Three out of ten teens and six out of ten college students now use payment cards supported by their parents or guardians, according to Ondot research. What's more, a survey conducted T. Rowe Price shows that 13 percent of 8- to 9-year-olds and 18 percent of 10- to 12-year-olds have access to cards.1 And those numbers are increasing rapidly.
The card can be switched on and off by the parents with a single touch – on the go, as many times as the parents want, all day and night, for always-on control.
Parents who have shared their cards with their dependents talk about the advantages. For dependents of all ages, payment cards offer a convenient way for them to access funds for everyday purchases and emergencies. Cards also help teach responsibility and establish credit for when teens head off to college or go on their own and need to rent an apartment, sign up for their own cell phone plan, and look for a job.
But with access to a payment card comes risk. Ondot mobile card services with parental controls offer a solution. Parents can proactively control their dependents' cards ensure that only required purchases are being made.
Managing Delegated Card Purchases
Parents can give their dependents a card that can be controlled through the parents' mobile smart phone. The card can be switched on and off by the parents with a single touch – on the go, as many times as the parents want, all day and night, for always-on control.
By spending limits
The card can be set with a spending limit for each transaction and for the month.
By transaction type
A parent doesn't want their child making online purchases. Just as Apple in-app purchases require dependents to approve purchases, the card can be turned off for all on-line transactions. If the need comes up to make a purchase online, the card can be turned on for that purchase and then turned off after the purchase.
The card can be proactively turned on for some merchants but not for others. A parent wants his college student to use the card only for buying meals, books, transportation or school supplies. The card can be proactively set to work at restaurants, bookstores, and stationery stores but not at merchants that sell alcohol and tobacco.
Parents may not want their dependents going on risky excursions. They can setup location parameters to make the card operate only in and around the neighborhood, school, university campus or city limits. The child wants to take a road trip? The parent can authorize new locations and then turn them off after the trip.
Complete Visibility of All Card Purchases
With Ondot mobile card services, cardholders who delegate cards to their dependent can have full visibility of how their money is being spent. Each transaction sends an alert to the parent's mobile in real time. They are always in full control of their delegated funds, increasing confidence in delegated card use.
Delegating a card requires a significant level of trust, not only on how the card is used but also on how it is protected. Cards can be stolen or misused by friends. Having a mobile application that establishes controls and provides real-time visibility into all transactions significantly puts the cardholder at ease, instantly flagging and reducing fraud. Parents can review their dependents' transactions, flag those that appear to be fraudulent, and request action. The card can also be switched off if it's misplaced and switched back on if it's found. That can all be done quickly and easily, in the palm of the hand, without having to call customer support.
To learn more, talk with your Ondot sales representative.