PayPal business debit card

Remay Villaester (May)
19.05.20
4 minute read

PayPal offers a variety of payment options for businesses and now through a partnership with Mastercard, they’re able to provide a debit card for business customers.

Debit card payments are fast and convenient however, the limits are usually low. For larger sums, use TransferWise for business to save some money on international transactions - it's up to 14x cheaper than PayPal.

If you’re wondering whether or not PayPal business debit card is the best option for you, we’ll share a few facts about it in this article to help you better understand how it works.

Let’s get started!

What is PayPal business Mastercard?

The Mastercard is linked to your business account with PayPal to let you spend and pay for a variety of goods and services online or in store using the POS machine. 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

What else can I use it for?

  • Online and instore - anywhere Mastercard is accepted in the world.
  • Access money with your PayPal account instantly.
  • Withdraw funds from your PayPal account or check your balance at any ATM showing the Mastercard symbol.
  • Pay with PayPal wherever you see the Mastercard logo.
  • 0.5% cash back with no caps or limits for eligible purchases (Purchases with PIN / Signature / Contactless).
  • Zero FX and Zero monthly fees.
  • Flat £1 ATM withdrawal fee per withdrawal (worldwide).

The card can only be ordered in the US and UK but can be used worldwide.

How much does it cost to use the card?

There is no fee for payments using the card except for cash withdrawals which costs £1 per withdrawal for transactions inside and outside the UK. However, if you intend to use PayPal for other transactions like sending large sums or bulk payments overseas or conversion between different currencies, there will be additional fees which range from 1 - 4%. In this case, it's better to use an alternative like TransferWise for Business which is 19x cheaper than PayPal.²

Can I pay in a different currency?

One good benefit of PayPal business debit card 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.

For example: If you're paying in USD to a merchant in the US, PayPal will deduct the money from your GBP account even though you have a USD balance available.

PayPal uses Mastercard’s foreign exchange rate to convert your money. You can check out their calculator to see what the rate is.

How does Cashback work?

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.

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.

What are the limits?

Daily limits depend on your experience with PayPal and is subject to periodic review. But they set the following standard limits:

Cash Withdrawals£350
Payments with your card£6000

How to apply for a card?

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 have:³

  • A Business account
  • Confirmed your identity
  • Confirmed your physical street address.

Here’s how to apply:

  1. Click the Pay & Get Paid tab at the top of the page.
  2. Under 'Wallet', click PayPal Business Debit Mastercard.
  3. 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.

What if I need to pay in larger sums?

In general, payments through debit cards have a relatively low limit. This is one of the downsides of using a debit card. If PayPal can’t increase your limits, it's better to use an alternative instead of using PayPal's regular payment method to avoid their fees.

To save some money on large transactions, use TransferWise for Business. It’s up to 14x cheaper than PayPal. You can receive payments in EUR, USD, AUD, NZD, PLN and GBP for free, convert and withdraw to your local bank account in minutes using the real exchange rate and with low, transparent fee.

TransferWise is a groundbreaking company with over 5 million customers globally taking an innovative, fresh approach to financial services. They're known for offering one of the fairest exchange rates in the business instead of inflating their exchange rates with hidden fees.

You can take advantage of the following benefits:

  • Payroll to overseas contractors
  • Payments to vendors and suppliers in over 40 currencies
  • A unique integration with Xero for multi-currency accounting
  • Multi-currency debit card attached to the account
  • Automated batch payments through open API to save you time and streamline the process

Create your TransferWise account, and start saving time and money today!

Sources:

  1. PayPal help article
  2. PayPal business debit card terms and conditions
  3. PayPal help article

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.

TransferWise is the smart, new way to send money abroad.

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