Maybe you’re already using Money Network but have questions. Or, maybe you’ve heard of it but are a little wary of how it all works.
Money is precious and hard to come by, right?
Basically, MetaBank created Money Network (MN) as a way for people who don’t have conventional banking accounts to manage their money as if they do.
The FDIC says that at least 9 million households were "unbanked" in 2015.
Another 24.5 million were "underbanked"—that’s having to rely on other means of handling their money.
If that’s you, you may want to check out Money Network.
What is Money Network—MN?
An MN account lets you receive money, send money, buy things, and pay bills online or on-site.
In return, you can say goodbye to money orders, cumbersome cash transactions, long lines, multiple trips and—if you use your card very carefully—some surcharges and fees.
What services does Money Network provide, and how does it all work?
When you open an Money Network account, you get a debit card, a set of checks and a mobile app that lets you take care of business from wherever you happen to be.
Think of it as a three-part system linked to one account.
1. The debit card looks just like a credit card. You can use it anywhere major credit cards are accepted, but it works only as a prepaid card:
- Money has to be loaded onto the card or account for you to use it.
- Your card will have a personalized identification number—PIN—that you’ll type for in-store or point of sale transactions.
- You can use your card for online purchases, too. Just type in the card number.
- You can withdraw money from banks and ATMs that carry the MN logo, but that option has fees.
- You can make a debit purchase—with your PIN—and get cash back with no associated fees.
- Customer service’s number is on the back. Put it in your phone contacts as soon as you get your card.
2. Your checks are linked to the same account number as your debit card:
- Any checks you write will subtract available funds from your account.
- Checks are limited to $1,000 or less.
- You can use an Money Network check to pay bills or send money to friends or family.
- Before mailing the check, you must call customer service for an issuer number and a transaction number. MN will deduct the funds from your account at that time.
- Checks are not valid without issuer and transaction numbers.
- You can cancel a check, but restoring funds can take up to 10 days.
- Customer service will send you more checks as needed free of charge.
3. The MN mobile app gives you online access to your account anytime, anywhere for free and lets you:
- Locate network-friendly ATMs, check-cashing locations and reload stations.
- Receive account alerts and activity notifications.
- Set up and fund Piggy Bank savings.
- Check balances for free through Quick View.
- Deposit money, move money and pay bills.
- View transaction histories.
- Install the free app through either Apple’s App Store or Google Play.
If you’re curious and want to see how the app looks or works, you can check out the video.
Costs, fees and conditions associated with Money Network
The first thing to know is that your account has a $5,000 cap. The maximum balance you’re allowed to have at any one time is $5,000.
While opening an account costs nothing, MN does charge a monthly account maintenance fee of $1.95.
If you want a paper statement by mail, that will cost you $2.95 per month.
In addition, certain transactions carry associated fees. At $1 for each ATM inquiry and $6 to $10 for a replacement card, they can add up.
Deposits are fairly straightforward. Direct deposits from payroll and direct payments like tax refunds, child support and government benefits are all usually free.
Non-payroll ACH loads or deposits—basically transfers from other banks—are limited to $5,000 both per day and per calendar month.
There’s even a student version to disburse financial aid balances through college or university student accounts: MN's Education Funds Disbursement Card or Enabled Campus Card, for example.
Loading cash at retail and reload stations may cost you:
- Vendors typically add $4 to $5 in fees to the transaction.
- Walmart and Sam’s Club employees can reload for free at store registers.
- If your card is issued by your employer, you may have additional free options.
- Reloads are limited to $950 daily, $5,000 per calendar month.
Our advice is to know the details of your program, but in cases where you’re not sure, ask first. Your app may be able to locate another, better location nearby.
Cash withdrawals are limited to banks displaying the Money Network logo on your card:
Buying merchandise or services—either on-site or online—has no fee as long as it’s within the United States.
- Each over-the-counter withdrawal has a $5 fee and a daily limit of $1,000.
- Withdrawals from U.S. ATMs are $1.50 each and have a $500 daily limit. A declined withdrawal will still cost $1.
- Non-U.S. ATM withdrawals are $2.50 each plus a 1-percent conversion fee and a 3-percent international transaction fee. A declined transaction will also cost $2.50.
