Store-Value Card
What Is a Store-Value Card?
A store-value card, often called a stored-value card, is a prepaid payment card that contains a set amount of money stored electronically. The card can be used to make purchases until the stored balance is depleted.
These cards are commonly issued by retailers or service providers.
Why It Matters
Stored-value cards provide a convenient way to make purchases without using cash or traditional credit. They are frequently used for gift cards, transit cards, and prepaid payment cards.
They can also help consumers control spending by limiting purchases to the card’s balance.
How Store-Value Cards Work
Money is loaded onto the card in advance, either by the purchaser or by the issuing organization.
Each time the card is used, the purchase amount is deducted from the stored balance.
Examples include:
- retail gift cards
- transit fare cards
- prepaid campus cards
Example
A $50 gift card issued by a retail store allows the holder to make purchases until the $50 balance is used.
Store-Value Card vs Debit Card
- Store-value cards hold prepaid funds.
- Debit cards draw money directly from a bank account.
FAQs About Store-Value Cards
Can stored-value cards be reloaded?
Some cards allow additional funds to be added.
Do stored-value cards expire?
Certain cards may have expiration dates depending on issuer policies.
Are stored-value cards linked to bank accounts?
Most are not directly connected to personal bank accounts.
Related Terms
