The Visa Buxx Card is a prepaid credit card, which can be used as a tool for parents to teach their teenagers how to be financially responsible. This is a helpful tool that assists parents control on how much their teens can spend, and unlike cash, if it is lost or stolen, it will be refunded because it is protected. If the card is misplaced you should contact your bank asap. If the teen is working, the teen and parent can decide together how much will be spent, and then add the money from another account, you can also have money direct deposited. The parent can keep track of how much and where the money is spent by looking at an online statement. Authorized friends and family can add money to the card for gifts instead of mailing checks or money orders.
Most of the issuers require that you have an account with them in order to apply for this card, but some don’t. However, the fees might be more expensive if you don’t have an account with the bank. There are also some restrictions; all of the banks have put a limit on the amount of funds that can be put on the card, for instance US Bank allows you up to $2000 at a time, and also the minimum age for the credit cards is thirteen years old. There are also limits to how much you can withdraw, and how many withdrawals per day. If you use the card at an ATM there are fees.
This card is a good implement for supervision purposes, but with all the transaction fees, processing fees, activation fees, etc it can be very costly. If you are worried about your teens spending habits this might be a good choice, but if not you are probably better off just letting them use cash. We think this is card is mostly a gimmick to get people’s money, because let’s face it, who wants their teen buying things on the internet anyways, and that is the main reason to get a prepaid credit card.
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