What does Stored –value card mean?
Stored value cards are those plastic cards which have a monetary value stored on them. Whereas the prepaid credit card can only be used with authorization from the cardholder, the stored value cards have an anonymous aspect. Examples of stored-value cards include the well known telephone cards, merchant gift cards, or prepaid debit cards.
It is not myths that the stored value cards are targeted to those holding a bad credit history or to those who don’t have a credit history at all (the risk is higher for a lender, and that is why a stored value card is a good option for a start). Attention however is needed with the certain fees which can be particularly high with these cards (activation fee up to $40, annual maintenance fee can hit $100 sometimes).