After all, a merchant's decision to accept the stored-value card depends on whether the discounted expected future returns from the card exceed the fixed costs of installing the hardware and software required to accept it.
In addition, the total benefits associated with the use of stored-value cards exceed the benefits accruing directly to an individual consumer.
However, a Catch-22 dilemma arises from the introduction of a new payments instrument:(8) Business and consumer demand for stored-value cards are interdependent.
In the case of stored-value cards, there are two types of benefits - those accruing to the payor in a transaction and those accruing to the payee.
In posing this question, I refer to general-purpose, stored-value cards, not to special-purpose instruments such as government benefit cards, which, in our view, do not raise major issues.
Further, the clearing and settlement mechanisms for stored-value cards and similar products--if they become widely used--could generate significant credit and other settlement risks.
At a minimum, we believe that issuers of stored-value cards and similar products should clearly disclose the various risks that holders bear, including their coverage, if any, by deposit insurance.
1858 would exempt all stored-value cards and a potentially wide range of other products, including transactions through the Internet, from the EFTA and Regulation E.
The Cubis Express Card Program is a complete turnkey stored-value card solution.
Cubis programs are specifically designed for credit and stored-value cards such as general spend, payroll, specialty, and gift cards.
It will allow their Stored-Value consumers to purchase, load and reload Stored-Value cards
via online credit card acceptance in a secure environment free from the risks associated with both Identity Theft and card fraud.
We are thrilled to be working with Quantum Loyalty Systems to deliver open network loyalty and promotion stored-value cards
to the marketplace in a big way," said Eric Miller, FSV Chief Executive Officer.