Prepaid MasterCard credit card lets kids shop, but blocks certain transactions

By Jeremy Simon

The Payjr prepaid credit card is a MasterCard that offers children the chance to shop, but prevents certain types of transactions.

There are two versions of the Payjr credit card: one for teens, and another for kids 12 and under.  Both credit cards let parents follow their child's spending online, as well as offering them the chance to deposit money into the account.

Parents have the option of managing their son or daughter's allowance over the Internet, by establishing a list of household chores and assigning a dollar amount for each one.  The adult may then put money into a child's credit card account when the task is finished.  Parents remain entirely responsible for any charges.

Additionally, the youngster can get text messages or e-mail to update them about the credit card balance or when money has been placed in their Payjr account.

But there are certain types of credit card transactions the Payjr blocks.  The card offers a feature to prevent the purchase of items such as alcohol, firearms and pornography, as well as online gambling.  Additionally, unlike some other credit cards for children, Payjr does not let a child charge beyond the set limit on their card, thus preventing over-the-limit fees.

The cost to parents for the prepaid Payjr credit card is a one-time enrollment fee of $4.95, a monthly charge of $2.95 and 50 cents for every time they deposit money into the account. 

While credit card issuers say that plastic can help teach children about budgeting and responsible spending, experts note that kids need to be made aware that in spite of limited money, credit cards offer unlimited opportunities to spend -- which can lead to debt.

Published: April 13, 2007

	Three most recent Innovations, features, new products stories: Toys R Us joins retailers offering layaway plans – 'Pay now, buy later' plan feeds on consumers' new distaste for debt ... 10 flu-fighting credit card tips – Cards can carry germs, but with these precautions, you can be an inhospitable host for flu and other bugs ... Reform law, recession lead to 'retro' credit card offers – New card programs offer payment control, plain vanilla features, but consumers still face a rocky road ...

	CreditCards.com's newsletter Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now!