netSpend: The Story of the Visa Debit Card We Did Not Apply For

I received a card yesterday. As someone who is very guarded with her credit, I was worried my information was submitted to an unauthorized company as a result of my recent home purchase.

After reading these comments, I realize it was a solitication request and my personal information was not compromised. However, it still rubbed me the wrong way. I simply chose to permanently opt out of preapproved/prescreened requests by completing the online form located at https://www.optoutprescreen.com. If choosing to permanently remove yourself from lists, you must also submit a signed copy of the form via snail mail.

I just received this card in the mail. I had not idea as to how this company received my information. I am on my way to to becoming free of debt. Thus, I do not not need or desire such a card. I feel violated to have received an actual card asking for activation as if I had applied. I will never activate or think about activating this card. The deception in which financial institutions practice should be illegal.

Thank you for the article. I have spent the last 3 days trying to figure out where this card came from. I was expecting a rebate from Staples and a refund from my insurance company so I was afraid to shred it. I contacted both and both said it was not from them and that they send checks not cards. I did try to talk to someone at netspend and could not get a human on the line. I was not able to speak with anyone and the process asked for personal information which I was not about to give out to something I did not ask for in the first place. I read your article and immediately shredded it. Thanks, your article gives me peace of mind. Oh by the way, I don't use credit cards they are all just a scam!!

This is disgusting. Its bad enough to get unsolicited phone calls...but an unsolicited debit card takes the cake! I have this card here in my hand, and wondered if anybody else received one? And now that I've found this website, it looks like there are a lot of us in the same boat. Who are these guys? What gives them the right to use these kind of sales tactics? I tried to call them to tell them I don't want it and to make sure I don't receive any monthly service charges on this thing. I called one toll-free number and one regular (long distance number, with no luck at either one. I receive the same recorded message at each one. And in order to get any "help" you must first enter your card number. To me, that sounds like the same thing you'd have to do to activate some cards. Which is what I DO NOT WANT TO DO. And as shifty as the deal is, I'm sure once its activated they'll at least try to get 1-month of service charge from me somehow. So I didn't do anything (yet). I'll look up a consumer protection number and call to see what they have to say about this on Monday. And I'll make another complaint at the www.federalreserveconsumerhelp.gov link posted below. This really stinks. What creeps.

I am so grateful to net spend for the card that I use. I have direct deposit with this card. It would not be possible without them. Every time I tried to have a bank account I was totally frustrated with their policies. If I went .01 over I got charged an overdraft fee. When you make a purchase with this card there are less fees than a regular bank. They do not force overdraft protection on people who cannot afford to make a mistake! This corporation has never let me down. They kept my account open with no money in it, until I could make a deposit. I have saved so much money, time and aggravation by using them instead of banks that make mistakes and don't correct them. Apparently you have good credit and plenty of money to spend. Net spend has enabled me to do so many things I could not have done otherwise. Regular banks are the scam and one of them is giving your information away...and NOT just to net spend.

I stumbled upon this blog by accident but thought I'd weigh in on the conversation. I've been a Netspend customer for about 3 and 1/2 years and I've haven't had a problem. I use it to pay my bills and to shop online and I love it. I feel this card is a good option for me, I'm a single mom that can't afford to continue getting ripped off by banks with their teller and overdrafts fees, nor do I have the money for them to just take and claim to be theirs. I did have Bank of America and it was a nightmare. I wrote my landlord a check for my rent, one check, and BOA withdrew the amount on the check twice. When I took my back statement up to the bank and showed the bank manager my statement with the same check number deducted twice from my account she told me that I was mistaken, that they did not do that, even though it was right there in black and white. I had to call BOA customer service and finally they credited me the money they wrongfully took from my account but not before my check to the electric company bounced. Now I am on the list of 'do not accept checks from this person' at the electric company for something that was BOA's fault. Bank of America has just settled a class action lawsuit for their tactics in ripping people off so hopefully they will change their practices. I am sorry you all had problems but for me Netspend is a good thing, without it I don't know what I'd do. These days you have to have a card of some sort for bills and for the working class and the working poor this is one of the only options available.

