How To Use A Cash Plus Card
Doug Smith

Defined Tag: Cash Plus Card.

A cash plus card is like a super-convenient paper check. Therefore these cash cards require a checking account with a positive cash balance in order to work properly. Also called debit cards, plus cards allow you to make purchases anywhere credit cards are accepted. However, the purchase prices are deducted from your checking account balance. Think of it as an entire checkbook shrunk down to the size of a credit card.

Plus cash cards are convenient because no check book is required to buy something. We all know that one of the most-forgotten items at home is the checkbook. Now all you have to do is put a cash or debit card in your wallet or purse, and you will always have it with you. The only way to forget it is to leave your wallet or purse at home, and you are far less likely to do that.

Sometimes your cash card can be too convenient, if you are not an organized person. When you write a paper check, you dutifully record the check number, date, recipient, and amount into your check register. You might even adjust your checking balance total. With a plus card, however, it is easy to forget what and how much you have bought. Therefore you should keep all your store receipts from using your debit card, and enter the amount into your checkbook register each night. Alternatively, most banks have online banking, allowing you to see up to the minute account balances, including the purchases from your cash card.

Cash cards not only look like credit cards, but they can be used almost anywhere credit cards are accepted. Just don't forget that the purchase amounts are deducted immediately from your checking account balance. This is convenient for small frequent purchases such as groceries, movie tickets, restaurants, and other purchases for which you would normally carry cash. However, if you need to buy expensive items, such as airline tickets for work and rental cars, use a credit card, preferably a company credit card is one is available. Paying for expensive items with a debit card can easily overdraw your checking account, resulting in a negative balance and overdraft fees.

If you do need some quick cash, your cash card plus an automatic teller machine (ATM) will allow you to withdraw funds quickly, up to the limit of your checking bank account. You need to record those financial transactions in your checkbook as well. If your card is lost or stolen, report the event to your bank immediately. Although the thief probably won't be able to withdraw your cash from an ATM because a PIN is usually required, the robber can more easily make purchases with your debit card and forge your name on the receipt.

As long as you remember that it deducts money immediately from your checking balance, and you use it wisely, your cash plus card makes an extremely convenient way to make small purchases often.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited.