A parallel card is a so-called second card that you get for your credit card. In practice, this means that purchases made with a parallel card will be billed to the same credit account as purchases made on the main card. Often, a parallel card is purchased for a child or adolescent, for example, during an exchange year. In addition, parallel cards between spouses are quite common.
Who is responsible for parallel card purchases?
There are two types of parallel cards. In some cards, the card owner is responsible for all purchases made on the card, while in other cards the card and parallel card holders are jointly and severally responsible for the card transactions.
The distribution of responsibilities depends at least on the age of the parallel card holder; a minor child cannot be a joint and several cardholder. The practices of different cards vary with the status of adult parallel card holders, with some automatically treating the adult parallel card holder as being not. You should check with your bank for your own card policy.
When should I get a parallel card?
It is convenient to have a parallel credit card, for example, if your child goes abroad as an exchange student. However, it is a good idea to discuss the rules of the card with your child in advance to make sure the child knows what situations the card can be used for. However, you can set a different usage limit for a parallel card than for a main card.
The American Express Platinum card may be a viable option for a student exchange year card, as in addition to a number of parallel cards, the card includes travel insurance to insure the cardholder’s child under the age of 25 years. The duration of the trip during the exchange study may not exceed 365 days, which is significantly more than the duration of the travel insurance provided by insurance companies.
Not a good idea to send a child with a parallel credit card
However, it is not a good idea to send a child with a parallel credit card to the world, but it is a good idea to get a Visa Electron card, for example, which is widely accepted around the world. In addition, when paying with Electron, the account balance is always checked before the transaction is approved, so there is no risk of overdraft.
It’s also a good idea to get a parallel card if you want to focus your card payment rewards or credit points on one account. For example, it is more profitable for spouses to collect an S bonus for the same S account using parallel cards than for each to earn points for their own account.