The Federal Deposit Insurance Corp. (FDIC) has ruled that many stored value cards, including cards issued by retailers, qualify as deposits when the funds that are represented on the cards are held by an insured financial institution.

The ruling by FDIC's general counsel, may protect holders of gift cards issued by retailers like Circuit City, which has filed for bankruptcy protection, but also extends to open loop cards that are issued by financial institutions themselves. The ruling said cards can be insured up to the full $250,000 FDIC limit and noted that in cases where cards are not registered to an owner, the bearer of the card will be considered to be the owner.