America Online announced that the latest version of its service, AOL 9.0 Optimized, will contain an AOL Cash Card program for teens and young adults. AOL members will be able to sign up for the AOL Cash Card program at no charge.
AOL developed the AOL Cash Card program, in partnership with Visa, to provide a parent-controlled, re-loadable payment card that gives teens a way to make purchases. The program allows parents to set spending limits, track their teen's spending, load additional funds onto the account every month or set up a recurring load schedule to maintain the card as an "allowance," receive real-time updates on purchases, and access transaction histories entirely online through the AOL service.
As part of the program, teens will receive an AOL Visa Buxx Cash Card, which looks like a traditional Visa card with a magnetic stripe and the teen user's name embossed on the card. The card may be used for purchases, both online and offline, anywhere Visa is accepted, and may also be used for cash withdrawals at ATM machines. The AOL Visa Buxx Cash Card is a prepaid card, not a credit card that functions as a loan from a bank, or a debit card that draws on funds from a checking account. Each transaction draws from a fixed amount of money that parents load onto the card. The card will be issued by Bank One, the largest Visa card issuer in the world, and carries no annual fees for AOL members.
The card has the same security controls as all Visa products, including secure account information, replacement of lost cards, and coverage under Visa's Zero Liability Policy in case of theft.
