- What is a warm card?
- How warm cards work
- Key benefits for your business
- Who should use a warm card?
- How to request a warm card from your bank
- Options when employees need to make purchases
- Control business spending automatically with Ramp
A warm card is a bank card that lets employees deposit money into your business account while blocking their ability to withdraw or spend funds. This deposit-only functionality makes it ideal for businesses that handle daily cash deposits, like retail stores and restaurants.
Many businesses need employees to handle banking tasks, but giving them full account access creates unnecessary risk. Warm cards solve this problem by allowing deposits without enabling withdrawals or purchases.
What is a warm card?
A warm card is a restricted-access bank card that allows deposits but blocks withdrawals. It's designed for businesses to let employees handle deposits safely without giving them full access to company funds.
Think of it as a one-way door for your money. Employees can deposit cash and checks into your account through ATMs or bank branches, but they can't take anything out. The card looks and feels like a regular debit card, but its programming prevents any transaction that would withdraw money from your account.
This restriction happens at the bank level. When your bank issues a warm card, they configure it in their system to automatically reject withdrawal attempts, purchases, and transfers.
How warm cards work
A warm card is programmed so that users can only make deposits. Security controls prevent withdrawal, transfer, or purchase transactions at ATMs, point-of-sale (POS) terminals, and online.
When an employee inserts a warm card at an ATM, they'll see a limited menu. Instead of the usual options for withdrawals, transfers, and balance inquiries, they'll only see deposit-related actions. The ATM recognizes the card's restrictions and automatically hides or disables other functions.
Tellers see the same restrictions on their screens at bank branches. Even if an employee tries to make a withdrawal at the counter, the system will decline the transaction. POS terminals won't process purchases with warm cards, either. The card simply won't work for buying anything, whether in-store or online.
Key benefits for your business
Warm cards solve the problem of secure employee banking access by enabling deposits without exposing funds. The benefits can help improve your entire cash management process:
- Fraud protection: Deposit-only access eliminates the risk of theft by employees since they can’t withdraw or spend funds. You don't have to worry about unauthorized ATM withdrawals or surprise purchases on the employee’s company card.
- Faster deposits: Employees can complete daily deposits independently, eliminating the need for the business owner or finance lead to visit the bank. Your store manager can deposit the day's cash receipts on their way home without waiting for you to be available.
- Clear audit trail: All deposit transactions are tracked and recorded, creating a clean audit trail for accounting and compliance. Each deposit shows who made it, when, where, and how much—information that flows directly into your bank statements.
Who should use a warm card?
Warm cards are well-suited for retail stores, restaurants, and service businesses that handle daily cash deposits or need staff to make deposits without enabling spending.
Retail stores benefit most when multiple locations need to make deposits independently. Each store manager receives a warm card to deposit daily receipts without needing to access the main business account. This setup works especially well for franchises or chains where centralized control matters.
Restaurants and bars that close late find warm cards particularly useful. Night managers can deposit cash after closing without keeping large amounts in the safe overnight. Service businesses like salons, dry cleaners, and repair shops use them similarly.
How to request a warm card from your bank
Take the following steps to obtain a warm card and ensure it meets needs:
1. Confirm availability with your bank
Not all banks offer warm cards. Call your business banker directly rather than general customer service, as front-line representatives might not know about warm card options. Some banks may also refer to them as deposit-only cards rather than warm cards.
Ask specific questions about functionality: Can the card make deposits at any ATM, or only the bank's machines? Are there deposit limits? What documentation do you need to add employee users?
If your current bank doesn't offer warm cards, consider opening a secondary account elsewhere specifically for deposits. Some regional banks and credit unions offer better warm card programs than large national banks.
2. Define user permissions and limits
Specify which employees need access, where they can deposit, and any limits such as daily deposit caps or time windows. Create a written list of employees who'll receive cards, including their roles and why they need deposit access.
Decide on practical limits that balance security with operational needs. A coffee shop might set a $2,000 daily deposit limit, while a jewelry store might need $10,000. Consider restricting deposits to business hours or specific ATM locations near your stores.
Document these decisions in your internal policies. Clear guidelines help employees understand their responsibilities and protect your business if issues arise.
