MySpace offers teens reloadable prepaid Visa card from ANZ Bank

MySpace Visa Teenagers, who aren’t eligible for credit cards, are being offered a reloadable prepaid Visa card from ANZ Bank to securely make purchases on the internet, MySpace spokesman Nick Love said. The new card is the first of its kind in Australia, targeting social networking site users.

"(They can) spend their own money on items such as concert tickets and clothes," he said.

The results of customer research revealed that parents were looking for simple, convenient and secure alternatives to cash for young people, ANZ spokesman John Harries said.

The new cards have a maximum balance of $1000, cost $5.95 and are available to teenagers aged 13 and older with MySpace accounts. Besides, the card is not linked to a deposit account, meaning users do not need to be ANZ customers, Mr. Harries added. Teens can also use the card to buy prepaid phone credit through the site.

According to Justine Davies, family finance expert and author, the idea had merit and could potentially help parents teach teenagers about credit card responsibility. She also added that most parents would know teenagers well enough to decide whether a recharge card was a good idea and should establish boundaries on what they can buy.

"By the time they’re old enough to own a traditional credit card they will hopefully have the money skills to avoid the debt problems that some people get themselves into," Ms Davies said. "As always though, the onus is on parents to teach their kids how to use the card responsibly."

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