Editing Stored-value card (section)

{{Short description|Payment card with a monetary value stored on the card itself}}
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{{Globalize|article|USA|2name=the United States|date=December 2010}}
[[File:US Navy 050301-N-9866B-001 Disbursing Clerk 1st Class Gene Tecson holds a keypad for a customer to enter his Navy Cash Card personal identification number.jpg|thumb|A U.S. Navy clerk holds a [[keypad]] for a customer to enter his Navy Cash Card [[personal identification number]] aboard the amphibious assault ship {{USS|Peleliu|LHA-5}}. The system eliminates cash and coins from the entire ship and instead requires sailors to add money from their personal bank accounts to one of two systems held on the cash card.]]

A '''stored-value card''' ('''SVC''') or '''cash card''' is a [[payment card]] with a monetary value stored on the card itself, not in an external account maintained by a financial institution. This means no network access is required by the payment collection terminals as funds can be withdrawn and deposited straight from the card. Like [[cash]], payment cards can be used anonymously as the person holding the card can use the funds. They are an electronic development of [[token coin]]s and are typically used in low-value payment systems or where network access is difficult or expensive to implement, such as parking machines, public transport systems, and closed payment systems in locations such as ships.

Stored-value cards differ from [[debit card]]s, where money is on deposit with the [[issuer]], and [[credit cards]] which are subject to credit limits set by the issuer and are connected to accounts at financial institutions.<ref>{{cite book |title= Intro to Business|last1= Dlabay|first1= Les R. |last2=Burrow |first2=James L. |last3=Brad |first3= Brad |year= 2009|publisher= South-Western [[Cengage Learning]]|location= [[Mason, Ohio]]|isbn=978-0-538-44561-0 |page=433}}</ref> Another difference between stored-value cards and debit and credit cards is that debit and credit cards are usually issued in the name of individual account holders, while stored-value cards may be anonymous, as in the case of [[gift card]]s. Stored-value cards are prepaid money cards and may be disposed when the value is used, or the card value may be topped up, as in the case of [[Telephone card|telephone calling cards]] or when used as a [[Public transport#Fare and ticketing|fare card]].

The term ''closed-loop'' means the funds and/or data are physically stored on the token or card in the form of binary-coded data. This is unlike payment cards where data is maintained on the card issuer's computers. Like payment cards, value can be accessed using a [[Magnetic stripe card|magnetic stripe]], chip or [[radio-frequency identification]] (RFID) embedded in the card; or by entering a code number, printed on the card, into a [[telephone]] or other [[numeric keypad]].<ref name="Thales">{{cite web|last1=Brunswick|first1=Steve|title=Transiting to open-loop contactless payments|url=https://www.thales-esecurity.com/blogs/2010/april/transiting-to-open-loop-contactless-payments|website=Key Management and Payments Security Blog - Thales e-Security|publisher=Thales e-Security, Inc.|access-date=10 May 2016|ref=Thales|date=April 2010|archive-date=15 August 2016|archive-url=https://web.archive.org/web/20160815071401/https://www.thales-esecurity.com/blogs/2010/april/transiting-to-open-loop-contactless-payments|url-status=dead}}</ref>