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With PayPal operating as a global online payments system, you may wonder if a PayPal debit card is an option. Fortunately, PayPal debit card exists. The PayPal Prepaid Debit Mastercard is usable anywhere Mastercard is accepted. Likewise, the card 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 2015 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 Mastercard 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 for PayPal account holders. Also, it 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.
PayPal Prepaid Debit Card Pros and Cons
Some benefits and drawbacks to consider:
Compare the pros and cons to make a better decision.
- 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
PayPal Prepaid Debit Card Fees
While the Paypal Debit Mastercard may be a viable option, it comes with an assortment of fees. For example, you’ll have to pay a monthly cost of $4.95 to use the card. 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. Also, 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.
The PayPal Prepaid Mastercard
Activate New Card or Register for Online Access
To activate your card, you will need to register and activate your card online. So, in order to do that, you will need to visit the account management website and follow the instructions below.
Image Source: PayPal-Prepaid.com
Is a PayPal Prepaid Debit Mastercard worth it?
While the PayPal Prepaid Debit Mastercard comes with a ton of fees, it also gives cardholders access to several banking benefits. Similarly, this helps those without traditional checking and savings bank accounts. Furthermore, some features that help this card stand out:
1) Instant access to your PayPal balance:
This choice is the only card on the market that provides instant access to your PayPal balance. Also, you can have your paycheck, government benefits, or tax refund sent via direct deposit to your personalized card.
2) Bancorp Account Earnings:
When you open a complimentary online saving account with Bancorp, you can earn a 5% annual percentage yield (APY) on balances up to $1,000. Also, the portion of the balance that exceeds $1,000 will obtain an APY of 0.5%.
3) Refer-a-Friend Program:
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. However, if you use PayPal heavily and don’t have a checking account, the card may be worthwhile.