An in-depth review of PayPal's business Mastercard
PayPal Business Debit Card Review – An Effective Payment Solution
PayPal is one of, if not the, biggest name in alternative finance. Over the last twenty years, they have risen from being a simple payment system provider to a driving force in the fintech sector. Customers, merchants, and SMEs can all make use of the range of services on offer. In July 2019, the company announced that they were launching the PayPal Business Debit Card. We take a detailed look at who this product is for and how it performs.
Quick look – pros & cons
- 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.
- £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.
As is evident, there are some strong features available here. The cashback rate, although not the highest, applies on everything, and the lack of international transaction fees is also welcome. However, this is counterbalanced by a few niggling issues.
What is the PayPal Business debit card?
The PayPal Business debit card is a Mastercard that’s linked to your PayPal Business balance. It works much like any other debit card – you can make purchases online or in-person and withdraw cash from ATMs. If you’re a business owner who regularly uses PayPal for making and receiving payments, this could be a great addition to your finances.
How does the PayPal Business debit card work?
It’s simple to get set up with this card, particularly if you already have a PayPal Business account. If you don’t have one and you’re a sole trader, you can upgrade your personal account. Other business owners will have to create a new account specifically for their business.
You can order a card for free by requesting one on the PayPal website. After confirming your address, PayPal says it will take 7-10 business days for you to receive your card. However, it may well arrive much sooner, as ours did.
Once your card arrives, you have to activate it on your PayPal dashboard. It’s simple enough, and you can also set your PIN while doing so. Don’t worry if you forget your PIN, you can review it through the dashboard later. You can also close your card, change your billing address, and activate auto top-ups on this page.
When you spend, you’ll earn cashback on your purchases. These will automatically show on the dashboard, and they appear in your account at the end of each month. You can also view your daily spending limits from the page.
What features does the PayPal Business debit card have?
There’s plenty to like about PayPal’s new UK business debit card. It brings many convenient features to account holders, including:
- 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 too many fees for using your card. There’s no monthly subscription when you activate the card, and it’s free to request. The main fee associated with the card is the £1 ATM transaction fee. This applies to every transaction that you make.
Although not a fee, it’s worth noting the way that top-ups work. They occur in £5 increments from your associated bank account. So, when you make a purchase, round it up to the nearest £5. This way, you don’t get caught off guard. The leftover funds will stay in your PayPal account.
Who is the PayPal Business debit card for?
Whether you already have a PayPal Business account that you regularly use, this could be the card for you. Being able to access your funds without transferring them to another card or account is especially useful. If you regularly make business purchases on your card, the 0.5% cashback could soon mount up. However, regular ATM withdrawals will also mean that you’ll incur fees.
If you don’t currently have a PayPal Business account, it’s easy enough to get one. However, it seems like a lot of extra effort to switch to this method if you already have a business card that gives you rewards. Also, if you get paid in many different currencies, there are some downsides to the PayPal debit card.
What are the drawbacks of using the PayPal Business debit card?
Although it’s generally a convenient service, there are several negative points associated with this card. The most obvious one is the £1 ATM withdrawal fee. This can soon outweigh the benefits of the cashback if you use such a service regularly.
Another frustrating feature is that you cannot access funds that aren’t in GBP. So, if you work with many international clients who pay in their local currency, you can’t pay on your card with those funds. Similarly, the auto top-up feature can make it that little more confusing tracking your finances.
How safe is the PayPal Business debit card?
It’s safe to use your PayPal Business card. You get all the protection that comes with a regular Mastercard, as well as PayPal’s own security. Their 24/7 data encryption and anti-fraud technology to help keep your information secure.
Your card will be PIN protected, and you can view your PIN through the PayPal dashboard. The card does have contactless technology, and you can report a lost or stolen card directly through your account.
The PayPal Business debit card verdict
So far, we’re fans of the PayPal Business debit Mastercard. It gives an extra level of flexibility with your PayPal finances. The cashback incentive is really useful, and though not an especially high rate, it soon adds up if you use it regularly.
It’s disappointing that we can’t use our international balances with this card, although we remain hopeful they’ll add this feature. On the flip side, the lack of international fees is a useful touch.
Free money saving tips & more
Sign up to our email newsletters for tips on saving, the best bank deals and more.