Spending limits don't particularly matter here.

AWS doesn't check if your credit card will be able to handle a $5k charge before letting you rack that up, and in fact AWS doesn't support setting any spending limit.

You just have to put in any valid credit card at all when you sign up, use AWS, and at the end of the month you'll have a bill. At no point does your credit card limit or a spending limit enter into things.

Nobody has a card without spending limits.

The minor wouldn't be the actual person entering a debt contract here, the parents are agreeing to be responsible for the debt. The minor is only an authorized cardholder.

Think business accounts. The name on the card might be some agent of the company but they're not directly responsible for paying the debt. The business is responsible for the debt.

I think you mean debit card? In the UK at least you need to be 18 to agree to agree to a direct debit too. Rarely comes up since they're mostly for bills, but e.g. for a phone/SIM on contract it has to be in a parent's name for that reason.

I don't think the type of the card really matters as long as the limits are reasonable.

> Over here minors can't enter into debt contracts like credit cards

In basically all of the western world minors can enter into debt contracts, but are generally not seen as particularly creditworthy.

I'm reminded of the bot @needadebitcard on Twitter 10(?) years ago, that reposted pictures of people's cards that they posted on Twitter for the public to see.

Some banks make chargebacks so easy that people just click the chargeback button without trying to reach out to the vendor. I see this a lot - I work for a “vendor”.

AWS has done a lot wrong by making it hard to see costs up front. Their entire billing model borders on fraud.

If you mean parents using their children SSN to open a credit card, this is because US banking system is always decades behind the rest of the world, so they just accept the number blindly even though technically the children aren't allowed to open a loan yet, being minor.

In theory once the child grows up and shocked that their credit score is ruined, they can file a police report to wipe the debt, but that also means their parents will go to jail, a large risk considering they're likely not in a good physical/mental health in the first place.

Other countries solved this by either having national ID or a working KYC system.

It is possible to defraud a lender and cause your own child grief from bad credit reports and creditors but ultimately the debt isn't collectible or lawful as should be obvious.