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.

[ytsejam]

From what I've been reading, the Cash app lets you have a bank account or debit card as a backup source. They also have there own debit card. 

[We2thoms]

We used our PP Debit card for EVERYTHING. This is such a huge inconvenience. There’s never been difficulty with funding. It was such a win/win situation. This was the one thing PP had over/above the new cash apps.

[Big_C]

from Cash App website...

"When you use Cash App Pay, money for your payment comes from your Cash App balance. If your balance doesn’t cover the payment, it will then be taken from a linked debit card. If you haven’t linked a debit card and your Cash App balance doesn’t cover the cost of the transaction, the payment will be declined. You won’t be charged an overdraft fee."

Looks good to me. Later PayPal. The adding money to PP is ridiculous.

Maybe the banks didn't like all the ACH transactions. I will miss the cashback but can get better returns elsewhere.

[Powerlinep]

I have been with Paypal since the beginning.  Everything comes off this card.  Last night Dinner for the entire family was declined.  Today I couldn't buy cigs. I didn't know what was going on.  Now I find this.  This is ridiculous. 20 Year business customers have already been looking at reduced benefits for years and now the card is basically being rendered inoperable.  If we have been good customers for 20 years why are we now being pushed off the platform due to consumers you should just remove.  What's the point in transferring to your card? I receive barely any benefits anyway. 

[Longtimecustome]

I have a strong feeling that paypal is going to lose alot of loyal customers over this. I have been with PayPal from the beginning and have never done them dirty. The sole purpose for using them was because I could link my account and it would automatically pull what it needed. I have had to cancel ALL of my auto-pays with them.

[Temp20230918x]

Until several days ago I could make PayPal (my only Debit card) purchases using automatic top-off and/or "preferred when purchasing 0nline".
Now (NSF decline), I must wait 3 to 5 days, to transfer funds, before some purchases can be made.
PayPal should restore the original policy, or allow immediate transfers without requiring a bank debit card.

[merrygogray]

I agree with Edward 100%. Either immediate transfers or restore the original policy. I am considering ditching PayPal because of this. 

[auramaster]

I never received the notification of the change. Iv had several transaction go thru since the cutoff date until i went to use it today and it declined twice in a row. Once i got home and dug around for an hour or more to finally find out about this new BS, im now having to go thru every auto-pay i have set up and change them.

The biggest reason i had to use the card was it was safer than directly using my bank debit card and i got a notification on my phone ANY TIME the card was used. I could also have the card locked within 20 seconds thru the app if i had to.  cashback was just a small bonus.

[AnnaRenee87]

Why has this been done? I was grocery shopping yesterday and I'm just happy I brought my normal Chase card because otherwise we wouldn't have had dinner. The backup funding option was the only reason to have this card. Way to **bleep** over your customers who've been with you for almost 20 years....

Also if this was about the cash back? I couldn't care less about it, whoopy, I don't get my 1 dollar each month.....

[Wolf_lissy]

About a month ago I was having a problem with my debit card where I had made a bunch of different purchases and all of them except one went through my bank account. The last one didn't and ended up putting my PayPal account negative. I called PayPal and asked them why this happened and they kept telling me, oh it's because you had no balance in your PayPal account. I kept telling at them, I NEVER HAVE A BALANCE IN MY PAYPAL ACCOUNT. I HAVE BACKUP FUNDING WITH MY BANK! I finally got someone with a brain to tell me it was because there was so many transfers going from my bank that that last one they couldn't send to my bank. So I just transferred it and all was good. I also asked him about that email saying as of Sept 12th you'll no longer be able to use backup funding for your card and he told me that it was a warning if I didn't update my backup funding that it would my backup funding would be turned off. So yeah their customer service didn't know anything about this happening. When I called yesterday and asked why my card was being declined and they told me they were no longer accepting back up funding I told him they were going to lose a lot of customers. and they have. He agreed with me completely. He said all we can do is keep fighting it and hope they change it back but customer service is on our side. They think it's **bleep** that they did this.