Can I overdraft my NetSpend card at ATM? You can be overdrawn on your NetSpend card, but keep in mind that any overdraft is paid at NetSpend’s discretion. NetSpend offers an overdraft protection service that allows you to get a free overdraft buffer of $10. For amounts above that, the overdraft fee is $15, up to a maximum of three charges per month, and you have a 24-hour grace period from the transaction that created the overdraft to avoid the charges. To take advantage of this service, you must have a minimum direct deposit of at least $200 every 30 days.
We are here today with the answers you need. Read on to find out if can I overdraft my NetSpend card at ATM and all the information you need to know about it.
Table of Contents
What is NetSpend?
For those who need it, let’s make a quick summary! Netspend is a prepaid debit card created for those who do not have access to traditional banking or who do not rely on payday loans and their super high-interest rates.
Netspend cards are not linked to a bank account and can be used just like any other card. You can make purchases, receive cash checks, receive deposits, withdraw money from ATMs, and pay bills. You also get a mobile app, SMS notifications, and fraud and identity theft protection. These cars are issued by Republic Bank. Banco Bancorp and MetaBank.
There are also many ways to load the card, including online, through benefits, pension payments, and transfers from friends and family. There are charges for loading the card, withdrawing it from ATMs, ticket offices, and periods of inactivity.
The card also has many benefits, such as minimum balance requirements, late fees, overdrafts or interest charges, and the option to have a savings account as well. While you can’t use them to build your credit score, they’re still a good option for those who need a card to manage their money.
What is Netspend Card?
Now that we’ve discussed what a Netspend card is, you may be wondering what an overdraft is. It takes out more money than is in your account. This can be done in stores, ATMs, or banks, and it is something that happens to most people no matter how well they manage their money!
Suppose you have $50 in your account and you are going to withdraw $60 from an ATM to buy food or pay a bill. You have now withdrawn more money than is in your account, leaving you with a balance of -$10. Your account is now red and you will have to deposit more money into the account to avoid charges.
Many banks have a buffer of $10 where if you are -$10 there will be no charge. However, if you go further, you could incur daily and weekly overdraft charges until you deposit more money into your account. These charges can be quite expensive, so it’s best to avoid them whenever possible.
Most banks or cards have an overdraft or the option to add an overdraft to your account. These joint overdrafts allow you to spend more than what you have in the account and repay it during the month. Some of these have interest-free periods or offer no interest or fees on the first $200 you spend on your overdraft. Outside of an agreed-upon overdraft, you may incur high fees and daily charges until the funds are deposited into your account.
Overdrafts are quite common and can happen if you get paid late, mismanaged your budget, or receive a bill that is higher than usual. Now that we’ve covered what it’s like to be overdrawn on your account, let’s see if you can do it with a Netspend card or not!
Let’s get into it!
Can I overdraft my Netspend card at ATM?
Netspend allows you to overdraft your account at an ATM, but only if you are subscribed to the overdraft protection service. If you are not part of the scheme, you may not spend more on your card than is in your account.
This overdraft protection is offered through MetaBank and is an optional service. You must activate it in your Netspend account before you can use the overdraft. It’s worth noting that there is a $20 fee for every trade you place in your overdraft and you can only have three overdraft fees per calendar month.
If you do not have this overdraft protection, you will not be able to overdraft your account. Any attempt to spend more than is on your card at a store, online, or at an ATM will be blocked. You must reload your account before you can use your card again.
Netspend ATM Overdraft Limit in 2022
Netspend offers prepaid debit card users protection against overdrafts when their account balance is below -$10.01. Customers must sign up and have at least one direct deposit of $200 or more every 30 days. Netspend charges $15 per current account for up to three transactions per month.
How do I get an overdraft on my Netspend?
To be overdrawn on your account, as we mentioned earlier, you need to add overdraft protection to your account. To do this, you must have your card through MetaBank and request to add it to the account.
You need a valid email address and agree to Netsepnd’s modified terms and disclosures. You must also receive a deposit of $500 or more every 30 days to be eligible.
Failure to do so will cancel your overdraft protection and require you to reapply for the plan.
