Prepaid access is described as stored value with two types. Which option correctly names the two types of prepaid access described?

Prepaid access is described as stored value with two types. Which option correctly names the two types of prepaid access described?

• A. Open Loop Prepaid Cards
• B. Closed Loop Prepaid Cards
• C. Open Loop Prepaid Cards and Closed Loop Prepaid Cards
• D. Stored Value Cards

Answer: (C)

Prepaid access is stored value that you can spend, and it comes in two forms: open-loop prepaid cards, which run on broad payment networks and can be used at any merchant that accepts those networks, and closed-loop prepaid cards, which are restricted to a specific issuer or retailer and can only be used within that network. The option that names both forms covers the full description of prepaid access, making it the correct choice. Options that name only one form or lump prepaid access into a generic stored-value label miss one of the two distinct usage models.

Prepaid access is stored value that you can spend, and it comes in two forms: open-loop prepaid cards, which run on broad payment networks and can be used at any merchant that accepts those networks, and closed-loop prepaid cards, which are restricted to a specific issuer or retailer and can only be used within that network. The option that names both forms covers the full description of prepaid access, making it the correct choice. Options that name only one form or lump prepaid access into a generic stored-value label miss one of the two distinct usage models.