Rushcard is a type of prepaid debit card that you can use to make payments of various kinds- online, in stores, or even bill payments that accept the Visa card payment network. It can also be used to make withdrawals at any automated teller machine (ATM) so long as your card account has money in it. In this article, we will see about ‘Can You Overdraft Rushcard?’.
Can You Overdraft Rushcard?
Unlike regular Debit cards, you cannot overdraft a Rushcard, because it doesn’t have overdraft protection. This means that you can only spend or withdraw the amount of money you have in your account. You cannot go beyond it. We will go further in detail, about the reasons you cannot overdraft a Rushcard.
Why You Cannot Overdraft a Rushcard?
As a prepaid debit card, the entire concept of Rushcards is to avoid an overdraft.
What is an Overdraft?
An Overdraft is a form of short-term credit or loan provided to a current account holder by a financial institution (typically a bank), that allows the customer to make withdrawals when the account balance is at zero.
Simply put, in a situation where there is not enough money in your account to cover a withdrawal or transaction, the bank allows you to borrow money to complete that transaction and then pay it back later.
An overdraft can be given automatically or the customer might have to apply for it, depending on the type of bank and the customer’s credit score.
With Rushcards, you can only spend the amount of money that you load onto it. This is helpful if you are concerned with your spending and want to control it. It helps you to stick to a budget by preventing an ‘overspend’ or even running up debts.
Here Are a Few Reasons Why You Cannot Overdraft a Rushcard:
1. Rushcard Has No Overdraft Protection
As earlier stated, Rushcard doesn’t have overdraft protection. Overdraft protection is a kind of banking service where an empty checking account doesn’t stop you from carrying out transactions. The money required to carry out that transaction would be automatically moved from another linked account into that checking account to cover the transaction.
An overdraft can only occur when an account is linked to a secondary account.
A Rushcard account is a standalone account that isn’t linked to any other account and so, when your account is empty, funds cannot be pulled from anywhere else into it unless you make a direct deposit or transfer. This makes over-drafting impossible.
Without overdraft protection, transactions get declined when there is not enough money on your account to cover them and so you’re saved from situations that cause you to spend beyond your budget.
Because there is no overdraft protection on Rushcard, there are also no overdraft fees. An overdraft fee is that fee a bank charges you when you withdraw more than you have in your account. That is, if a bank lets you borrow money to clear a transaction that you couldn’t due to insufficient funds, you would be charged for that service in addition to the borrowed money. That service fee is called an overdraft fee.
2. Rushcard Isn’t a Credit Facility And It Is Not Connected To One
The Rushcard is a prepaid debit card that is issued by Metabank. It is not an actual bank (nor is it connected to any credit or banking institution) that provides options for loans, credit transactions, or advance payments. This means that, when your Rushcard account is empty, you cannot get loans or advance payments to make up for expenses. You would have to put money in your Rushcard account if you want to use it and your spending is limited to how much you have available on the card.
3. Rushcard Does Not Perform Credit Score Checks
A credit score is a number that represents a person’s creditworthiness and it is based on a series of financial data gathered on that individual. Financial institutions only allow for advance payments or give out loans to customers with a good credit score. That is, your ability to pay back loans is what determines if you are allowed an overdraft or not.
Rushcards do not carry out credit score checks before approving a card application. You can have a Rushcard even with a poor credit score. Because a credit score check is not a requirement for having a Rushcard, there is no way of telling if a customer is creditworthy or not and for this reason, credit transactions or advance payments cannot be authorized.
Conclusion
Not only does an overdraft put you in constant debt, but it also incurs additional fees for the service. This means that you’d be concerned with paying back your short-term loan as well as the overdraft fee, which can most times, cost even more than your debt.
Rushcard saves you from financial difficulties and embarrassments.
If you’re looking for a prepaid debit card that allows you to make secure online payments while sticking to a budget, you should have a Rushcard.
Frequently Asked Questions
Q. Can I save money on my Rushcard?
Answer: You can save money on your Rushcard account for as long as you want. However, there are no interest rates to be earned. That is, the amount you leave on your card is the same amount you would withdraw, without interest.
Q. How many Rushcards can I have?
Answer: You can have at most four Rushcards registered with the same identity.
Q. Can I transfer money from my Rushcard to another card?
Answer: You can only send money from your Rushcard to another Rushcard. Transfer charges would apply.
Q. Where can I use my Rushcard?
Answer: You can use your Rushcard to make payments to any store that accepts Visa card payments. You can also use it to withdraw money from an automated teller machine.
Q. How do I get my Rushcard account number?
Answer: Your unique account number would be on the body of the card. This means you can only get it when you’ve received your card.
