Cashless transactions are growing in popularity. Also called digital payments, consumers transfer information between each party instead of physical money to pay for items. Instead of cash and coins, you present a card that works in a reader to communicate account details.
Approximately 170 billion non-cash transactions happen in North America annually. Credit cards are the primary product used for this purpose, but debit and prepaid cards are also accepted. One of the leading providers of the latter solution is Netspend.
With an approximate value of nearly $200 billion, proximity mobile payments are critical to the economic stability of the United States. If you receive a Netspend card in the mail, it could be due to someone owing you money.
There are other reasons why you might receive a Netspend card in the mail. This guide takes a thorough look at the topic.
Why Do I Keep Getting Netspend Cards in the Mail?
Netspend cards come to people in the mail when their employer uses this service for direct deposit needs, or the government has payments to issue. This debit product accesses the available balance like a checking account, but without needing a bank or a credit union. Recurring payments cause the cards to continue arriving.
The easiest way to tell why you’re getting Netspend cards in the mail is to look at the postage on the envelope. Did it arrive through presorted standard, or is it a first-class offering?
Presorted envelopes tend to come from marketing campaigns. If your Netspend card came in one, carefully read the mailer to see if there is an opt-out message in the fine print somewhere on the paperwork.
Should you have that option with contact information, you’ve likely got junk mail in your hands that is safe to throw away. You can also register to cut down on unsolicited mailings by stopping specific offers.
Here are the steps you can take to reduce the unwanted mail, including promo Netspend cards, that you receive.
- Register your information at DMAchoice.org, which is the home of the Direct Marketing Association. You can select what offers, catalogs, and mail you’ll receive for a $2 processing fee. The registration lasts for ten years.
- Visit OptOutPrescreen.com or call (888) 567-8688 to remove prescreened credit and insurance offers from the mail. You can place a five-year restriction on them or opt-out permanently.
- Visit the specific website of the mailer you want to be stopped, request to unsubscribe from the publication, and file a complaint with the FTC if you keep getting stuff.
When you need to stop Netspend cards from coming to your mailbox, you can email a removal request by contacting customerservice@netspend.com. It helps to send a picture of the mailer as a reference, along with your name and address.
What If My Netspend Card Came by First Class Mail?
The U.S. government issued economic impact payments in 2020 in plain white envelopes with a Netspend prepaid card. About four million people were sent funds using this method instead of a paper check.
The Bureau of the Fiscal Service, part of the Treasury Department, was responsible for deciding who received a paper check or a prepaid card. These institutions worked with the IRS to handle payment distribution.
Under the agreement to distribute the prepaid debit cards, consumers could take the following actions without worrying about fees.
- Check the card balance by phone, through the mobile app, or online.
- Transfer funds to a bank account of choice.
- Take cash out from an in-network ATM.
- Buy goods or services online or wherever Visa cards are accepted.
The cards arrived with the return name “Money Network Cardholder Services” and arrived by first-class mail. If you received one or more, it is from the government and ready to spend.
A handful of families might still be waiting for their funds to arrive for various reasons. You can visit the Get My Payment portal on the IRS website to determine the current status of these payments.
In 2021, the IRS paid eligible families half of the annual child tax credit amount as a monthly payment that could be sent to a prepaid card. The other half was claimed when filing taxes in 2022.
Since these amounts are almost all issued, the only other reason to receive Netspend cards from the government involves direct payments for benefits. Comerica Bank, not Netspend, services the Social Security Direct Express card.
The Story of the Unwanted Netspend Cards
For several years, people received debit cards in the mail from Netspend, although it was stylized as netSPEND at the time.
When people contacted the company about these cards, they were told that someone referred the household for a potential debit card. If it isn’t activated, then the account doesn’t exist in the computer system.
It’s an unwanted card that could be shredded without worry.
These cards created confusion because many people thought someone had stolen their identities. It needs to have money loaded onto it to have value, so why would anyone steal a blank, deactivated card?
The product also came to each address, so it wouldn’t make sense if someone were trying to steal information.
Some people have reported problems accessing funds they deposited on the card, but it can simply be tossed if it is not wanted.
These cards are still sent out during the primary tax season in the United States, from March to May, as a way to manage refunds.
Since you can direct the IRS to send payment through different channels, there are more efficient ways to access money that should be coming your way.
What Is the History of Netspend?
Netspend was founded in 1999 to provide payment solutions and prepaid cards to underserved communities. The company generates nearly $1 billion in revenue annually while serving over 10 million customers.
Roy and Bertrand Sosa founded the company in Austin with just a $750 investment. They needed a way to convert cash into digital currency, and this core mission remains at the heart of what the company does.
