In most cases, "convenience card" is the generic term applying to both ATM cards and check or debit cards. There is also a third type, called a "flex convenience card," which can be used for medical expenses. Finally, the term can relate to convenience store credit, which is essentially gift cards for a specific store.
A check card, also known as a debit card, takes money directly from either your checking or savings account when you use it. This differs from a credit card, where you receive a monthly bill for your purchases.
So how is an ATM card different from a check card? Usually, a convenience card that is strictly an ATM card has limited uses. It can of course be used at an ATM machine and possibly at some stores, but not many. In order to use the ATM card, you must type in a pin number. As a result, you can only use it to make purchases in person and not over the phone or online.
A check/debit card can also be used at an ATM machine, but it is more widely accepted at retail stores, gas stations, grocery stores, online shopping, restaurants and more.
However, some hotels and other places may only accept credit cards since they cheaper and easier to process. The processing fees are lower on credit cards, and hotels may place money "on hold" within your account to protect themselves against you skipping out on the bill.
An ATM card will have only have your name, account number and the bank's logo on it. If it is a check/debit card, then it will have your name, "credit" account number, the credit company logo (such as Visa or MasterCard), the bank logo and "check card" or "debit" printed on it. Most people have check/debit cards because they are accepted at more places.
A Flex Convenience Card is not a credit card or a check card. Instead, it is a type of convenience card used strictly for medical related expenses. The reason it is still considered a convenience card rather than a credit card is because it deducts money directly from a Flexible Spending Account, Health Reimbursement Arrangement, or Health Savings Account. These types of cards are only available to people who have these types of accounts set up and it can only be used on eligible medical products and expenses.
A Flexible Spending Account (FSA) is an account that employers or employees can set up for income on a pre-tax basis. This income can only be used for medical and dependent care costs.
A Health Reimbursement Arrangement (HRA) is similar to an FSA except the employer uses the account to reimburse an employee for out-of-pocket medical expenses. Only an employer can contribute to it. One benefit is that the money can be carried over from year to year. With an FSA, the money cannot be carried over.
Finally, a Health Savings Account (HSA) is an account that both the employer and employee can contribute to. These funds can also be carried forward. However, the account has to be linked to a high deductible health plan.
Since it gets complicated to pay for medical services out-of-pocket and then access these accounts later, a Flex Convenience Card allows money to be immediately deducted from these accounts. As a result of this advantage, Flex Convenience Cards have been increasingly popular.
Different types of flex convenience cards available include the MBI Flex Convenience Mastercard and the mySource Card Mastercard.
Convenience store credit cards have always been popular gift items. Essentially, this is a pre-paid convenience card that only works at a specific store or a specific location. Most major retailers, such as Bloomingdales or Borders, offer some type of convenience store credit cards. Some retailers allow you to put any amount you want on this card, while others sell it in specific increments such as $25 or $100.
Several mall chains also offer convenience store credit cards redeemable at any store within the mall, or at any of that chain's locations.
These cards have replaced the traditional paper gift certificate in most places and are used in essentially the same way.