Under the program, authorized users share one credit line, but the family’s primary cardholder sets spending limits for each.
Controlled payment number technology provider Orbiscom Inc. has launched a new product aimed at facilitating the controlled used of family credit cards among teens, and is in talks with major credit card providers who are considering incorporating the feature as a service option, the company tells InternetRetailer.com. While the controls on spending under Orbiscom’s ControlPay Authorized User Account apply to both online and offline purchases, the web facilitates account management by the primary cardholder by providing 24/7 online account access and e-mail alerts on account transactions.
The account uses one shared credit line that is assigned to the family’s primary cardholder. Each additional cardholder gets a credit card, which can be used online or offline, with a unique number linked to the main account.
The primary cardholder determines who the additional cardholders will be and sets controls on how each spends under the shared credit line, such as, for example, setting a maximum total spending level or maximum spend per transaction for each user, even choosing the product categories or specific retailers at which the account can be used.
The primary cardholder will receive a single statement that includes transaction details for each authorized card user. Each authorized user has online access to balance and transaction history, while the primary cardholder has online access to balance and transaction information for all account users, as well as the ability to add users and modify authorized spending limits online. The primary cardholder can opt to receive e-mail alerts about account transactions on a schedule of their own choosing, such as every time a transaction occurs, or whenever an authorized cardholder nears a designated credit limit, for example.
Use of one credit line for all authorized users on the account leverages the card issuer’s existing credit policy, to drive additional spending while minimizing additional risk for the card issuer, the company says. As for consumers, the authorized user account “breaks down the barrier of primary cardholders to offer credit cards and debit cards to teens, young adults and desired users,” according to Orbiscom.