Netspend Withdrawal Limit and Overdraft

Understanding the limit of Netspend withdrawal can help you to spend the prepaid card wisely. Spending more than the limit can incur a fee, which you would want to prevent. In this post, we will discover the Netspend withdrawal limit.

Netspend Withdrawal Limit

Netspend has several limits for spending and withdrawal. These limits exist due to federal regulations. So, they were not made randomly by Netspend. The maximum amount you can withdraw or spend can be different by transaction type. Check the transaction type and its limit below.

TypeLimit
Purchase$4,999.99 every 24 hours
Cash Withdrawals at the counter$4,999.99 every 24 hours
ATM Cash Withdrawal$325.00 per withdrawal, $940.00 per day, up to 6 per 24 hours

Try not to exceed the daily limits. Chances are when you try to use more than the limit, your transaction is likely to be blocked.

In addition to the Netspend’s limits, this financial post pointed out that there can be limits from PayPal and your bank. When you use either of them to transfer funds to or from your Netspend account. Since banks have different fee policies, the best way is to check with your bank about transfer limit and fees.

Overdraft Protection

The finance expert blog explains that overdraft protection is a service offered by financial institutes that allow you to avoid sub-zero balance in your bank accounts. When you use a check, withdraw cash from the ATM, pay by debit card, or do other money-spending transaction, the balance in your bank account can fall below zero. This can cause an overdraft fee or a non-sufficient funds (NSF) fee.

When you can use overdraft protection, your bank will cover some small amount below zero and charge you for the service – an overdraft fee. With this feature, you can still make the transaction finish successfully.

Netspend Overdraft Protection

Now, let’s talk about overdraft protection offered by Netspend. Although the broad concept stays the same, details are different.

Enrol in Optional Overdraft Protection

The first step is to register the Netspend overdraft protection service. This is an optional service that won’t be given to everyone by default. According to the Netspend terms document, you first have to contact the firm. To ask them, refer to their contact page and send a request.

Without enrolment, you won’t be able to use the feature for the following transactions:

  • Purchase transactions requiring your signature
  • Purchase transactions requiring your PIN
  • ACH debit transactions
  • ATM transactions

Any of the transactions above that incur overdraft will be rejected unless you have had confirmation from Netspend.

Required Information for Enrolment

When you apply for the overdraft service, you will be required to submit your details including:

Not Available to Every Netspend Card Holder

When you contact Netspend, they will evaluate your qualifications for the overdraft protection service. As the term document puts it, “Overdraft Protection is an optional service offered to eligible Netspend cardholders”.

At Netspend’s Discretion

Even if you have completed enrolment, Netspend does not guarantee to cover your overdraft transaction. If they don’t authorize and pay an overdraft, your transaction will be rejected. You should make sure that any negative amount in your account must be paid back within 30 days. Otherwise, your enrolled overdraft protection service will be deactivated.

For your reference, there are multiple ways to reload your Netspend card.

These are some ways to refill your Netspend account. Don’t forget reloading to avoid deactivation.

Netspend Overdraft Limits and Fees

Now, let’s say you have been approved by Netspend to use the overdraft protection service. The next thing you should know is what is going to be allowed and changed.

Free Overdraft Buffer

Netspend will allow you to overdraft up to $10 for free. This means if your transaction makes any negative balance up to -$10 in your account, there won’t be any fee.

Grace Period for Transaction Beyond Negative $10

What would happen if your transaction goes beyond negative $10? Rest assured that it won’t incur a fee immediately, but there is a condition attached to it. There is a 24-hour grace period. That means that if you repay to make your balance back within a negative $10, you don’t have to pay a fee.

Overdraft Fee

If you fail to keep the grace period, you will be charged with an overdraft fee. The Netspend Overdraft fee amounts to $15. Reasonably, Netspend will not charge the fee more than 3 times per month.

Minimum Direct Deposit Requirement

To maintain eligibility for the overdraft protection service, you should meet the following conditions:

  • At least one $200 deposit or more every 30 days.
  • No negative balance for 30 days

Note that it is one deposit of $200 not summed amount of deposits. Also, if your account has a negative amount for 30 days, the overdraft protection will become deactivated according to the term document.

To clarify, it is the overdraft service that will be deactivated, not your Netspend account. With this, you can still access and load money to fill your account. To re-activate the feature, you have to start from the beginning – contact again Netspend to unfreeze your overdraft protection.

Condition for Permanent Termination

When you don’t meet the conditions above, deactivation will apply to your overdraft protection and you still have a chance to reactivate it. The conditions mentioned in this section, if not met, can cause a permanent termination of the protection and even your Netspend account.

  • Your card account has a negative balance for more than 30 days on 3 separate occasions
  • Your card account has a negative balance for more than 60 days on any occasion

If either of the cases happens, your overdraft protection will permanently be terminated. You cannot reactivate it. If the latter case happens, Netspend has a right to close your Netspend account at any time thereafter and to collect any amount owed at their sole and absolute discretion.

Conclusion

Netspend offers convenient features to customers with its prepaid card and wide network within the U.S. In terms of withdrawal, I don’t think that the limits would give you inconvenience for everyday spendings. It is the federal regulations that posed the limits, so complying with the limits is important.