Skylight Paycard Overdraft Limit [Find Out How Much]

By Neil Harris 11 Min Read

Skylight Paycard lets you make purchases even when you are a little short on funds. But what is Skylight Paycard overdraft limit? You need to know the limit to avoid penalties.

Moreover, this post will show you how this overdraft works. Using Netspend Skylight as an example, cardholders can overdraft their accounts. However, it is not a free-for-all. Netspend has specific guidelines and fees in place. They offer a $10 buffer, meaning you won’t be charged if you go over this amount. But exceed that, and you will face a $15 fee. And while you might think of taking advantage of this often, there’s a cap – you can only incur this fee three times a month. Plus, if you find yourself in the red, you’ve got a 24-hour window to balance things out and avoid that fee. But remember, to enjoy this safety net, you need to have a regular direct deposit coming in, at least $200 every 30 days. So, while the Skylight PayCard offers flexibility, it’s essential to use this feature wisely.

[box title=”Key Takeaways” style=”soft” box_color=”#333333″ title_color=”#FFFFFF” radius=”3″]
  • The Skylight PayCard allows overdrafts up to $100, with conditions like a direct deposit of at least $200 every month.
  • Overdrafts up to $10 are free, but exceeding this results in a $15 fee, capped at three times a month.
  • If an account remains negative for 30 days three times or 60 days once, the overdraft service is terminated.
  • The Skylight card has a daily withdrawal limit of $1,000 from participating ATMs or POS terminals.
[/box]

What Does Overdraft Mean?

An overdraft occurs when a transaction is processed even if there is insufficient balance in the account. Banks or credit unions might still process these transactions, charging an overdraft fee.

For example, you might have a bank account balance of $3,000 with an overdraft limit of $500. It means that you can spend up to $3,500, but you cannot withdraw or request added money if the payment exceeds the limit.

However, for ATM overdrafts or most debit card transactions, banks or credit unions cannot charge fees without the customer’s consent.

Overdraft protection is available for some prepaid cards, but Netspend does not offer borrowing or loan services. However, loan proceeds from other sources can be deposited into a Netspend account, similar to a regular bank account.

All in all, with an overdraft limit with your bank, you can continue to withdraw money from ATMs as long as you remain within this limit.

Does Skylight PayCard Have an Overdraft Feature?

Skylight PayCard has an overdraft feature, but it comes with conditions.

If a cardholder has registered for Skylight PayCard overdraft protection, they can overdraw their account. Without this protection, the card won’t allow you to exceed the authorized amount.

Note that the Skylight PayCard is issued by BofI Federal Bank, an FDIC-insured institution, under license from either Visa U.S.A. Inc. or MasterCard International Incorporated.

The money loaded onto the Skylight PayCard is held at BofI Federal Bank.

Skylight Paycard Overdraft Limit

Skylight Paycard Overdraft Limit

The overdraft limit for Skylight PayCard is set at $100, and overdrafts can occur up to 3 times a month.

For overdrafts up to $10, there is no charge. However, once this threshold is crossed, a fee of $15 is applied.

Prepaid debit card users need to ensure their balance does not drop below -$10.01 to get overdraft protection. Also, to be eligible, you must enroll and receive a Skylight PayCard direct deposit of at least $200 every month.

If you overdraw your account, a charge of $15 is applied per transaction, with a cap of three such transactions per month. If an account remains in negative balance for 30 days three times or for 60 days once, the service is terminated.

Netspend Skylight cardholders can overdraft their accounts, but only if they have opted into the company’s overdraft protection service. Without this service, Netspend won’t allow you to exceed your card’s authorized limit. The NetSpend Skylight card provides a $10 overdraft buffer as part of its overdraft protection program.

If the overdraft exceeds this amount, an overdraft fee of $15 is charged, capped at three such fees per month. Cardholders are given a 24-hour grace period to rectify the negative balance post the transaction causing the overdraft, to avoid the fee.

How Does the Overdraft Protection Work?

Skylight Paycard offers a cushion of $10 for overdrafts or purchases once you’re enrolled in the protection service.

This means that if you exceed your balance by less than $10, you won’t be penalized with the usual $20 overdraft fee. However, this is not an indefinite free pass.

If the negative balance isn’t repaid within 24 hours, an overdraft fee is applied. For overdrafts exceeding $10, a $20 fee is charged per occurrence, but this is limited to five such fees a month.

