A card similar in size to a credit card that stores information with either a computer chip or a magnetic stripe. Consumers buy the cards with prepaid value stored on them. The most common uses today are for telephone calls and mass transit.
A stored-value card is a credit-card-sized device, implanted with a computer chip, with stored money value. A reloadable stored-value card can be reused by transferring value to it from an automated teller machine or other device. A disposable card cannot be reloaded.
A payment card, similar to a debit card, attached to a limited monetary value, held either in an account by a card issuer, or in an electronic chip embedded within the card. Gift credit cards are a type of stored-value card.
A prepaid card in which the record of funds can be increased as well as reduced. (See also electronic purse.) Systemic risk: Risk associated with the general health or structure of the financial system. Almost invariably discussed in terms of the system's inability to handle large quantities of market, credit, or (most likely) settlement risk.
A stored-value card represents money on deposit with the issuer, and is similar to a debit card. One major difference between stored value cards and debit cards is that debit cards are usually issued in the name of individual account holders, while stored value cards are usually anonymous.