card is a prepaid card onto which an employer loads ...
  2. Stored-Value Card

    A stored value card is a type of electronic bank debit card.
  3. Open Loop Card

    An open loop card is an electronic payment card that can be used ...
  4. Credit Card

    Issued by a financial company giving the holder an option to ...
  5. Credit Card Funding

    Credit card funding is the use of a credit card account to provide ...
  6. Carding

    Carding is a form of fraud that uses stolen credit card information ...
Related Articles
  1. IPF - Banking

    Credit versus debit cards: Which is better?

    Credit and debit cards may look identical, it is important to note their differences. Be strategic about which card you choose and learn more about which is better for you.
  2. Personal Finance

    How to Find the Right Prepaid Debit Card

    Prepaid debit cards have become very popular. Here are some tips for choosing the right one for your needs.
  3. Personal Finance

    3 New Types Of Credit Cards To Look For

    These three types of credit cards are becoming popular with customers looking to pay less fees and build up their credit scores.
  4. Personal Finance

    10 Considerations For Using Your Credit Card Abroad

    Credit cards can be the best item you pack when traveling, just make sure that you are taking the right card that suits your needs.
  5. Personal Finance

    Review: Discover Credit Cards

    Discover it cards still offer generous rewards and no annual fee. But how generous depends on which card you end up with, and what your credit score is.
  6. Personal Finance

    Prepaid 'Credit' Cards: Convenience at a Cost

    These cards offer convenience and security, but are they worth it?
  7. Personal Finance

    10 Reasons To Use Your Credit Card

    There's a surprising credit card strategy you should employ as a consumer ... use your card for everything (or almost).
  8. Personal Finance

    Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.
  9. Personal Finance

    What happens when your credit card expires?

    Find out why it's a good idea to change and update your credit card once in a while. Learn about other cards that may better suit your needs.
RELATED FAQS
  1. What is the difference between a prepaid credit card and a gift card?

    Although prepaid and gift cards are used in the same manner, a prepaid credit card can be used repeatedly, while a gift card ... Read Answer >>
  2. What transactions cannot be made using prepaid credit cards?

    Find out about the transactions that are restricted when you use a prepaid credit card, and find out about other ways to ... Read Answer >>
Trading Center