Dad ate $50 of son’s birthday gift with pre-paid card fees: ‘Legal theft’

A pre-paid card has been debunked online, with claims that multiple charges “dry out the card,” leaving a child with less than $10 of her birthday money to spend. .


A snap from a Netspend account is getting a lot of attention on Reddit, as did poster Guayacanz, aka Guy, who claimed that his son was given $50 from his uncle.

But he said that when his son finally decided to spend some of his gifts, he was left with only $8.35. A number of charges for “inactivity fees” and “account maintenance fees” drained the funds.


Three inactivity fees, and four maintenance fees, each at $5.95, dating from July 2021 to January 2 of this year, ate $41.65.

Sharing the post on various Reddit forums, including A**holeDesign, on Monday, Guy said: “The kid gets netspend pre-paid with $50 for his birthday last year. Finally decided to use that and Fees drained the card.”


North Carolina boy told newsweek The moment he realized the money was gone, he said: “My 10-year-old son got the card as a gift from a relative.

“He wanted to hold it to get some. I registered the card and put it in a drawer. Last week he found one star wars Lego wanted to use that card. Lego was $40.

“I tried to buy it but when I tried to use it the card was getting declined. That’s when I went online and the fee was refunded. When I registered I submitted my email with the registration. Even one Email was not sent Company is informing me about service charges or my preferred… inactive charges.”


He said he and his family would never use the company again, adding: “I was annoyed that they took the money for a monthly fee and there was no notice of it.

“If I had known, we would have used it earlier. All I really want to know is what the ‘idle service charge’ is? I didn’t know it costs company money to keep money??? In my family None. I will ever use the card or that company again. I spoke to the buying relative, his uncle, to make sure he doesn’t do it again.”

Netspend account fee. The original amount was $50, which was reduced to just $8.35 after fees.
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The post got over 40,000 upvotes as Guy said the card was bought in April 2021, and he eventually bought his son Lego.


“I paid for Lego. I didn’t tell her that the card her uncle bought her was raped for almost everything. I didn’t want to ruin the gift,” he said.

Commenting online, UniqueUsername812 joked: “Ah yes, Netspend, teaching kids important lessons, checking notes, spending your money right away and not saving it for a rainy day.”

Sadi_Reddit wrote: “Just realized this is a prepaid card, agree on my part.”

CriesOvereverything quipped: “It’s called Netspend and not Netsave.”

Wafflesbro5412 said: “It’s robbery. Straight. And it annoys me that there’s probably some little text in their use agreement for it.”

DanManzo wrote sarcastically: “This is not a robbery!! When you read our 1,000 page Terms of Service you accepted these terms!!”

DurkaDurka81 asked: “How is this even allowed?”

Whereas BarrySmart said: “Legal theft.”

talking to newsweekNetspend explained that there are various fee plan options.

A spokesperson said: “We offer our customers the ability to choose from a variety of competitive fee plan options, including our ‘pay-as-you-go’ plan. Pay-as-you-go plans estimating transaction fees per purchase done by the customer.

Customers can enroll in a monthly plan to pay a flat monthly fee instead of a fee for each purchase transaction under the Pay-As-You-Go plan.

“We encourage all of our customers to contact our customer service department to discuss which plans best suit their needs and that changes to their plans may be made at any time.”

And he confirmed that the “inaction fee” starts after 12 weeks, in line with the deadline on the bill.

“With our ‘pay-as-you-go’ option, a $5.95 ‘inactivity fee’ occurs in 90-days after there has been no customer-initiated account activity,” he said.

Depending on the type of card or account, NetSpend may also charge a $2.50 ATM withdrawal fee domestically, while they may also charge $1 if a domestic ATM declines a transaction.

It may cost customers $0.50 to check their balance at an ATM, and potentially be billed $9.95 for a replacement card fee.

NetSpend, founded in 1999, offers a variety of cards and states that it is “a leading provider of FDIC-insured Visa Prepaid, Prepaid MasterCard and corporate prepaid card solutions through our issuing banks in the United States.”

Photo of prepaid bank card.
Photo of prepaid bank card. The boy’s father confirms that he has finally bought his son Lego.
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