To help business owners on their platform, PayPal offers a business debit card that combines some positives from both debit and credit cards. You get 1% cash back on all purchases, and the card pulls directly from your PayPal balance—no transferring funds later on.
You can also use the card to get cash at ATMs and make payments online, in-store, or anywhere Mastercard is accepted. Plus, the card offers Mastercard’s zero liability policy which protects your business from unauthorized payments.
In this article, we’ll break down the positives and negatives of PayPal’s business debit card and explain how you can get one for your business.
But if your business does a lot of transactions overseas, another option to look at is a Wise Business account. With Wise, your business can receive unlimited international payments that go directly into your account without high recipient or conversion fees. Process overseas payments for your business at the mid-market rate and save a ton of money with Wise Business.
|📝 Table of contents|
You might think that applying for a PayPal business card might be like applying for a credit card, but this isn’t the case. You don’t need to worry about credit scores or anything like that, but there are some eligibility conditions to be aware of:
- First, you must have a PayPal business account set up.
- The account must be in good standing.
- You’ll need to confirm your business’ physical address with PayPal—a P.O. box won’t work. The easiest way to do this is to link a business credit card to the account whose statement is mailed to the physical address.
- Provide your valid social security number and birthdate.
Applying for a PayPal business debit card is a simple process. Here are the steps:
- Login to your PayPal business account.
- Click the tab that reads ‘Pay and Get Paid’ at the top of the page
- Next, under ‘Wallet’ click the PayPal Business Debit Mastercard link
- Finally, click the link that reads ‘Get Started’
- Apply for the card—subject to approval.
- The card should deliver within 7-10 days upon approval, and you can apply again in 30 days if you’re denied.¹
A big perk of the PayPal Business Debit Mastercard is that there’s no annual fee. But there are some other fees tied to the card that could make it not worth your while based on the type of transactions your business conducts.
The card has domestic ATM withdrawal fees, teller assisted withdrawal fees, international ATM withdrawal fees, and foreign transaction fees. If you do a lot of international business or need to deal in cash, this card might not be a viable option.
Here’s a table with the exact fees:
|Fees||Paypal Business Debit Mastercard|
|ATM Domestic Withdrawal fee||$1.50 per withdrawal in the US—plus ATM owner fees²|
|ATM International Withdrawal Fee||$1.50 per withdrawal in the US—even without a currency conversion²|
|Teller Assisted Withdrawal Fee||$3.00 per withdrawal²|
|Foreign Transaction Fee||1% of the purchase amount from a non-US merchant or 1% of the withdrawal amount at a non-US ATM—even without a currency conversion²|
Information verified 6/11/2021
|💡If you do a lot of business abroad, the PayPal business debit card may not be the best option. Every time you use a foreign ATM, you’ll accumulate a fee of $1.50 plus 1% of the withdrawal amount, as PayPal considers this a foreign transaction—even without currency conversion.|
If the fees work for you and your business model, then the PayPal business debit card does offer some solid rewards.
The biggest perk is that you can enroll in PayPal’s Cash Back program, which nets 1% cash back on all of your purchases. The awards accrue monthly, and then they’re automatically deposited into your PayPal account. No other steps required.
Just be aware that the 1% cash back is available for eligible purchases only. Those include all credit transactions made online, in-store, or over the phone. PayPal defines a credit transaction as one where you sign for the purchase, and then it is processed by Mastercard.
PIN transactions, PIN-less debits, cash withdrawals, and cash advances are all not eligible for cash back rewards. So if you want your rewards, you need to run the purchase as a credit transaction every time!
The card also offers Mastercard’s Zero Liability policy, which protects your business from unauthorized payments. And as a business card, you also have the ability to order as many additional cards as you need for other employees.
Whether the PayPal business debit card is good or not depends entirely on your business needs.
If your business uses PayPal primarily for transactions, then it’s a great way to connect your PayPal account to a business debit card that nets 1% cash back rewards on every purchase. Plus, there’s no annual fee.
However, if your business deals in cash a lot, the ATM fees tied to the account will start to accumulate fast. And a big deal breaker could be the foreign transaction fees associated with the card. If your business does a lot of international transactions, 1% on every purchase could undercut your bottom line.
Businesses who send and receive money abroad and do a lot of foreign transactions may be looking for a solid alternative. A Wise Business account is the only account you need to go global.
Wise Business is on average 19x cheaper than PayPal for sending and receiving payments. Plus, you can pay invoices in over 70 countries with small and transparent fees. Start doing your business transactions at the mid-market rate, and switch to Wise Business.
- PayPal - What is the PayPal Business Debit Mastercard?
- PayPal - PayPal Business Debit Mastercard Cardholder Agreement
All sources checked on 11 June 2021
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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