PayPal Debit Card Review
Written by
Rudri Bhatt Patel, CFHC™
Edited by
Melanie Grafil, M.A., CHFC™
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Get Cash Back from Your Spending
Pick your 5% category and earn cash back while you're spending. There's no annual fee and you don't have to worry about spending what you don't have. The debit card pulls from your PayPal balance so you don't have to worry about transferring funds from your bank.
The PayPal Debit Card allows you to spend your PayPal balance via a debit card. You can only spend what you have in your PayPal account. You can use your credit card anywhere Mastercard is accepted. Also, you can pick a category every month to earn cash back.
These include:
- Restaurants
- Apparel
- Gas
- Groceries
- Rideshares and/or public transportation
It’s a convenient option for people who regularly use PayPal and want faster access to their funds, as well as cash back.
How the PayPal Debit Card Works
The PayPal Debit Card is linked to your PayPal balance. You can make purchases online and in stores as long as Mastercard is accepted. The use of the PayPal debit card also allows you to choose a category, i.e. groceries or gas, and earn 5% cash back.
- Your card is linked to your PayPal account.
- PayPal Debit Card is accepted anywhere Mastercard is accepted.
- You choose your category every month to receive 5% cash back.
- No credit check required.
- No monthly maintenance fees.
- You can use your debit card at an ATM.
Where It Stands Out
Cash Back Rewards
Mobile App Access
ATM Access
Accepted Internationally
Receive 5% cash back on a category of your choice every month.
The PayPal Debit Card provides direct access to your PayPal balance with the added benefit of cash back rewards and Mastercard acceptance worldwide.
Cost
No activation fee
Cash Back Rewards
You receive 5% cash back on the category of your choice. You can change this category every month. There’s a $1,000 cap each month.
Other Features
- Access to over 55,000 ATMs
- Mobile app available
- Can be used internationally with a 2.50% foreign transaction fee
Pros
- No credit check required
- Available in all 50 states
- Accepted everywhere Mastercard is used
- Users with direct deposit may receive their paycheck two days early
Cons
- You spend only what is available in your PayPal balance
- There’s a $2.50 charge for out-of-network ATMs.
- There’s a 2.50% foreign transaction fee.
Why We Like It
We like the PayPal Debit Card because it offers cash back rewards without the hassle of an annual fee or credit check.
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Key Features and Benefits
The PayPal Debit Card allows one-stop shop for purchases, keeping track of your balances and earning cash-back rewards. You can view all activity via the app and it is a convenient alternative to a traditional credit card.
- Direct access to PayPal balance without bank transfer delays
- Available to use internationally
- Contactless payments and digital wallet compatibility
- ATM withdrawals for cash access
- In-app card controls for security and spending management
- Fraud monitoring and purchase protection features
No annual or maintenance fee or credit check to use your PayPal Debit Card
The PayPal Debit Card combines convenience with accessibility by allowing you to make purchases, withdraw money from the ATM domestically and internationally and earn cash back.
Fees
Out-of-network fee for ATMs and international transaction fee. Up to $3.95 for cash reload fee.
Security Features
The PayPal Debit Card allows you to login by using your face or fingerprint. If you misplace your card, you can instantly lock it via your phone. You’re not liable for any unauthorized transactions.
Ease of Use
You can add your PayPal Debit Card to your Apple Wallet or Google Pay. Contactless payments are possible with the PayPal Debit Card.
Pros
- No annual fee
- No monthly maintenance fee
- Access to over 55,000 ATMs
- No fee for closing your account
Cons
- You have to pay a fee every time your reload the card
- There are no physical locations
Why We Like It
You get all the security of a traditional credit card, but also have the perks of cash back rewards and security.
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User Experience
The PayPal Debit Card works with the PayPal app. Users can access transactions, see and manage rewards and change card settings immediately. You can seamlessly switch from your physical debit card to your digital account. You can also add your debit card to your Apple Wallet or Google Pay to conveniently pay for transactions with your phone.
Under the “Manage Card” tab you can check your daily limits. The ATM limit is set at $400. Every time a transaction is completed, you are notified on the app. In the PayPal app, you can see your recent transactions, lock your card, manage payment methods and track your spending.
The Apple Store rates the PayPal Debit Card 4.7 out of 5 stars and Google Play is rated 4.2 out of 5 stars.
Recent reviews include a three-star review from Elizabeth Pannebaker who says:
It’s pretty reliable and easy to use. With the card, you can use it anywhere, like a debit or pull cash out at atms or via cash back option at checkout. My only complaint is that transactions can sometimes be pending for quite a while.
Another user named Ryan also said:
[It’s] one of the most convenient ways to do my everyday banking and with their monthly 5% cash back on certain items like fuel that’s redeemable throughout the entire month whenever you need a few extra dollars and can redeem your Rewards multiple times as well. not too many other banking apps can beat that. I got about $30 to $40 back a month.
If you have customer support questions, you’ll likely be referred to a chat bot. It can be difficult to reach a live customer service representative unless you have paid for PayPal Plus or you have a substantial balance.
PayPal Debit Card vs. Competitor Options
PayPal Debit Card vs. Venmo Debit Card
PayPal Debit Card offers 5% cash back on a category of your choosing. Venmo Debit Card offers a tiered cash back rate of 1%, 2% and 3%. Both cards don’t have monthly fees, but Venmo appeals to a more younger demographic because of the social aspect on its feed.
PayPal Debit Card vs. Cash App Card
Cash App Card provides personalized boosts so that users can receive discounts at specific merchants. PayPal Debit Card offers a wide variety of ATM services. Cash App allows you to create a customizable design of your card.
PayPal Debit Card vs. Traditional Bank Debit Cards
Traditional debit cards may carry a monthly maintenance fee associated with the account. PayPal doesn’t have that fee. However, traditional debit cards may be associated with a physical bank that patrons can visit if they have issues with their account. PayPal will have to connect with customer service via their app. Traditional debit cards rarely match PayPal’s 5% cash back offer.
Final Take
If you want to use your PayPal account in stores and also earn cash back, the PayPal Debit Card is likely a good fit. You can earn cash back without opening a new account or having to pay fees. The PayPal Debit Card also allows access to ATMs.
FAQs on the PayPal Debit Card
- Is the PayPal Debit Card safe to use?
- It's safe to use since it uses Mastercard's network and has its only built-in debit card security.
- Does the PayPal Debit Card offer cash back rewards?
- You can earn up to 5% in the category of your choice each month.
- Are there fees with the PayPal Debit Card?
- There's no annual fee or monthly maintenance fee with a PayPal debit card.
- Can I withdraw cash using the PayPal Debit Card?
- You can use your card at an ATM to access funds.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
