ATM gift cards are a relatively new innovation in the gift card industry. Previously, gift cards were available for particular companies as merchant gift cards, but with the advent of bank gift cards and prepaid credit cards (also known as gift credit cards), the versatility of prepaid gift cards has increased.
This has made it convenient for many people, from college students to business people to travelers on the go, to have a little quick cash on hand without having to carry it with them.
If you are looking to buy an ATM gift card, links can be found on this page.
Policies and Restrictions
Some of these cards are available at locations such as Safeway, Rite Aid and Sunoco, while the bulk of them are available as bank gift cards. As such, they are subject to fees and expiration. See Mahalo's page How To Avoid Gift Card Fees for the different types of fees and how they may be applied.
The cards are reloadable and can be used worldwide in many cases, as they often sport the Visa or Mastercard logo. An exception to this would be a card that denotes "Valid only in the United States".http://usa.visa.com/personal/cards/prepaid/using-gift-cards.html
Consult the terms and conditions on the website of the particular brand of card you are considering or own for complete details.
Terrorists using ATM Gift Cards?
There is growing concern over the availability of all types of prepaid credit cards and gift credit cards.http://moneycentral.msn.com/content/Banking/P137668.asp The ease of use these cards provide, the availability of the cards, and the simplicity of refilling them all add up to an attractive package for terrorists and other criminals.
The head of the Secret Service's criminal investigative unit, Larry D. Johnson has been quoted as saying, "It's a very easy way to launder money."http://moneycentral.msn.com/content/Banking/P137668.asp This is due to the fact that the cards carry logos such as Visa and Mastercard but are not tied to a bank account, which makes them untraceable.
Law enforcement officials are already seeing cases of stolen credit cards being used to transfer funds onto these gift cards that can be used at ATM's which makes the stolen funds available at the thief's leisure.
More information about this growing issue can be found at MSN's Moneycentral.http://moneycentral.msn.com/content/Banking/P137668.asp
Cash Cards
What is a cash card? A cash card is any card either prepaid credit card or gift card that can be used to obtain cash from an ATM machine or a bank. Any gift card that can be used at an ATM machine can be used as a cash card by the recipient.
Examples of cash cards would include:
Merchant gift cards are generally not used as cash cards
Better ATM Gift Cards
In this short video clip, one ATM Gift Card Company, Better ATM, is showcased. The narrator discusses the ease and convenience of ATM Gift Cards, including the lack of lines and checkout hassles. This company participates in trade shows to reach retail vendors and display the accessibility and benefits of getting their gift cards into these machines, which can increase their sales.
