Netspend cards are prepaid debit cards that allow cardholders to purchase with money pre-loaded into their accounts.
What happens if you fall short of your balance? Is there a Netspend purchase cushion? Yes, there’s a Netspend purchase cushion.
Netspend will cover you up to $10 with the Netspend purchase cushion option.
Keep reading to find the full details on this feature.
Is There a Netspend Purchase Cushion?
Yes. If your card account balance runs low, a Netspend purchase cushion may provide coverage up to $10.
This means the next time you load your card, Netspend will automatically make up the difference.
Read More: Why Did Netspend Send Me a Card? If you received a card in the mail, here’s why!
Can I Overdraft My Netspend Card?
Yes, cardholders can overdraw their accounts with Netspend, but there is a catch.
Users can enjoy this feature only if they first signed up for its overdraft protection service.
Remember that Netspend cards are prepaid debit cards.
So, if a Netspend card user doesn’t have enough money, the system won’t let you spend more than what’s on it unless you signed up for its overdraft service.
Read More: Best Prepaid Debit Cards With No Fees. Here are our favorite prepaid cards!
Can I Overdraft My Netspend Card At ATM?
If you activate the ATM overdraft feature, you can use your debit card or withdraw money from an ATM even if you don’t have enough money in your account.
However, you will usually have to pay fees for transactions that leave you with a negative balance.
How Much Can I Overdraw My Netspend Card?
The most you can go over is $10.
Once you sign up for Netspend’s overdraft service, you get a $10 Netspend purchase cushion or overdraft buffer for free.
That means the cardholder won’t have to pay the usual $20 overdraft fee right away if they spend more than what’s on their card.
How to Activate Overdraft On Netspend
To sign up for Netspend’s overdraft protection, a user must submit a valid email address.
You must also agree to Netspend’s electronic delivery of disclosure requirements and changes to the contract.
Requirements for Netspend Purchase Cushion
A Netspend customer must receive $200 or more deposits every 30 days to get overdraft protection.
If a customer exceeds their total balance by more than $10, Netspend will let them know.
The customer then has 24 hours to add money to the account so that it has more than $10 in it again.
If the customer doesn’t respond to the notice, Netspend will charge a $20 overdraft protection service fee.
The short video below explains some other reasons why you may overdraft on your Netspend prepaid card and what you can do:
Will Netspend Allow Unlimited Overdrafts?
No, a Netspend user can only use this overdraft feature 5 times a month.
This doesn’t mean Netspend will let every overdraft go through.
According to Netspend’s terms and conditions, the company does not promise to pay every overdraft transaction.
However, if you let Netspend know about an unauthorized transaction within two business days, you won’t be charged more than $50.
What Happens if a Netspend Cardholder Doesn’t Follow the Overdraft Protection Rules?
If a cardholder doesn’t follow the overdraft protection rules for the Netspend purchase cushion, the overdraft protection will be disabled.
For example, if a customer doesn’t make deposits of at least $200 every 30 days, Netspend will cancel the overdraft protection.
This means that the customer must go through the application steps again.
But the overdraft protection will be turned off for good if a card account has a negative balance for more than 30 days three times or more than 60 days all at once.
Which Debit Cards Allow You to Overdraft?
These following four cards are the most popular debit cards that allow users to overdraft:
- NetSpend Visa Prepaid Card
- PayPal Prepaid Mastercard
- ACE Elite Visa Prepaid Debit Card
- Brinks Prepaid Mastercard
What Happens if You Overdraft a Prepaid Card?
If you overdraft a prepaid card, the bank will use a separate line of credit when you go overdrawn.
You just have to pay interest on the money you take out.
What Happens if You Overdraft a Netspend Card and Don’t Pay?
Netspend charges $15 for each overdraft transaction, with a monthly limit of three transactions.
If a user has a negative balance for more than 30 days 3 times in a row or more than 60 days in a row, the service is terminated.