What type of card is an account-based stored value card?

An account-based stored value card is correctly identified as a prepaid payment card. These cards store a specific amount of money that the cardholder can spend until the balance is exhausted. The primary feature of a prepaid card is that it is loaded with funds in advance, which can be utilized for making purchases, similar to cash.

This type of card is particularly useful for budgeting purposes, as users can only spend the amount loaded onto the card, preventing overdrafts or related credit issues that can arise with credit and debit cards. Customers can reload the card with funds as needed, and it often does not require a credit check or a bank account to obtain, making it accessible for various users.

In contrast, credit cards allow users to borrow funds up to a certain limit and require repayment with interest, while debit cards are directly linked to a checking account. Business expense cards are typically associated with corporate spending and may include additional features or limitations relevant to business use.