Warm Card: What It Is and How It Works

What is a warm card?

A warm card—also called a deposit-only card—is a bank card issued to business employees to allow restricted access to company accounts. It typically permits deposits but blocks withdrawals, transfers, and other spending capabilities. The goal is to enable necessary cash-handling tasks while reducing the risk of theft or fraud.

How warm cards work

• Each warm card is linked to a specified business account.
• Holders can make deposits at bank branches or teller terminals, but cannot withdraw funds, make transfers, or use the card for purchases.
• Warm cards are used as part of internal controls to segregate duties and limit access to company funds.
• They are most effective when combined with digital security measures (for example, multi-factor authentication and strong passwords) to protect the business’s broader financial systems.

Example

A coffee-shop owner with five locations issues deposit-only cards to each store manager. Managers can deposit daily or weekly cash receipts into the company account using their warm cards. Because the cards don’t permit withdrawals or transfers, the owner reduces the chance that an employee could take or divert funds. The cards also have no borrowing capacity and do not affect employees’ personal credit.

Key benefits

• Fraud and theft reduction: Blocking withdrawals prevents employees from misusing company funds.
• Convenience and delegation: Multiple employees can handle deposits without giving them broader account access.
• No credit risk for employees: Warm cards don’t extend credit or affect personal credit reports.

How to get a warm card

Most banks that offer business services can provide deposit-only cards. Common ways to request one:
– Visit a branch and ask a business banker.
– Call the bank’s business customer service line.
– Request through the bank’s online or mobile business banking platform (when available).

Processing time varies; banks typically ship or activate the card within a few business days.

FAQs

• Are warm cards the same as debit cards?
  No. Debit cards usually allow both deposits and withdrawals and can be used for purchases. Warm cards are restricted to deposits only.
• Can a warm card be used to transfer between accounts?
  Generally no—warm cards are limited to depositing into specified accounts.
• Do warm cards create liabilities for the business or affect employee credit?
  No. They don’t extend credit, so there’s no associated borrowing liability and they don’t impact employees’ credit scores.

Bottom line

Warm (deposit-only) cards are a simple, effective tool for businesses that need to let employees deposit cash but want to limit access to company funds. When used alongside other security controls, they improve internal controls and reduce the risk of theft and fraud while allowing owners to delegate routine deposit tasks.