Understand that Netspend Skylight Paycard does not approve every overdraft. They reserve the right to pay overdrafts at their discretion and do not guarantee payment for every overdraft. If unauthorized transactions are reported within 2 business days, Skylight Paycard charges no more than $50.

How to Activate Overdraft Protection Service

To activate the Skylight Paycard overdraft protection, you need a valid email address and must agree to receive electronic disclosures and contract terms.

A deposit of $200 every 30 days is also required to qualify for this protection. If a user overdraws their account by more than $10, Skylight PayCard sends a notification.

Failure to top up the account within 24 hours when the balance is below $10 results in a $20 overdraft protection service fee.

Your overdraft protection can also nr be deactivated automatically.

Overdraft protection is deactivated if you do not receive a deposit of at least $200 every 30 days. If an account remains negative for more than 30 days three times or for over 60 days once, the service is canceled.

Skylight Card Withdrawal Limit ATM

For those wondering about the withdrawal limit of the Skylight card, it’s set at $1,000.00 per calendar day from any participating ATM or POS terminal. However, individual ATM owners might have their own set limits, which could be lower than this.

Benefits of Skylight Card

1. It’s Versatile

Skylight Card offers both Visa Prepaid Card and Prepaid MasterCard, ensuring quick and convenient transactions.

2. ATM Access

The card can be used to withdraw cash from over a million ATMs globally.

3. Cost-Effective

It reduces check-cashing and money-order costs. The cost of the account depends on the transaction volume.

4. Security

If lost, getting a replacement card is easy. The money on the card is held in an FDIC-insured bank account.

5. Global Access

A secondary card can be requested to send money to a family member or trusted friend abroad. This cardholder can then withdraw money in local currency from ATMs.

6. Ease of Use

Users can access their transaction history or current account anytime using Skylight’s online account center. Real-time balance updates are available through email or text message alerts.

7. Timely Deposits

Deposits are primarily made via direct deposit and are guaranteed to be available by 9 am on payday.

8. Overdraft Buffer

Once enrolled in Netspend’s overdraft service, a $10 purchase cushion or overdraft buffer is provided. If the cardholder exceeds this limit, they won’t be immediately charged the $20 overdraft fee.

However, if the negative balance isn’t settled within 24 hours, the overdraft fee is applied.

Limitations…

Netspend, for example, doesn’t guarantee approval for every overdraft. They pay overdrafts at their discretion. Unauthorized transactions are charged no more than $50 if reported within two business days.

Skylight Cards and Their Use in Business

Skylight cards, primarily used for business purposes, are offered by Netspend as part of a program in collaboration with Skylight.

These cards are a convenient way to manage money on a prepaid card, packed with numerous features. BofI Federal Bank issues the Skylight O.N.E. Card under the license from either Visa U.S.A. Inc. or MasterCard International Incorporated.

The funds loaded on Skylight O.N.E. Card accounts are held by BofI Federal Bank, a member of the Federal Deposit Insurance Corporation (FDIC).

Conclusion on Skylight Paycard Overdraft Limit

While the Skylight PayCard offers the convenience of overdraft protection, be aware of the terms and conditions associated with it, including the Skylight Paycard overdraft limit. Overdrawing frequently or not adhering to the stipulated conditions can result in penalties or even termination of the service.

Ultimately, make sure to manage your finances responsibly and avoid overdrawing unless absolutely necessary.

Resources

  • Which Bank Has The Best Overdraft Limit? Chime
  • Get Started with Your Skylight ONE® Card. Netspend

Read alsoHow to Get an Overdraft on PayPal [Loophole and Limit]

Before you goYou want to be the First to get sweet Promotional offers?

We will send more information to your email. Don't miss out. 

Share This Article
Follow:
Seasoned, hands-on exec with a broad range of experience at both start-ups and large international corporations. Highly successful, results and customer oriented professional and with over 18 years experience in the software and payment innovations arena, with a proven track record in driving revenue growth and delivering results in operational performance and profitability through direct and indirect channels. Key focus is on customer success and delivering value and efficiency gains through tech. I live & breathe innovation in the payments arena - Visa & Mastercard card processing, UK Bacs, Faster Payments, Direct Debits, card acquiring & global payments are my junk food
Leave a comment