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"Concerns over prepay card for kids"

By admin | August 14th, 2009 | Credit Cards

Concerns have been raised by a number of industry officials regarding a new prepaid card that has been launched by a mobile communications company, which would allow kids to make purchases online in the same way as they are made with a standard debit or credit card.

The Load and Go card is being launched by the mobile communications giant O2, and the card will allow kids aged just thirteen to put money onto the cards and then use the cards like a credit or debit card on the High Street, or when making purchases by phone or online.

Whilst the company claims that the new card will actually prove to be helpful for kids and parents in terms of helping kids learn more about managing their finances effectively some industry officials are concerned there is a risk involved when kids as young as thirteen can start using cards online, as they may end up making purchases that are inappropriate.

The new Load and Go card has been launched in conjunction with NatWest, and in order to use the card money will first have to be loaded onto it, in the same way as credit has to be put on a mobile phone.

The provider of the card has said that it will help children to learn more about financial management, which is important these days, and because kids can only spend up to the amount that they have loaded onto the card there is no risk of them getting into debt as a result of using the card. The card is only available to O2 customers.

One official from O2 said: ‘We have clear limitations in how the card can be used online. For example, it cannot be used with online gambling and services like that. We are creating a controlled environment. At the end of the day, there is parental responsibility and retailer responsibility.’

Tags: children credit cards, prepay credit cards

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