The PayPal Prepaid Debit Mastercard can be used anywhere Mastercard is accepted. It functions like a traditional debit card and there is no fee purchase fee. However, other fees apply once you use the card for the first time.
A recent study by the Federal Insurance Deposit Corp. (FDIC) found that 15.6 million adults in the U.S. are “unbanked,” meaning that no one in the household had a checking or savings account. The Paypal Prepaid Debit Mastercard card caters to this demographic by offering many of the same services available to consumers who have traditional checking and savings accounts.
Who is it for?
The PayPal Debit Mastercard is designed for PayPal account holders. It also may be a good fit if you:
- Can’t or don’t want to open a traditional bank account.
- Want to use your PayPal balance at brick-and-mortar locations to make purchases.
- Need a debit card to withdraw funds at an ATM.
- Want to take advantage of an exclusive offer to earn up to 5.0% APY on your money when you open an online savings account with Bancorp.
- Want to earn a commission through the Refer-a-Friend Program and earn cash-back rewards on everyday purchases.
Some benefits and drawbacks to consider:
- No credit check
- Online account management and mobile-app with real time alerts
- Cash back at the point of sale (at select retailers)
- Free direct deposit
- Security protections through virtual accounts
- Monthly maintenance fee
- Declined transfer fee
- Daily purchase and withdrawal limits
- Mobile deposit not available via the mobile app
- Cross-account transfers are not permitted
While the PayPal Prepaid Debit Mastercard may be a viable option, it comes with an assortment of fees. For starters, you’ll have to pay a monthly plan fee of $4.95 to use the card.Fees
Several other fees apply, including:
|Foreign transaction fee||2.5% of the U.S. dollar amount|
|Over-the-counter cash withdrawal fee||this amount varies by Netspend Reload Network location|
|ATM fee||$1.95 and owner surcharge fee (foreign transaction fee also applies for international cash withdrawals)|
|Reload fee||Varies by location|
|Instant bank transfer fee||$1.95 per $100 (up to $250 daily)|
|Stop payment fee||$10|
|Declined transaction fee||$1|
|Stop payment fee||$10|
|ACH declined payment||$1 each|
|Mailed statement fee||$5.95|
|Lost card fee||$5.95|
How to apply for a PayPal Prepaid Debit Mastercard
To get a PayPal Prepaid Debit Mastercard, complete the online form and hit submit. You’ll need to provide your:
- Phone number
- Direct deposit preference (if applicable)
How to activate your PayPal Prepaid Debit Mastercard
Upon approval, it takes 10 days to receive your card in the mail. When it arrives, you can activate it online by entering the card number and the security code (CVC2 number) on the back of the card.
Activate New Card or Register for Online Access
Image Source: PayPal-Prepaid.com
Is it worth a shot?
While the PayPal Prepaid Debit Mastercard comes with a ton of fees, it also gives cardholders, especially those without traditional checking and savings bank accounts, access to several banking benefits. Some features that helps this card stand out:
Instant access to your PayPal balance:
This is the only card on the market that provides instant access to your PayPal balance. You also can have your paycheck, government benefits, or tax refund sent via direct deposit to your personalized card.
Bancorp Account Earnings:
When you open a free online savings account with Bancorp, you can earn a 5% annual percentage yield (APY) on balances up to $1,000. (The portion of the balance that exceeds $1,000 will earn an APY of 0.5%).
You will receive $5 each time a buddy signs up and loads $10.
If you don’t use PayPal, you may want to look at other prepaid options, because the fees associated with the card can add up rather quickly. But if you use PayPal heavily and don’t have a checking account, the card may be worthwhile.