High Quality Content by WIKIPEDIA articles! Prepaid refers to services paid for in advance. Examples include tolls, pay as you go cell phones, and stored-value cards such as gift cards and preloaded credit cards. Prepaid accounts are assets, and they are increased by debiting the account(s). Prepaid services and goods are sometimes targeted to marginal customers by retailers. Prepaid options can have substantial cost reductions over postpaid counterparts because they allow customers to monitor and budget usage in advance. Unlike postpaid or contract based services, prepaid accounts can be obtained with cash. As a result, they can be established by people who have minimal identification or poor credit ratings. Minors, immigrants, students, defaulters, and those on low incomes are typical prepaid customers.
High Quality Content by WIKIPEDIA articles! A stored-value card refers to monetary value on a card not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card. One major difference between stored value cards and prepaid debit cards is that prepaid debit cards are usually issued in the name of individual account holders, while stored value cards are usually anonymous. The term stored-value card means the funds and or data are physically stored on the card. With prepaid cards the data is maintained on computers affiliated with the card issuer. The value associated with the card can be accessed using a magnetic stripe embedded in the card, on which the card number is encoded, using radio-frequency identification (RFID), or by entering a code number, printed on the card, into a telephone or other numeric keypad.