Prepaid Balance
Money loaded onto a customer account in advance, to be spent within a specific merchant or ecosystem.
Definition
A prepaid balance is stored value that a customer has purchased or been credited in advance of spending. Unlike credit or debit cards, prepaid balances don't require external card networks — they're internal accounts within the merchant's ecosystem. Customers top up their balance, spend from it, and can reload as needed. Common in gift cards, loyalty programs, and B2B2E arrangements.
Examples
Coffee shop prepaid card ($50 loaded, spend as you go)
Gym prepaid membership (monthly credit for classes)
Corporate travel allowance (monthly amount for team meals)
Event pass with prepaid credit for food and drinks
How 7Konto uses this
7Konto lets merchants issue prepaid balances to customers via wallet cards. Balances can be loaded via cash, card, bank transfer, or transferred from other 7Konto cards. Every transaction debits the balance in real-time. Balances can have expiration dates, minimum/maximum spend limits, or usage restrictions per merchant configuration.
Learn more on 7Konto
Related concepts you might want to explore
Gift Card
A stored-value payment card, usually for use at a specific merchant or group of merchants.
Stored Value
Money or credit held in an account or on a card, available for spending within a defined ecosystem.
Closed-Loop Payment
A payment system where funds can only be spent within a defined ecosystem — one merchant, a group of related merchants, or a specific program.
Commercial Account
A business-controlled prepaid or spending account, typically distributed to employees or customers of the account owner, often with spending limits.
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