What is a stored value card?

What is a stored value card?

• A. A prepaid card that stores monetary value for fare payment and is reloadable.
• B. A card that stores personal data for access control.
• C. A card used for loyalty rewards.
• D. A paper ticket with magnetic strip.

Answer: (A)

Stored value cards hold a balance of money that you can spend on transit fares or other payments, and that balance can be increased by reloading the card. The described option captures this idea: a prepaid card that stores monetary value for fare payment and is reloadable. You top up the card, and each ride debits the fare from the stored balance. This is different from cards used only to store personal data for access control, or loyalty rewards cards that track points, or a paper ticket with a magnetic stripe which isn’t a reusable stored-value card because it doesn’t hold a persistent electronic balance.

Stored value cards hold a balance of money that you can spend on transit fares or other payments, and that balance can be increased by reloading the card. The described option captures this idea: a prepaid card that stores monetary value for fare payment and is reloadable. You top up the card, and each ride debits the fare from the stored balance. This is different from cards used only to store personal data for access control, or loyalty rewards cards that track points, or a paper ticket with a magnetic stripe which isn’t a reusable stored-value card because it doesn’t hold a persistent electronic balance.