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For parents tired of listening to their teens' piteous (and frequent) imprecations for cash, four companies have introduced reloadable payment cards for kids 13 to 17 that look and behave almost like grown-up credit cards. There are no interest charges, but some have grown-up fees.
CobaltCard, www.cobaltcard.com, is backed by American Express.VisaBuxx, www .visabuxx.com; PocketCard, www.pocketcard .com; and M2Card, www.m2card.com, are affiliated with Visa. The cards come with spending maximums set by adults. Parents transfer money from their own checking account or credit card to a teen's card either through a web site or voice-response phone line. The youngster can use the card wherever American Express or Visa cards are accepted, online or off. When the spending limit is reached, kids can't spend more. An exception: If a merchant doesn't ask for authorization for purchases under a certain amount, your kid could run up charges that exceed the limit of the card. A parent would have to make good on the amount.
In the case of lost or stolen cards, all issuers say teens aren't held responsible for the money if they report the loss ...