January 27, 2006

MasterCard, the worlds largest credit card company has brought out a new credit card. Worryingly this new credit card is targeted at teenagers.

The Splash Cards are designed to enable children as young as 13 to make purchases with a credit card. The new card has a bright and youthful appearance with pink, yellow and white stripes and bears the logos of popular teen magazines.

There is an opening fee of £9.95 and the credit card can be topped up much the same way as a mobile phone.

The Splash Card can be used over the internet, in retail outlets and ATM machines, although, there is an 85p charge for every ATM withdrawal. This 85p charge is deemed by many consumer watchdogs as excessive and unfairly targets a low-income group like teenagers.

It is hoped that parents will simply top up their teenagers card instead of giving them pocket money.

There is the risk that teenagers will not appreciate the responsibility of spending wisely when no cash is involved.

MasterCard have defended their decision by explaining that the new cards are safer for children to carry with them than cash.

Phil Davies, director of business development for Master-Card Europe said 'These cards have a positive part to play as they can help teenagers and adults to improve financial discipline. Parents can control the amount of money on the card”