How do stored value cards work?
These cards are marketed as prepaid debit cards or stored value cards (SVCs). Magnetic strip technology stores information about money that has been prepaid to the card. The first prepaid cards to hit the market were single-purpose cards used to purchase goods at specific retailers, such as prepaid telephone cards and cards used for public transportation. Copy centers offer them for use with copy machines. Department stores issue them as gift cards. Students using prepaid university cards can navigate campus without a dime in their pockets using the cards in the cafeteria, the bookstore, the library and even at soda machines. These single-purpose cards are convenient, simple and there is no fee to the buyer or user. If you buy a $50 telephone card, you can make $50 worth of phone calls. More recently, however, cards have emerged with multi-purpose usage. These cards can receive direct deposits and can then be used to make cash withdrawals at ATMs. They can be used for retail purchases,
