why getting a debit card for a minor is different
imagine a typical day in the life of an elementary school student these days: buying snacks with QR payments at convenience stores, swiping their transit cards to ride the bus and subway, and ordering school supplies online. It's a scene that would have been hard to imagine just a few years ago.
but current financial regulations haven't kept up with this reality: Until now, debit cards were only available to people over the age of 12, and children under 12 could only use prepaid cards loaded by their parents. if you're a parent of an elementary school-aged child, you've probably felt the inconvenience.
to bridge the gap between this reality and the system, the Financial Services Commission has decided to abolish the age limit for issuing debit cards to minors through a revision of the terms and conditions in the first quarter of 2025. Minors under 12 will now be able to have a debit card in their own name with parental consent.
lowering the debit card age limit key takeaways
limitations of the current system
currently, the only payment methods available to children under 12 are prepaid cards. these cards are pre-loaded with a certain amount of money by a parent and can only be used within that amount. While this may seem convenient, it's a hassle to top up the card every time, and if the balance runs low, you could suddenly be stuck without a way to make a payment.
what's different
the Financial Conduct Authority is looking at removing or significantly lowering the age limit for debit card issuance. the key is parental consent. with parental consent, children will be able to get a debit card at any age. this will allow children to start their financial lives with a card with their name on it, which will naturally lead to financial education opportunities.
increase the limit for post-paid transportation cards
50,000 won't cut it
currently, minors have a monthly limit of 50,000 won for post-paid transportation cards. however, there are many students whose monthly transportation expenses reach 70,000 to 90,000 won due to rising transportation fares and increasing commuting distances. Traveling from home to school, academies, and libraries, 50,000 won will quickly run out.
expected to rise to 100,000 won or more
reflecting this reality, the Financial Services Commission is considering raising the limit for post-paid transportation cards to 100,000 won or more. this is good news as the burden of transportation expenses for young people is increasing. the higher limit will also reduce the inconvenience of having to scramble for cash at the end of the month when the card is blocked.
family cards are here
what is a family card?
a family card is an additional card for a child within a parent's card account. it's more than just another card - parents can set their own rules about what types of businesses they can pay at, daily or monthly spending limits, and what times of day they can use the card. for example, they can allow payments at convenience stores and stationery stores, but block online payments.
real-time alerts
another great thing about Family Card is that all payments are sent to parents' phones in real-time. you can instantly see where and how much your child has spent, which can help prevent overspending and teach them good spending habits. it's currently being piloted by a few card companies, and the Financial Conduct Authority is looking to make it a permanent feature.
what are the safeguards for minors?
there are concerns that issuing cards to minors may increase the risk of overspending or fraudulent use. the FSA will put in place a number of safeguards to minimize these negative effects.
first, parental consent will be required. the card cannot be issued without parental consent. minors will not be able to enter into financial contracts independently.
second, spending limits and business restrictions. parents can set their own spending limits and specify the types of businesses that can be paid for. They can also block certain online stores or games.
third, a real-time notification system. parents are notified immediately whenever a minor uses the card. if any unusual transactions occur, they can see and react immediately.
the Financial Services Commission plans to fully implement the system as early as the first half of 2025.
frequently asked questions
q1 Can my child under 12 get a debit card?
yes, after the revised terms in Q1 2025, children under the age of 12 will be able to get a debit card in their own name with parental consent.
q2 What is the limit for a post-paid transportation card for minors?
currently, it is 50,000 won per month, but the Financial Services Commission is considering raising it to 100,000 won or more. the exact amount will be finalized when the program is implemented.
q3 How do I manage my child's spending with the family card?
with the Family Card, parents can set their own spending limits, payment methods, and time of day. all payments are sent to the parent's phone in real time, so they can check the spending status immediately.
q4 How do I get parental consent to issue a debit card to a minor?
the specific consent process may vary by card company, but in general, it is expected that parents will either apply in person or provide their consent through self-authentication.
q5 When will the new system be implemented?
the Financial Services Commission is expected to finalize the revised terms and conditions in the first quarter of 2025, with full implementation starting in the second half of the year.
conclusion
from 2025, the age limit for issuing debit cards to minors will be relaxed and the family card system will be officially introduced. if you're a parent preparing your child for their first financial experience, this is something to keep an eye on. if you have any questions, please leave a comment, and if you found this article useful, please add a neighbor and subscribe.