A Netspend card is not a credit card. The NetSpend Card is a Visa debit card that can be used to pay for goods and services from your NetSpend balance, both online and in stores. Your Card can be used to make purchases, pay bills, or get cash from ATMs.
Unlike most gift cards, NetSpend prepaid cards can be used indefinitely, as long as money is continually added to the card.
If you’re having trouble managing your finances Netspend is the answer to all your money problems.
But before you can start spending money you may be wondering, is Netspend a credit card?
Read; Can You Track Your NetSpend Card?
Is NetSpend Card a Credit Card?
In short, no Netspend is not a credit card. It is a prepaid debit card, which means you can only spend money you already have by depositing it in your account. You cannot borrow money from the card issuer up to a certain limit, unlike a Credit card.
This guide is going to explain how these prepaid debit cards work, what you can do to open a Netspend account, and any transaction fees you’ll have to pay in the process.
Can i Use my Netspend card as a credit card?
No, you cannot use your NetSpend card as a credit card as you can only use and access the funds loaded to your card, unlike a credit card where you can loan money from the card issuer. Your NetSpend debit cards deduct money directly from your account and will stop working as soon as your balances are empty.
However, Netspend does let cardholders overdraw their accounts, but only if they have previously enrolled in their overdraft protection service.
If you are not enrolled, Netspend will not allow you to go over the amount that is loaded on your card.
Are Netspend prepaid debit cards legit?
Yes, NetSpend Cards are legit and real. Netspend is an established financial institution that has been a leader in the world of visa debit cards since 1999.
With more than 10 million loyal and satisfied customers they are definitely a reliable organization.
What is a Netspend Card?
Netspend prepaid cards are one of the most popular debit MasterCard options for two reasons.
- Firstly, they require no credit check so anyone can get one.
- Second, there is no limit for minimum balance.
For young people entering the job market, this is a dream come true.
Your NetSpend visa prepaid card is insured by the FDIC up to their standard coverage limit and you can use it at all stores or outlets that accept debit cards. You can also use it to pay bills directly. In fact, by setting the essentials like electricity, water, and gas on autopay you’ll never have to worry about missing a payment.
Additionally, since this is a debit and not a credit card you don’t have to worry about paying it off, or your debt collecting interest.
Essentially, with a debit card you’re basically just spending the money you’ve earned, only you’ve put it in the bank instead of handling cash.
Like all debit cards, Netspend does not offer tax refunds, reward offers, or airline miles.
How to get a Netspend Card?
The process for getting a Netspend Prepaid Mastercard is extremely simple. You send in your application with your name, address, and email id. Once again, there is no need for sending in your credit score.
The only reason they need your basic details is for identity verification. Once that is done your bank account will be approved and your Netspend card will be mailed to your address. Generally, you can expect to receive your Netspend prepaid card within 7 to 10 business days.
Will you have to pay a transaction fee with your Netspend card?
The answer to this depends entirely on your shopping habits. If you are at a store and choose the credit option at the checkout desk you will have to sign the receipt and will be charged a $1 fee. On the other hand, if you choose the debit option you’ll have to enter your PIN number and will be charged a $2 fee.
However, there is a way to avoid these individual transaction fees. Netspend offers Premium Fee Advantage Plans. With these, you can opt out of the individual transaction fees and instead pay monthly fees that are between $5 and $9.95. Netspend cardholders pay $2.50 for domestic ATM withdrawals and $4.95 for international ATM withdrawals.
So to answer the question, yes there is a monthly fee that users have to pay. Additionally, another fee that Netspend charges is an inactivity fee which only applies when you stop using the card for a long period of time. Most people don’t need to worry about this since if you’re getting the card you likely intend to use it regularly.
How to load money into your NetSpend Visa card?
Loading funds into your prepaid card is very easy. You can add money to your Netspend account through direct deposit, the online account center, bank account transfers, Netspend card account transfers, or add money by visiting one of their reload locations.
Out of these options, you can use the first two without paying any additional fees.
Why should you get a Netspend card?
The best part about getting the Netspend card is that there is no minimum cash limit or credit score requirement for opening the account.
This makes the Netspend prepaid cards a great option for not just young people with low credit ratings, but for anyone who wants to open an account with minimum fuss. Since you only need to send in your basic information the processing takes 1 to 2 weeks.
Then there’s the fact that this card will let you separate your personal expenses from business spending and let you categorize everything making paying your taxes and keeping track of your money super easy.
As for businesses, the Netspend Card is a great way to manage employee spending. Instead of waiting for them to submit a report and tell you where they spent their business funds, simply ask them to charge it to their debit card.
You will get detailed reports and the Netspend Small Business Prepaid Mastercard lets you send funds to 10 subaccounts for official purposes.
Is a Netspend Card safe?
A question we often hear is, can someone use my Netspend card? The answer is yes. If someone steals or takes your card they can withdraw your money. That’s why it is incredibly important to take good care of your card. Don’t lend it to friends and family or leave it lying around.
In order to maximize the safety protocols, you should sign up for the Anytime Alerts.
These let you know whenever a transaction is made by sending you a text message or email. This is a great way to monitor the status of your Netspend account.
Bottom Line
The Netspend Card is a great investment for everyone, from individuals wanting a debit card for easy spending to businesses who need to monitor employee spending.
Whether you’re getting into the job market with a low credit rating, or a professional who needs a card urgently the short processing time and minimal requirements make the signup process super simple.
So what are you waiting for? Get your card today and start spending!
