A:

NetSpend lets cardholders overdraw their accounts, but only if they previously enrolled in the overdraft protection service. Otherwise, NetSpend does not authorize and pay on overdrafts. NetSpend cards are prepaid debit cards that allow cardholders to make purchases worldwide using the pre-funded money deposited into their accounts.

NetSpend's Overdraft Protection Service

NetSpend offers a free purchase cushion or overdraft buffer of $10, which will not charge the cardholder the typical overdraft charge of $15. The cardholder has a grace period of 24 hours to repay the negative balance before incurring such a charge. For overdraft amounts over $10, the cardholder would incur a charge of $15, with a maximum number of three fees in a calendar month.

This does not mean that NetSpend will authorize every overdraft. NetSpend's terms and conditions indicate that the company only pays overdrafts at its own discretion and does not guarantee payment of every overdraft transaction. Unauthorized overdraft transactions are declined, and NetSpend may charge fees for these declined transactions.

Enrolling in the Overdraft Protection Service

Enroll in NetSpend's overdraft protection service through your online access account or by calling NetSpend directly.

To enroll in the overdraft protection, you must receive direct deposits totaling at least $400 into your account within 35 days. You must also read NetSpend's terms and conditions and agree to the electronic delivery of required disclosures. You must also have a valid email address so that NetSpend can notify you of any changes to the program. NetSpend activates your overdraft protection within 24 hours after you have completed all of the appropriate steps.

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