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.

[Chel_in_IL]

I have a Square account but never had a debit card with them. One is on the way now, tho. I used PayPal heavily for the “DMZ” of their debit card using backup funding from my bank account, and the convenience of having multiple cards. I travel alot and if I lose a card or it’s compromised, I’m stuck for days into a new card arrives. I just started using PayPal for invoicing (I don’t do a lot of that as I only have a few clients who I invoice), but I’ll move that to Square too. I think what I’ll do it use a card masking service that draws against my bank account, which I’ve done when I sign up for some trial and don’t want to worry about forgetting I signed up, but that doesn’t solve the physical card issue.

[KramerMDP1]

Worst decision ever made by PayPal.
This will effectively alter my basic use of PayPal.
As for any possible Cashback concerns with PP by using the backup funding source, I would prefer not to have the Cashback feature, at all.

[GeoffTrowbridge]

Not that it will make any difference, but I'll just affirm that this is the most catastrophically stupid business decision in the history of catastrophically stupid business decisions.

I'll be chopping up my PayPal debit card and looking for other options ASAP.

[KramerMDP1]

Agreed.

[Candikisthis]

Me too! I hate PayPal for this

[Ditzzy]

Maybe this is a stupid question but does anyone know if you can just link it to your bank debit card so it stays essentially the same or will we be forced to keep a Paypal balance? If so, it defeats the entire purpose of using it.

[moorewmla]

No it's the backup function itself they are taking away: if there is not a balance or enough of a balance on the PayPal account they will decline any charges that are made on the PP Business Debit Card. I have about 20 accounts set up for Auto Pay I will have to change them all of waste hours of my time checking before each Auto Pay processes that there is a balance available. It was one of the only reasons why I used the card, I never had to worry about it. 😞

[jwolfe]

I am STILL in the process of changing all my autopays using PayPal. All my associates warned me that using PayPal was a bad choice and that someday it would cost me. Well, they were correct. When I am finally finished with PayPal, I will NEVER return. 

[JustMe_amf]

No such thing as a stupid question 🙂   PayPal is (ridiculously!) ending the ability to link it to your bank card therefore, you have to keep and maintain a balance to use the card.  As far as I'm concerned, there is no longer a point to my having their card.  Also, I now have to go change the card information everywhere I currently have the PayPal card stored for recurring charges.

I am not a happy camper.

[unit1stealth]

I was very disappointed when I received notification about this.  I enjoyed using the card to earn 1% cash back and had most of my bills on autopay with it.  I won't be using my paypal account as much anymore now that they did away with the bank backup option.  Real shame, been a customer for over 16years.