The Paypal Business Debit Card earns 1% cash back on all purchases, previously it had offered 1.5% cash back. Cardholders that had signed up before this change have been continuing to earn at this 1.5% cash back rate, unfortunately on July 1st this is coming to and end and everybody will earn at the same 1% cash back rate.
This is another hit for rewards earning debit cards which haven’t been having a good run recently, both the SunTrust Delta & UFB Airlines American Airlines earning debit cards have recently announced changes that effectively cripple these cards. This shouldn’t come of too much of a surprise, ever since legislation was introduced the interchange fees debit card issuers can charge has been dramatically reduced making it almost impossible to offer an attractive rewards program for debit cardholders.
