Paying with a credit card makes it easier to avoid losses from fraud, but credit cards are not always a good idea. The fees associated with using a credit card can be substantial, and the credit card companies can cancel your card immediately if it is lost or stolen. What’s more, the fees often increase the longer you use the card, and they can be higher if you’re carrying a balance on your account.

Credit cards are more expensive than debit cards because they take a larger percentage of your monthly income, and their interest rates can increase each year without your permission. There’s a good chance you’ll be borrowing a considerable amount of money just to make the minimum payment on your credit card each month.

Most banks and credit unions offer checking accounts, too, which can help keep your money separate from your checking account. But they’re often not as convenient as credit cards. They come with minimum monthly fees, and you’re subject to account maintenance fees and overdraft fees when you want to make a major cash withdrawal.

Ease of use

The ease of use associated with debit and credit cards may be the best attribute of cash cards. While debit cards may help you avoid the fees associated with using a credit card, using a debit card presents additional problems. When it’s time to pay your bills, you typically must use your credit card to do so. When a customer goes to use the card to make a purchase, for example, they’re typically asked to provide their PIN, a six-digit code, which they’re then expected to enter into a PIN pad in order to make the purchase. This adds extra steps to the payment process and often wastes time and energy.

By contrast, cash cards simplify the entire process of paying your bills. By swiping a debit card, a customer can place the card directly on the reader of their device and simply tap it as they normally would to pay. And they can pay as they normally would without leaving the cash register and without receiving any additional authentication.

Perhaps the biggest advantage to cash cards is that they’re convenient for travelers and because they may be easier to conceal if you decide to carry them. And because they’re not always able to be used for online purchases, cash cards are perfect for use in areas where Internet access is restricted, such as remote or unfamiliar locations.

But not all banks and credit unions give out cash cards. If you find out your bank does not offer a cash card, it’s probably worth comparing credit cards with similar features before you decide on one. Cash cards are easier to conceal than credit cards, and some cash card issuers charge hefty interest rates. Cash cards may offer better rewards than some credit cards, but this does not mean you’ll be able to afford the rewards you earn.