Discover Netspend’s overdraft protection today. Find out how to enroll in Netspend’s Overdraft protection with our essential guide below.
To enroll in Netspend overdraft protection, a customer needs to provide an up-to-date and valid email address. They must also agree to Netspend’s electronic delivery of disclosures and certain amended terms to their contract associated with the overdraft protection.
They must also receive deposits of $500 or more every 30 days in order to qualify.
Most of us reach a point when a little extra cash is needed at the end of the month. This can be due to unforeseen circumstances such as medical emergencies or motoring issues.
This is simply a part of life and the financial obligations the majority of us have. In such circumstances, you may think there’s not much you can do but there are options that could help you out.
If you have a Netspend account but require some additional sums of money, you may be able to take advantage of its overdraft. However, before using any Netspend overdraft, you will need to activate Netspend’s overdraft protection.
Most banks offer overdraft protection as a short-term solution for their customers to use as compensation for a lack of funds. To find out how overdraft protection works with Netspend, a provider of prepaid debit cards for commercial and personal customers, continue reading.
Today, we will discuss how to enroll in this protection and study Netspend’s overdraft protection policies.
Overdraft Protection: What is it?
Before we examine Netspend’s overdraft protection, let’s find out what ‘overdraft protection’ really means.
Overdraft protection is simply a credit facility that gets added to an account. These accounts range from checking to savings accounts but overdraft protection always works in the same manner. It allows the account holder to access funds if their account’s balance gets to zero.
This is typically applicable up to an amount specified by the bank. Therefore, the bank allows the customer to continue using their account even if their balance is zero.
Broadly speaking, an overdraft is essentially a short-term loan that is offered by the bank to the account holder who requires additional funds. As with any loan, this amount must be paid back. This is achieved when the account holder deposits into that account until the balance is above zero once again.
Overdraft protection can only be added to an account if the account holder authorized it. This is applicable to all credit products.
Generally, banks will charge interest for the average balance that is left in overdraft at the end of every month. Moreover, there is typically a monthly fee that customers must pay to keep overdraft protection on their accounts.
They have to pay this even if it is not used.
On the whole, accounts will usually charge lower interest rates than credit cards. Therefore, it is considered a more affordable option in emergency scenarios when money is required quickly.
Because of the service and necessary fees, an overdraft is regarded as something that should only be used in emergencies and not for everyday use. However, overdrafts are commonly used in the United States.
Bankrate found that the average overdraft fee in the U.S. during 2020 was $33.47. This adds up to around $402 every year just for having the overdraft service in place, even if it is not used. Also, interest on top of this balance means it could be even more.
Netspend Overdraft Protection
Overdraft protection is offered by Netspend to eligible customers through MetaBank. This allows Netspend account holders to make transactions with amounts that may exceed their card’s balance. It is worth noting that this service is completely optional and not automatically added to an account upon registration.
To use this service, customers must enroll to activate overdraft protection on their accounts.
Netspend allows customers to load their debit cards with cash and then link these with bank accounts for transfer and payments. Alternatively, customers can choose to have their income tax refunds, paychecks, or other types of benefits deposited into their Netspend accounts directly.
So, how does the Netspend overdraft protection work? Here’s how.
How does NetSpend Overdraft Protection Work?
Netspend allows account holders a buffer of $10. So, once the balance goes beyond $10.01, the protection begins. For each transaction that overdraws the account, Netspend’s charges are $20 but there is a maximum of three overdraft protection service fees every month.
The overdraft protection service must be in place for automatic payments, signature purchase transactions, pin pad transactions, or ATM transactions to be allowed.
Each time an account’s balance goes into overdraft, Netspend charges $15 with a maximum of three transaction fees per month.
How to Enroll in Netspend’s overdraft Protection Service?
If you want to activate your Netspend’s overdraft protection on your account, you will need to provide Netspend with a valid email address. You must also agree to any changed terms to the contract that is associated with signing up for this service and Netspend’s electronic delivery of disclosures.
As well as this, Netspend account holders must receive deposits of $500 or more every 30 days in order to qualify for the overdraft protection service.
If you overdraw your account balance by more than $10, you will receive a notification about the overdraft from Netspend. Netspend will then give you 24 hours to replenish your account to restore its balance to over $10 again. If this is not achieved, the overdraft protection service fee of $20 is applied.
If you fail to deposit at least $500 into your Netspend account every 30 days, your overdraft protection will be canceled. Therefore, you will have to go through the overdraft application process again.
If the account maintains a negative balance for over 30 days three times or over 60 days at any one time, your overdraft protection will be deactivated permanently.
Furthermore, if you delete your email address from your Netspend account or withdraw your consent for receiving Netspend’s electronic disclosures, your overdraft protection will be deactivated immediately.
Overdraft protection should only be used in emergency situations.
For the majority of banks, you will be charged for an overdraft service every month.
This occurs even if you do not use your overdraft.
Carefully consider whether you need overdraft protection before activating the service. If you require overdraft protection, Netspend’s process is very straightforward.