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.

[LThom1212]

Why would anyone want to do that? There was just a big release about your money, not being FDIC insured. If PayPal was to go under tomorrow, you’d lose your money

[dschout]

This is just another example of a corporation creating a new policy that accelerates their decline, they try something outrageous and it backfires on them. Perhaps Paypal thinks they are consumer energy and can somehow force people to use the card the way they want, but the difference is that consumers is a monopoly that somehow has survived all the antimonopoly laws and Paypal is 1 of many companies that offer the same services.

[JAtwoof]

Well, after relying on that service for years, guess I'll be looking for another place. Thanks a lot PayPal.

[Temp20230909A]

I am not happy about this change either!!!  I have a pretty small business so I don't always have money just sitting in my Paypal account, but I use my card all the time to earn the 1% back & it has been debited from my bank account if the money is not in my balance for the last 7 years.  I find it ridiculous & a waste of time to have to transfer money from my bank to my paypal balance when I can just use my bank debit card.  I will miss out on the 1% cash back which really sucks. 

I can understand them doing this for the personal Paypal debit card but not the Business card.  It really makes no sense to me. 

I have contacted them & voiced my concerns.  If you haven't done that, please do so maybe they will hear us & change it back to how it has always been. 

[Lairdkelly]

Now that PayPal is going down the (rhymes with Twitter) just like X-twitter... I don't plan on keeping a "debit card" just is as useless as well, teats on a boar hog... (Or all these "money transfer" services with zero buyer protection...) Switched everything to my CapOne with the same 1% back and raised the autopay to cover all recurring charges plus a little more (no outstanding balance means no fees so essentially a debit card anyway...) and removed PP from my eBay... Kind knew the writing was on the wall when eBay dropped PP for receiving payments...

[ajordanxi]

I guess I will be getting rid of my PayPal business account. This is very unfortunate. I've used my PP Business Debit Card as my go-to for 10+ years. I guess everything will be done through my bank or CC going forward. Very sad.

[moorewmla]

I posted on their FaceBook page and they threatened to block me for repetitive content. Or at least their bot did! I just can't believe what a STUPID move they made with this one, a real steaming pile they laid. 

[kevinthemayor]

This is so stupid! Just when somethings good for the customers they yank it away! The house always wins!

[rawrgirl]

The information about this also wasn't clearly conveyed to customers. It was the only reason to use the Paypal debit card, and they benefitted as we had to pay fees to receive money and they also receive the transactions fees for the card.

[LThom1212]

No, it wasn’t conveyed very well. If I received it by email it was buried in small print on update of their terms which typically is pretty minute I found out when things started getting declined.