Explain the two types of gift, or stored value, cards

What will be an ideal response?


Answer: There are two kinds of gift, or stored value, cards. The first is the single-purpose, or "closed-loop," card, which can be used only at one store for one purpose. The second is the multipurpose, or "open-loop," card, which can be used at most locations, just like a credit card. This type of card is becoming more and more common. Many employees receive their paychecks on a stored value card. More than 1,000 companies, including Walmart, FedEx, McDonald's, U-Haul, UPS, Coca-Cola, Blockbuster Video, and Denny's, offer to pay employees with Visa Payroll cards, which are a form of stored value cards, instead of checks.

Business

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