What is prepaid value?¶

Prepaid value is money or purchasing power loaded or paid for before it is used.

Avoid the dangerous assumption¶

The dangerous assumption is that prepaid value operates like a normal bank-account balance and identifies one continuing owner.

It may exist on a gift card, prepaid card, voucher, transport account, mobile account, online wallet or merchant balance.

The value may be purchased with cash, card, bank transfer, wages, refund or another stored-value source.

Some prepaid products are linked to a verified account. Others can be bought and used with limited customer information. The level of identification therefore varies by product and provider.

Relevant records may include purchase, loading, activation, balance, account linkage, transfers, redemption, cash withdrawal and expiry.

The purchaser, registered holder and user may be different people.

Value may also be transferred through sale, gifting, shared codes or linked accounts.

Preserve the product identifier, account details, load records, funding source, transaction history and remaining balance.

Ask the provider what form the value took, whether it was transferable, whether cash withdrawal was possible and what verification applied.

Do not assume that prepaid means untraceable.

Providers and retailers may hold substantial transaction and access records.

Equally, do not assume that a recorded holder controlled every use.

When tracing, separate the original funding event from later internal spending, transfer or redemption.

When reporting, distinguish the prepaid instrument, stored balance, funding source, account and actual operator.

Operational takeaway¶

Trace prepaid value from loading through transfer, spending and withdrawal while treating purchaser, holder and user as separate evidential roles.