Types of Credit Cards

A cash card (also called a gift card) is similar to a prepaid phone card or prepaid credit card in that it has a set value you can use all at once or in increments. You do not have to be the owner of the card to use it. A cash card is “read” by a special cash card reader, which only participating stores have. When you use up the total amount on the card, the card is no longer useful (unless it is the kind of cash card that can have an amount added to it). Remember, it is not a credit card, although it may look like one. You will not be billed for the amount due, like you would with a credit card. A cash card can be used at the same places credit cards can (an AMEX gift card can be used anywhere AMEX is accepted, and so on).

A cash card is like cash – with no built-in security – so if it is lost or stolen it cannot be traced and can be used by anyone. The cash card is not to be confused with the cash back credit card, which is a credit card with a special cash rewards feature.

See also:
What is a prepaid credit card?
What is the difference between a credit card and a charge card?
What is the difference between a credit card and a debit card?
What is a rewards credit card?
What is a cash back credit card?

Last update: 2006-09-25 17:54
Author: BKO

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