How Does NetSpend Overdraft Protection Work?

NetSpend offers overdraft protection that allows the account holder to make transactions or incur fees with amounts that exceed the balance on his card after meeting activation and eligibility requirements. NetSpend charges a service fee of $15 for its overdraft protection service for each transaction that overdraws a customer's account by more than $10. A customer enrolled in the NetSpend overdraft protection program is allowed a maximum of three overdraft protection service fees per calendar month.

Overdraft protection is optional and is offered to eligible cardholders by MetaBank of Sioux Falls, SD.

To activate NetSpend overdraft protection, a customer must provide a valid email address and agree to NetSpend's electronic delivery of disclosures and amended terms to the contract associated with signing up for overdraft protection. Additionally, a NetSpend customer must receive deposits of $200 or more every 30 days to qualify for overdraft protection.

If a customer overdraws his account balance by more than $10, NetSpend will notify him about the overdraft, and he will have 24 hours to replenish his account to restore its balance to more than $10. If a customer fails to act on the notice, NetSpend will charge an overdraft protection service fee of $15.

If a customer fails to receive deposits of at least $200 every 30 days, the overdraft protection with NetSpend will be canceled and they will have to go through all of the application steps again. However, if a card account has a negative balance for more than 30 days three times or for more than 60 days one time, the overdraft protection will be permanently canceled.

NetSpend customers should be careful to not delete their email addresses or withdraw consent to receive electronic disclosures because their NetSpend overdraft protection will be automatically deactivated.