What Is a Stored Value Card?

A stored value card holds money, not a link to it. That one fact decides which rules apply and what a merchant sees when the card pays.

What is a stored value card?

A stored value card is a payment card loaded with money before it is used. Every purchase lowers the balance. When the balance reaches zero, the card is declined. Common examples are gift cards, transit fare cards, payroll cards and prepaid cards carrying the Visa or Mastercard brand.

Stored value cards are prepaid, so a "stored value credit card" does not exist: no credit line sits behind the card. Card networks treat them as a product of their own. Visa's rulebook defines them this way:1Visa Core Rules and Visa Product and Service Rules, April 18, 2026

A Reloadable Prepaid Card is one "that may be funded more than once" (ID# 0025059). For how prepaid compares with debit and credit cards, see debit card.

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Open-loop vs closed-loop stored value

United States. Regulation E counts as a "prepaid account" an account "marketed or labeled as 'prepaid'" that works "at multiple, unaffiliated merchants" or at ATMs. It excludes store gift cards and general-use prepaid cards "both marketed and labeled as a gift card" (12 CFR 1005.2(b)(3)).212 CFR 1005.2(b)(3), definition of prepaid account (Regulation E), eCFR, read October 14, 2026 Prepaid accounts get the disclosure and error rules of 1005.18.312 CFR 1005.18, requirements for financial institutions offering prepaid accounts (Regulation E), eCFR Gift cards keep their own rules, including funds valid for at least five years: see closed loop.

European Union. E-money is "electronically, including magnetically, stored monetary value" issued "on receipt of funds" and accepted by someone other than the issuer (Article 2). The holder can ask for it back "at any moment and at par value" (Article 11).4Directive 2009/110/EC (E-Money Directive), Articles 2 and 11, text as adopted For brands that add stored value to their own product, see embedded finance.

What a merchant sees when a prepaid card pays

The prepaid flag comes from the BIN. The first digits of the card number, the bank identification number, tell the processor the card type. Stripe, for example, returns card.funding as credit, debit, prepaid or unknown.5Stripe API reference, The PaymentMethod object, card.funding (read October 14, 2026)

Partial approvals are possible. Visa requires US issuers of Prepaid Cards to support partial authorization, card-present and card-absent (Visa Core Rules, April 2026, section 7.3.9.3). A merchant that opts in must clear "no more than the amount approved" and reverse the authorization if the buyer cancels (section 7.3.9.1).1Visa Core Rules and Visa Product and Service Rules, April 18, 2026

One-time cards don't fit subscriptions. When a merchant verifies a Non-Reloadable Prepaid Card for a recurring transaction, the issuer must decline with response code 57, "Transaction not permitted" (section 7.3.10.1).1Visa Core Rules and Visa Product and Service Rules, April 18, 2026 More on that check in zero-dollar authorization, and on failed renewals in subscription payment failures.

Transit stored value is closed loop. On LA Metro's TAP card, "Stored Value is a cash amount that you load on your TAP card to pay for single rides and transfers," up to $300 per card.6LA Metro TAP, TAP FAQs (read October 14, 2026) The card itself carries an expiration date (section 9.1).7LA Metro TAP, Cardholder Agreement, sections 9.1 and 9.2 (read October 14, 2026)