Netspend Refund Policy Explained

Netspend prepaid debit cardholders can receive refunds from merchants directly onto a Netspend card. You can also receive a refund of your remaining balance via check if you choose to cancel or close your Netspend card. We explain the merchant refund and account closure refund policies in greater detail below.

Merchant Refunds

If you make a purchase with your Netspend prepaid debit card and later return the item or are otherwise eligible for a refund, you can receive the refund directly back onto your Netspend card.^[1] The process is the same for receiving a refund to a traditional debit card.

Note that Netspend doesn’t control when the merchant sends the refund transaction; the processing time will vary. There may be a delay between your item return or refund request and when the amount is credited back to your card.^[1] If you have questions about a refund in progress, it’s best to contact the company issuing the refund.

Merchant Refund to a Closed Netspend Card

If you close your Netspend account before receiving a refund and the retailer attempts to refund the amount to your closed card, it will not be able to complete the transaction (i.e., you cannot receive funds to a closed Netspend card).^[2] You’ll need to contact the merchant directly to receive your refund.

If you’re expecting a refund to a Netspend card that you’ve closed, you should reach out to the merchant to request the refund be made to an alternate payment method.

Account Closure Refunds

If you decide to close your Netspend account, the company will refund your card balance to you as long as it’s above $1. Call Netspend customer service at (866) 387-7363 to notify the company that you’ll be closing your account. Netspend will then issue a refund check.^[1]

The refund process comes with a $5.95 check requisite fee, which Netspend waives if it would cause your account balance to fall below $1.^[1] Your refund check will include the account balance minus $5.95. Netspend will mail the check to the address it has on file, and this process typically takes about three weeks.^[2]

As a security precaution, Netspend notes that it may request documents to verify your identity after you request account closure, and it can withhold your refund until it verifies your identity.^[1]

Alternatives

If you prefer to receive your funds immediately, you can withdraw your card balance at an ATM or Walmart MoneyCenter before closing the account. Walmart charges a withdrawal fee of about $3.75, which is less than the $5.95 check requisite fee. (Find out more about making a Netspend withdrawal at Walmart.) Netspend charges a $2.50 ATM fee,^[1] and the ATM operator may also charge a fee for the transaction, but these combined fees may be less than the $5.95 check requisite fee.

Keep in mind that many ATMs don’t offer a wide range of bill denominations for withdrawals. You may only be able to receive your balance in increments of $20 or $10 at an ATM, which could leave a small remaining balance on your account. If you have a high account balance, you’ll also want to be mindful of your ATM’s daily withdrawal limits (as previously reported).

Once your account is empty, you can call Netspend or go online to close your account.