2 new pre-pay cards aimed at teenagers have been launched with the backing of Mastercard. The Bliss and Smash Hits cards allow parents to limit the amount of money a child can spend whilst giving them the security of not having to carry cash around.
But the cards have been criticised because of the high charges associated with running them – they cost almost £10 to buy, and every time the PIN needs resetting it costs another £1.
I quite like the idea of pre-pay cards, and they’re used quite widely in America, but it seems that these particular cards miss the mark, as even though they’re aimed at teenagers, the costs are steep.
It’s also worth remembering that they’re not really the equivalent of credit cards for youngsters, as they do not give the protection that a credit card gives when buying products. For example, with a credit card, if something you buy online does not turn up, then you’re protected by payment protection. With these cards, this does not happen.