Visa Introduces Buxx Parent-Controlled, Re-loadable Payment Card for Teens; New Payment Method Encourages Money Management Among Teens and Enables Parents to Monitor Spending

Business Wire, August 9, 2000

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 9, 2000

Visa U.S.A. announced today the development of "Visa Buxx(TM)," a parent-controlled, re-loadable payment card designed to help parents provide spending money for teens and to help teach teens practical money skills. In addition, the card comes armed with a range of parental controls including pre-determined spending values, online transaction monitoring and a parent-administered financial skills assessment test. The new card is expected to be issued by a number of banks in the coming weeks and months.

The Visa Buxx card looks and works like a traditional Visa card with a magnetic stripe and the teen's name embossed on the card. The card works much like a reusable, pre-paid phone card and may be used for purchases anywhere Visa is accepted, including online and at ATM machines. However, Visa Buxx works differently from credit cards that function as a loan from a bank, or debit cards that draw from funds on deposit. Each Visa Buxx transaction draws from a limited amount of funds that parents set aside in advance in a dedicated account. Parents can apply for the card, load funds on the card and track teen spending entirely through the Internet at www.visabuxx.com.

According to recent polls conducted by Visa, parents provide teens with more than 70 percent of their spending money. At the same time, teens rely most on their parents for financial guidance. Based on the needs of American families, the Visa Buxx card was designed with parental controls built-in and companion tools for teaching teens the importance of money management skills.

"Managing personal finances is a necessity for today's teens, who spend more than $153 billion dollars a year - mainly with cash," said Jeff Kann, executive vice president at Visa U.S.A. "We've developed a safer, more convenient tool for teens to spend responsibly while providing an effective way for parents to control that spending and teach the benefits of money management."

Initially, parents will apply for the Visa Buxx card online, eventually paper-based applications will also be made available at bank branches and banks' direct mail efforts. The card welcome kit is mailed directly to the parents' address. When applying for the card, parents and teens are directed to take a financial skills assessment test to determine the financial literacy of the teen and to encourage family dialogue about money management and financial responsibility. A range of online educational materials is also available to cardholders.

Once the card is activated, parents can load, re-load, and/or unload the card with any amount of money by phone or online access. The value of the card is predetermined by the parent, or other authorized gift givers, for the teen to use until its value runs out. Parents are able to monitor how much money their teen spends by viewing current or past account statements on the Visa Buxx website or by a toll-free number that details where and when purchases were made.

The Visa Buxx website, www.visabuxx.com will be operational on August 14. In addition to the parent control features, the Visa Buxx card serves as a secure and convenient form of payment for its users. The card has the same security controls that all Visa products enjoy, including secure account information and replacement of lost cards. In the event that the card is stolen, it will be replaced with the same amount of funds remaining in the dedicated account. Visa Buxx is also covered by the same security and safety measures as all Visa products. As an alternate payment method to cash, the card is a way for parents to provide money to their children that is safer, but still as convenient as cash. Also, because the card can be monitored more closely than cash, it teaches teens how to adhere to a budget for responsible spending and saving.

Visa Buxx will enable banks to better meet the changing needs of their customers by enabling them to responsibly serve the growing teen market. The Visa Buxx platform allows individual banks the flexibility to differentiate their product offerings by adding unique marketing programs and other services.

Visa U.S.A. is the leading payment brand and the largest payment system in the United States, with more volume than all other major payment cards combined. Visa plays a pivotal role in advancing new payment products and technologies to benefit its more than 14,000 U.S. member financial institutions and their cardholders. There are more than 850 million Visa credit, commercial and check cards, which generate more than $720 billion in annual transaction volume. Visa-branded cards are accepted at over 18 million locations worldwide, including some 625,000 ATMs in the Visa Global ATM Network. Visa's Internet address is www.visa.com.