Thank you so much for writing about your experience!! I received a NetSpend Master Card in the mail and I reacted the same way. I initially thought that somebody had filled out a credit card application with my information. I was really scared! I'm relieved after reading this article. This company is disgusting. If this piece of mail ends up going to somebody else with your name on it, who knows what could happen!!

Just got one of these in the mail. Thought exactly same as author. Remember the post office uses credit card info to verify change of address to forward mail. So this could lead to id theft if intercepted. Shady tactic for a rip off program.

I haven't used NetSpend and won't be using it, but from what I am reading, Netspend is simply a checking account with a slightly different look. It seems like some here might be confused, so I thought I would comment on the similarities and disadvantages that I see regarding a NetSpend card compared to a checking account.

Similarities:

1. $10/month for the card - This is the same as an account fee than many banks have with their account. Many times you can get a checking account with no fee.

2. Only spend the money that you have loaded onto the account - This is the concept of a debit card. While a credit card is debt, a debit card is spending the money you have in your checking account, just like the NetSpend card.

3. No overdraft fees - Unless they are letting customers continue to spend money after their account goes negative (essentially providing free credit), then I assume a NetSpend card stops working after going negative. Most checking accounts have the option of Overdraft protection, which will also block the account from spending too much.

Disadvantages:

1. ATM Withdrawals - $2.95 charged by NetSpend plus the ATM fees (often $2 or $3 for each transaction where I live). So regardless of how much you withdraw (even if it's only $20), you are likely going to pay $5-$6 for your money. A bank usually has it's own ATMs that often charge you nothing for using them, and some banks (such as my own) reimburse customers for all ATM charges, regardless of what company owns the ATM.

2. No Branches and cash/check deposit fees - Since there are no bank branches, they charge a fee when you deposit cash or checks. Banks don't charge a fee for depositing cash or checks. Bank branches also allow you to talk to meet with a representative in person if you need help. Calling a customer service line is your only option with NetSpend.

3. Other fees - Fees for checking your balance by phone or having no account activity don't exist for most bank accounts. NetSpend charges $.50 for a balance inquiry and $5.95/month for "account maintenance" if you don't use the card for 90 days.

Many people don't have the option for a checking account. While a checking account is likely less expensive (as long as you shop around to find a good account with overdraft protection and low or no fees), a NetSpend card can be a good option for someone that can't get a good checking account.

I like the over draft opion. I need help be twin pay dearest so it helps me get by. So thanks a lot netspend . For getting me by.

Oh and one more thing...If you don't want to spend withdrawal fees at the ATM..then get cash back on a purchase when you go to the store. Supermarkets usually will allow you to take out up to $200 cash at a time. So go buy a piece of candy for a dollar and take out $200. I haven't spent a dime on withdrawals as yet, because I don't use ATMs
See?? ANOTHER NO BRAINER!!!!

It is just a way of advertising. The card is useless unless you activate it. The fees are more reasonable than that of many banks, if you have credit issues like I do. It is a sort of shocking approach, to just send someone a card with their name on it out of the blue, but it is fairly harmless. I don't like the fact that they charge you to speak with costumer service, but I don't like the fact that Microsoft does it either. They can be reached on their website for free. Chopping up the card and asking them to sop sending you mail could solve this problem.

if receiving an unsolicited debit card with ur name on it offends u so much, its ur own fault that u received it. netspend can't GET your information unless YOU GAVE IT OUT URSELF to one of its affiliates such as u applied for something on junk mail like publishers clearing house, or u filled out one of those "WIN THIS CAR SWEEPSTAKES!" cards at the grocery store or you bought something or got something for free online and didn't read the fine print that ur information would be given out or sold to its affiliates. that's how netspend got your information so don't blame them; that's how they market just like any other company would. all they have is your name and no account unless you activate it.

