Prepaid cards are stored-value cards that many people commonly use. Some of these cards can generally be used as any other banking card (Visa or Mastercard) to withdraw cash from ATMs and use it at places where the banking cards are used. These cards require adding value rather than linking it to a financial account.
One such widely used prepaid card is the Netspend card. We talked about this card in our article when we gave answers on where you can cash a government check. This article will focus on using the prepaid card issued by Netspend and the overdraw facility offered by it.
Introduction to Netspend Cards
Netspend was launched in 1999 when prepaid cards were reasonably new. It offers services for providing prepaid Visa and Mastercard that can be restored with funds. Since it is not a credit card service that may charge you specific fees or interest to carry out the benefits, Netspend cards are free from extra charges like activation fees. It does not require you to maintain a minimum balance on your card, reload the money and use it.
Netspend card users have three plans to choose from. Pay-as-You-Go’s basic plan does not charge its users any monthly subscription fees. However, users have to pay charges for purchases made with the card. Two other plans allow Netspend card users to make charge-free transactions, but these plans charge monthly fees. If you do not wish to pay higher service fees or transaction fees, you can go for the premier plan, where you have to make minimum deposits every month, pay minimal monthly fees, and get unlimited cost-free transactions.
To obtain a Netspend card, you do not need to go through a credit check. Just submit some proof of identity, which is necessary, and get your card. Netspend cardholders can add or reload funds to their prepaid cards through bank transfer or direct transfer. They can also use Netspend reload services like network locations set by the company or card account transfer. It also allows you to deposit funds through your salary checks and income tax refunds.
If we talk about the security of Netspend cards, it provides security up to the current limit as it is insured by the FDIC (Federal Deposit Insurance Corporation). It can be used in place of Visa and MasterCard, like at ATMs or stores and malls. But what happens if your car runs out of funds and you cannot find a way to reload the card? Does it allow you to overspend? Continue to know about the overdraw service by Netspend.
Can you overdraft a NetSpend card?
You can overdraft a NetSpend card only if you previously chose the NetSpend Overdraft Protection service. It would help if you accepted the Optional Debit Card Overdraft Service option. If you do not accept protection service, Netspend will not allow you to go over the amount authorized on your NetSpend card.
Does NetSpend have an overdraft?
Yes, NetSpend has an overdraft fee, and you can overdraft a NetSpend card if you part of the NetSpend Overdraft Protection service. In this case, NetSpend will provide you a 24 hour grace period when you can avoid an overdraft fee if you bring your account to a positive available balance within 24 hours from the time of the first transaction that was created the negative balance.
However, if you do not accept the Overdraft protection service, Netspend will not allow you to go over the amount authorized on your NetSpend card.
Overdraw facilities are available on Netspend cards, but not for every cardholder. To avail of this facility, users have to subscribe to an additional overdraft protection service. Those who do not enroll in this service cannot overdraw their Netspend cards.
How much is the NetSpend overdraft limit?
Netspend Overdraft limit does not exist. NetSpend can allow you 3 overdrafts per month, and you will be charged a $15 fee for each overdraft. You also get a free overdraft buffer or purchase cushion of $10. Loans or payday advance loans are not available from NetSpend. Remember that NetSpend will provide you a 24 hour grace period to return the money when you can avoid an overdraft fee. So, if you in less than 24 hours, you will not pay an overdraft fee as a member of the NetSpend Overdraft Protection service.
How much can you overdraft Netspend all access?
There is no exact overdraft limit amount defined as the maximum number of dollars that you can overdraft NetSpend all access. However, you will be charged a $15 fee for each overdraft. You also get a free overdraft buffer or purchase cushion of $10.
Can you overdraft NetSpend at ATM?
You can overdraft NetSpend at ATM, but only if you previously activated the OverDraft Netspend Protection service. Netspend will charge you $15 per overdraft transaction up to three transactions each month. But, if you in 24 hours, make payment and make a positive balance on your account, there will be no overdraft fee.
How Does NetSpend Overdraft Protection service Work?
Those who avail of the overdraft protection service receive an accessible overdraft facility up to $10. If the cardholder goes below this buffer, they will have to pay overdraft fees of $20 per negative balance recurrence, a maximum up to 5 times a month. The fees are only charged if the cardholder fails to reload the balance within 24 hours.
However, the full rights of discretion of the overdraft facility lie with the company. It, at any point in time, can deny your overdraft transaction. Even after registering for the facility and agreeing upon the payment of overdraft charges, your marketing can get declined.
How To Activate Overdraft Protection Service?
The essential criteria to avail the overdraft protection service are to submit your email address and agree to the terms and conditions of the overdraft contract sent electronically. This facility cannot be availed by simply signing up. Cardholders have to make sure that their deposit history is good. They have to deposit an amount equal to or above $200 every month. Regular deposits will make you eligible to avail of overdraft protection service.
Users will receive notification of overdraft if their account balance goes below -$10. After receiving the notification, users have to reload their account balance above $10 within 24 hours. Otherwise, a fee of $20 has to be paid by users for the overdraft protection service if they fail to reload the account in time.
How To Deactivate Overdraft Protection Service?
Netspend overdraft service automatically gets deactivated if a user cannot maintain regular monthly deposits of $200 or more. If users want to restart the service, they cannot restart the old plan but have to reapply for the service. However, users can permanently get banned from the service if they have a negative balance for a continuous period of 60 days or three times for 30 days each.
If the overdraft protection is deactivated for the above or other reasons, cardholders should not revoke the electronic disclosure consent or withdraw their email address. By deleting the email address, users may no longer be able to access their accounts. Remember that only the overdraft service has been deactivated, not your Netspend card.
How to see pending deposits on NetSpend?
To see pending deposits on NetSpend, you need to log into an online NetSpend account, and in Dashboard, you need to list all your Transactions from the main page. Your deposit is marked as “Credit” and if you click on it, you will get details about the pending deposit. See the image below:
