NetSpend Refunds: Alarming Discoveries

Before we get into NetSpend refunds I want to get into the alarming discoveries about prepaid cards in general.

Back in 2014, I wrote an article about NetSpend.

I was concerned because of the way the card was used back then.

People were creating businesses because NetSpend would give people $20 to everyone they referred to use NetSpend’s prepaid card.

As of today, I believe they are still giving people $20 for everyone they refer to NetSpend.

A Friend Of Mine That Used NetSpend

netSpend Refer a friend

I have a friend who used NetSpend’s prepaid card and she told me they charged you for everything.

I even asked her about the $20 referral credit and she told me that the $20 referral credit wasn’t worth it.

She made it seem like even if you looked at or touched that NetSpend card a fee was applied.

Prepaid Cards Or Even Gift Cards Is Not A Bad Alternative

Besides people replacing or don’t have access to a bank account, prepaid cards are not a bad alternative.

With the spike of online shopping these days, I get it why people may want to use a Prepaid debit card or even gift cards to shop online.

With so many scams out there online and scammers trying to get access to people’s info, using gift cards or prepaid cards is an excellent alternative.

There are people out there who like to have control over what is loaded on their card because if some odd fraudulent activity occurs, they don’t have access to their main bank account.

There Are Differences

The difference between a Visa, Master Card, or American Express gift card and a Prepaid card is that you can load money onto these Prepaid cards.

Another difference is that there are more fees that apply to these prepaid cards.

The FTC shed some light on some of these prepaid cards and their fees.

The video below really does a great job explaining the fees.

If we go back to that NetSpend’s $20 referral program, if you think about that $20 referral program and the fees that apply to one of the Netspend’s prepaid cards, you’re actually losing money.

NetSpend has to make their money back some way and if the fees apply just like in the video above, NetSpend would make $23.

You may think that you’re making money by getting $20 loaded into your card, but in the end, when those fees are applied to some of these prepaid cards, it may not be worth it.

The Complaints In Regards To NetSpend

People were filing complaints in regards to Netspend back then. People who loaded their Prepaid card wouldn’t have access to the money they deposited into their NetSpend card.

It wasn’t just a few people, there were many people who had problems in regards to their accounts using Netspend.

The Proof Is In The FTC’s Website

Back in 2016, the FTC sued NetSpend because of thousands of NetSpend prepaid cardholders were unable to get access to the funds they loaded into their prepaid cards.

According to the FTC, in a nutshell, NetSpend would market to people that they would get immediate access to the fund they loaded onto their cards.

Then once people loaded money into their cards, people were denied access to their funds.

In that actual article, the FTC advises people who want to use prepaid cards to understand how their card works before you choose a specific prepaid card.

Now Let’s Get Into The NetSpend Refunds

After the lawsuit by the FTC, NetSpend agreed to pay back more than 430,000 checks to people totaling more than 10 million dollars.

That is almost a half million people.

That is a lot of people!

NetSpend Corporation agreed to notify and provide refunds to eligible customers who requested them before October 7, 2017


With so many people getting a refund, it is quite shocking how people advertise the $20 credit.

I get it that people are receiving these $20 credits, but with so many people who had or may even have trouble as of today getting access to their funds that is even more alarming.

There are people who rave about NetSpend and other people who don’t.

You can get a general idea of the complaints and raves about NetSpend on the Consumer Affairs website.

By you being the consumer if you are deciding which prepaid card to use, you can get data about the nay or yeah in regards to the prepaid card that is best for you.


netspend rave


netspend complaint

Also, there are people who rave and have complaints about the NetSpend’s App, the best thing to do is go and read what people have to say in the app store.

All In All

With nearly a half a million Netspend users receiving refunds in regards to Netspend holding funds, it makes you wonder if that $20 credit referral program is worth it.

Prepaid cards are a great way to shop online, but The FTC shed some light on the charges that apply if people don’t do their research.

What is your take about NetSpend, Tweet me @evelynbaz!

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