You see them everywhere - gift cards, restaurant cards, phone cards and more. These stored value cards (SVCs) electronically store any funds you pay in advance to make a purchase, pay a bill or withdraw money at a later date. They're also very convenient to use.

A growing number of consumers simply don't like to carry cash around or write checks anymore. SVCs are an attractive financial alternative to many of these consumers who now prefer to make a majority of payments electronically.

Even employers and select government agencies are getting in on the SVC action. Some employers now issue prepaid payroll cards, project cards, corporate travel and incentive (bonus) cards. The government agencies that issue these cards may also issue electronic benefit cards for people on public assistance or requiring other government services. Most recently, numerous families hit hard by the devastation caused by Hurricane Katrina were issued a $2,000 prepaid debit card from the Federal Emergency Management Agency (FEMA).

Anyone can purchase a SVC. There are no credit checks necessary or collateral required as all the available funds on each card are prepaid at the time of purchase. SVCs can be electronically loaded with funds by direct deposit, wire transfers, money orders sent directly to the card issuers or from retail point-of-sale. The prepaid funds are stored electronically in accounts attached to a specific batch of SVCs. Many SVCs can be reloaded with as many funds or as often as the cardholder likes.

Functionally, SVCs are very similar debit or credit cards. Many SVCs have a magnetic stripe that can be swiped at any debit/credit card terminal. Some cards require you to input your own personalized four-digit pin number. Others have a signature strip on the back and require a matching signature from the cardholder at point-of-sale.

SVCs are a part of the slow but steady transition to a "cashless society." As more and more financial transactions occur not on paper, but in the electronic realm, SVCs will continue to play a growing role in the evolving financial industry of the 21st Century.