18 years in business
HeadquartersPO Box 2136
Austin, TX 78768-2136
Additional Phone Numbers
- (866) 226-1551
- (877) 562-2235
- (877) 266-9562
- (866) 753-6324
- (866) 753-6440
- (877) 402-5823
- (877) 814-7679
- (855) 627-4657
- (888) 414-8885
Additional Email Addresses
Find a Location
Type of EntityCorporation
- Ms. Lisa Henken, Vice President Customer Experience
- Mr. Chuck Harris, President
- Mr. Roger Kidwell, Senior Vice President of Operations
- Prepaid Debit/Credit Cards
Products & ServicesNetSpend Prepaid Debit MasterCard, NetSpend Prepaid Visa Debit Card, Control Prepaid Debit MasterCard
Service AreaWe service the following area(s): Texas
Alternate Business Names
- Total System Services Inc
Alerts & Actions
Government ActionFederal Trade Commission v. Netspend Corporation
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On March 31, 2017 NetSpend entered into a Stipulated Order for Permanent Injunction and Monetary Judgement with the Federal Trade Commission. The Stipulated Order settles allegations that Netspend deceptively advertised its reloadable cards. Specifically, NetSpend marketed that customers would have immediate access to funds deposited on the reloadable cards, when in practice the approval to use funds is contingent upon consumers meeting certain requirements.
Under terms of the Order, Netspend agrees that it is permanently restrained from expressly or by implication misrepresenting or assisting others in misrepresenting any fact regarding the length of time or conditions necessary before prepaid products will be ready to use or consumer will have access to funds. Additionally, the Order provides that NetSpend is restrained from misrepresenting facts regarding the length of time or conditions necessary to gain approval to use a prepaid product, including that consumers are guaranteed approval. NetSpend must also provide notice to third party marketers to remove NetSpend marketing that does not meet standards of the Order. NetSpend must also pay monetary relief totaling fifty-three million dollars ($53,000,000.) Additionally, The Order requires the business to make ongoing submissions of information to the Federal Trade Commission, to create certain records for 20 years, and to maintain records of all consumer complaints.
The Stipulated Order for Permanent Injunction and Monetary Judgement was or settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law. For more details go to: https://www.ftc.gov/system/files/documents/cases/netspend_stipulated_order_for_permanent_injunction_and_monetary_judgment_3-31-17.pdf?utm_source=govdelivery.
Pattern of Complaint
Based on BBB files, NetSpend Corporation has a pattern of disputes alleging unauthorized charges on consumer prepaid debit cards not being refunded. Specifically, complainants allege they report unauthorized transactions, with NetSpend then stating no errors were found and no credits were issued because NetSpend was unable to identify that an error occurred.
Additionally, NetSpend has a pattern of disputes alleging unclear disclosures and misinformation during the consumer dispute process for unauthorized debit card charges. Specifically, complainants allege when filing a unauthorized transaction dispute they are given initial time-frames for resolution in the 5 to 7 business day range which is then extended up to 90 days.
NetSpend also has a pattern of disputes alleging consumer’s purchase a NetSpend prepaid debit card, send in identification documents required and are still unable access to funds. Consumers further allege there is a large delay in either being given access to funds or receiving refund checks through the mail. In a few instances consumers alleged they purchased what appeared to be a gift card from NetSpend before finding out they must provide personal identification documentation they feel is excessive to be able to use the card.
NetSpend generally responds to complaints by explaining their investigation of unauthorized charges found no error so no credit is issued. NetSpend further responds by stating they had reason to believe the consumer benefited from the transactions and a letter explaining the decision will be mailed to the consumer. NetSpend generally responds to complaints concerning transaction disputes by stating investigation time frames afforded to financial institutions are set under Regulation E.
For more details regarding disputes received by BBB, please visit the complaints tab.