Netspend is an American financial institution that was founded back in 1999. It specializes in prepaid debit cards, both Mastercard and Visa cards, that you can get without any checking account.
Better yet, there are no activation fees and no minimum balance required to open your Netspend prepaid card account.
The company also doesn’t check your credit score and credit history, and even if you have no or bad credit, you’ll be able to get your Netspend prepaid card. However, you’ll need to pay a monthly fee that’s also unavoidable to use your Netspend prepaid debit card.
This article reviews one of the best features of Netspend cards, which is overdraft coverage. We’ll also discuss some reviews by real customers of Netspend to help you understand whether or not you need Netspend overdraft service or not.
READ: How Does NetSpend Overdraft Protection Work?
Netspend Overdraft Protection: Our Review
Netspend prepaid card company allows its users to sign up for a free overdraft buffer or purchase cushion of $10. As a result, you won’t need to pay the typical overdraft fee if you use more than the amount that you have on your debit card.
This overdraft protection provides you with a wiggle room, but it’s not entirely free. You’ll need to repay your negative balance within 24 hours, and if you fail to do that, you’ll need to pay $15 per occurrence.
It’s important to note that Netspend doesn’t authorize each overdraft. According to the terms and conditions of Netspend, the company doesn’t guarantee payment of each overdraft occurrence and pays overdrafts only at its discretion.
It means that unauthorized overdraft transactions will be declined automatically, and you’ll need to pay transaction fees for each declined transaction. But the Netspend account allows you to opt for overdraft service, unlike most prepaid cards.
Additionally, if you go beyond the overdraft purchase cushion of $10, you’ll need to pay $20 on each occurrence. This purchase cushion is only available to qualifying direct deposit Netspend prepaid cards.
Eligibility and Activation
There are multiple ways to activate the optional overdraft protection on your Netspend convenient debit card. However, the easiest and fastest way is to call the company’s toll-free number, but you can access your account online for this purpose as well.
You’ll first need to get your Netspend debit card by providing your personal information, including add, date of birth, and email address, and activate it if you haven’t already. Once you have an activated Netspend prepaid debit card, you’ll need to sign-up for the company’s direct deposit service.
Receiving an amount of at least $400 in your Netspend debit card account in the last 35 days is also necessary to be eligible. After that, you can request Netspend overdraft protection, and the company will activate it within 24 to 30 hours.
Overdraft Protection Service Deactivation
The Netspend overdraft protection gets deactivated automatically if you fail to receive $200 in your account every 30 days.
In addition, the overdraft protection will be canceled permanently if your debit card account remains in a negative balance for over 60 days or more than 30 days three times.
Netspend Overdraft: Customer Reviews
Connie from Milwaukee, WI
Netspend allows me to manage my finances efficiently. It’s a great financial service provider that not only allows me to transfer money whenever I need it. But it also offers optional savings account with 5 percent APY, which is more than what traditional banks offer.
The Anytime alerts are also excellent because they help me to keep track of my account, especially when I overdraft (that I usually do). I also receive my salary, and the direct deposits of Netspend have made my life easier than ever.
Shannon From Independence, LA
I have been using Netspend for years now, and I only have one complaint. Once I called Netspend to let them know that I want to cancel a service I bought online using my card. The customer representative canceled out the card that I needed to reactivate. Thankfully I had a separate All Access card that I started using.
Other than that, all of my experiences with this company are awesome. My Netspend all-access account allows me to do everything I want, and I love the overdraft protection service. I am a regular online buyer, and this card also allows me to earn cashback and payback rewards on some of my online purchases.
Jamie from Gaithersburg, MD
I like the benefits that Netspend prepaid debit cards bring to the table. Whenever I call Netspend, I get my questions answered and queries solved. I only want to mention that some places don’t allow me to use this card, which has happened three times.
The direct deposits allow me to receive my salary two days early, and I also enjoy overdraft protection that gives me a courtesy buffer while shopping online. Netspend is undoubtedly one of the best financial services, and I’m completely satisfied with it.
Emily from Hudson, NY
The first thing that I liked about this financial company is that it didn’t even need any credit check to open my account. I must also mention that its overdraft protection has helped me countless times.
I love the Netspend mobile app that allows me to keep track of my finances all the time, and I can withdraw cash, pay bills, and add money to my account whenever needed. I’m a retired guy, and I regularly receive my government benefits in my account up to 2 days early.
I also have a traditional bank account, but I think Netspend is one of the most convenient forms of payment, and It would have been perfect if they had any way to avoid monthly fees. But still, it’s an excellent financial service that offers everything I need.
Dulce from Austin, TX
I’ve been using a traditional bank account, but I had to pay $30 every single time in case of an overdraft. But It doesn’t happen with Netspend, and I love the fact that the company doesn’t perform any transaction if I don’t have money in my account.
I helped 2 of my friends open a Netspend account, and they’re also enjoying the seamless experience.
