Stored Value Credit Cards

A Stored Value Card is a magnetic-stripe plastic card that is issued by a bank. The "open loop" stored value cards are issued with card association branding, like Visa®, MasterCard®, Discover® or American Express®, and can be used anywhere the association brand (i.e., Visa®), is accepted. Examples of open loop stored value cards include gift cards, payroll cards and teen cards. "Closed loop" stored value cards are issued by a specific merchant or merchant group (i.e., a shopping mall) and can only be used at that specific merchant or merchant group. Examples of closed loop stored value cards include store cards, mall cards and gift certificates. Both open loop and closed loop stored value cards utilize existing processing networks. Consumers can spend up to the value loaded on the card, and can reload the card at anytime or dispose of it when the funds are depleted. Sometimes, the Stored Value Card is NOT imprinted with the customer's name, only with the account number. The Stored Value Card utilizes encrypted communications and electronic banking protocols to create a secure solution for the cardholder and the merchants. As with a credit or debit card, holders of Stored Value Cards are able to purchase goods and services from participating on-line merchants as well as all PIN based POS systems. As with traditional credit, debit and ATM cards, holders of Stored Value Cards are able to withdraw cash from all ATM machines. Unlike traditional credit, debit or ATM cards, Stored Value Card holders can obtain a card without regard to their credit history or ability to open a bank account or their balance in an existing bank account. Unlike traditional bank tied credit, debit or ATM cards, Stored Value Card holders can fund their card by using Western Union®, MoneyGram®, ACH, Bank Wire or Credit Card.