Definitions for "Stored value card"
A new type of payment card that is emerging is the stored value card (also called electronic purse). This card will be a plastic alternative to cash for small payments such as buying a paper, a parking ticket or purchases over the Internet.
A stored value card is used by a merchant to issue spending credit to their customers. The merchant's customers are given a magnetic stripe card in exchange for money received, merchandise returned or other considerations. The card represents a dollar value that the merchant's customer can either use or give to another individual. There is no security associated with the card itself. The actual record of the balance on the card is maintained on a stored value card database. Learn more...
A card that has a pre-determined limit of cash, which is drawn down with every purchase. The card stores information on a magnetic stripe. It is not a credit card. Cardholders can access only the funds that are deposited on the card. These cards can be reloadable or disposable.