More than 250,000 reload and distribution sites are available in the United States. Several partner companies are involved, including PayPal, Walmart, United Airlines, and Western Union.
TSYS, a global payments provider, currently owns Netspend. The company employs over 600 people in Austin, TX, with team members located in offices in Georgia, California, and India.
Is Netspend a Trustworthy Company?
Netspend applications are fast and simple. They require your name, email, and physical address. Once your identity is confirmed, approval is guaranteed. The new card arrives in the mail in a week or two for most people.
Netspend guarantees approval because they issue prepaid debit cards. This product differs from a business credit or debit card because users can only spend money they’ve loaded onto the account.
A Netspend card is a way to make funds you already have in your possession more accessible for various payments and purchases. They’re usable wherever Visa or Mastercard are accepted if the product carries that logo.
When using the card in a store, choose the credit option at checkout. You’ll likely need to provide a signature. Netspend charges $1 as a transaction fee, and then all the funds are removed from the current balance. Debit PIN transactions are also possible, but the cost is higher.
You can avoid the per-transaction costs by using the premium Fee Advantage Plans, which charge a monthly service fee.
What Are the Benefits of Using a Netspend Card?
Netspend provides a flexible and secure place to put cash instead of carrying paper bills and coins. If it gets lost or stolen, you can place a hold on the account by relaying your information and identity to a customer service representative.
Four specific benefits come with the use of a Netspend card. Here’s a closer look at what to expect if you decide to take advantage of this option.
1. Separate Expenses
Most states require small business owners to separate personal and business expenses. Even if you’re a sole proprietor, using a prepaid card shows the government that you’re maintaining accurate books while tracking costs effectively. It makes filing your taxes a lot easier, especially when you need to figure out net profits.
2. Use as a Business Card
Prepaid debit cards from Netspend allow you to allocate cash for business purposes, even if your company doesn’t have or is not permitted to have a bank account. It also helps to have this asset around because some vendors don’t accept physical payments.
3. Manage Spending
Prepaid debit cards don’t allow overdraft transactions. Once the money is gone, you’re not using it until a reload occurs. Some Netspend accounts allow business owners to distribute funds across up to ten subaccounts, with spending capped at a specific level each day. Additional fees may apply when accessing this benefit.
4. No Credit Check Is Necessary
Prepaid cards from Netspend are similar to secured credit cards. You can only spend what is available, but this option has no debt. If you put $200 onto a secured card, you will need to make monthly payments to fulfill your obligations because it is still a credit account. A prepaid debit has a fixed amount based on your preferences.
Can I Ask for a Different Payment Method?
Prepaid cards are typically a better alternative than a paper paycheck or stimulus payment. Although there are fees involved with this option, the costs of cashing checks are significantly higher than managing debit transactions.
Prepaid card programs save the government a significant amount of money. The United States saves $100 million annually by moving Social Security, SSI, and SSDI from paper checks to prepaid cards.
A Netspend prepaid card gives the cardholder access to ATMs, retailers that offer cash back, and the flexibility to access some or all of their funds without being tied to individual accounts. Retailers accept purchases, bills are payable online, and other benefits are possible within the financial mainstream.
Although the history of Netspend cards has some questionable practices in the opinion of some, this option is still more secure than a check. You don’t carry large amounts of physical cash, and a new card isn’t necessary with direct deposit options.
What Can I Do If I Get Netspend Cards in the Mail?
Receiving a Netspend card in the mail is a marketing ploy. It has no value until it is activated, which means it doesn’t need to be used for any purpose. Anyone can verify if there is a balance on the card by contacting the company directly to provide identity information.
I’ve received three Netspend cards in the mail over the past decade. The first one had nothing on it and was essentially a marketing device. Even the letter that came with it said that I could save money on fees and transactions by switching to this prepaid option.
In 2016, I received my second Netspend card in the mail. Someone had stolen my identity, applied for credit, got denied, and put funds onto a prepaid card to access more account information.
When I spoke to a company representative, they seemed confused about why I’d be claiming that the $100 on the account wasn’t mine.
“I didn’t put any cash on this account, request a card, or have a pending refund from anyone,” I said. Then I filed a police report and froze my credit access for the next two years.
The third time was when I received my Economic Impact Payment in 2020. I got a prepaid debit card instead of a paper check.
I transferred the cash from it to my bank account and tossed it. The government sent me the payment this way even though their website said I was supposed to be receiving a check.
If you keep getting Netspend cards without a specific reason, it’s likely that your identity information has been sold or stolen. Don’t put money onto the card or try to spend what is on it until you’ve verified the reason why it was received.
