Stored-Value Card

A stored -value card works on the same principle of the debit card. It refers to a card that has some deposit with the issuer. The major difference between a debit card and a store -value card is the later is open to anyone whereas the former is issued to a person in his name. The typical example for a stored -value card can be the telephone prepaid calling card or a prepaid SIM card.

The card will be issued with the deposit of a specific value. As the user uses the service, the deposit or the balance in the card will also be decreasing. He is required to recharge the card for a particular value and is allowed to use the service only till the availability of the deposit. The deposit represents a specific value in terms of money. There are also transit cards, gift cards etc similar telephone prepaid cards.

Often employees are also given payroll cards by their employers. They are also a kind of stored-value cards. The employers establish accounts in the names of the employees and issues payroll cards to enable employees access their accounts.

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