System and method using stored value tokens

A computer-implemented method of using a stored value token, the method comprising:

• reading, by a computing device, token data from the stored value token, the token data comprising a token identifier and a token status, the stored value token having an associated token value;
• transmitting, by the computing device, the token identifier to a token validation server and validating the stored value token in response to communication from the token validation server;
• changing, by the computing device, the token status in response to an input, wherein the input is either a pay-out instruction or a pay-in instruction;
• in response to the pay-out instruction, changing the token status to active and deducting an amount equivalent to the associated token value from a predetermined account;
• and
• in response to the pay-in instruction, changing the token status to inactive and adding the amount equivalent to the associated token value to the predetermined account.