Stored Value
What Is Stored Value?
Stored value refers to funds that are held electronically on a card, account, or digital device and can be used for future purchases or payments. Instead of being linked directly to a bank account, stored value systems contain prepaid funds that decrease as transactions occur.
Stored value systems are commonly used in prepaid payment cards.
Why It Matters
Stored value allows consumers to make purchases without needing cash, checks, or direct bank account access. These systems are often used in prepaid cards, transit cards, and digital wallets.
They also help users control spending by limiting purchases to the stored balance.
How Stored Value Works
Funds are loaded onto a card or digital account before use. Each purchase deducts money from the stored balance.
Stored value systems may include:
- prepaid cards
- transit cards
- gift cards
- digital wallet balances
Some systems allow users to reload funds when the balance is low.
Example
A public transit card with $30 stored value allows the user to ride trains or buses until the balance runs out.
Stored Value vs Debit Card
- Stored value systems use prepaid funds.
- Debit cards access money directly from a bank account.
FAQs About Stored Value
Can stored value cards be reloaded?
Many cards allow additional funds to be added.
Are stored value cards linked to bank accounts?
Some are independent while others may be connected to digital wallets.
Can stored value be used online?
Certain stored value systems support online purchases.
Related Terms
