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#1299068 - 12/04/09 06:02 PM Debit Cards & Minors
DepositOps Offline
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We have a customer that wants a debit card for their 13 year old child. the child is going on a school trip and they want them to be able to access funds. We have said no since it is a minor and they are not of legal age (18, can not sign conracts, etc). The customer is not happy with that response and wants this card. Is there something that I am missing? Does anyone offer debit cards to minors?

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#1299076 - 12/04/09 06:09 PM Re: Debit Cards & Minors DepositOps
Elwood P. Dowd Offline
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A minor's ability to contract is a function of state law. Many states have laws that allow minors to open a bank account and create an enforceable contract. So, you might be empowered to sue the 13 year old, unless of course he was just negligent in his use of the card, something Reg E would readily excuse.

Your bank is empowered to create its own policies and denying minors access to debit cards is pretty common. Giving the kid a stored value card makes a lot more sense.

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#1299516 - 12/04/09 10:45 PM Re: Debit Cards & Minors Elwood P. Dowd
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Austin Texas
We offer to minors, but only at age 16 and up, with the parent on the account, and the parent sets the limit....(we're in Texas)
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#1299555 - 12/04/09 11:23 PM Re: Debit Cards & Minors RBanker
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Texas is one of those state's Ken mentions where the minor can have an account. The parents can require they be on it. As was said already, a prepaid card makes sense. I wouldn't want to handle the Reg E claim on a minor. You'll lose either way.

And remember, nothing says you have to issue a card.
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#1299588 - 12/05/09 12:15 AM Re: Debit Cards & Minors Andy_Z
Dolly Nugent Offline
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If you decide to do it, keep in mind that you don't need to give the minor the same daily limit as the rest of your customers. You will need to develop a separate Regulation E disclosures with the reduced daily limits. I'm assuming that your core system allows you to set daily limits at the account level.
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#1299594 - 12/05/09 12:24 AM Re: Debit Cards & Minors Dolly Nugent
rlcarey Online
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Check your issuers rules also, one of them use to require that the person be a US citizen and over 18.
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#1357785 - 03/15/10 08:23 PM Re: Debit Cards & Minors rlcarey
morirse de risa Offline
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Could the minor opt in for Reg E OD purposes or would the parent need to opt in for them?

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#1359491 - 03/17/10 09:36 PM Re: Debit Cards & Minors morirse de risa
Andy_Z Offline
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I think this depends on whether your sate laws allow the minor to be a sole owner of the account.
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Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#1364050 - 03/25/10 06:06 PM Re: Debit Cards & Minors Andy_Z
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Does anyone know what law says in Wisconsin for a minor being able to sign into a contract. I am pretty sure they can't but I can't find where it states that. Issuing debit cards to minors is a growing hot topic.
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#1364128 - 03/25/10 06:43 PM Re: Debit Cards & Minors Wisco Crime Stoppers
rlcarey Online
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Galveston, TX
I see nothing in the statutes that specifically allow minors to hold accounts in Wisconsin. So your question may be moot. If they can't contract from a deposit account - how can they contract for a debit card?? It is awful hard to prove a negative through Statutes - I would be saying - show me something that allows it.
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