Likewise, if the account has a negative balance three times over 30 days or more than 60 days in a row, the protection will be canceled permanently. All of these factors are worth considering before applying for protection.
The last thing you want is for your circumstances to change and for you to lose the protection you’ve relied on!
How does the Netspend Overdraft Protection service work?
Netspend offers its customers a free buy buffer or a $10 overdraft buffer. This means you don’t have to pay a $15 overdraft fee if you go over the amount on your debit card.
While the protection gives him a little wiggle room, it’s not a permanent free pass. You have a grace period of 24 hours to repay the negative balance.
Failure to do so will result in a $15 charge per event. However, this amount is limited to a maximum of 3 installments per calendar month.
That does not mean that Netspend authorizes all overdrafts. Netspend’s terms and conditions state that the company only pays overdrafts at its discretion and does not guarantee the payment of any overdraft.
Unauthorized overdraft transactions will be declined and Netspend may charge a fee for these declined transactions.
How to Enroll in the Netspend Overdraft Protection Service
There are a few different ways to sign up for Netspend’s overdraft protection service. First, you can do this by accessing your online account.
If you do not have an online account, you must create one before activating protection. Second, you can call Netspend directly and they can help you activate your overdraft protection.
It is important to note that they have several eligibility requirements that you must meet before they are approved. The first requirement you need to meet is to sign up for a direct deposit.
In addition, you must have received at least $400 in your account within 35 days to be eligible. To meet this requirement, you must read Netspend’s terms and conditions and accept them electronically.
Second, you will need a valid email address so that Netspend can notify you of program changes. If you can complete all these steps, Netspend will activate your overdraft protection.
This usually only takes about 24-30 hours.
Activation and Eligibility
To activate Netspend Overdraft Protection, the customer must provide a valid email address and agree to electronic delivery by Netspend of the amended contract terms and disclosures associated with the Overdraft Protection Subscription. In addition, a Netspend customer must receive deposits of $200 or more every 30 days to qualify for overdraft protection.
If a customer exceeds their account balance by more than $10, Netspend sends an overdraft notification. The customer has 24 hours to top up the account to restore their balance to more than $10. If a customer fails to comply with the notice, Netspend will charge a $20 overdraft protection service fee.
Overdraft Protection Deactivation
If a customer does not receive deposits of at least $200 every 30 days, Netspend will cancel Overdraft Protection, meaning the customer will have to go through the application steps again. However, if a card account has a negative balance three times in a row for more than 30 days or more than 60 days, the Overdraft Protection will be permanently terminated.
Netspend customers should be careful not to delete their email addresses or withdraw their consent to receive electronic disclosures, as their Netspend overdraft protection will be automatically disabled.
How do Netspend debit cards work?
Netspend was founded in 1999 and has been around for 20 years. Essentially, Netspend offers reloadable prepaid cards:
- MasterCard
- Visa
In case you’re wondering: Netspend does not check your credit. If you have poor or no credit, you may still be able to get approval for a prepaid card.
That said, you will be prompted to verify your identity. A driver’s license or photo ID would work.
One thing that many Netspend customers like about the company is the fact that they have no activation fees. They also don’t require you to have a specific balance on your debit card.
Since it is not a credit card, no interest is charged.
In total, Netspend has 3 subscriptions to choose from. Two of them charge monthly fees, so keep that in mind.
Netspend’s other plan is the main plan, this has no monthly account fees and allows unlimited purchases. However, this plan requires you to carry a certain balance.
How can you add money to your account?
If you want to add money to your Netspend debit card, there are a few ways to do that. These are the options you have;
- Direct Deposit
- Transfer
- Netspend Card Transfer
- network charging
- salary
- IRS statement
- Social Security
Netspend card accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to the current coverage limit, and the cards can be used anywhere MasterCard and Visa debit cards are accepted for transactions, including ATMs.
Final Thoughts – Can I overdraft my netspend card at ATM
And there you have it, Netspend allows you to have your card overdrawn at an ATM, as long as it is part of the overdraft protection scheme.
The plan is easy to apply and allows you to spend money that is not in your account and pay it back that month.
Be careful with this because you can get into financial difficulties if you rely too much on an overdraft.
Remember that there are people who can help you if you have financial problems.