Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

What is a characteristic of an Open system Stored Value Card?

1. Can be used only at specific merchants

2. Can be loaded and used for purchases widely

3. Has a fixed limit on transaction amounts

4. Cannot be transferred between users

The correct answer is: Can be loaded and used for purchases widely

An Open system Stored Value Card is designed to offer flexibility and versatility in how it can be used. The defining characteristic of such cards is that they can be loaded with funds and used for a wide range of purchases. Unlike closed system cards, which restrict usage to specific merchants or limited settings, open system cards are accepted broadly, often at multiple locations and various types of businesses. This wide acceptance is particularly advantageous for consumers who desire the convenience of using a single card for different types of transactions. The other options mention limitations that do not align with the nature of Open system Stored Value Cards. They typically do not restrict usage to specific merchants, do not enforce a fixed limit on transaction amounts (beyond the card balance), and generally allow for transferability between users, which further emphasizes their versatility and usability in everyday transactions.