posted on December 28, 2000 01:16:23 AM new
Used to be that if someone was paying with a credit card you could be fairly sure they were an adult. That always amused me because my folks gave me an American Express card to eat out and so forth when they were out of town on business and I was 14 back in the mid-60's Now they would probably be arrested for child abuse. I never got in any trouble.
First HCQ pointed out they are issuing COBALT cards aimed at underage market. Now Visa has a Buxx card that is accepted anywhere under the Visa symbol. They actually suggest issuing the kids allowance using this prepaid card. Keep that in mind for your credit card sales. They may be under age now. You can sell neccesities to a minor most of the time like food, but they are not even supposed to be on eBay. I see another case of reality outgrowing law here.
[ edited by gravid on Dec 28, 2000 01:21 AM ]
posted on December 28, 2000 07:15:05 AM new
And, because they are minors, they can do chargebacks for any reason, even if they got the merchandise. And it up to the seller alone to retrieve it....
What a scam....
[ edited by mark090 on Dec 28, 2000 07:26 AM ]
posted on December 28, 2000 07:27:30 AM new
Yep- a minor can eforce a contract against the other adult party, but it can not be enforced against the minor. Another pit fall for online auction sellers to deal with.
posted on December 28, 2000 07:49:50 AM new
Well I brought the issue of these cards up here last year about this time when they frist start advertizeing them.
Thing about these card is that they carry no monthly bill and no interest and they must be obtained by an adult in the childs name and they are funded with mom and dads bank account the parent must call the bank to fund the card.
THe spending on these cards must be tracked like a checking account last I read about there use is there is no monthly billing or statement when the balance zeros out the adult on the account must call there bank to refund the card to be used again.
Since there is no monthly billing to track where it was used and no interest Im not sure charge backs are posible.
I know parents around here where I live dont concider these cards to be a good Idea for any kid or teen because there is no way to know how this money is really being spent.
It would be far better for a parent to set up a extra checking account most banks offer free no interest checking and keep a fixed amount in it with a ATM or debt card and sign up for the banks online banking you have proof of where the money is going all the time any hour of the day.
I dont know about other parents but if my preteen or teen leaves home with $20 to $100 and comes home broke and has nothing in hand to show for it I want to know where and how they spent this much money.
posted on December 28, 2000 08:31:44 AM new
Here are the charge dispute rules for the VISA Buxx card ( from www.visabuxx.com :
"Disputing a Charge
Q: What are my rights if I dispute a charge on my statement?
A: If your card account has recorded transactions that you did not make, notify us
as soon as possible. We must hear from you no later than 60 days after we
communicated the first activity report on which the problem or error occurred. If
you tell us verbally, we may require you to send us your complaint or question in
writing within 10 business days from when you report the problem or error.
We will initiate an investigation with the merchant and correct any error promptly. It
may take up to 45 calendar days to investigate your complaint or question.
However, if we decide to do this, we will recredit your card account within 10
business days so that you will be able to use the money during the time it takes
us to complete our investigation.
If the error involves a transaction that was initiated outside of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, or any political
subdivision of the above, the applicable time periods for action will be 20 business
days in place of 10 business days, and 90 calendar days in place of 45 calendar"
days.
But it doesn't mention anything about minors and disputing charges, in fact, the charges do not have to be in dispute. Let me paraphase:
I am a minor. I can reverse any honest contract whenever the whim hits me and get my money back. And the seller, even though he acted in exceptionally good faith, he is merely screwed over. It is his responsibility to retreive merchandise that I purchased and if he is too distant to retrieve it, all the better. It means free stuff!
Unfortunately, that is the lesson being taught to minors today. As we give them their cell phones, pagers and credit cards, the bills keep going unpaid. The companies, with no recourse towards a minor, pass the costs on to adult consumers.
posted on December 28, 2000 11:57:08 AM new
our kids have VISA Buxx cards. they are honest and forthright kids. this is how we raised them. we told them, and mean it, that if they abused the PRIVILEGE of the VISA Buxx card, it would be taken away.
parents who don't properly explain AND follow through with cards like this will have the problem kids.
don't lump all teenagers together because there are a few bad ones.
my .02 worth
posted on December 28, 2000 12:44:51 PM new
paulswife is correct. If a child can't manage a credit card, then it should be the parent's fault. If a child CAN manage a credit card, then the parent's should take in the rewards knowing that their children can balence their credit at an early age 0_o
I am also about to open a joint Checking account with my younger son, and he will be the jointee. I will strive to get a debit card for the account and give it to my son, because I trust him and I believe he will be able to manage it. This is called good parenting.
posted on December 28, 2000 01:49:11 PM newmark090
But the minor is not the accountholder with a VISA Buxx card. The PARENT is. The following is from one issuing bank's cardholder agreement for VISA Buxx:
"The Parent is responsible for the Card. Any net debt owing in connection with the Card or the transactions you make, together with any legally recoverable costs of collection, including reasonable attorneys' fees, shall be owed to bank by the Parent. The Parent agrees to pay any expenses, including attorneys' fees and court costs, incurred by bank as a result of any interpleading of funds, subpoena, levy, garnishment, or dispute involving or related to the Card, the Parent, or the Teen."
If a kid tries to sign up, the parents are contacted and must complete the sign-up process.
I'm going to apply for one for my 13 year old. He's a smart, responsible kid who doesn't waste his money. I'd rather he learn how to handle plastic NOW, when I can supervise and ensure he learns good spending habits, rather than when he's on his own and the real credit cards come calling.
posted on December 28, 2000 01:54:53 PM new
I appluad you, vargas. Every parent needs good faith in their children, and managing credit is a real valuable skill in the world. If the kid learns those skills at an early age, I am sure he will be managing credit like a pro when he moves out 0_o
posted on December 28, 2000 02:29:41 PM new
am I seeing a trend here in the late 60s and through the 70s the TV and radio were our entertainment and baby sitter in the 80s it was video games and Videos from the rental store, In the 90s the Computer and computer games and malls were the entertainment and baby sitter and now in 2000 its gonig to be the credit card and you all thought there was a awfull slow down in the economy
comeing
