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.”

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The high street bank HSBC has announced it is cutting the cheque guarantee limit on debit cards for some of its customers.

Currently around 300,000 HSBC customers have a cheque guarantee limit of £250. This will now be reduced to the standard £100 cheque guarantee available to the majority of the bank’s customers. However, debit card payments up to £250 will still be guaranteed.

HSBC said that it was cutting the higher cheque guarantee limit in an attempt to minimise losses from cheque fraud and to discourage people from spending money they did not have.

The banking industry as a whole is planning on phasing out cheque guarantee cards by 2011. Many retailers no longer accept cheques, and only 7% of cheques written are backed up by a cheque guarantee card.

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The Co-operative Bank has been named the UK’s best financial services provider at the 2009 Which? awards.

The ethical high street bank was praised for its range of financial services and high standards of customer service.

At the awards, held earlier this month, the bank was said to have successfully weathered the storm of the current financial crisis, and to have won the trust of its customers through high standards of service. It was also praised for its comprehensive range of current accounts, mortgages and savings products, which offered “value for money”.

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The credit card provider and online bank Capital One is to stop offering savings accounts in the UK.

The bank will transfer all savings accounts belonging to existing customers to the Skipton Building Society on 27th July.

Capital One sent letters to all its savers this week informing them of the change. It told customers that the day-to-day running of their accounts would not be affected by the move, and that the new accounts would trade under the name of Castle Money.

“The terms and conditions of your account will not change as a result of the transfer,” Capital One said.

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The number of fraudsters taking over people’s bank accounts and credit cards is on the rise, a watchdog has warned.

A report by the fraud prevention service Cifas reveals that cases of ‘takeover fraud’ in the UK increased by 75% last year.

In the past, fraudsters who gained access to your personal details may have taken out credit cards or loans in your name. Now, however, lenders are more reluctant to give out credit and are more stringent in checking whether applicants are suitable to take out a loan or credit card.

For this reason, criminals are trying to take over existing credit cards and bank accounts in order to gain access to people’s funds. Customers may not even be aware that their account has been taken over, until they receive a large or unexpected bill.

Criminals will often create a website based around a popular story or event in order to entice customers. When someone visits one of these websites or opens an email their computer can be infected with malicious software which tracks the websites they visit and what they type in, including usernames and passwords. With this information, criminals are then able to access your account.

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The government-controlled Lloyds Banking Group plans to cut 1,660 jobs and close its entire network of Cheltenham & Gloucester branches.

The group, which yesterday began repaying its multibillion pound loan from the taxpayer, confirmed this lunchtime that it will be shutting all 164 of its C&G branches in November, which will result in around 1,000 job cuts. It will mean the end of the C&G brand after more than 150 years on the high street. Customers will be directed to use one of Lloyds’ 1,800 remaining branches across the UK.

Lloyds is also slashing 265 positions across its personal loans division, based in Chester and Cardiff, as well as jobs in its retail, personal finance and mortgage sales operations.

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Young people are significantly more pessimistic about the state of Britain’s finances than their parents’ generation, Post Office figures reveal.

According to a report published today by Post Office Financial Services, almost one in four 18-24 year olds in Britain believe that living standards will take over a decade to return to pre-recession levels. A further 34% of people in this age group believe that the UK will not experience economic recovery for another five years. The survey found that the younger generation is more pessimistic about Britain’s economic outlook than any other age group.

In comparison, only 5% of 45-54 year olds believe that the recession would go on longer than a decade, possibly because that generation has already lived through a recession and seen Britain’s economy grow since.

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Britain is a long way off from becoming a cashless society, according to the payments association Apacs, and may always use cash as a form of payment.

Recent figures from Apacs show that spending on credit and debit cards has increased, and now outstrips spending with cash. Moreover, the association expects the use of debit cards alone to outstrip cash in the next few years.

However, Sandra Quinn, director of communications at Apacs, says that cash still has its uses and customers are unlikely to drop it altogether.

“People feel comfortable with cash and will continue to use cash,” she said. “It’s a very good way of knowing exactly how much money you have and haven’t got.”

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Visa is piloting a new credit card, which the company hopes will help tackle card fraud.

The Emue Card, which is being trialled among Deloitte employees, features a keypad and display. When customers type in their PIN a unique code is displayed which is required to complete the transaction. This means that anyone who finds the card but does not know its PIN will be unable to use it.

Internet and phone fraud account for a large proportion of overall card fraud, because the perpetrator does not need to enter a PIN - only details found on the card itself are required.

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A new study by the Office of Fair Trading has revealed that a third of internet users are still afraid to use their credit cards to purchase goods and services online, for fear that their details could be obtained by fraudsters.

One in three UK consumers refuse to shop online because they believe their credit card details could be delivered into the wrong hands, the survey found. The OFT report follows similar surveys showing that shoppers are still wary about using their credit cards online.

Moreover, of those consumers who did shop online, three quarters said they still had misgivings about entering their card details.

In spite of the gloomy findings, the OFT survey shows that consumer confidence in general is on the up, and that consumers are more aware of their rights. Almost three quarters knew that they were not liable if their credit card was used fraudulently, compared with just two-thirds a year ago.

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