One of the biggest names in alternative finance, if not the biggest, is PayPal. They have evolved over the past 20 years from being a straightforward provider of payment systems to a key player in the fintech industry. The variety of services available can be used by customers, retailers, and SMEs. The PayPal Business Debit Card was going to be introduced, according to the company’s announcement in July 2019. We examine in great detail who this product is for and how it works.

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.

There are some excellent features offered here, as is obvious. The absence of foreign transaction fees is particularly appreciated, even though the cashback percentage is not the highest. However, a few minor problems balance this out.

What is the PayPal Business debit card?

Your PayPal Business balance is connected to the Mastercard used for the PayPal Business debit card. You can make purchases online or offline and withdraw cash from ATMs using this debit card, much like you would any other. This might be a terrific addition to your finances if you’re a business owner who routinely uses PayPal for sending and receiving money.

How does the PayPal Business debit card work?

Setting up this card is simple, especially if you already have a PayPal Business account. You can update your personal account if you’re a lone proprietor without one. Other business owners will need to open a fresh account just for their enterprise.

By requesting one on the PayPal website, you can order a card without paying anything. PayPal estimates that it will take 7 to 10 business days for you to get your card after verifying your address. As with ours, it could, however, arrive far sooner.

You must activate your card on your PayPal dashboard as soon as it arrives. It’s really easy, and you may set your PIN at the same time. If you forget your PIN, don’t panic; you can check it later on the dashboard. On this page, you may also deactivate auto top-ups, change your billing address, and close your card.

You’ll receive cashback on your purchases when you spend. At the end of each month, they arrive in your account and are automatically shown on the dashboard. The page also allows you to view your daily spending caps.

What features does the PayPal Business debit card have?

The new UK business debit card from PayPal has a lot to recommend it. It offers account holders a variety of useful functions, such as:

• Access to your PayPal balance. If you frequently invoice using PayPal’s service, you can access your GBP funds with this Mastercard. Rather than transferring it out of your account, you can make payments, purchases, and withdraw cash straight from it.
• 0.5% cashback. Every time you spend on your PayPal debit card (excluding ATM withdrawals), you’ll get rewarded. Although the cashback amount seems small, it applies to every purchase. Rewards register in your account straight away and you can access them at the end of each month.
• Auto top-up. You can enable a feature that automatically adds money to your PayPal balance from your bank account. For example, if you have no funds in your account and try and make a purchase of £26.50, your PayPal account will be topped 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.
• No international fees. When you make purchases and transactions abroad, you won’t be charged a roaming fee. You’ll get the Mastercard exchange rate on the day you make the purchase.

This is a strong set of features, and you can monitor all of your activity on your PayPal account.

What are the fees for using the PayPal Business debit card?

There aren’t many costs associated with using your card. When you activate the card, there is no monthly subscription fee, and making a request is also free. The £1 ATM transaction fee is the primary fee associated with the card. This holds true for each and every purchase you make.

Although not a cost, the way top-ups operate should be mentioned. They are deducted from your linked bank account in £5 increments. Therefore, round your purchases up to the nearest £5 when you make them. You avoid being caught off guard in this manner. The funds will continue to be held in your PayPal account.

Who is the PayPal Business debit card for?

This could be the card for you if you already have a PayPal Business account that you frequently use. It’s very helpful to have access to your money without having to move it to another card or account. The 0.5% cashback might quickly add up if you frequently use your card for business transactions. However, frequent ATM withdrawals will potentially result in charges for you.

It’s simple to open a PayPal Business account if you don’t already have one. If you already have a business card that offers benefits, switching to this approach sounds like a lot of extra work. The PayPal debit card has several drawbacks if you receive payments in a variety of currencies.

What are the drawbacks of using the PayPal Business debit card?

Although the service is generally convenient, there are a few drawbacks to this card. The £1 ATM withdrawal fee is the most noticeable one. If you use a service like this frequently, this might quickly outweigh the advantages of the cashback.

The inability to access money that are not in GBP is another annoying aspect. You cannot use those monies to make a purchase on your card if you frequently work with clients from other countries who pay in their own currency. The auto top-up feature can also make keeping track of your finances a little bit more difficult.

How safe is the PayPal Business debit card?

Using your PayPal Business card is secure. Along with PayPal’s own security, you also get all the protections that come with a conventional Mastercard. Your information is kept secure by their anti-fraud technology and constant data encryption.

You may access your PIN on the PayPal dashboard, and your card will be protected by a PIN. The card does support contactless technology, and you can immediately notify your bank of a lost or stolen card by logging into your account.

The PayPal Business debit card verdict

We currently like the PayPal Business debit Mastercard. It provides an additional degree of financial flexibility through PayPal. The cashback incentive is very helpful, and even if the rate is not particularly great, if you use it frequently, it soon adds up.

It’s frustrating that we can’t utilize our foreign balances with this card, but we’re still holding out hope that they’ll implement this change. On the other hand, the absence of foreign fees is a helpful addition.