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.

[moorewmla]

You would have to transfer funds from your bank to the PayPal account, usually takes two days for me. It's just stupid to cut out the auto funding, it takes so much more time and it's definitely not worth the trouble.

I just can't figure out why they are doing this, maybe a lot of people were "bouncing" the backup funds if their bank account did not have a balance to cover the transactions? The person I spoke with (who had to ask her next two supervisors up the chain) had not heard of the change and did not know why they were doing this. She agreed that a lot of people were going to be very unhappy about it!

[Candikisthis]

I do not like this! I use my PayPal debit card for every transaction I have. This is too much to have to keep transferring money. Why can’t they just leave things alone. The bank back up funding was nice. I will be leaving PayPal after 20 years now!

[Teanbriegirl]

I think you just can’t use it as a backup PAYMENT method, but you can still transfer money to and from your PayPal Debit using your bank account. I guess I should say to and from your preloaded  PayPal card.

[StanleyQ]

Sure, you can transfer money to and your bank account BUT they delay the transfer for three days or so. Way less handy.

[walterrmartin]

PayPal wants the interest they can make from our money sitting in our PayPal account. They don't care that it inconveniences users--they just want to make money, just like most businesses. If business drops enough because of this, they will switch back. If it doesn't, they won't.

[rossalanblue]

I'm sure you are correct.  Hope we still get the 1% on credit purchases, otherwise I will dump Paypal and switch to my bank card.

[Protonus]

This is terrible and defeats the point of why I even have or use this card.    RIP PayPal. 

[Inspectorfiles]

I have been with PayPal over 20 years plus or minus 1 year, with a business account, started when accounts had freedom, then went through many changes, Like getting funding they limited money sent to your account, what they think you should have and use, they limited my account after a political donation i made years ago, went through harassment for a year, was able to stop it with a legal letter, they monitor what you buy, through there political/virtues lens, I like PayPal for security reasons I use it, as will most of my law enforcement friends.

I always would recommend PayPal, simple reason it isolates you from your Bank when making purchases.. Best described as a early warning system, 30 Sec you would get a email and since there is a 2 day padding between PayPal and the Bank, there was no damage to lost money, as PayPal would stop it once a complaint was filed, to investigate.

However, this behavior of not allowing link accounts is bad business for everyone, its make it harder to do business, its not simple anymore and there is actually no reason they have given to do this, which is interesting in a investigators prospective. PayPal answer "go cvs etc and deposit money, if you have money in your bank. Why? would you pay to make a deposit to PayPal for $4.95 makes no good business sense to pay to spend your own money. Or even transfer money why? to PayPal to spend what you already have..

Why? one reason they make no direct money, yet it does not cost them either, paying PayPal to provide money to your account makes them money, there is no interest in PayPal to help business, or make it simple anymore.. they also do not care what others think as well.. it's become Corp greed, my money not yours attitude.. I am sure the IRS is possibly behind this, as in your business and personal bank accounts it just says PayPal transfers, so IRS and government is not able to monitor your Bank accounts.

I am not sure what we are going to do, I just may go dormant. Guess we will see..

[Candikisthis]

I do not like this decision they made!. I have direct drafts going out and gonna have to contact everyone and change it! I do not like this. Will be leaving paypal

[moorewmla]

Been looking for PayPal alternatives with eCommerce processors and it looks like Square has Debit Card access to funds. Does anyone have experience with them and the Debit Card functions?