The saved value card is a payment card with the money value stored on the card itself, not in an external account managed by a financial institution. Cards with stored values ​​are different from debit cards, where money is deposited with the issuer, and credit cards are subject to the credit limit set by the issuer. Another difference between stored value cards and debit and credit cards is that debit and credit cards are usually issued on behalf of each account holder, while a stored value card may be anonymous, as in the case of a gift card. The stored value card is a prepaid money card and can be discarded when the value is used, or the card value can be refilled, as in the case of a phone card or when used as a tariff card.
The term "closed-loop means funds and or data are metaphorically 'physically' stored in tokens or cards in the form of binary-coded data. In the case of Bitcoin and other crypto currencies, this information is stored in the network on the so-called blockchain and managed by the network itself. With prepaid cards, data is stored on the card issuing computer. The value can be accessed using a magnetic strip embedded in the card, where the card number is encoded; using radio frequency identification (RFID); or by entering a code number, printed on the card, to another phone or numeric keypad or in the case of a crypto currency, by signing the value to the other party. Instead, open-loop stored value cards are credit and debit payment cards such as MasterCard Contactless, PayWave Visa, American Express ExpressPay, and Discover Zip.
Video Stored-value card
Name
There is no common name for a saved value card, which is country or enterprise specific. The names for stored value cards include Mondex in Canada, Chipknip in the Netherlands, Geldkarte in Germany, Quick in Austria, Moneo in France, Proton in Belgium, Prepaid Cards ("Prepaid Cards" ) in Italy, FeliCa in Japan, EZ-Link and NETS (CashCard and FlashPay) in Singapore, Octopus cards in Hong Kong, SUBE cards in Argentina, and Touch 'n Go and MyRapid Card in Malaysia.
The US Treasury administers three stored value card programs: EZpay, EagleCash, and Navy Cash. Non-government saved value cards include Aramark GuestExpress, Compass Zipthru, and Freedompay FreetoGo.
Maps Stored-value card
Usage
Stored-value cards are most commonly used for low-value transactions, such as the farecards transit system, prepaid phone phone cards, cafeterias, or for micropayments in stores or vending machines. They also have advantages over most other payment cards when making, say, the purchase of telecommunication facilities is not necessary, which may be important in situations where the availability or reliability of these facilities is uncertain or expensive, especially for low value transactions. The benefit for merchants is that bank transaction fees do not occur because transactions are processed offline and there is no need for a reference to the bank for processing. The limitation is that these cards can not be used for online, phone, mail order and other "card does not present transactions".
German Geldkarte and Quick Austria cards can also be used to validate the age of customers in cigarette vending machines.
Custom apps from specific industry-specific prepaid cards include payroll cards, rebate cards, gift cards, cafeteria cards, travel cards, and US-based health schemes such as HSA cards. EZpay, EagleCash and Navy Cash cards are used by the US military as an electronic alternative to cash in areas characterized by difficult access and limited banking or telecommunications infrastructure.
A saved value card can save a lot of organization money if the customer adds a large amount of funds at once to the card and then pays a lower transaction fee for each card usage on a smaller purchase.
Prepaid card
Closed system prepaid card
The closed prepaid card system is a card issued by the merchant and can only be redeemed for purchases from merchants. They are usually in fixed quantities and are commonly known as merchant gift cards or store cards. These cards are usually purchased for use as gifts, and are increasingly replacing traditional paper gift certificates.
Generally, little if any laws govern this type of card. The card issuer or the seller is not required to obtain a license. The prepaid system card is not subject to the US PATRIOT Act, as it is generally unable to identify customers.
As a debt to a consumer who buys a card, this purchase remains in the merchant's book as a liability and not an asset. As a result, gift certificates and merchant gift cards have fallen under the escheat laws or abandoned properties (APL). However, the emergence of a closed system prepaid card has obscured APL implementation. North Carolina and Illinois have issued this type of card from the APL provided that the card does not have an expiry date or service charge. Maine and Virginia require publishers to pay the state when the card is abandoned. In Connecticut, a publisher was asked to identify where the gift card owner lived. Since most merchant gift cards are anonymous, the cardholder's residence is considered the treasurer's office.
Currently, there is no law requiring merchants to give refunds for lost or stolen cards. Whether the refund may be specified in the issuing cardholder agreement. In addition, most of the closed system cards can not be exchanged for cash. When the cardholder redeems all but a small portion of the card on the merchandise, that amount is generally lost and is an unexpected advantage for the issuing trader. Merchants also earn unexpected benefits if the card has an expiration date and the cardholder fails to use full value on that date. Furthermore, the trader has the use of a value without interest until it is redeemed.
Semi-closed system prepaid card
The semi-closed system prepaid card is similar to a closed system prepaid card. However, cardholders are allowed to redeem the cards in some merchants within a geographic area. This type of card is issued by a third party, not the retailer receiving the card. Examples include university cards and mall gift cards. The laws governing this card type are unstable. Depending on the country, the issuer may or may not be required to have a money transmitter license or other similar license. In addition to the District of Columbia, US states require licenses including Connecticut, Florida, Illinois, Iowa, Louisiana, Maryland, Minnesota, Mississippi, North Carolina, Oregon, Texas, Vermont, Virginia, West Virginia, Washington and Wyoming. Note, these countries explicitly require a license for the card issuer. Other countries may have smoother licensing laws. Under 18 USC section 1960, it is a crime for a publisher to conduct money transmission business without a license. Card holders generally suffer from the same repair problems that closed card system holders suffer. It is unclear whether or not Chapter 7 and 11 of the Bankruptcy Code apply to this type of card.
Money laundering
It is common for countries to limit how many currencies are taken from or taken to a country. However, these limits generally do not apply to money leaving the country in non-cash form as on stored value cards. There is a concern that stored value cards can be used for money laundering, that is, transferring offshore funds from criminal activities such as drug trafficking. There are reports about these cards being used by Mexican drug cartels to transfer money across borders.
For example, in the United States, it is legal for anyone to enter or leave the country with money stored on the card, and (unlike high amounts of money) should not be reported to customs or other authorities. Some members of the US Congress are considering enacting laws that would require travelers to cross, enter, or leave the country to report these cards. The Financial Crimes Enforcement Network The US Treasury has issued notice of the proposed drafting of stored value cards in the June 28, 2010 edition of the Federal List . The proposed rule will require the seller of a prepaid card to register with the government and keep records of transactions and customers.
See also
Card
References
- Notes
Source of the article : Wikipedia
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