Recently I inquired with two banks about issuing a supplementary credit card to a family member (piggy backing as it were my credit card).
“No problems issuing it”, I was assured.
So then I asked: “when I will look at the transactions online, will her use of the supplementary card be listed separately from my transactions? After all, I would like to keep tabs on her spending as it is I who is billed”.
To my surprise I was told that the supplementary card’s transactions will be listed with mine. Mixed inside my monthly statement. No separate listing online or in print of transactions is available. In fact, on my statement there will not even be an indication the transaction came from the supplementary card user.
From bad to worse.
To my horror, I was told that the supplementary card user wants to view her transactions online, she can. But she will NOT just see her transactions, she’ll also see the primary card holder’s transactions. In fact she’ll see exactly what I see.
This, IMHO an appalling breach of privacy, was confirmed to me by two banks. I only asked two and wonder if this is “industry standard”?
No, the supplementary card is in effect a second credit card issued for the same account. It isn’t a breach of privacy as the account holder/primary cardholder authorises the issuing of the second/supplementary card to another person under the same account. It works no differently to say a joint bank account where two debit cards are issued for the one account. Transactions are against the account not against the individual card.
If one doesn’t want the supplementary card holder to see transactions, ask for electronic statements and ask for online account access to be limited to the primary cardholder. Some card issuers allow this to occur.
Alternatively, if one doesn’t want a credit or debit card working this way, get a separate account for each potential card holder, so then each person is a primary card holder. If one can’t normally qualify for a credit card, it may mean someone may need to become a guarantor, which has its own risks and should be fully understood before agreeing to such an approach.
Yes. Information and card management will be driven by the card companies (Visa, Mastercard, Amex etc). The issuer will source the information for transactions from the card issuer…and hence, approach by most card issuers (banks/financial institutions) will be similar.
You seem to be a very trusting and courageous person to offer a credit card facility on your credit account to a ‘family member’. You are totally responsible for all debts incurred. It is your account.
This suggestion has a small hole in it. If I arrange a supp card for say Alex, say with a card issuer with whom Alex has no relationship, the moment Alex opens any a/c with that bank, she will have access to the card’s transactions online regardless of any restriction to view transactions I may wish to impose.
I have no doubt that I am responsible for her transactions. I just find it incredible that there is no way I can limit what transactions online she will be able to view.
It is possible with some products. If it is a concern cards such as American Express, and any who offer business (corporate) card services may be able to meet that need. It may be necessary to go direct to the card business bypassing up your bank to do so or discuss how your bank handles cards for a business account (often not without added cost)?
Experience of several Aussie banks (2 of the big 4) is personal cards are treated as a single account.
Experience of American Express and several corporate card products for work, some can provide individual access restricted to each card holder. I’m not recommending any one product. Only to illustrate what is possible.
I understand that your primary concern is that the supplementary cardholder may be able to see all transactions on the account, but on the topic of determing which cardholder made a particular purchase, I can confirm that both Bendigo Bank and Latitude credit card statements show the card number ( or at least the last few digits ) for each and every transaction on the statement.
Yes you’re right. My inquiries were regarding personal accounts with 2 of the Big 4. Maybe what you say about restricted viewing online is available with AmEx corporate. But how hard is it to tweak the software to allow the same restricted access for personal (Big 4 bank) cards?
Amex also do the same for personal card holders. Refer the link provided previously if curious. How hard to tweak? Amex require the sup card holder to set up a high security account ID and login, equivalent to a regular account holder. No tweaking required on that aspect. The tweaking would be for any regular issued bank branded card how that account holder is linked to the card system. Outside of my knowledge base to offer informed comment.
Similar personal experience to @ScottOKeefe with bank issued cards. Each card has a unique number and transactions are able to be identified by card holder last digits.
As has been stated, the big four view supplementary cards as an additional card for a family member(s). This is a legacy from when all accounts were in the name of the man of the house, and if the man wanted to give the wife access to his money, she got a supplementary card. The man of the house got all statements so he could see all transactions. The wife never received any statements because she was not entitled to get access to information on how the money was spent.
Business cards have worked on the basis of an organisation having multiple credit cards which all had to be individually auditable by the organisation to ensure spending conformed to guidelines and limits for that individual, or role, or that level within the organisation. Staff could only see their own spending, but the organisation could access spending reports for all staff individually, for work areas, and high level summaries.
If you keep copies of all your receipts, you will be able to mark off on the statement which are yours. Any left will therefore belong to ‘Alex’.
If you do not want ‘Alex’ to see your transactions, it will be necessary for ‘Alex’ to apply for her own credit card, probably with a low spending limit. Of course you will not then be able to see what she uses the credit card for.
Is the assumption here the bank will provide independent account access to the card used by the relative? Does the solution rely on a paper based monthly statement being mailed to the principal and secondary card holder. Or can the bank provide an independent internet account login that is linked solely to the card account?
Previously as a supplementary card holder for my father I had access to all accounts through my on line log in.
My wife has a supplementary card for our ANZ Viza account. On the monthly statement, expenditure by each card is identified by the last four digits of the card.
For me the simple way out was to have a separate debit card for each one - they were all over 15 at the time - with not much in their accounts. There was enough for day to day stuff but any bigger purchases required me to deposit the extra funds prior. It wasn’t difficult and it was very helpful for a single parent who had to travel a lot for work.
If your family members are younger I suggest you ask around with the banks to ensure that they can be issued with a debit card. A debit card is doubly safe - they can’t overspend and if the card is skimmed there’s not much in the account anyway.
I considered that option, but it requires them opening an account in their name and me depositing funds into it.
To make life easier I asked two banks if I can be issued another debit card on one of my accounts ie a card in a relative’s name, but no can do I was told.
On reflection, I think you’ve nailed it. I could ask my card issuer for another credit card to be issued to me, which I will barely use and latch on additional cards to that card. So if my relative Alex checks her transaction history on that card, it’ll be no skin off my nose as I will rarely if ever use that (to me, second) card and there’ll be only her transactions listed.
You will need to consider the issue that @mark_m has raised i.e. if you have other accounts with the bank that issued the supplementary card, make sure that Alex is not able to view transactions relating to the other accounts online.
