Paypal Business Debit Card Declined Repeatedly

[bearcatnat]

I'm having an issue with my business debit card being repeatedly declined in the past week. I've been using this card regularly with no issues for at least 3 months. I had lost my banking debit card, so have been using my Paypal debit card, with my bank checking account as the backup funding source. I've used it for hundreds of transactions, but in past week, I just keep getting declined, declined, declined. I've had some payments made recently to my Paypal account (eBay and Etsy), and when there are funds in my Paypal account, my debit card works.

I called Paypal and the rep suggested that I send a manual transfer of funds from my bank account. He said this should fix the issue. The transfer went through today, but still my debit card doesn't work. So I called again tonight, and the rep told me that I need to "build up my banking history" for my Paypal account by making regular manual transactions from my banking account into my Paypal account. This makes absolutely no sense to me. Since I no longer have a banking debit card, I now have no easy access to my own money! I keep having to pull out a credit card to use instead.

Additionally, I have a monthly subscription payment that is billed through my Paypal debit card. That transaction was also declined today. So I tried logging into Paypal and making a payment with my bank account directly via Paypal (not my debit card), and that transaction was also declined!

I was enjoying the perk of the cash-back you get with the Paypal business debit, but if the card can't be relied on to work 100%, what's the point?? I called my bank to check that there wasn't some security issue on their end, but they don't even see that any transactions were attempted. Has anyone else had this issue with the debit card?

[Megan6zeus]

After I posted my response on this thread last night I reset my PIN number for my PayPal debit card and decided to try my card again last night when I stopped at the gas station to purchase a few things. When I checked out I inserted the card since it’s a chip card and hit the credit button (using the credit button is what earns you cash back) and my transaction was instantly declined. I asked the gas station attendant to clear the machine so I could rerun my card to try to put it through as a debit transaction. He cleared it, I reinserted my card, hit the debit button this time rather then the credit button, entered my pin and the transaction was approved. I know this was only one transaction but I have been wondering if my card was getting declined because they don’t want to pay the cash back on my purchases and since checking out using credit is not an option, earning cash back is not an option either. I’ll post another update if I find out anything else!

[businessgal]

Check out https://www.greendot.com/ Earns 3 % its worth a shot idk But this is been causing me a hardship on my business because a bunch of transactions got declined And lots of orders which is loss of merchandise to the shop which became loss of merchandise to sell

[bearcatnat]

As mysteriously as this problem started, it’s now stopped for me. I’m back to using my Paypal card with money coming from my bank account. I had done two bank transfers of over $100 each, two weeks in a row. I don’t know if that fixed it or not. I feel like it’s just some type of PayPal glitch. Frustrating!

[Plumbguy]

Mine has resolved itself as well. Just a scary thought that if I don't have an extra card with me I look like a stooge at the register again.

[businessgal]

Same problem used for over 15 years for business and all of a sudden put of no where declined on all purchases online so far ... a few in town I linked anotherbank account and transferred fund as this was recommended by rep but still same issue ( i have a perfect track record ) no chargebacks absolutely a perfect score as a paypal card user) not sure WT?!?? Greendot card earns 4% going that direction soon

[bwolfb]

I am having the same issue still. Paypal debut mastercard user etc for 10+ years, never a banking problem and move thousands of dollars through their services (a rep even acknowledged this) yet no explanation why the PP debit mastercard keeps declining and won't pull from the back-up funding source. So tired of this, I can't recommend PP anymore. What's even more frustrating is that all of PP marketing literature still advertises the "perk" of the debit Mastercard being that you don't need funds in your pp account because you can use a backup funding source. Absolutely ridiculous at this point and they continue to lie to loyal customers.

[MHTwigg]

Paypal "Declined" Team,

So I had this similar issue during summer, then it went away. Now it's back with a vengence

I use my paypal for everything for the cash back, linked to my checking...and it gives me paypal & bank protection for purchases. So when paypal refuses to reverse a charge, I can then goto my bank. Recently I had to do this and since that day, all purchases get declined unless I call and have them approved. I just realized, this happened when I contested a charge last time...there is a correlation (at least for me).

Finally today I spoke to a rep who said paypal really doesn't want you to use your back up source, ie. the bank, to pull for funds. They want you to load your card...this takes 3-5 business days...nope, I don't have time for this.

[DenaliBeast]

Same issue, I had one hiccup with setting my BECU backup source and I had to change over my backup source to my Chase bank because the previous bank had to get closed, so the funds got denied for a small $1.07 charge and I'm a 10+ year customer, 1,000's of transactions through PayPal business debit card, then, when I received an email that this transaction was declined from my old bank, my PP debit card stopped working even though I had set the BU funding to my Chase account a few days before it was even declined and funny thing is since i had switched it from BECU to CHASE all the transactions went through to chase, in addition, I call PP and the lady tells me it's because of some stupid algorithm they use and to transfer money from my Chase account to PP to create some rapport with my bank even though in the past when I used Chase in the beginning it worked flawlessly and then she tells me that since I switched it from BECU to Chase it resets the Rapport with the PP debit card, guess what I cant even do that, in fact, it just says "There's a problem with adding money to your account. If you'd like help, please contact us." and when I click on the contact us it just goes to the help section, nothing more, moreover, I call again and talk to a guy, he seems to know what is going on, then, he tells me he is going to send a code to my phone, I read off the code, he resets something on the account and then the card works for two transactions and locks back up. So I canceled my wife's and my debit cards from PP, so now I'm waiting till the new card comes in, however, if I cannot get this working I plan to switch back to my banks visa debit card and I WILL NOT recommend PP to anyone EVER AGAIN and just close the account entirely, because eBay accepts credit cards now and really has no need for PP anymore with their buyer protection system now in place. #PAYPALEPICFAIL

[iamkespinosa]

So I am currently facing this issue, mind you I've been having this issue for over 3 months now I feel like, but never really noticed until now. Most of my subscription services I pay using my PP Business Debit Card, and most purchases I use for that in order to take advantage of the cashback offer. I typically don't have a balance on my PayPal account, but never had an issue with a purchase going through. Until late when I noticed even small transactions of $10 at McDonald's would get declined. Kind of embarrassing too. After reading responses on this thread, I don't want to contact PayPal support in order to hear the same responses you all got. And I don't have time to load money from my bank account to my PayPal balance. I've never had issues with money being pulled from my backup source (aka my bank account). What gives? What did you all do to make it stop and work again?

[MHTwigg]

Those Punished by PP,

I think I figured it out, everyone.

So, when I first had the card, no issues, then I had a transaction I was able to get reversed as I was charged without consent. Immediately, cards getting declined everywhere when it would work fine...this was last Spring. So over Summer after a few months, it works again. I literally only use this card for the points. Then I had another purchase I fought, PP didn't see in my favor, however my bank did and I got the funds back. Immediately, the same problem...within an hour of fighting the purchase. I finally had a supervisor explain after four to five customer service reps kept "pushing" me to "load funds," that the algorithm identifies you as a possible funding issue. 

So I bit the bullet and loaded funds, twice, and almost exactly 30 days after loading funds...card is back to working as it did.

Best I can figure, is PP has some "alerts" built in to identify possible fund loss, and when you get tagged...only way out it to load funds, and wait.

It would be a different story if I could load funds and have them immediately available...this is 2020...waiting days for funds to be available is ridiculous.

*I just had a client pay me $2k+ and I have to wait 20+ for Paypal to release the funds...def going to have to find a better financial option.

Hope this helps.

Michael