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Review: PayPal Business Debit Card
July 16, 2018
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Review: PayPal Business Debit Card

There are numerous ways that you can pay for your business’s expenses. For example, since the Great Recession of 2007-2008, an increasing number of businesses have shifted from using credit cards to using debit cards. In fact, despite GDP growth rates hovering around 2 percent in recent years, debit card usage has been increasing by roughly 7.1 percent annually.

Over the past decade, the debit card market has become significantly more dynamic. PayPal –a company which reported nearly $4 billion in revenue in the first quarter of 2018 – offers a unique debit card option that can be used for a variety of business costs.

In this article, we’ll review PayPal’s Business Debit Card and explain how this card can be used to help your business.

Is a PayPal Business Debit Card Right for Your Business?

Overview

The PayPal Business Debit Card is made possible through a partnership with MasterCard. Using this card, your business can pay for a variety of goods and services directly from your PayPal account. The card is quite popular because it can be used in stores as well as through online retailers. In addition, anywhere that MasterCard is accepted will also accept the PayPal Business Debit Card.

The PayPal Business Debit Card will enable you to withdraw cash from your PayPal account from ATMs around the world. There’s also an optional cash back program that will allow you to receive unlimited one percent cash back on eligible purchases. Another benefit of the card is that you won’t need to wait to transfer money from your PayPal account to your bank account. This significantly expedites the financial decision-making process.

Application Process

The application process for the PayPal Business Debit Card is relatively straightforward. To apply, you simply need to create an active PayPal account, visit their website, and click the blue button that says, “Request Your Debit Card.” The company will then ask for standard financial information. You’ll also have the option to enroll in the cash back program once the debit card has been properly activated. 

Qualifications

Since the PayPal Business Debit Card uses cash that you already own – rather than using credit to be paid back in the future – qualifying for the card is incredibly easy. If you have a verified PayPal account without any holds or restrictions, then qualification should be guaranteed. You can also link your PayPal account directly to your bank account to allocate capital wherever it’s needed.

Fees and Limitations

One of the most popular features of the PayPal Business Debit Card is that there’s no annual fee. However, there are still some fees that may apply to certain users. These fees will be specified in the cardholder agreement. They may include a $1.50 ATM withdrawal fee, a $3.00 over the counter withdrawal fee, and a one percent fee on certain foreign transactions. The standard daily limits for the card are $3,000 for purchases and $400 for cash withdrawals.

Possible Uses

There are several ways that your business can use the PayPal Business Debit Card. For example, you can pay for supplies, equipment, utility bills, and rent payments, just to name a few examples.  In addition, you can also easily make payments to vendors or part-time employees who have an active PayPal account. Because setting up a PayPal account is free and easy to do, this may be an excellent way for your business to cut out certain overhead expenses.

Conclusion

Overall, the PayPal Business Debit Card can offer business owners several different benefits. Since there is no annual fee, the card is generally categorized as a low-commitment payment option, which can make it an asset to your business.

Do you use the PayPal Business Debit Card? Tell us about your experience in the comment section below!

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Andrew Paniello
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Andrew is an experienced writer with a degree in Finance from the University of Colorado. His primary interests are investing, entrepreneurship, and economics.
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