My 9 year old racked up $700 in an afternoon on his new Ipad. In-app purchases on games (we didn't have the restrictions set properly obviously). The credit card fraud department called us to check on the charges as they seemed out of the ordinary. At first I thought our card had been compromised as that's happened a few times lately, but a quick check of the Ipad showed some seriously awesome upgrades in the games he was playing. Called Apple and they immediately cancelled all the charges without hesitation (which saved my son a good deal of my wrath).
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