What do you do about Teens & Credit Cards?

[snykymom]

OH it isn't that my DD isn't trustworthy....she is forgetful and disorganized. She is very trustworthy, but I am just trying to find a way to make all of this easier for all of us.

. . .

So I don't think she will abuse it, I do worry she will lose it.

For those worried about kids losing cards, DO NOT give them a debit card, even on their own accounts. Please remember that debit cards DO NOT come with the same protections as credit cards.

1) If you lose a credit card, and there are unauthorized charges, you are liable for a maximum of $50.00, and many companies will waive even that. If you lose a debit card, you are liable for everything.

2) If there is a problem charge on your credit card, you can dispute it and not have to pay the charge until the dispute is settled. If there is a problem withdrawal on your debit card, the bank does not have to put your money back in until the dispute is settled and even then it's not fast.

3) Credit cards often give some sort of purchase protection. Debit cards do not.

4) All the new federal consumer protections apply only to credit cards. They do not apply to debit cards. Watch for new debit fees being snuck in there.

Do not treat a debit card like a credit card. Treat it like CASH.

 

[disykat]

My son got a debit card on his own account. He pays for gas or necessary expenses from his own account. He keeps the receipts for us and we reimburse him for expenses that aren't his own.

Sorry, I'm with the others. I wouldn't be giving a credit card to someone who can't remember to give me my change.

 

[Lisa loves Pooh]

For those worried about kids losing cards, DO NOT give them a debit card, even on their own accounts. Please remember that debit cards DO NOT come with the same protections as credit cards.

1) If you lose a credit card, and there are unauthorized charges, you are liable for a maximum of $50.00, and many companies will waive even that. If you lose a debit card, you are liable for everything.

2) If there is a problem charge on your credit card, you can dispute it and not have to pay the charge until the dispute is settled. If there is a problem withdrawal on your debit card, the bank does not have to put your money back in until the dispute is settled and even then it's not fast.

3) Credit cards often give some sort of purchase protection. Debit cards do not.

4) All the new federal consumer protections apply only to credit cards. They do not apply to debit cards. Watch for new debit fees being snuck in there.

Do not treat a debit card like a credit card. Treat it like CASH.

That is incorrect and false information. If you review VISA and MC's website, a debit used a credit carries the same protections as a regular credit card
(if used without a pin and run as a credit card).

And if the card was stolen, the thief wouldn't know the pin and would have to use it as a credit and VOILA--credit card protection!

http://usa.visa.com/personal/security/visa_security_program/zero_liability.htm

http://www.mastercard.com/us/personal/en/cardholderservices/zeroliability.html

So if you lost the card--you'd be liable for ZERO!!!! Per VISA's and MASTERCARD's own policies (unless a person is stupid to give their pin out to every tom, dick and harry and they steal the card and use it with the pin.)

 

[Anne34]

My DD opened a joint checking account with me. I had to be a joint owner since she was not 18 at the time. The debit card had only her name on it. While in high school, she deposited her paychecks and any other odd money that came her way at birthday's, etc.



We recently did the same thing with our DD16. I opened a joint checking account with her, she deposits her paychecks (summer only job) and she has money for gas and misc. things she buys. She has been wonderful with this -- I do give her my cc when she runs to the grocery store for me, but I try to keep it under the $25 limit so she can run through the self check lanes with no signature. I think she has a really good handle on money which will serve her well in college and beyond.

 

[snykymom]

That is incorrect and false information. If you review VISA and MC's website, a debit used a credit carries the same protections as a regular credit card
(if used without a pin and run as a credit card).

And if the card was stolen, the thief wouldn't know the pin and would have to use it as a credit and VOILA--credit card protection!

http://usa.visa.com/personal/security/visa_security_program/zero_liability.htm

http://www.mastercard.com/us/personal/en/cardholderservices/zeroliability.html

So if you lost the card--you'd be liable for ZERO!!!! Per VISA's and MASTERCARD's own policies (unless a person is stupid to give their pin out to every tom, dick and harry and they steal the card and use it with the pin.)

Thanks - I guess they changed it since the last time I looked. But they still don't put your money back if you dispute a charge.

When I went to college, my father handed me a credit card with my name on it. He said to me, "You can overspend. . . . once." That's all he had to say.

I said the same thing to my d. No problems so far.