The card will always use the funds in your PayPal balance or you can set up your bank account as a back up funding option, in case of a zero PayPal balance.
A credit/signature purchase with this card means a pinless purchase. At the register you would not use your pin with the card. You will either tell the clerk to run the card as credit or you will press the cancel button on the card reader machine after swiping and the option to run the purchase as credit will show up.
When your transactions go through as a pinless credit purchase with the PayPal Business debit card, you get one percent cash back.
The one percent cash back must be activated in your PayPal account in order to receive it.
Some retailers card machines run the card as a pinless "debit" resulting in no cash back for the purchase.
Here is a PayPal link with more info.
https://www.paypal.com/us/selfhelp/article/what-qualifies-for-paypal-business-debit-mastercard®-cash...
I hope this helps.
