83:
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406:(APL). However, the emergence of closed system prepaid cards has blurred the applicability of APL. North Carolina and Illinois have excluded these types of cards from APL provided the card has no expiration date or a service fee. Maine and Virginia require the issuer to pay the state when the cards are abandoned. In Connecticut an issuer is required to identify the residence of the gift card owner. Since most merchant gift cards are anonymous, the residence of the card's owner is deemed to be the state's treasurer's office.
25:
424:
Note, these states explicitly require licensing for card issuers. Other states may have more subtle licensing laws. Under 18 USC section 1960, it is a crime for an issuer to conduct a money transmitting business without a license. Cardholders generally suffer from the same problems that closed system card holders suffer. It is unclear whether or not
Chapters 7 and 11 of the Bankruptcy code are applicable to these types of cards.
410:
on merchandise, that amount is generally lost and is a windfall gain for the issuing merchant. The merchant also obtains a windfall gain if a card has an expiry date and the cardholder fails to use the full value by that date. Furthermore, the merchant has an interest-free use of the value until it is redeemed.
333:
in shops or vending machines. They also have an advantage over most other payment cards in that when making, say, a purchase, telecommunication facilities are not needed, which may be important in situations where the availability or reliability of these facilities are uncertain or costly, especially
147:
which are subject to credit limits set by the issuer and are connected to accounts at financial institutions. 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
423:
license or other similar license. In addition to the
District of Columbia, the states in the US that require a license include Connecticut, Florida, Illinois, Iowa, Louisiana, Maryland, Minnesota, Mississippi, North Carolina, Oregon, Texas, Vermont, Virginia, West Virginia, Washington, and Wyoming.
409:
Presently, no law requires a merchant to provide refunds for lost or stolen cards. Whether a refund is possible is specified in an issuer's cardholder agreement. In addition, most closed system cards cannot be redeemed for cash. When a cardholder redeems all but an insignificant portion of the card
334:
for low-value transactions. A benefit to the merchant is that bank transaction fees are not incurred as the transaction is processed offline and there need not be a reference to the bank for processing. A limitation is that these cards cannot be used for online, telephone, mail order and other "
418:
Semi-closed system prepaid cards are similar to closed system prepaid cards. However, cardholders are permitted to redeem the cards at multiple merchants within a geographic area. These types of cards are issued by a third party, rather than the retailer who accepts the card. Examples include
386:
Closed system prepaid cards are cards issued by a merchant and may only be redeemed for purchases from the merchant. They are typically of fixed amounts and are commonly known as merchant gift cards or store cards. These cards are typically purchased to be used as gifts, and are increasingly
432:
It is common for countries to place limits on how much currency may be taken out of or brought into a country. However, these limits generally do not apply to money leaving a country in non-cash forms such as on stored-value cards. There is concern that stored-value cards can be used for
122:
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
167:
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
131:
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.
372:
Stored-value cards can save organizations a considerable amount of money if customers add a large sum of funds at one time to the card and then pay a lower transaction fee for each use of the card on smaller purchases.
397:
As debts owed to consumers who purchased the card, these purchases remain on the books of a merchant as a liability rather than an asset. Consequently, gift certificates and merchant gift cards have fallen under state
368:
cards. The EZpay, EagleCash, and Navy Cash cards are used by the U.S. military as electronic alternatives to cash in areas characterized by difficult access and limited banking or telecommunications infrastructure.
82:
102:. 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.
563:
390:
Generally, few if any laws govern these types of cards. Card issuers or sellers are not required to obtain a license. Closed system prepaid cards are not subject to the
419:
university cards and mall gift cards. The laws governing these types of cards are unsettled. Depending on the state, the issuer may or may not be required to have a
660:
Hughes, Sarah Jane; Middlebrook, Stephen T.; Peterson, Broox W. (Nov 2006), "Developments In The Law
Concerning Stored Value and Other Prepaid Payment Products",
632:
671:
448:, it is legal for anyone to enter or leave the country with money that is stored on cards, and (unlike cash in high amounts) does not have to be reported to
679:
662:
403:
152:. 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
35:
249:
470:. The proposed rules would require sellers of prepaid cards to register with the government and keep records on transactions and customers.
461:
276:
261:
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571:
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are considering creating laws that would require travelers crossing, entering, or leaving the country to report these cards. The
127:, payment cards can be used anonymously as the person holding the card can use the funds. They are an electronic development of
724:
546:
192:
There is no common name for stored-value cards, which are country or company specific. Names for stored-value cards include
457:
914:
688:
611:
69:
924:
241:
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173:
91:
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The German
Geldkarte and the Austrian Quick card can also be used to validate a customer's age at cigarette
1197:
1081:
879:
822:
365:
335:
1233:
869:
464:
has published a notice of proposed rulemaking on stored-value cards in the June 28, 2010 edition of the
441:. There are reports of these cards being used by Mexican drug cartels to transfer money across borders.
318:
1254:
717:
283:, and Navy Cash. Non-government stored-value cards include Aramark GuestExpress, Compass Zipthru, and
157:
1264:
1207:
980:
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904:
857:
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1320:
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51:
1005:
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43:
8:
1325:
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1071:
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593:
643:
348:
Typical applications of organization specific or industry specific prepaid card include
1289:
1015:
939:
884:
842:
484:
438:
217:
176:(RFID) embedded in the card; or by entering a code number, printed on the card, into a
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Stored-value cards are most commonly used for low-value transactions, such as
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233:
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437:, that is, moving offshore funds derived from criminal activities such as
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689:"A Conversation with Terry Goddard, Attorney General of Arizona"
1020:
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864:
225:
197:
140:
87:
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568:
Key
Management and Payments Security Blog - Thales e-Security
489:
229:
213:
34:
deal primarily with the United States and do not represent a
633:
Reuters, March 26, 2010, Drugs, terrorism and shadow banking
16:
Payment card with a monetary value stored on the card itself
124:
1335:
659:
644:
http://edocket.access.gpo.gov/2010/pdf/2010-15194.pdf
529:
Dlabay, Les R.; Burrow, James L.; Brad, Brad (2009).
413:
732:
387:replacing the traditional paper gift certificate.
1247:
1404:
670:Rinearson, Judith; Woods, Chris (Nov–Dec 2004),
528:
394:, as they generally cannot identify a customer.
669:
564:"Transiting to open-loop contactless payments"
381:
718:
32:The examples and perspective in this article
452:or any other authority. Some members of the
90:for a customer to enter his Navy Cash Card
725:
711:
279:manages three stored-value card programs:
70:Learn how and when to remove this message
608:"Assessment: Prepaid Stored Value Cards"
570:. Thales e-Security, Inc. Archived from
294:
81:
1405:
364:and U.S. based health schemes such as
706:
672:"Beware Strangers Bearing Gift Cards"
555:
139:, where money is on deposit with the
458:Financial Crimes Enforcement Network
148:may be anonymous, as in the case of
18:
427:
94:aboard the amphibious assault ship
13:
880:European Payments Initiative (EPI)
594:"FEDERAL RESERVE BANK of NEW YORK"
14:
1429:
870:Electronic Payment Services (EPS)
612:National Drug Intelligence Center
414:Semi-closed system prepaid cards
376:
23:
562:Brunswick, Steve (April 2010).
462:U.S. Department of the Treasury
277:U.S. Department of the Treasury
135:Stored-value cards differ from
1418:Radio-frequency identification
1361:Personal identification number
637:
626:
600:
586:
522:
174:radio-frequency identification
92:personal identification number
1:
515:
336:card not present transactions
1198:Card not present transaction
1082:Credit card balance transfer
7:
561:
473:
382:Closed system prepaid cards
224:("Prepaid card") in Italy,
46:, discuss the issue on the
10:
1434:
683:, vol. 14, no. 2
652:
86:A U.S. Navy clerk holds a
1379:
1313:
1282:
1221:
1208:Controlled payment number
1190:
1162:
1134:
1064:
963:
803:
748:
1341:Hardware security module
1321:Automated teller machine
1107:Current/checking account
303:sells farecards for the
187:
404:abandoned property laws
290:
264:in the Philippines and
154:telephone calling cards
1366:Secure cryptoprocessor
360:, cafeteria cards and
311:
103:
1331:Credit card imprinter
1305:Credit card hijacking
480:Card (disambiguation)
298:
85:
1351:Magnetic stripe card
510:Decoupled debit card
444:For example, in the
321:, telephone prepaid
204:in the Netherlands,
52:create a new article
44:improve this article
1326:Contactless payment
1072:Payment card number
485:Prepaid credit card
236:in mainland China,
1290:Card security code
1248:Interbank networks
885:Forbrugsforeningen
680:Business Law Today
614:. October 31, 2006
312:
156:or when used as a
104:
1400:
1399:
1346:Interbank network
1300:Credit card fraud
1278:
1277:
1182:Universal default
1177:Introductory rate
1097:Revolving account
610:. Johnstown, PA:
574:on 15 August 2016
548:978-0-538-44561-0
531:Intro to Business
421:money transmitter
108:stored-value card
80:
79:
72:
54:, as appropriate.
1425:
1356:Payment terminal
1295:Chargeback fraud
1245:
1244:
1092:Installment loan
1077:Card association
1026:Rail Travel Card
756:American Express
727:
720:
713:
704:
703:
698:
684:
676:
666:
646:
641:
635:
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598:
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583:
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559:
553:
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539:Cengage Learning
537:: South-Western
526:
505:Electronic money
467:Federal Register
439:drug trafficking
435:money laundering
428:Money laundering
343:vending machines
305:Washington Metro
281:EZpay, EagleCash
248:) in Singapore,
75:
68:
64:
61:
55:
27:
26:
19:
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1112:Savings account
1102:Deposit account
1060:
1031:Revolution Card
959:
806:specialty cards
805:
799:
744:
731:
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694:Washington Post
687:
674:
663:Business Lawyer
655:
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541:. p. 433.
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392:USA PATRIOT Act
384:
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301:vending machine
293:
228:-cards such as
222:Carta prepagata
190:
170:magnetic stripe
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56:
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24:
17:
12:
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1392:Acquiring bank
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500:Telephone card
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429:
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383:
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316:transit system
292:
289:
260:in Argentina,
256:in Hong Kong,
244:(CashCard and
189:
186:
182:numeric keypad
78:
77:
38:of the subject
36:worldwide view
31:
29:
22:
15:
9:
6:
4:
3:
2:
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984:
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981:Carte Blanche
979:
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968:
966:
964:Defunct cards
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455:
454:U.S. Congress
451:
447:
446:United States
442:
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411:
407:
405:
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395:
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377:Prepaid cards
374:
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363:
359:
355:
351:
350:payroll cards
346:
344:
339:
337:
332:
331:micropayments
328:
324:
323:calling cards
320:
317:
309:
306:
302:
297:
288:
286:
282:
278:
273:
272:in Malaysia.
271:
267:
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255:
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243:
239:
235:
234:China T-Union
231:
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219:
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117:
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100: (LHA-5)
99:
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89:
84:
74:
71:
63:
60:December 2010
53:
49:
45:
39:
37:
30:
21:
20:
1387:Issuing bank
1172:Grace period
1144:Cash advance
1087:Credit limit
895:Hyundai Card
804:Regional and
697:, 2009-04-05
692:
678:
661:
639:
628:
618:December 16,
616:. Retrieved
602:
588:
576:. Retrieved
572:the original
567:
557:
530:
524:
465:
443:
431:
417:
408:
396:
389:
385:
371:
362:travel cards
354:rebate cards
347:
340:
313:
274:
270:MyRapid Card
254:Octopus card
221:
220:in Belgium,
212:in Austria,
208:in Germany,
191:
164:
162:
145:credit cards
134:
120:payment card
115:
111:
107:
105:
97:
66:
57:
33:
1239:Card scheme
1222:Interchange
986:Carte Bleue
858:Diners Club
749:Major cards
742:debit cards
535:Mason, Ohio
266:Touch 'n Go
252:in Turkey,
250:Papara Card
216:in France,
200:in Canada,
165:closed-loop
137:debit cards
129:token coins
1407:Categories
1371:Smart card
1314:Technology
1203:Chargeback
1149:Charge-off
1011:Everything
761:Mastercard
516:References
358:gift cards
327:cafeterias
287:FreetoGo.
285:Freedompay
232:in Japan,
172:, chip or
150:gift cards
1234:Surcharge
838:Cabcharge
818:AzeriCard
495:Gift card
329:, or for
319:farecards
258:SUBE card
206:Geldkarte
180:or other
178:telephone
163:The term
158:fare card
116:cash card
96:USS
48:talk page
1283:Security
1164:Interest
1154:Debt-lag
1119:ATM card
1065:Accounts
1006:Eurocard
991:Chipknip
976:Bankcard
945:UnionPay
900:Isracard
890:Girocard
853:Discover
833:BCA Card
823:Bancomat
788:Electron
474:See also
246:FlashPay
202:Chipknip
42:You may
1380:Banking
1260:Interac
1213:Dispute
1191:Payment
1001:enRoute
848:Dankort
828:BC Card
771:Maestro
653:Sources
460:of the
450:customs
400:escheat
238:EZ-Link
196:in US,
98:Peleliu
1255:Cirrus
1051:Proton
1041:Switch
1021:Mondex
996:Choice
971:Access
930:PayPak
865:EFTPOS
738:charge
734:Credit
578:10 May
545:
308:subway
262:T-Cash
226:FeliCa
218:Proton
198:Mondex
143:, and
141:issuer
88:keypad
1265:Pulse
1056:V Pay
1016:Laser
955:Verve
935:RuPay
920:Meeza
783:Debit
766:Debit
675:(PDF)
490:Scrip
230:Suica
214:Moneo
210:Quick
188:Names
118:is a
114:) or
50:, or
1270:Plus
1136:Debt
1124:Fees
1036:Solo
950:UATP
940:Troy
925:NETS
915:MEPS
813:ArCa
793:Cash
778:Visa
740:and
620:2009
580:2016
543:ISBN
291:Uses
275:The
268:and
242:NETS
240:and
194:APPH
125:cash
1336:EMV
1229:Fee
1046:PIN
910:Mir
905:JCB
875:Elo
402:or
366:HSA
338:".
112:SVC
1409::
843:CB
736:,
691:,
677:,
566:.
533:.
356:,
352:,
345:.
325:,
299:A
184:.
160:.
106:A
726:e
719:t
712:v
622:.
596:.
582:.
551:.
310:.
110:(
73:)
67:(
62:)
58:(
40:.
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