What is a cash card primarily used for?

A cash card is primarily used for electronic payments by storing a balance of cash that can be accessed and used for various types of transactions. This allows users to make purchases directly from the funds that are loaded onto the card, providing a flexible alternative to using cash or traditional bank accounts. Cash cards can often be used at a wide range of merchants, both online and in physical stores, similar to a debit card, but without being linked to a checking account. This makes them convenient for budgeting and controlling spending, as users can only spend what is available on the card.

In contrast, credit cards, which typically have high interest rates, allow users to borrow money up to a limit but can lead to debt if not managed wisely. Loyalty cards are designed to reward customers for their purchases with discounts or points, rather than functioning as direct payment methods. Subscription-based cards are more specialized for online services and may not provide the same functionality across different types of merchants as cash cards do.