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.

[Loganthedj423]

One of the dumbest moves in the history of PayPal! I’ve been using my business debit card for YEARS as a layer to shield my bank account and for the convenience. Literally, it’s my daily driver! The cash back benefit was nice, yes, but the convenience of use with bank backup was great! Welp, no more! And I only found out while trying to make a purchase in store today…then calling PayPal after to see what was up! How embarrassing! I can’t think of any reason to use this thing now. Transferring money just to make a purchase is very inconvenient and why would I want to?! And I’m not keeping large sums in a non-FDIC insured account—NOPE! The rep I talked to today had a real, “well, I’m sorry, Champ!” attitude about it when I complained. They cited the decision was made due to chargebacks and NSFs….HOW?! If I don’t have the money in the bank and PayPal hits it for more—they never know the difference. The bank would hit me up for a fee thanks to overdraft protection. Then it’s between me and my bank. PayPal still wins. This is just the dumbest and most inconvenient thing ever, to be honest. Now I’ve got to spend the good part of a day going through tons of accounts online to see exactly WHAT is linked to the card that’ll need to be changed before this mess causes services or utilities to be canceled…what a pain in the butt! Thanks PayPal! I see myself using their services less and less now, which is a shame because I’ve used them for almost two decades, yet their services aren’t very useful to me now with these changes. Oh well, the mighty must all fall, I suppose. Ciao!

[nettiemcc]

I had fraud on my card in July, they allowed the first $600 transaction through and blocked the 2nd $800 one.  I immediately reported it, hoping it would suspend the transaction while it was being disputed, as I didn't have 600 in my PayPal, so it was going to hit my bank acct.  PayPal takes at least 10 days to investigate these disputes, and they allowed the transaction to complete.  I contacted my bank, and they said they only had 24 hrs to return a payment.  At that point I still had another 9 days to see what PayPal was going to do, so at the advice of my bank, they returned it for me.   If they didn't take 10 days to investigate, perhaps they wouldn't have so many chargebacks.  Also, I had some suspicious texts, and a phone call about using my card at Walmart in Florida the week prior, and when I called PayPal, they told me not to worry, they needed the whole card number to use it.  (they verified the last four). I should have pushed harder at that point for them to issue a new card.

Also this fraudulent charge was for an at&t bill and the PayPal rep had the audacity to ask me if "I was sure I didn't have an at&t account", then also told me I should just call at&t  

[moorewmla]

Ultimately PayPal has made it perfectly clear that they don't give a **bleep** about their small business customers. Someone said Elon should take it back but it seems more like he has already! As far as small business services this is going to go down in flames for them. I just cannot figure out the motivation behind it. WHY would you cut one of your most popular benefits? WHY would they NOT take into any consideration the considerable furious backlash this has caused? Are they trying to take the company down? Do they only want to provide consumer services and no longer offer business services? Today I got another announcement email that they are changing the processing fees, what in the world could be their motivation for **bleep** all of their business customers???? 

[Buddha27]

Extremely disappointed the PayPal backup funding feature has been terminated. After being a loyal customer for over 22yrs, I will be looking elsewhere for service. The back-up funding source was a great buffer (and provided a sense of security) to one's bank account with regards to not having to give direct access to your banking information when spending online or in person. 

[melaniesimms]

totally agree. I  have been with paypal since 2002 and I am so done wittsh them now!! I really loved the backup funding asset, and so many of my savings are connected to them --- Its just too much to keep adding money into them all the time-- its not like a real bank that I can even deposit many of my checks into -- they dont consider paypal a real bank But I loved the backup funding feature and benefits. Now that its gone it makes no sense to use it again.

[superknowva]

completely agree.  Time to drop paypal.  This was one of the main features that kept me on ebay.  I dont understand why they would remove this without an alternative.  Suspect they will lose quite a few people.  oh well.  Paypal, let me know when something changes and maybe I'll come back.

[dons96vette]

Just got caught off guard by this change. Fortunately my weekend vacation didn't get ruined by it.  Now to switch everything back to my Credit Union Debit card.  Bye-Bye Paypal.  Decades of relationship down the tubes.  

[RedHouse14]

Had this happen twice today very embarrassing standing inline with people behind me at gas station! thought I was hacked came home checked bank account etc. even ordered new card thinking my card was damaged🤣, I used the card on all online & gas purchases plus stores forever. 2 decades with PP that's come to a complete stop in one afternoon!

[ytsejam]

After 24 years of being a PayPal member I'm done.  I'll be cancelling my cards.  The way they went about this was very underhanded as well.  To bury this type of significant information in a "Updated Aggreement and Services" email is beyond reasoning.  They are truly showing their customers they do not care about them or their business.  I think I'll be moving my business to the Cash app, where you can have backup funds.

[VinceL100]

I had several auto payments declined ! I contacted Paypal no response. I now hear a message on their Customer service line that effective 9/12/23 paypal debit card will ONLY work with balance it does not link to a bank . WOW ! No pre notification, or did I miss something??