What is a card-based stored value card?

A card-based stored value card is defined as a consumer prepaid payment card that has monetary value stored on it. This type of card is preloaded with a specific amount of money and can be used to make purchases or payments until the balance is depleted. It operates on a prepaid basis, meaning consumers can use it until the stored value is exhausted, without the ability to draw funds beyond the amount loaded onto the card.

The nature of stored value cards makes them distinct from other types of cards. For instance, they don't require a direct link to a bank account, like a debit card does, nor do they involve credit or borrowing, as a credit card would. Furthermore, they aren’t primarily used for ATM transactions; while some stored value cards may offer this feature, their main function is geared towards point-of-sale purchases.

In summary, option A accurately describes the primary function of a card-based stored value card, highlighting its prepaid characteristic and the fact that it holds monetary value for consumer use.