Posted by Chuck on October 2, 2017
Manufactured Spending

Published on October 2nd, 2017 | by Chuck

21

Paypal Releases New Debit Card with No Monthly Fees

Paypal released a new debit card which draws on money in your Paypal account. The card has no monthly fees and funds can be added with direct deposit, cash loads at various stores, bank transfers, or P2P Paypal transfers from friends.

Direct Link

The card is confusingly called the Paypal Cash Mastercard, not the same thing as the Paypal MyCash Card (PMCC) which is a single-load card to add money to your Paypal account.

Previously, there were two versions of the Paypal debit card:

The main difference between the two is that the PPBDC is only for Paypal Business accounts (though you can also get it on a personal account if that account has received $500 in payments) while the Paypal Prepaid Mastercard is for personal accounts. The new Paypal Cash Debit Mastercard is also a personal card, and it’s possible they’ll phase out the Paypal Prepaid Mastercard in favor of this new offering.

Some people are interested in Paypal debit cards since they can be loaded with PPMCC purchased with a credit card. (The PPBDC also has an additional advantage of earning 1%.) With the release of the Paypal Cash Mastercard, there’s an additional no-fee Paypal debit card, one which can be used with a Paypal personal account.

I personally don’t advise MSing with Paypal (my story), but you do you.

Other details:

  • No minimum balance required
  • No credit check (like most prepaid cards)
  • Free ATM withdrawals at MoneyPass ATMs
  • No monthly or annual fees
  • 2.5% foreign transaction fee

Hat tip to reader P.R. 



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Josh m
Josh m

So I guess there is no point to this if you already have ppbdc?

jnrfalcon
jnrfalcon

There’s no fee free option for ATM withdrawal with PPBDC. But yeah there’s no point considering there’s no reward… might be backup fundable with paypal credit cards but how knows.

NotRonJeremy
NotRonJeremy

PayPal is widely known for “limiting” their customer’s accounts. It sounds like such an innocent word, but when they do they lock all of the funds in your PayPal account up for 180 days. When the 180 days are finally up they allow you to withdraw the funds to a linked checking or savings account.

This means some poor schmuck out there is going to sign up for this prepaid card and naively use it with their PayPal account to handle all of their finances. Life will be good for a few months and then one fateful day that person will load whatever PayPal deems to be a little too much to their account or will make some purchase that PayPal doesn’t like and discover their account is limited and they’re now unable to pay their rent, insurance, cell phone bill, etc. since they’re locked out of their money for 6-months. If you think I’m exaggerating about this do your own research and you’ll see these are common reasons PayPal “limits” their user’s accounts.

After begging and pleading with all their friends and family they barely manage to borrow enough to cover their bills and get their life back on track with a different brand of prepaid card. 6-months later the 180-days is finally up and they’re excited to get the money PayPal had been holding hostage. Only now PayPal is telling them that they won’t reactive the debit card because their account remains in “limited” status so the poor schmuck still can’t get at the funds. PalPay then explains that they’ll be happy to transfer the funds to a linked checking of savings account. Wait, you were one of our prepaid card users specifically because you didn’t have a checking or savings account so these is no linked account we can transfer to? Well, let us know when you do so we can help you link it so you can finally get your money back from us!

Seriously, DoC: It’s good that you include a link to your PayPal story near the bottom of the article, but given the very real financial ruin this product will likely put several unsuspecting users through the warning should be big letters flashing in red near the top of the post to warn people considering the card what they might be getting themselves into!

MP
MP

This is outrageous and disgusting! I don’t know why anybody would use PayPal as a main account, but I suppose there are people who can’t get regular checking accounts.

But “your” money is not really your money no matter where it is anyway… We’re being trained to accept it in various ways, by various institutions.

Bob

Paypal Will Mail You A Check If You Don’t Have A Bank To Withdraw Funds to. Your description is an over simplification of how and when paypal deals with limited accounts. When an account is limited it is able to be lifted MUCH more frequently than it isn’t.

chris
chris

you can buy the paypal reload in CVS anymore right?

chris
chris

you cant..error i meant!

Eric
Eric

anybody know if it would be possible to load this card with visa gift cards in order to liquidate cash from them?

Adam D
Adam D

Since paypal doesnt report transfers to your account under $20k, this could be a decent option for those that want to withdraw cryptocurrency profits into a non-checking account to avert uncle sam. Some exchanges have paypal as an option.

Vic Jang
Vic Jang

PPMC is pretty much all dead anyway…

R.I.P the good old days.

JZ
JZ

If I sign up for this card does it require a hard pull?

William Charles

Don’t see why it wouldn’t

Max
Max

I see its tied to an ACH account and routing number from Wells Fargo. Does this mean the account allows ACH withdrawals (to allow for bill pay) or does the ACH only allow deposits?

Max
Max

I reached out to Wells Fargo, and they confirmed this account CANNOT be used for ACH pulls by a third party institution. This means that this unfortunately is not a full bank replacement (yet). May wish to note this in the description, for those who want to replace their bank with Paypal as it is not posted anywhere. I tried to do an ACH out of the account for a bill pay and can confirm that what I was told is accurate

Mimi
Mimi

Paypal is not even a recognized FI and I don’t know why they are able to freeze people’s accounts and hold funds at anytime. Only reason I can think of is we agreed to this under their T&C when we signed up and it gives them leeway to do as they please. Many are saying it is a waste of time to deal with their notorious compliance department which does the limitation/shutdown of accounts. This is the reason many got frustrated that nothing happened with their CFPB complaint and they just had to wait 180 days to get their funds to “thaw”.

It’s safe to say that paypal is great when it’s working… until one day, you find out they don’t want to do business with you anymore and meantime, they’ll keep your funds for 180 days.

Klad
Klad

So I received the new debit card and after a week or so got two offers from PayPal
1) 10$ for making two DD totaling $500 by 11/22
2) 10$ for $100 spend by 10/31 (MO should do the trick here I believe)

Lori
Lori

How do I go about getting a PayPal debit card? Is there a charge for using it? I’d like to add a significant amount of money to my PayPal account and just use a debit card. Is there any fee for this?

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