Children as young as 13 will be able to apply for pre-paid Visa cards which can be used in shops, online and at cash machines.

The so-called “Load and Go” cards are being issued by mobile network O2 and can be obtained without parental consent, although parents will be informed when an application has been made.

The card, which is being launched in partnership with Natwest bank, comes with no fees and no overdraft facility, meaning that young users will not be able to spend more than they have loaded on the card. Money can be loaded online, at O2 stores, PayPoint and e-pay outlets. Users will be sent real time balance reports to their mobile phone.

A spokesman for O2 said: “This offers a much safer alternative to carrying cash around as it uses Chip and Pin security and can be blocked and replaced if stolen or lost, ensuring the money is safe and secure.”

The average age at which a child obtains a mobile phone is now just eight years old. Moreover, one in five children are already using their parent’s card to buy goods online, O2 has said.

The company said that it will put in measures to prevent children from purchasing pornography, 18-certificate DVDs and alcohol online.

O2 and Natwest have also launched a pre-pay card for adults, called “Cash Manager”.

Experts say that the new pre-pay cards will be of help to people who struggle to manage a monthly budget, or wish to ring fence their spending money away from the money they spend on bills and mortgage repayments.

Last year Lloyds TSB caused outrage when it offered Visa debit cards to children as young as 11 without requiring parental consent. One father was horrified to discover that his son had bought Viagra, cigarettes and fake ID over the internet using the card.

In response to such concerns, O2 chief executive Ronan Dunne said: “You can choose to close your eyes or accept that abuse is going to happen. This card will be a cash management tool for young people with the benefits of a Visa card but within a safe framework.”

This entry was posted on Wednesday, July 15th, 2009 at 3:14 pm and is filed under Banking, Budgeting, Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.