Stored Value Cards is a type of electronic bank debit card Stored-value cards have a specific dollar value programmed into them. Banks provide these cards as a service for customers who cannot open a checking or other deposit accounts. This means no network access is required by the payment collection terminals as funds can be withdrawn and deposited straight from the card.
Types of Stored Value Cards
Checks might be the oldest form of stored value. This is a piece of paper with instructions to your bank to pay the person you specify some amount. This allows you to send any amount of money from your account to anyone else who has a bank account. Some check-cashing services also offer to convert checks directly into cash (for a fee) for people who do not have a bank account.
Debit Cards is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money comes directly from the user’s bank account when performing a transaction. Debit cards evolved from ATM cards, which were originally only used at ATM machines to withdraw cash and check bank balances. They operate using a magnetic stripe that contains your bank information, which is processed using a card reader by the business you are buying from. In most of the world, and increasingly in the United States, debit cards also come with a chip, which has more security features and is more difficult to steal than a magnetic stripe.
Gift Cards is a prepaid stored-value money card usually issued by a retailer or bank to be used as an alternative to cash for purchases within a particular store or related businesses. These gift cards are available at most retail merchants across the world. With this type of card, an individual can go into a retail establishment, give the cashier a certain amount of money and then get a card with that amount of money deposited onto it. The card can then be used by anyone to purchase goods at the store.
Public Transportation This type of card is also frequently used with public transportation. Many cities have cards that individuals can buy that have a certain amount of fare on them. Individuals can use these cards to travel on subways or buses in order to avoid having to use cash when they are trying to get on the public transportation.
Phone Cards is a credit card size plastic or paper card, used to pay for telephone services. It is not necessary to have the physical card except with a stored-value system; knowledge of the access telephone number to dial and the PIN is sufficient.nce you buy a pre-paid phone card, you are given a PIN and a toll-free access number. When you want to use your card, dial the toll-free number and then enter your PIN. The call is connected to a computer operated by or for the card issuer.