3. Complete KYC and signer forms
Provide the required Know Your Customer (KYC) documents and authorization forms to link the card to your business account and designate permitted users. Banks need standard KYC documentation for each person receiving a card.
Gather driver's licenses or state IDs for all cardholders, and prepare employment verification letters if the bank requests them. Some banks require cardholders to sign agreements acknowledging the deposit-only restriction.
Submit corporate resolutions or authorization letters that formally approve these employees to make deposits on behalf of your business. Your bank can provide templates for these documents.
4. Test the card before distributing
Test deposit functionality at an ATM or branch to confirm the restrictions work as intended before issuing cards to employees. Make a small test deposit yourself to verify the card works correctly.
Try to withdraw money or make a purchase, and make sure the attempts fail. Check that declined transaction messages are clear so employees understand when they've accidentally selected the wrong option.
Review the first bank statement after testing to confirm deposits appear correctly. Verify that transaction descriptions include enough detail to help with routine bank reconciliations.
Options when employees need to make purchases
If your employees need to make purchases on behalf of your business, pair warm cards with other controlled spending solutions:
Virtual spending cards
Virtual cards let you create unique card numbers for specific purchases or vendors, eliminating the risk of ongoing unauthorized charges.
Set spending limits that match actual needs. A manager buying office supplies might get a $500 monthly limit, while someone making a one-time equipment purchase would get a single-use card for the exact amount.
Merchant category restrictions prevent misuse by blocking certain types of purchases. You can allow office supply stores but block restaurants, or permit gas stations but prevent software spending.
Temporary limit increases
Temporarily enable spending or adjust permissions when necessary, then revert to deposit-only settings after the need passes. Some banks let you toggle card permissions through online banking or mobile apps.
This flexibility helps during emergencies or special projects. If your manager needs to buy emergency supplies when equipment breaks, you can enable purchasing for 24 hours, then switch back to deposit-only mode.
Document these temporary changes in your accounting records. Note who requested the change, why, what was purchased, and when you restored the original restrictions.
Expense reimbursements
Use traditional employee expense reimbursement workflows for occasional purchases, supported by receipts and policy controls. Sometimes the old-fashioned approach works best, especially for infrequent or irregular expenses.
Employees pay out of pocket and submit expense reports with receipts. This creates clear documentation and gives you time to review purchases before reimbursing. It also avoids the complexity of managing multiple card types.
Set clear reimbursement policies, including what's covered, spending limits, and submission deadlines. Process reimbursements quickly to maintain employee satisfaction while keeping control over company spending.
Control business spending automatically with Ramp
Warm cards are a great option for some businesses, but they may not be the right solution for everyone. If your employees need to make purchases on your behalf, Ramp’s corporate cards can give them the purchasing power they need while protecting your bottom line.
Ramp lets you set custom spending controls at the transaction, employee, merchant, or category level. Out-of-policy purchases get blocked at the point of sale automatically, ensuring your team can only spend on what you’ve approved.
Ramp also lets you spin up unlimited virtual cards for specific uses, preventing expense fraud and overspending. Create a single-use card to order a new piece of equipment, or set up a vendor-specific virtual card for your monthly office supply purchases.
Ready to learn more? Try an interactive demo and see why Ramp customers save an average of 5% a year across all spending.
FAQs
The most common cause of a warm card error is selecting a withdrawal or transfer option by mistake. The ATM recognizes the warm card restriction and blocks the transaction. If you get errors during deposits, the issue might be a daily limit, time restriction, or technical problem requiring bank assistance
Most warm cards are physical because they're used for cash deposits at ATMs. Virtual versions are uncommon for deposit-only functionality. ATMs require a physical card to accept cash deposits, making virtual cards impractical for this purpose.
No, warm cards are linked to your existing business deposit account, not a credit line, so they don't impact credit scores. Warm cards work like restricted debit cards, accessing money already in your account rather than borrowing funds. There's no credit check to get one, no credit limit to manage, and no payment history reported to credit bureaus.
Contact your bank to modify the card's permissions or request a standard debit card replacement to enable withdrawals and purchases. Some banks can remotely update card permissions, switching from warm to regular functionality without issuing a new card. Others require you to close the warm card and issue a completely new standard debit card.
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