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A stored-value card is

[a] card-based payment system that assigns a value to the card. The card’s value can be stored on the card itself (i.e., on the magnetic stripe or in a computer chip) or in a network database. As the card is used for transactions, the transaction amounts are subtracted from the card’s balance. As the balance approaches zero, some cards can be "reloaded" through various methods and others are designed to be discarded. These cards are often used in closed systems for specific types of purchases.[1]

A stored-value card is "[a] card that stores prepaid value by magnetic stripe or computer chip."[2]


  1. FFIEC IT Examination Handbook, Retail Payment Systems, App. B: Glossary (full-text).
  2. Internet Banking: Comptroller’s Handbook, at 84.

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