netspend is a legitimate company and its NOT ONLY for underbanked people. its also good for people who have had nightmares with conventional banks as i have. i have a regular checking and savings accounts at HSBC bank however i only use those accounts to pay bills and accrue savings. it made me real uncomfortable to use my checking account for both bills and leisure spending so i opened another checking account through HSBC. however one day i bought a netflix subscription which was supposed to be free for a 30 day trial but they charged me for the first month by mistake so it withdrew more than what i had in my checking account. HSBC charged me $35 insufficient funds fee. i called the bank up and i told them it was suppose to be a free trial but i also told them i didn't put overdraft protection intentionally on this account so if charges try to come through without me knowing and there's nothing in the account, it couldn't overdraw it. well, to my surprise, HSBC told me that ONLY is applicable to face-to-face, swiped, purchases, not anything you buy online or bill payments. so having no overdraft protection will serve me no good because i hardly ever buy anything in a store unless its groceries; i'm a pure online shopper. Netflix refunded me the accidental charge and luckily HSBC refunded me the NSF fee as a one-time courtesy but that made me really paranoid. the bad thing about HSBC is that although they have online banking, they do not have account status texting nor when i view my account online, i cannot see any pending purchases, only purchases that have posted to my account. so HSBC pretty much sucks when it comes to real time banking. when i buy things i dont see them on my account until 2-3 business days later which is a huge problem because i have to keep a check register old-timey style so i dont lose track of purchases. god forbid if i forget to document a transaction.

i had never heard of a pre-paid debit card prior (other than unreloadable disposable gift cards that i got every year for christmas), i thought debit cards were only issued from banks, so i would use my checking account debit card very very carefully (more like "paranoidly") after the whole netflix fiasco. i found out about netspend through a co-worker of mine because she said she gets her paycheck 3 days earlier than i was getting through my bank. i asked her how was that? and she told me through her netspend card. so i looked into it and thought this is the answer to my prayers and signed up for one online.

i've now had netspend 2.5 months with a portion of my direct deposit going into it every month and i love it. i now use it for my leisure spending without feeling paranoid. since i do alot of online shopping, i was elated to find that i can even create a "virtual" card number that i can use so if someone happens to steal my card number, i can deactivate the virtual card number without having to terminate my whole account. it keeps my true card number safe from hackers as long as i dont give out my real card number, which i dont.

while there is a monthly fee of $5 for the kind of netspend account i signed up for, u do get cash back on purchases which is paid monthly as well. so if u can get $5 in cash back to offset the monthly fee, then ur essentially paying nothing for the card. in addition, they have an extremely high yield savings account of 5% APY, which is also FDIC insured, that i've turned to using over my HSBC online savings account which has .8%; there is no minimum or maximum balance that u can save on the savings account so the sky's the limit and the 5% APY has been that amount for about 5 years now; its not promotional. even if u have no desire to use the card because of the monthly fees, u can still just only use it for the savings and pay nothing.

i use netspend to protect my official bank account with HSBC so i dont have to worry about hackers gaining access to my life's spending or funds being accidently withdrawn from my account like my netflix ordeal. i'm also not so paranoid about spending because with netspend i have text alerts and can see my real time transactions unlike with my bank. i've never had any problems with deposits to the card and even though u do have to pay to call, i've had no reason to call them yet so i use their web site exclusively and usually get an answer within 24 - 48 hours. one time i sent an email i got an answer in only a few hours and on two occasions, i sent emails and THEY called me back themselves.

there's lots of perks with having the netspend card, and its certainly NOT only for the underbanked, so don't knock it before u try it. maybe you might not use it, but dont go around telling people to run away, claiming its some kind of scam when its not. if receiving a card with ur name on it freaks u out, then how about not giving our your personal info in the first place because thats clearly what u/your husband did, or netspend wouldn't have even known of your existence.

We LOVE Netspend and have had an account with them for four years. It has been a lifesaver for us. We have questionable credit and this was the only way to be able to pay for things on line and not go into debt. I have never had any problems with them and they DO NOT over charge. I believe that you are being OVERCHARGED by your bank and credit card companies. I pay $5 a month to use their service. How much are you being charged to use you checking, savings, and credit cards every month... and I am not going into debt. If the money is not on there... I can't buy it.

Someone was able to close my account, not even being on the account. customer service said anyone can close an account if they know your information

I received a netSpend "credit" card also. I was puzzled by the fact that it looked like a legit credit card but we did not apply for it. How can they do this? After reading further it seemed like a scam to get monthly checks like your social security checks, salary checks etc. directly deposited with them. Which raised questions because we only direct deposit one check. Can they find out this private information or are they guessing by your age? I did some research online only to find that it is like a prepaid debit card with fees not a credit card as I thought at first impression. So if you receive one of these in the mail, my suggestion is, that you do your research thoroughly before you activate a card that may not be what you think it is.

I have used a Netspend card for years without any setbacks or dissappointments,their fee's are told up front and are no more rediculous than a banking institution(i.e.-having to pay a fee to cash 1 of their own checks recieved from someone with an account there) or credit card company,its all in what you personally manage.

I had a bad experience with NetSpend I went into Usa Checks Cashed in San Bernardino,Ca I thought they would have a Westren Union there but they didn't and thinking to save $12.50 I purchased prepaid for the $14.95 these are start up fees that the women started to tell me about only after.While I was there they had trouble loading the payment onto the card and I cancelled it because I felt that since the rep on the phone for Net Spend didn't know what he was doing my $400.00 may not get refunded but as I asked for a refund the lady said I would have to do it in the mail then changed her mind did a partial refund I did get $400.00 back plus the $8.00 but I lost $6.98 because in order for her to do the refund it's considered a transaction so I had to pay $2.00 for fee to use and I had to keep the card so there went the rest of that.I was lucky to get out of there with the rest of my money and just lose $6.98 let me tell you Westren Unions $12.50 didn't sound soo bad at all from now on.Beware NetSpend seems like a scam with added fees here and there to use it.

I've used Netspend for several years of online purchasing and had no problems whatever. I requested the card, though.
I did receive an unsolicited Western Union debit card several years ago.
Terms allowed Western Union branch managers access to card account records, including purchases, so I shredded it unused.

I have used Netspend for several years now and it is great. I have never had any problems and even used it overseas. You have to actually have your personal info to activate it. It may come with your name on it but that doesn't mean anyone can just load it and tarnish your name. You still have to set up the account. Also, it is not a credit card. There is no way for anyone to ruin your credit or steal from you with this card because it is PREPAID. you don't apply for the card. You buy one and then set up your account and they send you a new card with your name and exp date after you set up your account. No one is stealing anyone's identity.

It is now 2012 and they are still sending out these cards. I received one in the mail today except it is a Master Card but still from the same company Netspend. I tried to call them to let them Know I didn't request this card and they will not talk to you unless you activate it. DON'T FALL FOR IT.

How about getting something from NetSpend addressed to a person who doesn't even live here.

My husband and I both use the netspend cards...... They are wonderful, and make direct deposit, shopping, paying bills, and ordering things online so much easier, as well as faster!
You people that for some reason think that receiving an inactive card with your name on it, (bought by a corporation from another, which they almost ALL do), is the same as having you bank account stolen, are insane....... You people with your high and mighty
"platinum credit cards", should get off of your high horse, and quit complaining to the extent it makes it hard for the rest of us to get something as simple as a debit card.....
Get over your selves, life will go on, throw the card away, or not, who cares, no one, seriously, no one

I think what those who like Netspend don't realize is that those who receive a card in the mail when one was not requested become worried about identity theft. I received one for my 12 year old son! I was extremely concerned that someone had stolen his identity. I appreciate finding this article and seeing that this is a marketing strategy. I'm glad that this service works for some people, but remember you requested your Netspend card, we did not. I have shredded the one issued to my son, for obvious reasons!

Save yourself the headache an hassle by applying for any other card. I am suprised visa lets them get away with this. The whole staff an resolution dept. should burn in hell those thieves.They belong in jail if they want too steal from us. They will be hearing from my lawyer soon enough

I received a MasterCard from Netspend. Now that I read your blog, I will cut it up in pieces.

I recently received a card in the mail, however it was sent to a neighbor's address. It was directly from Netspend. My Postal deliverer noticed my name at another address, and because she felt a credit card through the envelope, she suspected a potential ID theft scheme. She handed it directly to me with her warning. I did a Google check and read the above post and figured that Netspend was soliciting me. However less than a week later I get a similar card from PayPal with whom I have an account to facilitate online purchases. Again, it was handed to me from my Postal deliverer. It too was addressed to a neighbor's house - a different address than before but a number off. I was given a similar warning. Because it was from PayPal, I had stronger suspicions and contacted PayPal using my online account page as opposed to the info that came with the card. I got bounced around to a few operators, but PayPal acknowledged that "they" sent the card. I confirmed that my address was correct on the PayPal account. I made it known that I did not order any direct deposit debit card of any sort through PayPal. I was apparently dealing with a couple of "outsourced" operators and I kept demanding to speak with security. Somehow, I ended up with an "insourced" operator who said he was with security and we seemed to understand each other better.. more like my needs were being met. I learned that this card was actually and Netspend card affiliated with PayPal. Nothing suspicious. But I learned also that the cards sent through the mail AND THIS IS IMPORTANT!! was a permament card to replace a temporary card purchased at a local convenient store. It was opened with a minor cash deposit in my name and the addresses listed on the envelopes when mailed to "me." Bottom line regarding my calls was that Netspend is aware of my name being used to open Netspend accounts. They closed the two accounts and suggested that I take defensive measures throught the credit bureaus. It might seem innocuous as to why an ID thieve would open a direct deposit debit card if they are the ones who have to put money into the account. When in fact, it's these accounts where they can divert monies from one of my accounts through direct deposit to a debit account in my name to which they have a temporary card. I don't believe that they cared about a permanent card. I am still going through an investigation to see where I'm vulnerable or have been ripped off. Hopefully, the scheme was caught in time. However I don't feel confident that some theft has been averted. I'll see...

They are not a very good company. Their business practices need to be redone. They need to be regulated BIG time. They said, they have been in business for 10 years, but some how I do not believe them. They said, they sent me several emails requesting required documents. But I received only one email from them and it was sent 7 minutes after the hour long call was ended. Whoever they are or were, they need to regulated. The whole industry needs to be regulated. UGGGH.

Wow talk about making a mountain out of a molehill. Are you serious?

Just throw the damn thing away. It amazes me how many people freak
out over junk mail. That is what a receptacle is for.

NETSPEND!!! You gotta listen to this one... Ok so I did purchase a prepaid card from them... they require that you show ID and SSN before sending a permanent card. Having done all that i get home and find out the card i just bought had not been "fully" activated. LOL yes after i give them my money for me to spend on this card they will not allow me to use it... I then talk to their CSR in Singapor or somewhere... and they ask for a copy of my ID and SSC and so i send it only to get blocked from my card the very second i attempt to make an online purchase. THEN... i have to wait til MONDAY before I can do anything about it bc the dept that blocks the card isnt open to unblock the card on Saturday...Long story short im getting all of my money back off of this card NEVER using it again a,d they made my wknd horrible with their BS policy over MY cash money that i obviously had to pay them to get the card to use it for online purchases.... You would think its a safer way to go without risking you very personal banking info... But of course its a bigger headache than a regular bank NetSpend sucks...and so does their customer service.

Just got a netsoend card today. I looked it up online and saw all these negative reviews. Glad I didn't go for direct deposit. Cards has been destroyed. Thanks for the heads up

I suspect they got my information from me setting up an account with mint.com, and I'm curious if anyone else that received this card uses mint.com to help manage their finances.

And???? What are you talking about? They aren't charging you for anything, it is mail marketing. Just throw it away. It is not a credit card, it does not affect your credit rating, so what do you care? I hate it when companies send credit cards, but this is like sending a gift card with 0 balance, and if you want to use it you put money into it, if you don't you don't and throw it away. Your social security number is not attached, and none of your assets are tied to it. I get much worse things from Chase, Wells, Bank of America, worse calls from bad credit collectors that aren't even calling for me. This is completely innocuous compared to all that crap.

I received this card in the mail on 11-15-2012 and was totally baffled. I showed it to my husband and he researched it online and came up with this site. Thank you for explaining this because the fact that it was a real card that I had not applied for really threw me for a loop. I am going to shred it. It never ceases to amaze me how people scam other people. Do they ever stop to think about how they would feel if it was done to them? Unbelievable. It is really scary how clever they can be. You are wise to doubt everything which is a shame but it just may save your bacon.

