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#134577 - 11/26/03 03:56 PM
Debit cards - minors
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Power Poster
Joined: Aug 2002
Posts: 3,094
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Do any of you issue debit cards to minors? We allow minors to open checking accounts along with a parent or guardian. Mgmt wants to issue debit cards to the minors. Can you think of any issues I need to consider?
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#134578 - 11/26/03 04:00 PM
Re: Debit cards - minors
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Power Poster
Joined: Jul 2003
Posts: 2,675
Austin Texas
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You might want to look at your individual state statues - here in TX if you put a minor on an account, you are allowed to put them on by themselves and we are allowed to treat them the same as you would adults. We, however, make a case by case decision on issuing debit/ATM cards and Overdraft Privilege, but I will tell you that we encourage our banking centers not to!!!
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#134579 - 11/26/03 04:01 PM
Re: Debit cards - minors
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Anonymous
Unregistered
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We don't allow minors to have a debit or ATM card. It can get them into a whol lot of trouble. What we usually suggest is to get a card in the parents name and then if the parent wishes to let them use for gas or something that might be ok, but never a card in the childs name until they are 18.
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#134580 - 11/26/03 04:22 PM
Re: Debit cards - minors
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Gold Star
Joined: Oct 2003
Posts: 304
Midwest
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My son was offered one (age 16) when he opened his savings account.....I said NO WAY. He has an ATM card.....I am fine with that.
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#134581 - 11/26/03 05:20 PM
Re: Debit cards - minors
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Platinum Poster
Joined: Jun 2003
Posts: 938
Do you know the way to ...
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Our visa department manager lobbied hard against issuing any plastic to anyone under 16, and no CheckCard to anyone under 18. She's got a teenager, and from her experience doesn't feel that they're good candidates for debit cards.
Teens like to show off to their friends - who may have ideas about "borrowing" the card and making unauthorized transactions - and tend to lose things that aren't of utmost importance to them at that moment. They also may not want to report a lost card right away, for fear of a parent finding out, or may just not understand the need to report it.
And since we have all the liability (thanks Visa), the manager wants to try and keep that to a minimum by not even providing access in the first place.
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#134582 - 11/26/03 05:39 PM
Re: Debit cards - minors
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10K Club
Joined: Sep 2002
Posts: 13,965
TN
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We will not issue them to minors even if they have a checking account (with a parent only).
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#134583 - 11/26/03 08:18 PM
Re: Debit cards - minors
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Power Poster
Joined: Apr 2001
Posts: 4,828
Between the lines
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We went back and forth on this issue for years. Finally, we committed our plan to paper and put the matter to rest. First issue, can a minor even have an account? Our bank, yes, if he is able to sign his name, he can have a joint account with a parent/guardian. ATM or debit cards are ordered by the parent and the parent sets the daily limit. Parents are counseled regarding minor's rights to withdraw all of the money and parent's liability for the account.
Our state law recognizes that any transactions conducted by the minor are binding on all parties to the account, which gives us some protection.
Lastly, so many of these kids travel to camps, school trips, vacations with other families, etc. and in alot of cases, the card must have the minor's name on it in order for the vendor to accept the card. Besides, if these little darlin's don't figure out how to handle money while they are minors -- they sure won't know how to handle it when they are adults.
First sign of trouble, we hot card and that ends the issue.
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#134584 - 11/26/03 08:51 PM
Re: Debit cards - minors
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100 Club
Joined: May 2003
Posts: 232
Connecticut
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Quote:
Our state law recognizes that any transactions conducted by the minor are binding on all parties to the account, which gives us some protection.
I think this is a key issue. We were concerned that if the minor's account went negative and now we had to collect, can you legally collect amounts due from a minor? If the account is joint with parents, AND you have the ability to collect from any/all owners, then you have some protection.
As far as responsibility goes, I've seen 17yr olds with better financial skills then some 40 yr olds. Grant, that's the exception, but it happens none-the-less.
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#134585 - 12/01/03 05:59 PM
Re: Debit cards - minors
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Anonymous
Unregistered
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We discourage the issuance of such cards but have on had need to issue a few... with the few that we issued we had the parant or other legal joint account holder sign a form similar to a hold harmless. As with the other responder we watch the account and first sign of trouble we hot card.
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#134589 - 12/02/03 06:20 PM
Re: Debit cards - minors
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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Unless you are truly granting credit -- an overdraft line, for example -- Regulation B isn't in the picture.
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#134590 - 12/02/03 07:11 PM
Re: Debit cards - minors
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Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
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Just thinking out loud here, but just any 'adult' wouldn't help. To ensure that you have someone to accept the responsibility and liability for the account, you'd have to have the adult who is responsible for this minor, wouldn't you?
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