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Stored Value Cards


A stored-value card refers to monetary value on a card not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card.

 They are plastic cards encoded with monetary value on a magnetic stripe. Stored-value cards are effective replacements for cash and have many applications for low-value retail purchases.

 One major difference between stored value cards and prepaid debit cards is that prepaid debit cards are usually issued in the name of individual account holders, while stored value cards are usually anonymous.

 The term stored-value card means the funds and or data are physically stored on the card. With prepaid cards the data is maintained on computers affiliated with the card issuer. The value associated with the card can be accessed using a magnetic stripe embedded in the card, on which the card number is encoded; using radio-frequency identification (RFID); or by entering a code number, printed on the card, into a telephone or other numeric keypad.

 Retailers continue to look for a secure alternative to paper gift certificates. Stored Value Solutions helps retailers discover how the power of gift cards can change the way both they and their customers think about gift giving.

 Use of gift cards serve as a strategic marketing tool, encourage repeat customer visits, build your brand and strengthen relationships with customers by choosing Stored Value Solutions.

Other stored-value cards solutions include multi-merchant loyalty programs, reward fulfillment services and loyalty database hosting solutions.

WHY USE A STORED VALUE CARD?

 The Financial Management Service has developed a number of SVC applications designed to improve financial controls and cash-management applications, streamline administrative processes, and improve the quality of life of cardholders. Stored value cards are low-cost, easy to issue, and easy to use. They have been used to:-

  1. Simplify administrative processes for issuing financial    instruments to individuals.
  2. Convert cash and paper transactions to electronic.
  3. Eliminate the cost of securing, transporting, and accounting    for cash.
  4. Speed transaction time at point-of-sale.
  5. Reduce exposure to risk of theft/loss

 

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