A credit card with restricted access to an account is useful for business accounts, parents giving emergency access to their children, and security-conscious people. However, acceptance by merchants varies, and the card should be kept safe to prevent potential security risks.
A credit card is a bank card that provides restricted access to an account. The most common use of such cards is with business accounts where the account holder wants people to be able to make deposits into an account with a bank card, without being able to make withdrawals or other transactions. Many banks offer this type of card to their customers upon request and it is also possible to obtain additional copies of bank cards without restrictions, if this option is desired.
When a warm card is encoded, information about the type of access options allowed is embedded in the card. Warm cards can limit people to withdrawals, deposits or transfers, and can restrict all three options. If a person has linked accounts, a credit card can be generated that only has access to a single account, allowing someone like a business owner to give an employee a credit card for the purpose of making deposits, without giving the employee access to information about other accounts
These bank cards can also be used by parents who want their children to have access to the accounts in an emergency, without allowing unrestricted access. The credit card can limit the holder to a specific account and can also contain a limit on transactions, allowing people to access funds when necessary but limiting the risks of abuse. Security-conscious people can also opt for a warm card to limit access to their accounts in the event of loss or theft.
The acceptance of warm cards in places that accept bank cards varies. Warm cards are generally not designated as debit/credit cards that can be used anywhere with a credit card machine, and not all merchants can accept simple bank cards for payments. If a merchant is set up to take bank cards, the limitations on the warm card may prevent a person from running it for purchases. In other cases, a warm card may be issued that allows people to make limited transactions with merchants. This can be useful for allowing employees to purchase supplies and other necessary goods with a bank card, without giving employees full account access.
People who receive warm cards should take care to keep them in a safe place. While cards cannot be abused in the same way that a bank card, credit card, or credit/debit card can, there is still a potential security risk. If a card is lost or stolen, the incident should be reported immediately so the bank can freeze the card to prevent people from trying to use it to make transactions.
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