Prepaid Mastercards Given to Children
Mastercard-branded prepaid cards are given to children as young as 13
27th January 2006
Concerns have been expressed about a new payment card that has been given to children as young as 15.
The cards, issued under the Mastercard brand, have to be 'loaded' with money by the child's parents, and it can then be used to withdraw cash, or to spend in shops or online. It isn't possible to go overdrawn on the account.
The company behind the cards, Bluecomer, said that the cards helped stop bullying and theft of money, while also promoting the idea of financial management at a young age.
Others, though, were not so sure. The National Consumer Council (NCC) expressed worries that using the cards could instil a greater willingness to use credit cards later in life, as the idea of using plastic to pay for things would become second nature.
Read More: Issuer defends payment card for kids
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More on Prepaid Cards : New 'Pay As You Go' Card Launched (News, 22/05/2006), Clydesdale to Launch Prepaid Mastercards (News, 20/01/2006), Prepaid 'Credit' Card to Launch (News, 16/09/2005), MBNA Launches Pre-paid Gift Visa Card (News, 30/06/2005) |
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