PayPal Business Debit Card is removing backup bank account funding

[moorewmla]

I am not sure I am posting this in the correct location but we just received an email from PayPal informing us that starting September 12th the backup funding from our bank account to our PayPal Business Debit Card function is going to be removed from ALL PayPal accounts. I called and spoke with a wonderful customer service rep Lori who spoke with her supervisor (and they had to speak with their supervisor). Apparently no one had informed them of this major change in PayPal business account functions. 

We really rely on this benefit as we are fully self-employed with three businesses and live in a very rural area. The Debit Card backup funding gives us the peace of mind to know our accounts are running smoothly and we don't have to constantly check balances. Ours is a perishable product business and our sales are cyclical on a weekly basis, we don't have customers making purchases every day of the week.

Bottom line: booooooo to PayPal!! You just made our businesses HARDER to run on a day-to-day basis despite your claim in that very email stating your "ongoing focus on helping your business to thrive". I imagine there will be a lot of folks shopping around for other options since PayPal thinks it is fine to cut major functional benefits to their customers with no information or basis in doing so.

[hillbrian015]

They are ending the usage of PayPal as a payment processor. That was what made PayPal great for all small businesses.

Now they are trying to force us to use it as a bank to also force the 1099K IRS forms. They are getting ready to convert PayPal into communism where everything is tracked, traced, and regulated. All convenience starts going out the window for communism.

I had a few services left where I used PayPal, now I am ending it all. I will leave PayPal for good. it won't be as convenient since having to manually enter a Debit card from the bank instead of having the payment processor just top up the amount from the bank account, but PayPal has forced me to go this route. PayPal wants communism, they can have it. I don't want communism, I will not use them anymore since they won't be a payment processor anymore. They want to be a bank and have everything reported to the Government.

I am on a limited income, so I do not have to file taxes due to my status as a disabled person. I used PayPal for purchasing from small businesses. Because I used it mainly and only as a payment processor, I never had to fill out a stupid 1099K form. Now that they are forcing us to use it as a bank, then they can force the disabled to fill out stupid 1099K forms as well. That is wrong. Biden ruined America and PayPal is going along with it. I don't talk politics on here, but PayPal seems to want more control and IRS monitoring of PayPal users. We all pay taxes and yet they want to monitor us more and more. They want to control us more and more, control what we buy, when we can buy it. They want to treat us like common criminals. PayPal has become more communism, and I cannot support that.

[Temp20230905v]

Right! It completely defeats the purpose.

[jac05]

Me too!  I depend on it for my business adding money form a bank can take a week a more!

[Teanbriegirl]

You can do it instantly and without charge by using your debit account that is attached to your bank account to transfer founds to your account, but who wants to do that before each transaction? Or keep someone waiting (if you are using it at say a supply store or business lunch) while you make a transfer after they tell you a total.

[stouttheirish]

Yeah this [removed] me right the fudge off.

Customer service, please note that the customer is using profanity to express outrage.

While I'm already favoring other cards over the Business Debit (2% > 1%, not gonna lie), I still have some automatic payments attached to it.

Ultimately I'm going to end up putting them on a different card, but I'd really rather not.  

I'll still use PayPal Credit, though, 6 months no interest on everything (over $100) [removed]

But this isn't about the credit card, this is about the debit no longer functioning as a debit.

.... Why not just release a PayPal Charge Card with 2% cashback?  This puts more reserves on hand for PayPal, and there'd be incentive for customers to [removed] around with a charge card like it's 1965.  But what do I know about running a business or being a consumer?  I'm just a business owner that consumes products and services. 

[Teanbriegirl]

You hit the nailhead. A debit card that no longer functions like a debit card. It will now function like a pre-loaded card.

[Temp20230909A]

I'm aggravated that I have to change all my automatic payments to another card too.  I am also going to still use the PayPal credit for the moment but as aggravated as I am now, I might stop using that too. 

[Richardl1986]

I wish PayPal would keep backup funding and have more options for it, such as $10 increment transfers like Venmo had, keep the exact balance from bank needed to cover debit card purchase, use other debit cards as backup payment for PPBDC and the option to turn it on and off whenever you want.

[LThom1212]

They own Venmo too why would they do that?

[Protonus]

This is such a terrible change and defeats the point of why I have or use my PayPal card.  It's now useless to me and one of the biggest reasons I use PayPal at all is being removed by this change.  Awful decision. RIP PayPal.