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Stored-value Cards
  • Stored-value cards work pretty much the same way prepaid ones do. You can get such a card from the company you work at having your salary put on it for example.

  • The good thing about stored-value cards is that you canít stretch more than it is allowed to, meaning you can spend only as much as you have available on the card.

  • It’s a good way to stay out of debt, though there is not so much flexibility offered as in the case of a normal credit card where spending limit is subject to change according to how you can manage your finances.
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credit cards faq/glossary
The most common questions asked about Credits Cards.
Stored-value Cards
The stored-value telephone cards that are available almost anywhere, can be called “limited” purpose cards because the only service you can access by using it is the telephone. No other transactions, or withdrawing cash for example. There also exists a more flexible type of value stored cards which allows a wider range of transactions and other operations to be done. The first type of cards being mentioned is called a ‘closed-loop’ card, while the second an ‘open-loop’ card.

Exactly because stored-value cards present a way much lower rate of danger in the sense of creating a huge debt, or misusing the card, people are considering it more trustworthy and safe from this point of view. With ‘open-loop’ cards allowing a large array of transactions and deposits, these really make it easier for a lot of people.

You may use your card at designated locations, just the way you would use your normal credit card, and of course you have the possibility of reloading it when needed. Some issuer companies may make reports to credit bureaus, so this may affect or help your credit history. Surely whether such a stored-value card is convenient to you is a decision that is up to you only, because you know best what the situation of your finances is, and consequently whether such a card would hinder you or be of advantage.

Also, check the annual (or monthly) fee you have to pay for your card, and if too high, and you consider you are not going to use your stored-value card that frequently, then check for another available option, with lower fees.

It is important to examine all the potential fees you will have to pay, because there might be the case you’ll have to pay some money if you don’t use your card for one month for example. This will be detrimental to you, especially if you don’t have a big sum of money stored on your card, plus you don’t use it only occasionally. Also, it may not be that convenient to withdraw money from ATMs when abroad, because these kinds of transactions usually have a higher cost.

The stored-value card may even be a co-branded one, and if such the case then you may get rewards in the form of points you collect which can be then redeemed for some of the products or services  of the specific brand. Concluding, this card has several features that may be very convenient especially to those with a lower income, because there are not so many restrictions, and perhaps the best feature is that you can clearly stay out of debt because you can’t spend more than you actually have.

You can deposit, transfer, send and receive just as with the regular card which is surely a plus, and it may turn out an advantageous way to store your money.