How to Use Netspend Overdraft? 2023 Guide

Do you want to know about Netspend overdraft? Do you want to the limits on Netspend overdraft, fee and how does Netspend overdraft actually work? Well, my friend, you are going to get the answer to all of those questions in a moment.

Netspend is a financial platform that allows its users to enjoy all online banking features without having a bank account. Netspend provides a prepaid debit card to its customers who can then use it to make online purchases, get their paychecks directly deposited to their Netspend account, and the cherry on top is that you can use a Netspend card to withdraw money from ATM too.

Here in this article, I will explain everything that you need to know about Netspend overdraft. How to get Netspend overdraft protection and what would it cost you.

Let’s dive in…

What is Overdraft?

Overdraft means that your bank is paying for the purchase because you don’t have enough funds in your account. Let’s you want to by a book and the price of the book is $25 but the funds that you have in your account are $5 only. When you make the purchase your bank is going to take care of the rest of the payment. Your bank will pay $20 for the purchase.

So what’s the catch? Why do you think that your bank is paying for your purchase? Well, we all know well that the banks are not that generous. You will not only have to return the overdraft money but you will have to pay the overdraft fee too. Which may vary from bank to bank.

What is Netspend Overdraft?

Netspend is also a financial platform and it also allows its users to overdraft. Usually, the overdraft is a feature that you will enjoy if you have a checking or savings account and good credit history.

Netspend however is providing services to people who do not have a checking account. So don’t expect to overdraft a lot of money from your Netspend Card.

Does Netspend Allow Overdraft?

Yes, the Netspend overdraft feature is available, which means if you don’t have enough money to complete a transaction, you can take a loan from Netspend. You will have to return this money within a specific time limit, and if you couldn’t you will be charged an overdraft fee.

It is a good thing to know that you are eligible for Netspend overdraft, which will come in handy at some point. Let’s discuss what makes you eligible for a Netspend overdraft.

Eligibility Criteria for Netspend Overdraft

Netspend is just not allowing every user to overdraft. It wouldn’t make sense because there are people who would simply not return the money. So if you want to use Netspend overdraft you should meet this one main condition.

You should be receiving a direct deposit of $200 minimum to your Netspend account every month. If you get it, you will be eligible to use the Netspend overdraft feature. To make Netspend your guardian angel and cover the shortfall you will have to enroll in Netspend Overdraft protection service.

overdraft statistics infographics

What is Overdraft Protection Service?

Overdraft basically means a transaction that makes your account balance fall below zero. Banks provide overdraft protection that prevents checks, ATM, debit card transactions, and electronic transfers to fall below zero triggering an overdraft or NSF fee.

You may wonder that this still is a fee that you have to pay, just as you have to pay an overdraft fee. That’s not the same. When a transaction triggers NSF, The banks will decline your funds’ transfer, Your check gets bounced and you will be charged a hefty fee. So in the case of NSF, your payment is refused and you get a penalty.

However, if you are enrolled in the Overdraft Protection service, Your payments are not declined and the funds are covered by the banks and you have to pay the overdraft fee or “Courtesy Fee”.

How to Enroll in Netspend Overdraft Protection Service?

To enjoy the Netspend overdraft protection you will have to enroll in the Overdraft Protection Program. You can do it by accessing your Netspend online account. If you don’t have an online account you can simply call Netspend Helpine on this number and ask them to activate your overdraft protection service.

To sign up you will have to consider a few things first, You will have to provide a valid email address that Netspend can use to contact you. You will have to agree to Netspend’s terms of service and remember to get Netspend overdraft protection you must be receiving a deposit of $200 every month.

How Does Netspend Overdraft Protection Work?

Netspend doesn’t mention the exact amount that you can overdraft, however according to some conjectures the maximum amount that can be overdrawn is $200.

