Parents prefer to provide their teenage children with controlled, pre-paid and re-loadable payment cards rather than cash, according to a survey of 800 Visa Buxx cardholders by Visa USA.
The top reason parents cited for a using a pre-paid Visa Buxx card was for travel. Safety was also cited as a major benefit, with 96% of parents saying the card was safer than carrying cash.
Rhonda Bentz, director of public affairs, Visa USA, says: "Many parents view pre-paid cards as safer than cash because if the card is lost or stolen, cardholders have zero liability for any unauthorised purchase."
Visa Buxx cards are funded in advance and controlled by parents, so any purchases are drawn from a limited, pre-determined amount of funds.
Visa says the strong controls have fuelled the growth of its Visa Buxx pre-paid card, which allows parents to review transactions and add or subtract funds over the Internet or by phone.
In addition, 91% of the parents surveyed said the card served as an effective financial teaching tool.
"Parents have the ability to control and monitor the account while giving their teen some independence to make financial decisions," says Benz.