When we think about payment card products, more common applications like corporate expense cards and customer loyalty cards typically come to mind. But, this is just the tip of the iceberg. Today’s financial technology provides the power to serve the unique needs of people from all walks of life. Whether it’s supporting students living away from home for the first time, protecting global travellers from fraud, or providing financial freedom and security for the most vulnerable, the suite of tools on offer allow us to cater to both familiar and more niche use cases.

When considering product design, and ensuring the solution provided meets the needs of users, controls are vital tools. Controls provide the ability to implement guardrails and prescribe rules for how the product is used. However, far from merely enforcing restrictions, they create the opportunity for a thoughtful, intelligent approach to tailored financial services that align with user needs, ensuring safety, empowerment, and financial literacy.

In this article we are going to explore the role of controls in payment card products, their significance, and best practices for implementation. We’ll also examine how these controls can benefit more nuanced use cases, while ensuring common pitfalls are avoided.

Understanding Controls in Payment Card Products

Controls refer to customisable features within payment card products that allow users to set spending limits, approve specific transactions, and restrict usage based on various factors, including time, location, channel (online, mobile, ATMs, etc.), or the type of retailer. Together they create a framework of control and security that empowers users to manage their finances effectively.

Controls matter because they bridge the gap between unprotected spending and tailored financial management, and can help play a crucial role in:

• Promoting Financial Literacy: By helping users understand and manage budgets, controls foster a sense of responsibility.
• Protecting the Vulnerable: From shielding children from inappropriate purchases to assisting vulnerable adults in avoiding scams, controls provide additional layers of protection.
• Encouraging Goal-Oriented Spending: Controls ensure that funds are used for intended purposes, such as education or essential expenses, rather than impulse purchases.

The Student Use Case: A Framework for Success

Consider a payment card product designed for university students. Parents can use controls to provide their children with financial independence while ensuring their safety. 

There are a number of controls that may be useful in this instance. They might include spending thresholds that enable parents to to allocate funds for specific categories such as rent, tuition, and groceries, ensuring essentials are covered, and the risk of overspending is reduced. 

Time-based releases is another where funds are released monthly or each semester to mimic a salary system, teaching students to budget over time. For larger purchases or unexpected expenses that might arise in the event of an emergency, parents can both proactively or reactively adapt the controls, in the moment, to suit the situation.

These controls strike a balance between autonomy and oversight, allowing students to develop financial skills without hindering them from enjoying their time away from home.

Expanding the Benefits: How Controls Empower Everyone

Similarly, whatever use case you have in mind, there are controls to suit that need. For example, customisable spending limits can protect vulnerable adults against scams, while providing tools to organise recurring expenses. Similarly, geographic controls ensure cards only work in pre-approved regions, helping global travellers to reduce the risk of fraud. In instances where a caregiver is in charge of a family member’s spending, setting limits around where and how money can be spent, as well as how much, provides peace of mind and ensures that financial resources are used responsibly and effectively.

Avoiding Pitfalls in Control Design

However, while controls can empower users, when they’re poorly implemented, there is a risk of them becoming a hindrance rather than a help. There are several common mistakes that should be avoided here.

Overcomplicating the product with excessive options can confuse users, making the product less accessible. When restrictions are too rigid, such as blocking transactions at specific times without exceptions, this can cause frustration and even lead to dangerous situations where funds are inaccessible when they are needed most. In the same vein, assuming a one-size-fits-all approach can overlook the unique needs of different user groups, locking out a potentially valuable audience from using the product.

Best Practices for Implementing Controls

To maximize the benefits of controls, it’s best to start as simply as possible. While it can be tempting to implement every single available control, this typically results in a complex product that users struggle to use. A far better approach is to introduce basic features and build in more advanced functionality later in response to user feedback thus ensuring a product that is truly fit for purpose. 

In the context of keeping things simple, user experience is a critical component. The key is to focus on usability by ensuring the control dashboard is intuitive, with easy-to-navigate settings and clear language. Controls should be easy to find, well explained, and not hidden behind layers of menus.

In addition, controls implemented with the best intentions can sometimes create challenges. Take the student example. Parents might like the idea of adding time-based restrictions on the card to ensure it isn’t used late at night when the student should be safely asleep and unable to monitor for unauthorized activity. While this may be a well-meaning control, it may end up backfiring if, for instance, the student’s car were to break down and they needed to pay for a taxi to get home safely. Incorporating emergency features allows users to override such restrictions seamlessly in critical situations, balancing security with flexibility.

Having a clear vision of who the product is for and the problem it solves is essential. The most effective approach is to start by identifying the problem, determining how technology can improve the solution, and then deciding what controls will ensure the issue is addressed without hindering the user’s experience. 

For example, two-factor authentication (2FA) is a critical security feature, but if overused or poorly implemented, it can frustrate users. Imagine requiring multiple passwords, repeated information inputs, or apps spread across different devices just to complete a single transaction. 

While the intention is to enhance security, these controls can make the product cumbersome, deterring users from engaging with it fully. Starting with the technology in this way often results in a product that functions well for one aspect but doesn’t truly serve the user.

Designing with Purpose

Ultimately, no matter who the product is designed for, (and there are hundreds of possible use cases in addition to those covered here) the key to implementing the right controls lies in understanding people and creating solutions that adapt to their needs. As technology continues to evolve, so too will the potential for intelligent controls to drive greater financial inclusion, enhance security, and empower users to navigate an increasingly digital world with confidence.