Netspend is a popular financial service provider based in the United States. It offers prepaid debit cards that are licensed by Mastercard International Incorporated.
You can easily get the Netspend prepaid cards even if you don’t have any credit check or a traditional bank account.
Netspend Corporation offers both Mastercard and Visa debit cards, and you can use your Netspend card in places that accept traditional credit or debit cards. Other than that, Netspend also offers business accounts for small business owners.
Let’s discuss what a Netspend Business account is, how it works, and whether it’s the right option for you or not.
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- What is a Netspend Business Account?
- How Does Netspend Business Account Work?
- Netspend Business Account: Fee Structure
- Benefits of Using Netspend Business Account
- Disadvantages of Netspend Small Business Account
What is a Netspend Business Account?
The Netspend business account or card provides small business owners a convenient way to manage their personal and business finances separately. It also allows them to accept payment on the go and manage their employee spending.
All you need to do is provide Netspend with your basic personal information to open your business account. The use of a Netspend small business card account is subject to ID verification, activation, transaction fees, and funds availability according to the cardholder agreement of Netspend.
According to federal law, it’s important to note that Netspend financial institution is a federally registered company and requires your personal information for ID verification.
How Does Netspend Business Account Work?
First, you need to apply for your Netspend small business account by going to the company’s official website. After applying, you’ll receive your Netspend small business card within ten days, and you’ll need to activate it by calling the company’s toll-free number “1-866-387-7363” to talk to Netspend customer service. Your account funds will be FDIC insured after activation.
If your small business isn’t a sole proprietorship, verifying it within 30 days of your Netspend Small Business prepaid card is recommended. It’ll allow you to open ten sub-accounts, and it’ll also increase your maximum balance limit from $15,000 to $25,000.
You can go to the Netspend physical reload location, use direct deposit, ACH transfer, or check to load find to your Netspend Small Business prepaid card. This card also allows you to apply for ProPay to accept credit or debit card payments directly to your Netspend account.
Remember that you’ll need to have an Android or iPhone along with a JAK card reader to use ProPay.
Additionally, you’ll also need to pay a 3.5 percent fee along with $0.15 for keyed transactions and a 2.7 percent fee for swiped transactions.
Netspend Business Account: Fee Structure
|Main Account Monthly Fee||$9.95|
|Monthly Fee for a sub-account||$1.95|
|Fee on Local ATM Withdrawals||$2.50|
|Fee on International ATM Withdrawals||$4.95|
|Fee on Balance Inquiry||$0.50|
|Card Replacement Fee||$3.95|
|Foreign Transaction Fee||3.5 percent|
Benefits of Using Netspend Business Account
As mentioned, Netspend is a leading provider of prepaid debit cards and the company’s small business account provides a convenient way to keep your personal and business expenses separate.
No minimum balance is required to open the Netspend prepaid debit card. Other than that, the Netspend Small Business Prepaid Mastercard comes with the following benefits.
Keep Personal and Business Expenses Separate
The primary reason to get a Netspend prepaid business card is that it allows you to keep your expenses separate from your business expenses. It especially comes in handy while paying your taxes.
You can also sync your Netspend accounts to popular accounting software solutions such as QuickBooks for efficient bookkeeping.
Manage Employee Spending
An unverified Netspend Small Business Prepaid Mastercard allows you to create up to 2 sub-accounts for your employees. However, you can create up to 10 sub-accounts if you verify your small business with Netspend.
This way, you won’t need to give your employee full access to your primary prepaid debit card to manage their spending more efficiently.
Better Business Organization
Running a business entirely on cash is very difficult. A prepaid debit card will enable you to allocate the required money for your business operations with better organization.
No Credit Check Required
The Netspend Small Business Prepaid Mastercard is issued without any credit check. It means, even if you have a bad credit score or no score at all, you can open your Netspend small business account. However, it’s important to note that the Netspend prepaid card can’t help you build credit.
Easy to Reload
The Netspend Small Business Prepaid Mastercard is straightforward to reload because of multiple available options.
Along with physical reload locations, direct deposit, ACH transfers, and paper checks, you can also use ProPay to add credit or debit card payments to your Netspend small business account directly.
Access to Rewards
Netspend small business account allows you to earn rebates on everyday purchases via Mastercard Easy Savings. Whenever you use your Netspend prepaid debit card at participating merchants, you’ll receive cashback rewards.
These rewards can be earned on different services and products like restaurants, hotels, and gas stations.
You can use a user-friendly mobile app that Netspend offers to manage your account whenever you need it. The mobile app allows you to accept payments on the go. You can also use it to load paper checks by capturing photos.
Netspend also offers Anytime Alerts that you can use to get real-time notifications about your Netspend prepaid card activity. You can use this mobile app on both iPhones and Android smartphones.
Disadvantages of Netspend Small Business Account
The Netspend small business card might not be the right option for you, depending upon your unique business needs. It’s essential to consider the following factors while applying for your Netspend prepaid debit card.
Steep Monthly Fees
The Netspend small business account comes with steep monthly fees, which are also unavoidable. You’ll need to pay about $10 each month for your main account, and the sub-account also adds up to the monthly fee.
Even if you verify your Netspend small business account, you won’t be able to open more than ten subaccounts. There is also a daily spending limit of $5,000, and you can’t have more than $25,000 in your account.
So, if you run a larger business than that, the Netspend small business account might not suit you the best.