NETSPEND All-Access Card in the Mail

[sengsational]

This is a new one on me. Maybe someone else has seen this?

Totally unsolicited mailing from NETSPEND, with a legit looking "credit card", making it look like I have a relationship with this outfit.

A first class pre-sort letter envelope from PO Box 149116, Austin TX 78714-9116 that had an apparently real credit card (or maybe just an ATM card...I didn't look too closely). This mailing looks just like what you'd see if you'd applied for and received a credit card. It has a "activate your account" sticker on the card.

It looks like it's just a new-fangled urging for the recipient to open an account with them. They make it look like it's already opened, but my credit is frozen, so I doubt they could get away with that.

Anyway, I just wondered if anyone else has seen these and what you thought about it.

 

[MissMolly]

What is Netspend?
Netspend is a company with prepaid cards that offers an alternative to checking account debit cards, credit cards, and cash. Customers provide the company with their names and addresses, and the company mails them personalized cards that they activate and load with funds. The cards are operated by Mastercard and Visa.
https://www.investopedia.com/articles/company-insights/082716/how-netspend-works-and-makes-money-tss.asp#:~:text=Netspend%20is%20a%20company%20with,operated%20by%20Mastercard%20and%20Visa.

 

[athena53]

So it's basically a pre-paid card wit a credit limit equal to whatever is left on the card? Might be handy for transactions where you think someone might hack your account.

 

[COcheesehead]

https://www.netspend.com/

 

[RobbieB]

Wow, a prepaid debit card that you load online.

Pretty easy.

 

[COcheesehead]

So it's basically a pre-paid card wit a credit limit equal to whatever is left on the card? Might be handy for transactions where you think someone might hack your account.

Best cards for when you think you might be hacked (not sure how you would know) but those would be the cards with the one time use account numbers.

 

[Sunset]

So it's basically a pre-paid card wit a credit limit equal to whatever is left on the card? Might be handy for transactions where you think someone might hack your account.

Wow, a prepaid debit card that you load online.

Pretty easy.

Except it has a fee for using it:
"There is a $1.95 per purchase fee on all transactions"
or
"The monthly plan is for individuals who use the card often and make many transactions per month, with the option of having the card funded via direct deposit. The monthly fee is $9.95 and there are no additional costs for transactions."

 

[foxcreek9]

These accounts have one benefit, an attached savings account paying 5%. You can avoid the monthly fee by sending (ach) $1 each month (ally is great for this purpose). The savings limit is low, 1k although at one time it was 5k. There are multiple versions of this card, the DW and I had 10 accounts at one time, it was an easy $500 a year when rates were low. Other versions of this card are with Western Union, Brinks, Meijer grocery, HEB grocery, and Ace Elite. Once a year we would pull the $12 plus interest back to ally.

 

[sengsational]

Thanks, all, for doing the research.

The main reason I wanted to post about it was I thought it was deceptive marketing; they made it look like there was already an established relationship. More confusing is that this kind of card that was NOT empty was used by government agencies to distribute stimulus money, etc.

It turns out it's an empty debit card with a MasterCard logo that is not linked to any account unless you take action to open a new account.

In 6 point type, it says "We obtained your name from a third party data provider. This card was not sent to you in response to an application" and "If you don't want this card, please dispose of it securely."

The biggest "come on" in the marketing was that you get access to direct deposit funds two days earlier than your standard bank. Big banks do tend to sit on funds to their advantage, so if this puts pressure on that practice, I suppose that's a good thing. But I don't like the whole simulation of an existing relationship.

 

[jazz4cash]

The early access to direct deposits fascinates me. I noticed it initially at the fintech type companies like Chime. It’s like the money isn’t real. Now I think my credit union has the feature. I learned that they apparently get advance notice when a credit will be sent.
I would be concerned/annoyed why anyone thinks I need a prepaid card. I suspect the deception continues when you call to “activate” the card.

 

[foxcreek9]

The early access to direct deposits fascinates me. I noticed it initially at the fintech type companies like Chime. It’s like the money isn’t real. Now I think my credit union has the feature. I learned that they apparently get advance notice when a credit will be sent.
I would be concerned/annoyed why anyone thinks I need a prepaid card. I suspect the deception continues when you call to “activate” the card.

Having worked in a bank, you would see "pending deposit x.xx" 2-3 days ahead in a persons account, so these banks are giving you a loan for a couple of days. The reason you see these small fintech companies do it is they can charge higher interchange fees that the big boys can't. So what they lose in interest is made up in fees plus some.

https://www.treasuryprime.com/blog/fintech-interchange

 

[foxcreek9]

The early access to direct deposits fascinates me. I noticed it initially at the fintech type companies like Chime. It’s like the money isn’t real. Now I think my credit union has the feature. I learned that they apparently get advance notice when a credit will be sent.
I would be concerned/annoyed why anyone thinks I need a prepaid card. I suspect the deception continues when you call to “activate” the card.

As to netspend, they are FDIC insured and it costs them little to send these otherwise worthless cards out. Nothing nefarious, although, for the unbanked there are much better options. But a lot of people make one dumb decision after another.

 

[Sunset]

The early access to direct deposits fascinates me. I noticed it initially at the fintech type companies like Chime. It’s like the money isn’t real. Now I think my credit union has the feature. I learned that they apparently get advance notice when a credit will be sent.
....

I see those ads as well, and wonder don't the people realize there is no advantage.

"I got my pay check money 2 days early" -> if excited about that it the first time, it means the person spent all their money with the past 12 days.

So the next "I got my pay check money 2 days early" -> is 14 days from the last time so they are broke again

Other problem is if their co-workers are like them... then they are the only one with $$$ 2 days before regular payday so the co-workers will be hitting them up for some $$.