What Is A Cash Card?
A cash card is a plastic card issued by banks and other financial institutions to customers. The card may allow customers to pay for goods and services online or offline at points of sale or withdraw money from cash dispensers.
A cash card is a payment tool that allows holders to pay for goods or services at a supported point of sale by drawing money from an account linked to the card. Banks and other financial institutions issue cash cards to customers to conveniently carry out electronic payments and withdraw cash from automated teller machines (ATMs).
Various people refer to cash cards using different names such as ATM card, Bank Card, and Money Access Card. Cash cards are made of plastic and have a magnetic stripe or chip to interact with electronic systems. It has a unique number, expiration date, CVV (Card Verification Value), and holders need to create a security pin that they must use to perform transactions with it. A bank in the United Kingdom, Barclays, issued the first ATM cards
in 1967 to customers.
Cash Card Example
The most common type of cash card is the banking debit card which banks link to customers’ bank account, allowing them to make purchases and withdraw cash by drawing from the funds they deposited in the bank account. Other types of cash cards include the following:
- Gift cards: It is a prepaid debit card that contains a specific amount of money that holders can use for various purchases in certain retail stores, gas stations, restaurants, and other locations.
- Payroll Cards: It is an employer-issued debit card where employees receive their salaries every payday. An employer loads salaries directly onto the debit card rather than deposit them directly into their bank account. It functions as a regular debit card, allowing employees to withdraw at the ATM and make electronic payments.
- Square Cash Card: This is a Visa debit card that connects to your Cash App (Square’s mobile payments application) balance rather than your bank account. Square Cash Cardholders can use the card anywhere merchants accept Visa cards.
You should note that credit cards do not qualify as cash cards since credit cards are essentially a form of debt.« Back to Glossary Index