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PayPal is a well known provider for international transfers, to pay and get paid in a variety of currencies. They offer vast options of payment methods for their customers and now through a partnership with MasterCard, they are also able to provide a PayPal business debit card.
If you’re wondering whether or not PayPal business debit card is the best option for you, in this guide we’ll share a few facts about the PayPal business card: its fees, limits and cashback, also covering an alternative option: Wise Business debit card.
Let’s get started!
PayPal’s MasterCard is linked to your business account to let you spend and pay for a variety of goods and services, online or in store. You can also use it to withdraw cash from the ATMs. You can use the card anywhere in the world where MasterCard is accepted.¹
Before diving into the fees and specificities of the PayPal business debit card, let’s cover some important questions about the business account from PayPal.
The business account from PayPal is also called the Merchant Account, and it's designed to provide payment solutions for businesses of every size. With a business account you can connect PayPal with a variety of platforms and marketplaces.
Yes, in a certain way. PayPal doesn't charge a set-up or monthly fee, however you need to pay close attention to the costs associated with transactions.
For example, you will be charged when receiving payments into your business account and when making international payments. Paypal business card also come with their own fees and charges that you need to pay attention to.
|🛍️ Transaction fees
|💷 ATM withdrawal
|£1 per transaction
|0.5% on eligible purchases
|🗺️ Currency exchange
|Mastercard exchange rate
|🚫 ATM withdrawal limit
|£350 per day
|💳 Card payments limit
|£6000 per day
There is no fee for payments using the card except for cash withdrawals in ATM machines, both for transactions inside or outside the UK.
One good benefit of PayPal business debit cards is that you can pay in different currencies and it’ll automatically convert your GBP for you. However, it's important to keep in mind that even though you have an available balance in the currency you’re paying in, PayPal would still and always deduct the money from your GBP account if your account is registered in the UK.
PayPal uses MasterCard’s foreign exchange rate to convert your money, and the bad news is that you may face hidden fees when using your Paypal business card abroad. A better alternative would be to use a multi-currency debit card instead, like the one Wise Business offers.
You can spend on more than 50 currencies in 200 countries, and if you don’t have enough resources in the currency you are spending in your balance, Wise smart conversion will automatically convert the sum for you, always with the lowest possible fee.
Daily limits depend on the experience of PayPal with you and are subject to periodic review. But they set the following standard limits²:
|Payments with your card
You can earn 0.5% cashback from the Net Amount of eligible payments with your card in a calendar month. This will be credited to your PayPal balance after the end of that calendar month.²
Eligible Payments are all transactions using your Card except for:
- payments which are reversed (such as returns) or refunded;
- returns and refunds;
- fraudulent transaction or other transactions in violation of the PayPal User Agreement, PayPal’s Acceptable Use Policy or this Agreement; and
- withdrawals (Withdrawals at an ATM and Cash at Checkout).
PayPal uses a “round half up” approach to calculate reward amounts for individual payments. Cashback calculation examples:
- GBP 10.00 purchase transaction => GBP 0.05 cashback
- GBP 10.99 purchase transaction => GBP 0.05 cashback
- GBP 11.00 purchase transaction => GBP 0.06 cashback
Net Amount means the payment amount less the PayPal fees applicable to the payment.
There are few qualifications in order to get a PayPal business debit card. You have to be an active user with a good standing account. You must also have³:
- A Business account
- Confirmed your identity
- Confirmed your physical street address.
Here’s how to apply:
- Click the Pay & Get Paid tab at the top of the page.
- Under 'Wallet', click PayPal Business Debit Mastercard.
- Click Get Started.
Once you’ve been approved, your card will be sent to you and arrive within 7 – 10 days by post. You’ll then need to activate it prior to use.
Once you receive your business card it’s time to activate it before you can use it for your purchases. To do so you have to options⁴:
- Calling the automated PayPal activation line on +442083346259, the service works 24-hours a day.
- Active your card online. Within your account go to “Money” and click PayPal Business debit Mastercard, click “Activate Card”, and then enter the expiration date and click the “Activate Card” button again.
If you spend your business money in different currencies a better alternative can be the Wise Business debit card, which is linked with your multi-currency account. So you can spend like a local in more than 50 currencies, always with the fair mid-market exchange rate and low conversion fees. What’s more, you’ll even get 0,5% cashback on eligible purchases.
- PayPal help article
- PayPal business debit card terms
- PayPal - How to apply
- PayPal - Activate business card
Sources last checked March 29, 2023
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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