Can You Overdraft an American Express Prepaid Card?

Are you wondering, “Can you overdraft an American express prepaid card?” For many, one of the main simple features of a prepaid credit card is that, unlike a checking account, they do not usually encourage overpayments. This is an important change for this growing industry. Approximately $ 65 billion in prepaid debit cards were charged in 2012, more than double the amount in 2009. And the CFPB estimates that this will double again in 2018.

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In fact, the new rule was designed to reinforce prepaid debit cards sold by payday lenders, which could deepen a vulnerable cycle of consumer debt. Lenders can link the money to a customer’s prepaid debit card to protect a lost loan payment. However, if the card cannot cover this payment, it would encourage an overdraft so be aware of this.

If you can overpay a prepaid card

You cannot overdraw prepaid gift cards or prepaid debit cards. However, there are some prepaid debit cards that allow you to make an overdraft. ACE Elite visas, Brink’s Prepared Master Card, Netspend Prepaid MasterCard, Netspend Prepaid Visa Card, PayPal Prepared Master Card and Western Union Netspend MasterCard that can allow you to overdraft PIN-based transactions and In signatures, they are prepaid debit cards. . Each of these prepaid debit cards provides protection against overdrafts in small amounts.

The overdraft does not allow single-use prepaid cards, such as Visa gift cards. The card has a fixed amount of funds and cannot charge more than this if you do not use a secondary payment method to cover the difference. However, for readable prepaid debit cards, overdraft policies vary depending on the financial institution that supports the card and the details of the cardholders agreement. (Our list below provides details of the policies for large prepaid SAO debit cards that allow you to overdraft).

Some issuers of recoverable debit cards will allow you to overdraw small amounts, without the need to link a bank account to your prepaid account. The next time you recharge your card after creating a negative balance, the issuer will deduct the overdraft amount from your new balance, so if you make an overdraft below $ 10 and then charge $ 100, for example, for a balance $ 90 positive. Charges for this type of overdraft vary by the issuer; there is generally no overdraft fee of $ 10 or less, but fees of around $ 15 will apply to higher overdraft amounts.


ACE Elite Visa Prepaid Debit Card

Purchase: covers up to a negative balance of $ 10 when you make an overdraft PIN or a signed transaction; available to cardholders with direct monthly payment deposits or government benefits for a minimum value of $ 500
Overdraft process: After receiving assistance with a purchase cushion, you must reimburse your negative balance within 30 days of the overdraft transaction. After 30 days, you cannot make transactions with your ACE Elite Visa, but your card can still accept deposits and charge funds. The issuer can also send your bill to collections after 30 days.


Brink’s Prepaid Mastercard

Purchase: Available to cardholders with $ 500 per month, qualified qualifying deposits; covers up to $ 10 negative balance at the discretion of the card issuer; They are not valid for ATM withdrawals, BUT transfers or third-party bill payments
Overdraft process: If you receive a purchase mattress, you will have to pay your negative balance within 30 days to freeze or send your account to collections. After 30 days, your account will be open to deposits and your cash load, but you will not be eligible for other transactions, such as paying a bill, until the balance is positive.


Netspend Prepaid Mastercard and Visa Cards

Purchase: Purchases may be based on PIN or signatures if the total amount is up to $ 10 more than the balance available to you.  It is available to cardholders who receive eligible deposits of at least $ 500 per month from payments of payments or government benefits.

Optional overdraft protection service: available for overdrafts of more than $ 10 for cardholders who receive ACH deposits of at least $ 4oo in the first 35 days after account enrollment.  And continue to receive deposits of $ 200 in at least ACH every 30 days

PayPal Prepaid Mastercard

This covers small overdrafts on PIN-based transactions (up to a negative balance of $ 10) for cardholders with at least one direct deposit
Overdraft process: cushion protection is not guaranteed; it is available in selected transactions at the discretion of the card issuer. If you receive a purchase mattress, you must add funds to your account within 30 days to cover the negative balance. After 30 days, the issuer will freeze your card so that it does not complete new transactions and can send your account to charges.


Prepaid Cards That Don’t Allow Overdraft

During our investigation, we identified the following prepaid cards that do not allow overdrafts. With these cards, remember if your account incurs a negative balance due to a merchant’s rate or other unforeseen charges.  You will be responsible for paying the negative balance; the issuer is likely to impair the overpayment of its future deposits.

  • AAA BallPay Visa Preparation Card
  • Akimbo Prepaid Mastercard
  • Meet American Express
  • BB&T Payable Debit Card MoneyAccount
  • BBVA ClearSpend Visa Preparation Card
  • Bluebird with American Express
  • Cash Card
  • Commercial Bank Detention Card
  • Green Dot Advance Cards
  • Load Dot Green and prepared card visas
  • H&R Prep Emerald Mastercard Block
  • Kroger REWARDS Prepaid Mastercard
  • RENEWAL of the Kroger prepaid visa
  • Cash network prepaid debit card
  • Digital Visa debit card prepared by MOVO

Before you go, I hope this summary on can you overdraft an American express prepaid card is helpful for you.


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