A cash card can refer to a card used only at bank ATMs or a prepaid card for purchases/withdrawals. Debit cards can also be called cash cards. Prepaid cards can be specific to a store or general credit cards offer more flexibility.
A cash card can have several different definitions. One is that the card is used only at bank ATMs to use available account funds. This is generally distinguished from a debit card which can also be used to make purchases. Alternatively, the term may simply be synonymous with “debit card,” or it may be a prepaid card that allows people to make purchases or withdraw cash.
Most people today have a debit card, which they may call a cash card. In certain cases, banks will not issue the standard point-of-sale debit card to customers. This is sometimes the case with accounts issued to minors. In these cases, banks still have to give the account holder a way to withdraw money at times when the bank is not open. They can issue a cash card, providing the account holder with access to funds. Not all banks observe this rule and it really depends on the region.
The cash card that is also a debit card can be used at ATMs to withdraw money from an account. Many banks have agreements with a variety of ATM providers, so people can withdraw funds from their account at private ATM locations or through other banks’ ATMs. Also, most debit cards can now be used like a credit card at retail stores. People can use the cash card to buy groceries, pay for fuel, stay in a hotel, or shop at the mall. Many people love the convenience of these cards and won’t get a bank account that doesn’t offer one.
A variation is the prepaid debit card, which allows a person to spend entitlements on the prepaid amount. This can have a credit card company badge on it, which means it can be used anywhere a credit card is accepted, and people can add more to their debit card balance, if they want. It is also possible to withdraw the cash amount from the card using an ATM, although this varies.
Prepaid cards can be specific to a store or collection of stores. For example, a Costco Cash Card is used only at the Costco store or for the company’s online purchases. This type of cash is non-refundable and the money is dedicated solely to Costco spending. There are numerous types of vendor-specific cash cards, and they are essentially like gift certificates. People can buy pre-price amounts for different types of vendors in places like supermarkets, or they can determine the exact amount of their pre-payment by purchasing a card directly from the vendor/retailer.
These latter cards are the most limited because they mean that people will be restricted to using the cash card at a specific location. If the interest is to provide a card with more flexibility in spending, people could buy a preloaded general credit card. This definitely increases spending options.
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