Warm Card

Written By
Paul Tracy
Updated November 4, 2020

What is a Warm Card?

A warm card is a bank card that allows the user to make one kind of transaction but not another.

How Does a Warm Card Work?

For example, let's assume that John works for Company XYZ and he is the manager of the Cleveland, Ohio, store. Every afternoon, John needs to deposit the cash from the day's sales at the local bank, verify the account balance and record that balance in his daily paperwork. To facilitate this, Company XYZ gives John a warm card, which he carries with him to the bank. He swipes the card to provide the account information to the teller for the deposit and is able to use the card to see the account balance. John is not able to withdraw funds from the account or transfer money, so he must be careful to leave enough cash in the cash register drawers to be able to make change for his cash.

Why Does a Warm Card Matter?

Warm cards are useful for organizations that want to give employees access to accounts (in order to make deposits) but want to prevent theft by restricting their ability to withdraw funds, make transfers or perform other transactions. 

Banks offer warm cards with various features. For example, a warm card may allow withdrawals but not deposits, or allow transfers but no other functions. Merchants vary regarding their acceptance of warm cards.

Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Warm Card.
Be the first to ask a question

If you have a question about Warm Card, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Warm Card, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Warm Card

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms