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Benefits

Stored Value Benefits

An introduction to prepaid value, merchant accounts, and closed-loop wallets, and how they can support your business.

A

What Is Stored Value?

Stored value is money a customer pays in advance and holds as a balance, whether on a gift card, in a merchant account, or in a digital wallet, to spend later.

In a merchant account model, the balance is tied to a single business. In a closed-loop wallet, value can be spent only within a defined set of participating merchants, rather than anywhere a network card is accepted.

B

Why Businesses Use Stored Value

Customer Convenience

Prepaid balances make repeat purchases quick and easy.

Merchant Engagement

Balances keep your brand top of mind and encourage return visits.

Streamlined Checkout

Fewer steps at the register or online.

Loyalty Opportunities

Combine stored value with rewards and promotions.

Transaction Visibility

Ledger-based records show how and where value is used.

Flexible Program Design

Shape the program around your brand, customers, and network.

C

Important Considerations

Every stored-value program should be planned carefully. Requirements depend on the specific program, jurisdiction, payment flow, and agreements involved.

Regulatory Compliance

Money transmission, prepaid access, escheatment, and AML rules may apply. Seek qualified legal advice for your program.

Program Structure

Who holds funds, where value can be spent, and how it is redeemed all shape obligations.

Consumer Protection

Disclosures, fees, and expiration terms may be regulated.

Fraud Controls

Load and spend rules and monitoring help protect balances.

User Experience

Clear balances, receipts, and support build customer trust.

Banking and Processing Relationships

Programs typically rely on agreements with banks and processors.

D

How Stored Value Works

  1. STEP 1

    Customer Loads Funds

  2. STEP 2

    Value Is Recorded

  3. STEP 3

    Customer Purchases

  4. STEP 4

    Ledger Is Updated

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