Written By
Matt Crabtree
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PayPal is one of, if not the biggest name in alternative finance. Over the last twenty years, they have risen from being a simple payment system provider to a driving force in the fintech sector. Customers, merchants, and SMEs can all make use of the range of services on offer.
In July 2019, the company announced that they were launching the PayPal Business Debit Card. We take a detailed look at whom this product is for and how it performs.
Quick Look — Pros & Cons
Pros
✔️ A convenient way of accessing your PayPal funds to make business purchases.
✔️ 0.5% cashback incentive on all the purchases you make.
✔️ No transaction fees for international transactions.
✔️ £350 daily ATM limit and up to £6,000 daily transaction limit.
Cons
❌️ £1 fee for every ATM withdrawal.
❌️ Card can be linked to your bank account, but withdrawals come in £5 increments.
❌️ Can’t use non-GBP balance to make payments.
As is evident, there are some strong features available here. The cashback rate, although not the highest, applies to everything, and the lack of international transaction fees is also welcome. However, this is counterbalanced by a few niggling issues.
What is the PayPal Business debit card?
The PayPal Business debit card is a Mastercard that’s linked to your PayPal Business balance.
It works much like any other debit card — you can make purchases online or in-person and withdraw cash from ATMs. If you’re a business owner who regularly uses PayPal for making and receiving payments, this could be a great addition to your finances.
How does the PayPal Business debit card work?
It’s simple to get set up with this card, particularly if you already have a PayPal Business account. If you don’t have one and you’re a sole trader, you can upgrade your personal account. Other business owners will have to create a new account specifically for their business.
You can order a card for free by requesting one on the PayPal website. After confirming your address, PayPal says it will take 7-10 business days for you to receive your card. However, it may well arrive much sooner, as ours did.
Once your card arrives, you have to activate it on yourPayPal dashboard. It’s simple enough, and you can also set your PIN while doingso. Don’t worry if you forget your PIN, you can review it through the dashboardlater. You can also close your card, change your billing address, and activateauto top-ups on this page.
When you spend, you’ll earn cashback on your purchases. These will automatically show on the dashboard, and they appear in your account at the end of each month. You can also view your daily spending limits from the page.
What features does the PayPal Business debit card have?
There’s plenty to like about PayPal’s new UK business debit card.
It brings many convenient features to account holders, including:
- Access toyour PayPal balance. If you frequently invoice using PayPal’s service, youcan access your GBP funds with this Mastercard. Rather than transferring it outof your account, you can make payments, purchases, and withdraw cash straightfrom it.
- 0.5%cashback. Every time you spend on your PayPal debit card (excluding ATMwithdrawals), you’ll get rewarded. Although the cashback amount seems small, itapplies to every purchase. Rewards register in your account straight away andyou can access them at the end of each month.
- Autotop-up. You can enable a feature that automatically adds money to your PayPalbalance from your bank account. For example, if you have no funds in youraccount and try and make a purchase of £26.50, your PayPal account will betopped up with £30. The £26.50 will be used for the purchase, and the remaining£3.50 will stay in your account. Top-ups are in £5 increments.
- Nointernational fees. When you make purchases and transactions abroad, youwon’t be charged a roaming fee. You’ll get the Mastercard exchange rate on theday you make the purchase.
This is a strong set of features, and you can monitor all ofyour activity on your PayPal account.
What are the fees for using the PayPal Business debit card?
There aren’t too many fees for using your card. There’s nomonthly subscription when you activate the card, and it’s free to request. Themain fee associated with the card is the £1 ATM transaction fee. This appliesto every transaction that you make.
Although not a fee, it’s worth noting the way that top-upswork. They occur in £5 increments from your associated bank account. So, whenyou make a purchase, round it up to the nearest £5. This way, you don’t getcaught off guard. The leftover funds will stay in your PayPal account.
Who is the PayPal Business debit card for?
Whether you already have a PayPal Business account that you regularly use, this could be the card for you.
Being able to access your funds without transferring them to another card or account is especially useful. If you regularly make business purchases on your card, the 0.5% cashback could soon mount up. However, regular ATM withdrawals will also mean that you’ll incur fees.
If you don’t currently have a PayPal Business account, it’seasy enough to get one. However, it seems like a lot of extra effort to switchto this method if you already have a business card that gives you rewards.Also, if you get paid in many different currencies, there are some downsides tothe PayPal debit card.
What are the drawbacks of using the PayPal Business debit card?
Although it’s generally a convenient service, there areseveral negative points associated with this card. The most obvious one is the£1 ATM withdrawal fee. This can soon outweigh the benefits of the cashback ifyou use such a service regularly.
Another frustrating feature is that you cannot access funds that aren’t in GBP. So, if you work with many international clients who pay in their local currency, you can’t pay on your card with those funds. Similarly, the auto top-up feature can make it that little more confusing tracking your finances.
How safe is the PayPal Business debit card?
It’s safe to use your PayPal Business card.
You get all the protection that comes with a regular Mastercard, as well as PayPal’s own security. Their 24/7 data encryption and anti-fraud technology to help keep your information secure.
Your card will be PIN protected, and you can view your PINthrough the PayPal dashboard. The card does have contactless technology, andyou can report a lost or stolen card directly through your account.
The PayPal Business debit card: Verdict
So far, we’re fans of the PayPal Business debit Mastercard.It gives an extra level of flexibility with your PayPal finances. The cashbackincentive is really useful, and though not an especially high rate, it soonadds up if you use it regularly.
It’s disappointing that we can’t use our internationalbalances with this card, although we remain hopeful they’ll add this feature.On the flip side, the lack of international fees is a useful touch.
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