Creditnet News Story
AmEx launches prepaid card for parents, teens
Thursday, May 6, 2010
By Thomas Astery
A new prepaid card called PASS may give parents more control over their children's finances.
American Express said it is offering a new prepaid card, which is targeted at parents who want a safer alternative than cash for their children.
The program, known as PASS, will give parents online access to the card, where they can keep track of spending and load additional funds. They can also be alerted if funds on the card are running low.
Alpesh Chokshi, American Express' president of global prepaid business, said the card will let younger people avoid having to keep large amounts of cash on them while also limiting their ability to overspend.
"As a result, parents have a better way to provide spending money and teens can be on a safer path toward financial independence," Chokshi said.
In addition to giving parents more control, PASS may provide an alternative to credit cards, especially with new federal regulations in place. The Credit Card Accountability, Responsibility and Disclosure Act requires that people under 21 get someone to cosign for a credit account unless they can prove they have the means to afford it.
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