The present invention provides a system and method for facilitating a second party account with employer merchant or sponsor control of one or more spending limits. An exemplary system facilitates provision of funds to a second party and control of the spending of second party by an employer or sponsor through establishment or modification of one or more spending limits. Exemplary spending limits may be configured for modifying a spending capacity so as to affect, for example, amount per transaction, per day, during a predetermined time period, at a particular merchant, at a particular chain of merchants, at a type of industry, in accordance with a predetermined rate of increase or decrease over time, number of transactions during any time period and/or any combination thereof. All unspent monies to include but not limited to cash, credit, goods, services, award points and consumer experiences are returned to the first party.