NetSpend is a leader in providing prepaid debit cards, Mastercards as well as Visa cards along with prepaid card solution commercially. After receiving a NetSpend card you will be able to activate it either online or through the phone similar to other debit or credit cards.
What Is A NetSpend Card?
A Prepaid debit card like a NetSpend card is different from a business credit card because you will only be able to spend the fund that you have loaded previously in the card. Basically a NetSpend card is not like any credit card. It is a way to make funds which you already possess through the technology of electronic payment of a credit or a debit card.
Credit cards are seen to offer a line of credit that is revolving and it can be paid back over time. Any outstanding balance on a credit card will charge interest and it also should be cleared off. By using one prepaid card you are actually spending the money that you own but if you use a credit card then you are spending some money that you have borrowed and it is expected that you will pay it back along with an interest at a scheduled date.
Several credit cards are seen to offer rewards because of spending in the form of point, cash back, etc. Most of the prepaid cards such as the NetSpend card do not act the same way. But credit card users need to spend some considerable amount of money on their card to get benefitted by such rewards.
One of the biggest similarities between credit cards and prepaid debit cards is the presence of a logo of the card network on them such as VISA or MasterCard. It implies that you can use the card anywhere if any of these payment methods are accepted there. If you use a NetSpend card it will not affect your credit score like a credit card.
How Can NetSpend Make Money?
NetSpend usually offers three service plans to its customers. There is a plan known as pay as you go and it is meant for those who actually expect to perform limited transactions. With the help of this plan, there is no such cost of opening up an account as well as no fee that you have to pay for a plan. Customers are seen to pay $1 every time they choose credit at any retailer and then make a buy and $2 every time they choose debit, enter the PIN and then make a buy. Customers never pay any fee for opening an account, but actually make payment for monthly plan. It allows purchases without any limit with the use of a debit or credit option at the retailers. To qualify for this plan customers need to make a payment in the payroll or direct deposits during the scheduled month.
This card also charges a fee for each withdrawal both domestically and internationally. There is also a nominal charge for every transaction decline at an ATM. For direct deposits as well as one account to another online transfer no fee is charged. But there is fee if a customer service agent is involved. It also charges retail card loading fees and it varies from one location to another. Mobile check loading fees and for external transfers via bank fees may be charged too.
How Does A NetSpend Card Work?
It offers VISA as well as MasterCard prepaid card to the customers. In order to issue these cards, financial institutions that are regulated federally and by state partner with the NetSpend. These cards allow the consumers to spend, withdraw, add as well as manage money. Customers are able to access some features like person to person transfer via bank, deposit of any employer or a government check directly, reward programs, text alerts, budgeting tool and an option of tiered-rate savings account.
One of the advantages of owning a NetSpend account is having an ability of transferring funds to users of other NetSpend cards very fast. It is called FlashPay. For example, if an individual and his friends is out for dinner and he wishes to send his friend who has picked up the dinner bill a sum of money, he needs to open his NetSpend app and select the option of sending money to his friend from his available balance. It is essential that your friend must have a NetSpend account too. You can transfer the money by making use of the app or by signing in to your online account. FlashPlay also allows you to transfer the fund between accounts that are part of varied financial institutions. It means that you can transfer the money from your own bank to your NetSpend card. It will also let you accept payment from others having NetSpend account and get those funds easily transferred to your card.
NetSpend cards are beneficial in many ways. You can easily add money to these cards via direct deposits, transfers via bank accounts and many more. If you do not wish to pay additional fee for adding funds then opt for direct deposit and transfer via online account centers.