DEFINITION of 'Stored-Value Card'

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 checking or other deposit accounts.

BREAKING DOWN 'Stored-Value Card'

Stored-value cards can be divided into two categories. Closed-loop cards have a one-time limit; merchant gift cards and prepaid phone cards are two examples. Open-loop cards, on the other hand, can be reloaded with cash and used again.

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RELATED FAQS
  1. What are the differences between debit cards and credit cards?

    Learn how the major difference between a debit card and a credit card is where the money comes from when a customer makes ... Read Answer >>
  2. What is the difference between a prepaid credit card and a gift card?

    Although prepaid and gift cards are used in the same manner, a prepaid credit card can be used repeatedly, while a gift card ... Read Answer >>
  3. How do prepaid debit cards work?

    Learn about how prepaid debit cards work, including where they are accepted and how the financial part works like a checking ... Read Answer >>
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