What Is a Cash Card?
A cash card is an 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.
Key Takeaways
- A cash card is a term for a payment card that stores cash, such as debit, gift, or prepaid debit cards.
- Credit cards are not considered cash cards.
- Cash cards are a convenient way for cardholders to make electronic payments.
- Note that Square's Cash App offers a debit card that's called a Cash Card.
How Cash Cards Work
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.
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 from a bank account.
Standard cash cards can also be easily used at an ATM to withdraw cash from an account. If tied to a bank checking account cash card ATM transactions are generally offered without fees if made at a bank-operated or affiliated ATM.
Gift cards are another type of standard cash card. These cards are pre-loaded with cash and can be purchased at certain retailer locations, grocery stores, and convenience stores. Some gift cards may only be used at a particular store such as Costco or Subway. Other gift cards, such as those offered by Visa, MasterCard, and American Express can be purchased in various denominations along with a service fee and can be used anywhere that accepts these cards.
Types of Cash Cards
Several 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.
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. They'll 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.
Square Cash Card
Square is one of the leading providers of cash cards and prepaid cash card services. The name of Square's debit card that it offers is Cash Card. This service is provided through Cash App, Square’s mobile payments application. Square's Cash Card allows users to make all types of electronic purchases.
FAQs
A cash card is an 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.
What is a cash card and how does it work? ›
Cash cards and debit cards at a glance
In short, a cash card can only be used to make cash withdrawals from your account at an ATM. In contrast, a debit card, also known as a bank card, is a payment card that can be used to withdraw cash at an ATM or when you need to pay directly for items in-store or online.
What's the difference between a cash card and a debit card? ›
Cash cards can typically only be used to withdraw cash from ATMs. Debit cards offer more services and can be used to pay retailers directly.
How does a money card work? ›
A prepaid card is not linked to a bank or credit union account. Instead, you put money into the card account, sometimes called loading money onto the card, before you can spend it. With a debit card, you are spending money you have in your bank or credit union account.
What is a cash card also known as? ›
ATM cards are known by a variety of names such as bank card, MAC (money access card), client card, key card or cash card, among others. Other payment cards, such as debit cards and credit cards can also function as ATM cards.
How safe is Cash App? ›
Cash App uses cutting-edge encryption and fraud detection technology to make sure your data and money is secure. Any information you submit is encrypted and sent to our servers securely, regardless of whether you're using a public or private Wi-Fi connection or data service (3G, 4G, or EDGE).
Why is Cash App charging me a fee to receive money? ›
Cash App will automatically deduct a 2.75% processing fee on each payment you receive to your Cash App for Business account. When you receive a payment from a customer on your Cash App for Business account, the amount you receive in your balance will not include the deducted fees.
What is one downside of using a prepaid card? ›
Disadvantages of prepaid debit cards
If used effectively, credit cards are a better option, but may be difficult if you have a low credit score. Fees: There are additional fees involved with using and purchasing a prepaid debit card, which may make them more expensive than a traditional debit card.
Can you use a cash card anywhere? ›
The Cash App Card is a free, customizable debit card that is connected to your Cash App balance. It can be used anywhere Visa is accepted, both online and in stores. The Cash App Card isn't connected to your personal debit card or bank account.
Do cash cards work at ATMs? ›
You can use your Cash App Card to make ATM withdrawals with your Cash PIN at any ATM. We do not support withdrawing funds from your 'Savings' balance. Be sure to select 'Checking' account if prompted.
To transfer money from your bank account to a prepaid card, log in to your bank's online platform or mobile app, navigate to the "Transfers" section, enter the prepaid card details, specify the transfer amount, review and confirm the transaction, and verify the transfer's success afterward.
What is the highest amount you can put on a prepaid card? ›
Some prepaid debit cards let you load up to $15,000 onto your card, while others may have a lower maximum amount.
Do you need a cash card to receive money? ›
Can you send or receive money on Cash App without a card? You don't need a card to send or receive money on Cash App. All you need is an email or phone number. However, without a card, you will be restricted on the amount you can send.
How does the cash card work? ›
These cards are typically linked to a bank account at a financial institution. They allow a cardholder to make electronic payments that deduct cash from a bank account. Standard cash cards can also be easily used at an ATM to withdraw cash from an account.
What bank is cash card under? ›
Sutton Bank issues the Cash Card. Sutton Bank does not issue or support Square Cash App, which is a product of Square, Inc. If funds are available, your Cash Card account is loaded with funds from your Cash App when you use your card in making purchases or ATM withdrawals.
Is it better to use cash or debit card? ›
A debit card used responsibly can be the best substitute for cash, as long as you know there's money in the bank. By using a debit card, you're not incurring any new high-interest debt.
What are the disadvantages of cash cards? ›
Disadvantages
- Pre-paid debit cards do not help you build credit.
- Many pre-paid debit cards charge fees before you even start using them. ...
- Fees are typically hidden in fine print on the card provider's website.
- Different cards have different policies regarding the charges you can make.
The Cash Card is a free, customizable debit card that is connected to your Cash App balance. It can be used anywhere Visa is accepted, both online and in stores. The Cash Card isn't connected to your personal debit card or bank account.
How do I get money from my Cash Card? ›
You can use your Cash App Card to make ATM withdrawals with your Cash PIN at any ATM.
What happens if you get a Cash Card? ›
The Cash App Card is a Visa debit card that can be used to pay for goods and services from your Cash App balance, both online and in stores. You may have access to your card details as soon as you order it to add it to Apple Pay or Google Pay and make purchases online.
