The prepaid Visa card for children as young as eight
At the end of last year, Visa and payment service PKTMNY teamed up to launch a prepaid card for children aged between eight and 16.
prepaid cards for childrenPKTMNY (an abbreviation of ‘pocket money’) allows parents to deposit money into an account for their children, who can then use a Visa card linked to the account to withdraw money and pay for goods on the high street or online.
Claiming to be “pocket money for the digital age”, the move takes us a step closer to becoming a ‘cashless society’.
The card comes with rigid controls: it cannot be used in pubs, bars, nightclubs and some restaurants, wine and beer wholesalers, cigar and tobacco shops, escort services and massage parlours, automated fuel dispensers, race tracks and adult entertainment venues, websites or TV channels.
Parents can also exercise control over their children’s spending habits by choosing whether the card will work at cash machines, in shops or online. They will also be able to log onto the online account to see how much their kids are spending, and where they are splashing their cash.
What are the benefits of prepaid cards?
Prepaid cards can prove a great way to teach your kids about the importance of money and budgeting. While eight might seem young, it is never too early to pick up a lifelong skill like being money-savvy.
Children have access to the online account so can easily see how much money they have, and how much they’ve spent – teaching them how to budget and how quickly savings can be depleted.
Prepaid cards also give children and teenagers a taste of adulthood: using a cash machine and paying for goods using a card can make them feel a bit more grown up.
What to watch out for
There is a £5 joining fee and a £1 monthly charge per child. This is in addition to a 1.21% credit card and a £0.50 debit card fee, imposed each time money is added to the account.
While spending in shops and online is free, users will be charged £0.50 for every withdrawal and £2 at cash machines overseas.