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]

I was put on hold forever on the 12th when I started receiving emails that a transaction had been declined. She didn’t know anything about it either she had put me on hold.

[meteordealer]

I don't believe that. The bank would cover the purchase, then charge the owner of the bank account an overdraft fee. PayPal would get their money regardless. Unless it was an unauthorized charge.  

[GasparDeSalo]

In addition to this being intolerable, there was no advance notice to debit card holders, nothing in Message Center, nothing in the on-site "help" files, nothing in the already-useless chat bot, no sidebar explanations when we expend a bunch of time looking for a problem in account settings. I already had to stop accepting PayPal as a payment method when they jacked up the rates the last time - I think it's been at least 2 years now - and now I'll have to ditch the debit card, too. I didn't lose any sales volume from removing PayPal as a payment method and electing not to just fork over a higher rate than my credit card merchant portal. No problem to replace the debit card with a cash-back credit card from another provider. Since it's no longer useful for either receiving payments or sending them on the MasterCard network, PayPal is nearly out of useful functions! 

[Jaxie23]

I had NO idea. I have been a PP user for over 20 years and a debit card user since 2005. I use my card all day, everyday and not because of the cashback. Cashback was something new in recent years. I used it for the safety and convenience of it as it was more secure than debiting from my bank account every day. There was NO notice I found out because my card kept getting declined. 

The ONLY reason I am still here on PP using other features is because of this card it kept me engaged and up to date on all PP has to offer. 

It is NO longer a DEBIT card it is a PREPAID CREDIT CARD which I do NOT need. I have plenty of cards with comfortable limits. If the cashback was hurting them then they should have done away with it and went back to the way, it was originally. 

I CANCELED both of my cards and let them know exactly why. I encourage you all to do the same.





 

[LThom1212]

I have seen posted Someone said they spoke with someone at PayPal and it was because some don’t have the funds in the back up payment. But if that’s the case, then do like your policy has always been, if anything is returned, you won’t be able to spend above what’s in your PayPal account… but instead they penalize everyone. Theres obviously alot more than that at play here.

[Maxxit]

I agree. Removing the automatic funding takes away the value of the card. I can use my credit cards to get 1.5%-3% on purchases.

[Maxxit]

It feels like a bait and switch. Here's this convenient debit card that gives 1% back on purchases. Then they take away the feature that gives PP any value.

[Pieceofthebeach]

Well I think it is a little bit ludicrous - please try to explain to me what is different because I really need to know

Your pay pal debit card is already linked to your checking account right - so when you did not have enough funds they would just take out the money from your checking account

So now your debit master card is still linked to your checking account but YOU HAVE TO TRANSFER THE FUNDS FROM YOUR CHECKING TO YOUR PAYPAL ACCOUNT SO NOW YOU HAVE TO WAIT 3-5 BUSINESS DAYS (OR LONGER) TO GET YOUR FUNDS 

So if you are in a store, i.e., home depot, lowes ect.  and  you do not have access to the account to transfer - you have to return everything and be on you very merry aggravated way  and not be able to go to the job that you needed to be at to finish up.

THIS DOES NOT MAKE ANY SENSE - 

[thoughtfull]

There was not much notice and we had to figure out how to handle this and go to all of the places we've entered Paypal debit cards as the default payment method change that info.   We are switching to using a bank debit card that hits an interest bearing business checking account that is not our main business account but is in in the same bank we have our main account.  We will use online banking to transfer money between bank accounts as needed and those transfers are instantaneous.   We're currently discussing the possibility of no longer accepting Paypal payments for merch.  Who knows what sudden changes Paypal will put in place next.  

[FluffyButtsTX]

More and more of my donors are choosing to write paper checks and mail them. There has been a problem with online account fraud that PayPal just cannot get a real handle on.