If you receive a direct deposit to your Netspend account every 30 days of $200, and you have also applied for a Netspend overdraft protection service then you can simply use this service. There is no special activation process. It is all automatic. Once the transaction exceeds the amount in your account, Netspend will take care of that and you will get the overdraft notification to the email that you have provided.

Netspend overdraft


What is Netspend Overdraft Fee?

The overdraft fee can reach up to $20 depending on the amount and when you have returned the money. If your overdraft doesn’t exceed $10 then you do not have to pay any fee. You will be given a grace period of 24 hours to return that money. If you make it within 24 hours, there is no Netspend overdraft fee.

If you exceed the time limit you will have to pay $20 as a fee. It is not that you will be sending this fee to Netspend all you have to do is reload your Netspend account and the fee will be deducted automatically by Netspend.


How Many Times can you Overdraft Netspend Account?

Just as Netspend has put limits on the amount that you can overdraft, There are limitations on how many times can you overdraft your Netspend account.

Netspend allows you to overdraft 3 times a month. So you will be protected by Netspend 3 times a month if you do not have enough funds in your account. Provided that you have not reached to total overdraft amount of $200.

If you overdraft $200 in one transaction you won’t be able to use Netspend Overdraft protection service in that particular month again. Once paid back you will get the limit to reset the following month.

Note that if you stop receiving the minimum deposit of $200 per month, your Netspend Overdraft Protection service will be automatically canceled.

Can You Avoid Netspend Overdraft Protection Fee?

Everyone, including me, doesn’t like paying a fee. I want to avoid the Netspend overdraft fees as much as you do. But can we actually void the fee?

There are two ways to avoid the Netspend Overdraft fee. One, you should not overdraft more than $10. If you don’t exceed this threshold you will not be subjected to any fee.

Secondly, always pay the overdraft within the grace period set by Netspend. If you are returning money to the lender within the given grace period you do not have to pay extra.

How to Deactivate Netspend Overdraft Protection Service?

Your Netspend Overdraft protection will cancel automatically if:

1- You fail to deposit $200 every month to your Netspend account

2- Your balance is negative for over 30 days 3 times or for more than 60 days at one time.

3- You call Netspend helpline to cancel your overdraft protection

Can You Overdraft Netspend Card At ATM?

Netspend allows its users to use overdraft protection in following transactions

1- Signature purchase transactions

2- PIN purchase transactions

3- ACH debit transactions

4- ATM Transactions

So you can use your Netspend debit card to withdraw money from ATM, here are some ways to withdraw money for free at ATM using your Netspend card.

You can choose to overdraft your Netspend Card at ATM. Just make sure that you are aware of the overdraft limits as well as the grace period. Otherwise, you will have to pay an overdraft fee.

Along with overdraft fees Netspend also charges fees if you withdraw money at ATM, it is better to know how much a withdrawal is gonna cost you to avoid overdraft, here is how much you will be charged by Netspend at ATM.


It is always a good thing to know that you are protected in case of an overdraft but it is always better to avoid overdrawing money because one, you will have to return it and two, you will have to pay extra.

Netspend overdraft is a great feature that can come in handy in the hour of need. You can use it once you enroll yourself in the Netspend overdraft protection program. There is no cost to activate this feature on your account.

I hope this article was helpful and you have got all the information that you were looking for. Share your thoughts about Netspend overdraft protection. Let us all know if you like it and what do you think about the fee. Your thoughts and suggestions are always helpful.



Frequently Asked Questions


Can I Overdraft My Netspend Account?

Yes, Netspend allows its users to an overdraft in case of not having enough funds in their account. You can overdraft up to $10 without any fee if you return the money within 24 hours. If you do not return the money within the grace period you will be charged $20 as an overdraft fee.

How do you get overdraft protection?

To enable overdraft protection on your Netspend account, you will have to provide an email to Netspend that they can use to inform you about the overdraft. You will also have to agree to their terms of service. Last but not least you must receive a $200 deposit to your Netspend account every month.