Netspend was founded in 1999, and is a provider of prepaid debit cards for both personal and commercial customers. According to its website, Netspend serves 68 million underbanked consumers. Those who use Netspend generally don't have a traditional bank account or choose alternative financial services options. Consumers can load their debit cards with cash, link them up to bank accounts for transfers, or sign up for direct deposit for their paychecks, income tax refunds, or other benefits.
Prepaid debit cards like Netspend are considered by many to be a fast and reliable way to make whatever payments required. The card allows a debit, credit, and automated teller machine (ATM) withdrawal feature. Netspend also offers several other benefits, such as online account access and a payback rewards program.
Just like with any other bank account, you may come across a time when you need to deactivate or cancel your account and card altogether. So how do you go about doing this? You can choose from several options when you need to cancel or close your Netspend card. But be wary, as there may be fees involved with closing your account. Read on to find out the steps to close a Netspend account, and how much it may cost you.
- Netspend offers prepaid debit cards to consumers who don't bank with traditional institutions or who prefer alternative financial options.
- Close a Netspend account by making a withdrawal from an ATM for the full balance
- Customers may also call to request a check for the full balance.
- These options are not free: Withdrawals cost $2.50 at domestic ATMS, and check requests cost $5.95.
- Users can also call Netspend customer service directly at 1-866-387-7363 to close an account.
Drain Your Balance From an ATM
The simplest way to cancel or close your prepaid debit card from Netspend is to withdraw all your funds from the account. This means visiting an ATM to do the transaction. But doing so won't be free—it comes at a cost.
Netspend charges users a domestic ATM cash withdrawal fee of $2.50. This does not include the additional ATM transaction fee, which averages between $2 to $5, depending on where you make the withdrawal. If you use an international ATM, the withdrawal fee is $4.95 in addition to the ATM's own transaction fee. There is also a foreign transaction surcharge calculated at a rate of 3.5% of the U.S. dollar amount being withdrawn from foreign ATMs.
One issue with closing your account this way is that many ATMs only dispense cash in $20 denominations, while others offer $50 and $5 options. This may cause issues when you try to close out your balance completely, especially if you do not have the exact amount.
Netspend charges a $2.50 fee to withdraw money from an ATM and $5.95 to request a check.
Request a Check
Another way to close or cancel your Netspend account is by requesting a check. Netspend estimates this process takes three or four weeks. But like the previous option, there is a fee. If you request a check, there is a $5.95 fee applied by Netspend against the remaining balance
Netspend doesn't charge a check fee, though, if the account balance is less than $6.94 when you close the account. If your account balance is below $1, Netspend does not issue a refund check. In order to request a check for the balance of your account, you need to contact Netspend customer service at 1-866-387-7363 or by logging in to the online account center.
Call Netspend Directly
The third option to close your account is to call Netspend directly at 1-866-387-7363. This may be the fastest and most convenient option. One downside to calling the company to close your account is that you give Netspend the opportunity to try and offer incentives to keep your account open. You may continue on with the process to close it, or you may find the offer enticing enough to keep your account open just a little longer. (For related reading, see "How Netspend Works and Makes Money")