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Small businesses often deal with the tough infancy stages of nurturing growing companies, such as cash flow shortage and tight budgets. Managing money in a smart way can be difficult, and overspending is very common.
If you want to avoid the plight of overspending and going above your budget, then you should apply for a small business prepaid debit card. This way, you can possess the tools to manage your cash flow without any issues.
The Netspend Prepaid Mastercard is an excellent option for any small business owner that wants to maintain strict spending habits. If you’re interested in applying for this prepaid card, it’s best to check out the specifications, pros, and cons listed below in this Netspend Prepaid Mastercard review.
Netspend® Small Business Prepaid Mastercard®: Overview
Before you consider this option, it’s best to first understand what a prepaid card is. A prepaid card is simply a payment option that only allows you to spend the money to load onto the card.
These cards won’t help you build any credit, and they work like debit cards. Prepaid debit cards are usually issued by providers, such as Visa, Mastercard, and American Express.
This means that it’s more secure and convenient than using cash for everyday purchases. Prepaid cards are also beneficial for users and allow them to manage their accounts via a mobile app, transfer their money to bank accounts, and deposit checks.
Now, prepaid cards may lack the benefits that checking accounts offer, such as free ATM fees, checks, branch networks, and more. Below, you’ll find out how prepaid debit cards stack up against other options:
- Prepaid debit cards – (pay before): You can load money onto your card before making payments.
- Debit cards – (pay now): You can make payments instantly from your checking account or withdraw cash when making payments.
- Credit cards (pay later): You can borrow the money you need and pay it back later for urgent or overhead purchases.
The Netspend Small Business card allows small business owners to load money and make convenient purchases. Using a prepaid card like this is a simple alternative than opening a checking account or using a credit card.
For freelancers, restaurant owners, and other creatives, this can be an attractive option to avoid credit card bills, while managing their finances responsibly.
Netspend Small Business Prepaid Mastercard: Quick Facts
There are several things to consider before applying for this prepaid debit card. Below, you can find all the major facts regarding this prepaid debit card option:
- You don’t have to maintain a minimum balance when using this prepaid debit card. This is a fortunate benefit rather than opening a checking account with a minimum balance.
- There isn’t an activation fee. You can apply for this debit card and open your account easily.
- There isn’t a hard credit check. Anyone can apply since you’ll be using your own money. As such, you can’t use this card to build your credit score.
- This prepaid debit card allows you to separate your personal and business expenses and keep better control of your finances.
- You can easily keep track of all business transactions and make filing taxes much easier.
- Cardholders can accept payments from a wide variety of sources. Particularly, you can accept checks, cash, or credit and debit card payments.
- Cardholders can also ensure that employees that need to make essential business purchases can have a sub account with controlled spending availability.
Netspend® Small Business Prepaid Mastercard®: Specifications
Being a prepaid debit card, there are a lot of different considerations to keep in mind with the Netspend Prepaid Mastercard. Below, is a complete rundown of this card’s main specifications:
- Key Benefits: Bill pay, direct deposit, Netspend mobile app, and mobile text alerts.
- Activation Fee: $0
- Monthly Fee: $9.95
- Card Limit: $25,000
- Daily Spending Limit: $7,500
- Daily ATM Limit: $940
- Daily Cash Load: $7,500
- Activation Fee: $0
- Monthly Fee: $9.95
- ATM Fee (In-Network): $2.50
- ATM Fee (Out-of-Network): $2.50
- Direct Deposit Fee: $0
To use this prepaid debit card, you must pay a monthly service fee of $9.95. This is pretty affordable, but if you are looking for a lower fee, many other options offer cheaper rates.
While cardholders aren’t required to have a minimum balance, they still must pay a $2.50 fee for in-network ATMs. This is the same rate they’ll pay for out-of-network ATM deposits and withdrawals.
Again, prepaid cards with much better terms exist, but the Netspend Small Business card is a standard option if you’re looking for a basic prepaid Mastercard with not too many strings attached.
Netspend Small Business Prepaid Mastercard: Who is This Card For?
Using a prepaid debit card isn’t uncommon for small business owners. Many of them are tempted to apply for a business credit card. However, these options usually come with high interest, penalties, and stipulations that can make borrowing money uncomfortable.
Using a prepaid debit card is a flexible and versatile financial alternative for small business owners looking to manage their money more intelligently. The Netspend Small Business Prepaid Mastercard is no exception.
When you apply, you can separate your personal and business expenses much like you could if you have a checking account. You can also accept payments from various sources from your customers.
Most importantly, you can keep track of your transactions to make better financial decisions and grow your business. Thus, this prepaid debit card is mainly for small business owners getting started.
If you’re planning to scale your business rapidly within the coming months or years, you’re better off applying for a credit card to finance this journey on your own terms.
Netspend® Small Business Prepaid Mastercard®: Main Benefits
The Netspend Small Business Prepaid Mastercard offers several enticing benefits for cardholders. If you’re interested in applying for this prepaid debit card, here are the top benefits to look for:
No Minimum Balance:
When you choose to open a checking account, you will more often than not have to maintain a minimum to avoid having your account closed. This card doesn’t require you to have a minimum balance, which is a great perk.
No Activation Fee:
If you’d like to set up your account, you can rest easy knowing that you also don’t have to pay an activation fee. This means that you don’t have to pay a security deposit like you would a credit card.
No Credit Check:
Applying for this Netspend prepaid card is very simple and doesn’t require a credit check. Regardless of your credit score, you can set up an account in as little as five minutes.
Separate Business and Personal Expenses:
It can be a hassle to manage your finances when your business and personal expenses are intertwined. This card can separate both and give you greater control over what you spend.
Easy Tax Preparation:
With greater control over your finances, filing your taxes will be a breeze. This means you can spend less time organizing your paperwork and focus on growing your business.
Accept All Kinds of Payments:
Every small business owner knows that every sale matters. You can make it completely convenient for your customers to pay you with cash, checks, and debit and credit cards.
All of these transactions will promptly be added to your card account.
Manage Employee Spending:
If you have any employees who need to make essential purchases on your behalf, you can provide them with an interlinked account that gives them controlled spending ability.
Netspend Small Business Prepaid Mastercard: Main Drawbacks
Now, while a prepaid card can be a best friend for many small business owners, there are some disadvantages to consider. The main drawbacks of this prepaid debit card are:
Limited Financial Wherewithal:
Prepaid cards are great for managing finances. However, if you want to grow your business in the long run, they won’t be much help. Applying for a credit card is a much more suitable option to have flexible spending through a credit line.
This way, you can borrow money to grow your business and pay it back at a later date. Prepaid debit cards don’t offer this feature.
Nearly all prepaid debit cards carry some type of monthly fee. This option has a $9.95 monthly fee. Many other options have lower fees you could consider.
Nagging ATM Fees:
Many small business fees have to regularly withdraw cash from their accounts. If you’re one of these people, then this prepaid card could have a noticeable disadvantage.
The $2.50 ATM fees can add up if you’re making regular transactions.
Netspend® Small Business Prepaid Mastercard®: The Final Verdict
Applying for the Netspend Small Business Prepaid Mastercard is an excellent short-term option if you’re just starting your business. It will allow you to keep track of your spending, accept payments, and give employees spending limits.
However, it’s not for ambitious entrepreneurs who require flexible cash flow and spending in the form of secured and unsecured credit cards.