Introduction
In this comprehensive blog, we will look at the advantages, fees, disadvantages, and differences between PayPal’s prepaid and debit cards.
About PayPal Prepaid and Debit Cards
PayPal offers branded options for credit and debit cards, which can provide advantages to cardholders. The Bancorp Bank (Member FDIC) issues PayPal cards.
The main card options offered by PayPal are:
- PayPal Prepaid MasterCard – The PayPal MasterCard, a prepaid debit card, offers various benefits like funds transfer, rewards through PayPal Payback Rewards, and Direct Deposit for faster payments at establishments accepting Debit MasterCard. This card also provides convenience for dining, drinking, and shopping.
- PayPal Cash MasterCard – PayPal Cash Cards are prepaid cards that require recharges for use. They offer financial withdrawal options at ATMs worldwide, including complimentary withdrawals at over 25k+ Money Pass spots. PayPal also allows direct deposit at no additional cost, allowing funds to be accessible from your balance.
PayPal Prepaid and Debit Card Differences
PayPal Prepaid Card
The PayPal Prepaid card account is maintained in a Bancorp Bank account that is FDIC insured. Money must be added to the prepaid card before it may be used. The card has a $4.95 monthly plan fee that can total up to $59.40 annually. The card can be loaded with money through a free direct deposit service, transfers from linked PayPal Cash or PayPal Cash Plus accounts, or (with costs) in-person at a Netspend Reload Network site.
PayPal Account Transfers – Any money transfer from a cardholder’s PayPal account is restricted to the funds available in that account.
Netspend Reload Network Locations – A minimal load value of $10 or $20 and a maximum load value of $500 are available to cards countrywide through Netspend.
Special Offers – Without disclosing a customer’s private data to retailers, the PayPal Prepaid card gives rewards based on shopping preferences. After reviewing and activating offers, cardholders must make purchases with the card before receiving cash-back benefits to their card account.
5% APY Option – Earn up to 5.00% APY for balances up to $1,000 when you open a savings account with The Bancorp Bank that is linked to PayPal. With quarterly payments, interest is computed using the average per-day balance.
Cash Withdrawals and Cash-Back – PULSE MasterCard permits withdrawals of cash from any ATM with an acceptance mark, subject to an owner surcharge; Money Pass Network ATMs are exempt from this requirement.
Purchase Cushion – Overdrafts are not permitted on this card by PayPal, and often, orders that exceed the available balance are turned down. However, certain cardholders have the option to approve a purchase cushion, which might result in a $10 negative balance within 30 days to make up the difference.
Refer-A-Friend Program – The ‘Refer-A-Friend’ feature of PayPal gives cardholders $20 for each friend they recommend. Both cardholders receive $20 for signing up, activating, and loading $40.
PayPal Cash Card
Your PayPal Cash Plus account is connected to the PayPal Cash card, enabling you to make purchases right from the balance that is available.
Loading Cash – You can utilise direct deposit, bank transfers, cheque cashing, loading cash at an authorised location, or direct deposit to add money to your PayPal account. Make sure your PayPal account has sufficient funds for the card to work correctly. Thousands of CVS, 7-Eleven, and Rite Aid outlets across the country offer cash loading. Users must create a barcode within their PayPal account or utilise the mobile app to load cash. The cost of the service is $3.95. At numerous sites across the country, cash loading is possible.
Direct Deposit – Direct deposit enables cardholders to get government payments, including Social Security, from an employer or other government agency without incurring any costs. This is a same-day offer.
Cashing a Check – Subscribers of PayPal have the choice to cash checks through a third-party provider directly from the PayPal app. Money in Days or Money in Minutes are the options available to users. Funds are credited in 10 days and there are no fees with Money in Days. Based on the type of cheque, Money in Minutes is faster but can cost up to 5% more. There are daily and monthly limitations and the minimum bill amount is $5.
Cash Withdrawal – At authorised sites across the country, PULSE and MoneyPass ATMs provide cash withdrawals without a service charge. Owners of ATMs charge $2.50 for withdrawals made from machines marked with the Mastercard, Cirrus, or PULSE acceptance marks and $3 for withdrawals made at checkout counters for cashback.
Automatic Top-Up – To guarantee that users’ balances are adequate to pay purchases, PayPal offers Automatic Top-Ups. When the customer’s PayPal balance is lower than the transaction amount, this feature adds money to it. Users may select a custom amount or one of the predefined values, such as $20, $50, or $100. Multiple top-ups are instantly transferred if the chosen amount is insufficient to pay the full cost of the purchase.
Save and Invest – With any Cash or Cash Plus account, PayPal customers can access the Goals and Acorns programmes.
PayPal Prepaid and Debit Card Fees and Drawbacks
Unlike regular credit cards, PayPal debit cards do not contain standard costs like APR, cash advances, and late fees.
PayPal Prepaid Cards cannot be utilised to establish credit because they are not credit cards. Unlike other credit cards, they don’t provide daily rewards or points for purchases in specific categories. Users must have an active PayPal Cash or PayPal Cash Plus account that is current in order to truly take advantage of these advantages.
Obtaining Your PayPal Cards
PayPal Prepaid Card – Pay the $4.95 purchase fee when buying a PayPal Prepaid card online or in person. The temporary card must first have its identification verified in order to be activated. The card can be used for extra dollars or perks after 120 days.
PayPal Cash Card -Online PayPal Cash card requests are processed and delivered within 7–10 business days.