So you got some junk mail from netspend and you freaked out??

Really? If you dont want the card throw it away.. Theres no value to it, and no liability on your part if somebody stole it from your trash.

Cant believe the things some people get upset about..

I have used NetSpend without any issue for years. Their service is unmatched when it comes to prepaid debit cards. It's not like they stole anything from you. They sent you a piece of mail.... that's it. What's the issue?

I've had nothing but GREAT experiences with Netspend! I honestly do not see what the big deal is or WHY you are so upset about them sending you a card that is NOT ACTIVE? Like you said yourself, how could someone use it for fraud if THEY would have to put money on it AND Netspend told you that it was NOT active unless YOU activated it?

Netspend cards are a great way for parents to put a set amount on money on a card for a college aged child (with the benefit of being able to monitor it online) among other circumstances. Also, a cardholder need not pay fees for "each" transaction. A low one time monthly fee of $5 (less than most bank account these days) will cover pretty much all transactions (other than ATM fees but you can even avoid these by simply doing "cash back" at POS) so I still do NOT see WHY you are ranting?

There are MUCH bigger problems that are actually that...a problem. Netspend is NOT one of them...in my honest opinion.

I recently received a prepaid netspend card and I freaked out too. To those praising the card the point is we were sent real cards with our names on them. That would freak anyone out period. I'm shredding mine up and and sending in a complain. No company should try to lure in customer's this way.

I got several emails saying I was "approved" for a Netspend card and "click here to activate your card"--which I did not, since I was not even aware of Netspend. I too got an unsolicited card in the mail a few days later, which I promptly shredded. To whom do you report this company??

WE HAD OUR TURBO TAX REFUND IN THE AMOUNT OF $6300 SENT TO THIS VISA NETSPEND CARD. WE GOT THE CARD IN THE MAIL FINE. ABOUT A WEEK LATER THE MONEY WAS DEPOSITED. I USED THE CARD TWICE THAT EVENING BUT THE NEXT DAY WHEN I TRIED TO USE IT, IT WAS DECLINED. YOU CAN IMAGINE MY HORROR WHEN I WAS TOLD MY ACCOUNT WAS CLOSED AND THEY HAD NO IDEA WHY OR HOW BUT THE MONEY WAS GONE. I LATER FOUND OR I SHOULD SAY THEY CONSOLED ME AFTER 16 PHONE CALLS W/PEOPLE I COULD NOT UNDERSTAND THEY ARE SENDING THE MONEY BY CHECK TO BE RECIEVED IN UP TO 20 DAYS. HIS WILL BE UP APRIL7 SO I HAVE NOTHING TO DO BUT WAIT AND IF IT DOESN'T COME BY THE 7TH OF APRIL, WHAT DO I DO? THIS IS NOT A SMALL AMOUNT OF MONEY AND I AM SICK AND GROWING OLDER BY THE DAY. I DON'T FEEL IT'S FAIR TO TREAT PEOPLE LIKE THIS AND BY VISA NO LESS. ANY ADVICE WOULD BE APPRECIATED AND I PRAY VISA READS THIS.

Thanks so much for writing this! I received an email from them today saying that the card I had requested should be received shortly. I didn't request a card, and - as the spouse of someone who's been a victim of identity fraud - I am gravely concerned that an unsolicited card will be dropped in an unsecured mail box. If the card is activated by someone else, we will again be in the position of trying to clear our credit record. I was gravely disappointed to see that the Better Business Bureau gave them an "A" rating. I intend to let them know why I think they're wrong.

Why does it matter that they sent you that card? You GAVE your name and address to a company who works with Netspend and somewhere along the way gave them the okay to sell said information. Since Netspend is a pre-paid card, all they need is a name and address to open an account and send a card. There was no harm done. They gave you the option of opening an account without having to wait for the card. Since you didn't want the account, you didn't activate the card and no account ever existed. Why is that so horrible and outrageous? People like you just want something to get pissed and rage about. It's NOT that big of a deal. Petty.

Thanks for posting this. I got an email that said they were sending me a card. I was totally confused. Now I'll just throw it in the burn barrel when it arrives. Thanks!