Services such as DoughNET and RocketCash offer virtual malls with teen-appropriate stores, where parents can open accounts for their kids. Members of the group will be able to order a prepaid card for kids ages 17 and older. The cards, provided through Columbus Bank and Trust Co., are expected to attract 10,000 to 20,000 users the first year, and parents can see statements online, Flaherty says. Issued by Bank of America, U.S. Bancorp., National City, and Capital One Financial, the card can be used at any ATM, for online purchases, and in million of stores throughout the world, according to Visa. But not everyone thinks these cards are a good idea.
Privacy is another cause for concern.
Kids older than 13 are not protected by the Children's Online Privacy Protection Act of 1998, the law which makes it unlawful for Web sites to gather information about children. Older kids, however, are in a gray area. While such sites require the user's credit-card number before granting access, teens armed with Visa Buxx potentially might be able to wiggle their way in. Visa's Kann says the company has foreseen such complications, though. If an inappropriate site for teens is accessed, Visa Buxx would immediately notify parents with an e-mail.