DEFINITION of 'Warm Card'

A warm card is a type of ATM (automated teller machine) card that allows the bearer restricted access to a business account. Most frequently, a warm card allows the bearer to make deposits to the account, but not withdrawals.


The use of warm cards provides business owners with greater banking security. Employees who must make bank deposits can be given warm cards that allow them only the access needed to complete their duties. Employees are prevented from making withdrawals, limiting their ability to steal funds from the company.

Other forms of security businesses may take to ensure they are not subject to theft (especially online theft and banking fraud) can include using mutli-factor authentication and/or creating complex passwords to protect sensitive user data. Steps both online (cybersecurity measures) and physically (e.g. a warm card) are critical as financial theft becomes more widespread.

Warm Card, Debit Card, and Credit Card

While a warm card is often tied just to a business account and/or simply restricted to deposits, a debit card allows for both deposits and withdrawals, along with transfers for both individual (retail) and/or business checking and savings accounts. Consumers may make relatively small purchases with debit cards, in which funds immediately leave the user’s account.

A credit card gives the user an option to borrow funds. Credit card companies or other issuers charge interest on these loans. In contrast with debit cards and warm cards, credit cards are means of short-term financing. Issuers usually begin charging Interest one month following a purchase and create borrowing limits according to the individual's credit rating. Credit cards often bear the name and logo of the issuer, such as Visa, MasterCard, Discover or American Express. Some cards include special incentives that distinguish them, such as a particular rewards card that offers attractive incentives for consumers. Reward cards can give users airline miles, points toward hotel nights at specific chains, cash back on purchases, and more.

How a user spends borrowed funds with a credit card often impacts his credit worthiness in contrast with a user simply making deposits with a warm card. Taking into account factors, such as repayment history, credit score, assets and liabilities, lenders will determine a borrower’s credit score and figure out his probability of a default. The three most prominent credit reporting agencies are Experian, TransUnion and Equifax. Lenders pay these credit reporting agencies to evaluate potential and existing customers.

  1. Secured Credit Card

    A secured credit card is a type of credit card that is backed ...
  2. Stored-Value Card

    A stored value card is a type of electronic bank debit card.
  3. Credit Card Funding

    Credit card funding is the use of a credit card account to provide ...
  4. Debit Card

    A debit is a payment card that deducts money directly from a ...
  5. Bank Card

    A bank card, also known as a physical card, is used to gain access ...
  6. Business Credit Card

    A business credit card is a credit card intended for use by a ...
Related Articles
  1. Personal Finance

    How Credit Cards Affect Your Credit Rating

    The average American household has four cards, but does that mean more is better?
  2. Personal Finance

    10 reasons to use your credit card

    There's a surprising credit card strategy you should employ as a consumer: Use your credit card for everything (or almost).
  3. 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.
  4. Personal Finance

    Purchases You Should Always Make With A Credit Card

    Credit cards aren't always bad possessions to have. There are certain perks associated with using credit cards as we make routine or irregular purchases.
  5. Personal Finance

    Why More Millennials Need Credit Cards

    Here's why more Millennials should have credit cards – even though a majority don’t.
  6. 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.
  7. Personal Finance

    8 Ways To Avoid Getting Burned By Prepaid Debit Cards

    These cards have many differences from traditional debit and credit cards that can cost you money if you don't know what to watch out for.
  8. 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.
  9. Personal Finance

    5 New Ways Credit Card Companies Are Wooing New Card Holders

    With new laws, credit card companies are forced to get creative to attract new customers.
  10. Personal Finance

    How To Live Without A Credit Card

    Debit cards are more widely accepted and provide better fraud protection than in the past.
  1. Debit card versus credit card

    Can't figure out which card to use when making a purchase decision? Here is everything you need to know about the differences ... Read Answer >>
Trading Center