Netspend is a leader among prepaid debit cards, its holders being eligible to gain access to their direct deposit funds up to two days early. But there is more to this card than you might think. If you've ever wondered if you can cash a check with Netspend, we can help you. We researched this merchant in depth so that you'll know for sure what it has to offer.
Netspend will allow you to cash a check into your account. To do so, you will need to download the Netspend mobile app to your smartphone.
Now that we know that you can cash a check with Netspend, we'll take a closer look at how this is done. You might want to know if Netspend reports to credit bureaus or how Netspend makes money. To find out the answers to all of these questions and more, read ahead in this post and see what our research has shown.
How to cash a check with Netspend
Cashing a check with Netspend will be a lot different than the traditional method of walking into a bank branch with the check and a deposit slip. This mobile bank uses the latest technology so that you will be able to get money into your bank account without leaving the comfort of your home or office.
There are several steps you'll need to take to get this done, however. But don't worry, they will only take a few moments. Before you know it, your funds will be available on your prepaid Netspend card.
1. Download the Netspend mobile app
Before you can cash that check, you will need to download the official Netspend mobile app. This is available on both Apple and Android and is a free app with no fees. Once the Netspend app has been downloaded, you'll be ready to proceed to the next step!
2. Open the menu
Open the app and create an account if you have not already done so. Once your account is established, look for the menu on the welcome screen. From this drop-down menu, you'll want to look for "mobile check load."
3. Follow the guided, onscreen prompts
Once that option has been opened, there will be a series of prompts for you to follow. You will need to ensure that the back of the check is properly endorsed with your signature and "For deposit only" written below it.
You will be asked to take a photo of the front and back of the check. The Netspend app will load all of this information for processing. Within a few minutes, you should have access to your funds.
4. Hang on to the check you just deposited!
Just because the funds are now available in your Netspend account does not mean that it's safe to discard the check. We suggest storing the check in a safe place for 10 business days just in case there is a glitch or another problem with the account the check was written from.
It's better to be safe than sorry. After 10 business days, it will be fine to shred or otherwise safely throw away the check.
Does Netspend report to the credit bureaus?
Netspend might feel like a credit card in the way that it can be used. Credit card companies report their members to the national credit bureaus, impacting their scores and creditworthiness. Netspend, however, will not report your account activity to these agencies for your benefit.
A Netspend account is a prepaid debit card. You're spending money that you already have, not money that an institution is loaning you on terms of repayment. While a Netspend account has many features and benefits, you shouldn't look for it to raise your credit score.
The only instance Netspend might report to a credit bureau is if an account were to somehow go into default and the funds were not repaid.
For example, if a consumer spent money on a direct deposit advance that didn't ever go through or if a "purchase cushion" were opted for and never repaid, Netspend would have the right to attempt to collect the funds owed to them.
Such instances are quite rare for prepaid debit cards, however. In the vast majority of cases, the funds that you have available to you are ones that Netspend can verify.
How does Netspend make money?
Prepaid debit cards like Netspend need to make money to survive. Though they have a much lower overhead than a traditional bank, they still have a good amount of expenses to cover before they can make any amount of profit. To earn their way, Netspend assesses a series of fees to their cardholders.
Though this list is not all inclusive, the majority of the fees Netspend charges come from the following sources:
- Netspend charges $9.95 each month for its unlimited-use feature.
- Using an ATM will cost you $2.95 for each withdrawal, plus whatever the owner of the ATM charges on top of that.
- If you withdraw money from a reload location, expect to pay the greater of 2.75% or $4.
- A new card from a retailer costs up to $9.95.
- It can cost up to $3.95 to reload the card at a reload location.
- Netspend will charge $5 each month for an unlimited-use plan if you have direct deposits totaling $500 per month.
- $1.50 per purchase with a pay-as-you-go plan.
The transaction fees Netspend passes on to customers can add up if you are not careful. It's important to read the terms and conditions of your Netspend account before you conduct any business with this institution.
Read the fine print and know for sure how much money you will be spending in exchange for the convenience of having this prepaid debit card account.
Can Netspend freeze your account?
Should there be an error, you might find your Netspend account frozen. This isn't very common and will typically happen only when the Netspend card has been reported to be lost or stolen. Additionally, if you enter an incorrect PIN three times during a withdrawal, it will trigger the company to freeze the account.
This doesn't mean that the funds you have in the account are lost. To reactivate the account, you will need to call or email Netspend. They will verify your information and then unlock your card. If the card has been lost or stolen, a new one will need to be secured.
To contact them by phone, call 1-866-387-7363. Or you can email them at [email protected]
Will a Netspend card get reported to the IRS?
Banking information is subject to the rules and regulations of the IRS and other government agencies. But a prepaid debit card doesn't fall into the category of a traditional bank.
The money that you have in the account will already be considered reported income, as your employer's checks will appear on the tax forms that they send you every year.
Netspend does not report its accounts to the IRS, as the money that enters these accounts is not considered income.
Can a Netspend account be garnished?
If you owe money to an institution or if a court has ordered garnishment of your bank account, you might be concerned that your Netspend card will be subject to those garnishments. But you don't have to worry; this account cannot be garnished.
A prepaid credit card will not show up on any credit bureau's report, making them impossible for a creditor to locate it. Once you load the funds into the Netspend account, they will not be able to see that you have the money.
Having a Netspend account will give you immediate access to funds and access to some direct deposit funds up to two days early. The mobile app will let you deposit business and personal checks, releasing these funds immediately to you.
Netspend does charge a series of fees, so be aware of what each transaction could potentially cost you before you withdraw money.
We hope this post answered all of your questions. For additional information, we recommend reading the following posts: