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]

It looks like both Square and Stripe are good alternatives, I'll be moving all three of my eCommerce sites 100% off of PayPal by the time they strip the backup funding benefit from their Business Account customers. 

[Teanbriegirl]

So you are saying Square and Stripe 1) have a debit card and 2) transactions can go through backup funding when you use the debit card?

[moorewmla]

From what another Community poster said Square does have debit card backup, I am still looking at options for others like Stripe. 

[moorewmla]

Just spoke with Square and verified they do have a Debit Card to access funds from your customer card processing but there is not a backup function. 😞

[LThom1212]

I think you’ll be hard-pressed to find another company that does allow the back up funding source to me that’s what separated PayPal from everyone else. It just would’ve been nice if they would have not penalized everyone else for a few bad actors.

[rscottieb]

It doesn't make any sense!!! They will definitely loose a lot of business!!

[Temp20230904]

Boy, Paypal is really stupid.

[shalon1970]

This is an option that keeps a lot of people using PayPal.  after more than 10 years of being a loyal customer. there's no perk worth staying. It has to be some other company out there for us.  Please share if anyone knows,

[Malaikah]

I use my PayPal Business debit card linked to my bank account for everything so I get that 1% cash back. I will certainly stop doing that as I'm not going to.manually transfer money from my bank to PP every time I make a purchase. I'll be switching to another CC/debit card that does offer cash back but without the hassle. Also, I will stop accepting PP for payments of anything I sell. I can easily accept other payments such as CashApp or even my PP owned Venmo account. But like most corporations that get so big, they forget where they came from and how they got there. Bye bye PayPal. Don't let the door hit ya in the **bleep** on the way out.

[nmr1]

I think Paypal wants people to move 3k-5k at a time thinking they might earn more off the balance than a cut they get from Mastercard spending.

Maybe that might be the only way to still keep using this as before for those that don't touch credit cards or deal with usury and because bank debit cards don't normally receive cashback.

And I can only get away most of the time using the Paypal Debit Card for vehicle rentals.

The devil's grip around our necks tighten but there is always still a way.