- Outgoing ACH transfers from your MN account to a U.S. banking account are $2 each and limited to $1,000 per transaction.
For purchases outside the U.S., Money Network charges that extra 1-percent conversion fee and 3-percent international transaction fee.
Split transactions let you pay for a portion of your purchase with your MN card and pay the remainder separately—with cash or another card, depending on the merchant’s policy.
Keep in mind, that you must tell the retailer you’re splitting a purchase first. If your purchase is declined—for insufficient funds, for example:
Checks are free for you, but note that only MN logo banks and stations will cash them, and they may have their own limits and fees for doing so.
- You’ll incur a $1 to $2.50 fee, depending on whether the attempt was domestic or foreign.
- The merchant may automatically apply additional fees for a declined card.
Always check the app for the best locations near you for what you want to do.
What are the pros and cons of a network card?
After all those fees, you may be wondering if an MN account is worth it.
Nevertheless, a Money Network account has some definite pros when you use it the way it was really meant to be used:
Once your card is registered to the Loyalty and Rewards Program:
- It’s FDIC-insured. If you lose your card or if it’s stolen, you’re insured once your card is registered.
- Many employers are offering MN accounts as a primary payroll option. It's simple for them and for you.
- You can "opt in" for MN’s Loyalty and Rewards Program to earn cash back on every purchase from more than 16,000 retailers.
- Since it’s a debit account, you’ll never overspend. If the money isn’t there, you can’t go into debt—unless, of course, you incur repeated fees.
- It’s quicker and more convenient than stopping and waiting to have your paycheck cashed.
- It’s safer than carrying quantities of cash on your person.
- Using the app instead of paper statements or ATM or bank transactions can save you a ton of fees and surcharges.
Cons include the fees, of course, as no matter how careful you are, you cannot escape them completely. At a minimum, you’ll pay a $1.95 for account maintenance every month. A few other drawbacks include:
- You’re limited to MN facilities and locations, but that tends to be true of any bank card.
- Merchants and other banks may have additional fees for MN transactions.
- Fees are per transaction, and transactions have limits, so you need to plan accordingly.
- MN’s non-U.S. transactions carry extra fees, but they’re consistent with the banking industry’s foreign transaction surcharges.
- In many cases, loading money onto the card at retail locations can cost $4 or $5.
Why are customer service and your cardholder agreement so important?
The most important thing to know—after your account number, of course—is the Money Network customer service number.
You can find that number on the back of your card. It’s free, and it’s the number to call if you:
Or click here to resolve a mistake.
- Lose your card—or it’s stolen.
- Have a question about a future or completed transaction.
- Need to resolve a mistake.
Money Network offers its customers many of the same benefits and flexibility that a regular checking account affords.
But, it also comes with many similar fees and a few extra restrictions.
That’s why your cardholder agreement is important. It contains all the terms and conditions—the rules.
You can find a sample agreement here.
However, if you enroll, take time to understand what yours says so that you know what you can—and cannot—do.
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Sources
FDIC //www.fdic.gov/householdsurvey/
Apps //itunes.apple.com/us/app/money-network-mobile-app/id616090626?mt=8
//play.google.com/store/apps/details?id=com.firstdata.moneynetwork&hl=en
Walmart/Sam’s Club //www.moneynetwork.com/walmart/pdf/Load.pdf
ACH Transfers //www.nerdwallet.com/blog/banking/ach-transfers/
Education //www.firstdata.com/moneynetwork/edudirect/faq/index.html
//mycampusfunds.com/
Loyalty Program //www.firstdata.com/moneynetwork/loyaltyedu/index.html
Terms and Conditions //www.firstdata.com/moneynetwork/t-and-c.html
Fee Schedule //www.firstdata.com/moneynetwork/prepaid-fees.html
Privacy Statement //www.firstdata.com/moneynetwork/online-privacy-statement.html
Disputes //www.firstdata.com/moneynetwork/error-resolution-policy.html
General //www.firstdata.com/moneynetwork/moneynetwork-faq.html
//www.reference.com/business-finance/money-network-card-4194eaba03c9bf4d
//www.moneynetwork.com/walmart/index.html
Mobile App Walmart //www.youtube.com/watch?v=UC3g5T71WF4