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London Travel and oyster cards odd restrictions

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I am traveling with my family to London for only 3 days and I am very confused with the rules for the travel and oyster cards.

For me and my wife I was planing to buy adult 1 day off-peak Travelcards for zones 1-2.

My children are 12 and 15 and that seems to create a problem if I am right. They don't get any discount buying them 1 day Travelcard. Is that right? What are my options? Should I buy Oyster cards for them in order to get a better price? But then, I need to get a refund on the Oyster card, which I understand it is a mild pain.

Or it would be best to get Oyster cards for everyone and then apply for the refund?

This is very complicated !!!!

Thank you for your help.