Thousands of customers who use prepaid direct deposit cards unable to access funds

Netspend prepaid card issue

BIRMINGHAM, AL (WBRC) - Thousands of U.S. customers who use Netspend prepaid cards are finally able to access their funds after not being able to do so for nearly a week.

Netspend is a company that allows its customers to use a card for direct deposit instead of a traditional bank account.

One Birmingham woman told us Wednesday she has used the company for six years.

“You receive your pay two days before your actual employer actually deposits or social security actually deposits and that was the benefit of having the prepaid card,” she explains, asking that we conceal her identity because of the sensitivity of the information.

She enjoyed the service until last Friday.

That’s when she was supposed to be paid, but the money wasn't there.

By Monday, when it still had not arrived she called Netspend and said she was transferred to three people until a supervisor finally told her there was a problem that affected thousands across the U.S.

In a statement released to us Wednesday, Netspend said one of the banks it uses to issue the cards experienced a problem with the company it uses for processing.

Netspend said the problem was fixed by Wednesday and “transactions previously delayed have now been processed.”

But the customer we spoke with says that news comes too late for some.

“You had people who stated they couldn’t buy their child pampers. Someone had to call in to work because they didn’t have gas. They didn’t have adequate food. So a lot of people were affected in a lot of ways,” she says.

She advises anyone who chooses to use prepaid cards in the future to be cautious and aware.

“I will never use Netspend again - ever. I will never use a prepaid company again. I’ve learned my lesson,” she said.

The entire statement from Netspend is below:

"MetaBank’s processing partner, FIS, experienced an ACH application issue that impacted MetBank’s ability to provide ACH files for processing our cardholders’ direct deposits. The FIS issue was widespread and impacted multiple financial services providers. We worked diligently with MetaBank and FIS to resolve the issue and we have received all delayed ACH files from MetaBank. Cardholders whose direct deposit transactions were previously delayed have now been processed. We sincerely apologize for any inconveniences this may have caused our valued customers.”

A statement from MetaBank is below:

“Meta can confirm that their processing partner, FIS, is no longer experiencing an issue with their ACH application. The interruption has been remediated and operations are running as normal this morning. Meta is working closely with our clients to service the customers affected by the interruption.”

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