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Cash Cards |
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A Cash Card is a pre-paid debit card that enables the holder to make purchases and have them deducted from the card's available balance.
A cash card may be branded with a major credit card issuer's logo, such as American Express, VISA, or MasterCard, which enables the holder to make purchases wherever those cards are accepted. Other types of cash cards, such as department store gift cards, can only be used to make purchases at the business that issued the card.
The cellular phone industry was able to open the market to potential cell phone users who did not meet the carrier's credit requirements by offering pre-paid cellular cash cards.
While cash cards may be convenient for the card holder, the real benefit belongs to the card issuer. Because the cards are pre-paid, the issuer gets immediate use of all the money that was used to fund the card, even if the cardholder takes months to spend it all.
Most cash card issuers also charge an activation fee, and some charge a monthly fee while others may charge a "non-usage" fee if the card goes unused for a specific period of time after it was issued.
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Credit Card Definitions > A - E > Cash Cards
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