So.. How does the Paypal debit card work?

[Anonymous]

I know I am jumping the gun and there is at least 6 months to a year before the credit card surcharges happen, if they ever do, who knows the banks and merchants may come to a different agreement not involving surcharges, or maybe reduce the interchange fee and lessen rewards programs, or the surcharges would only be for specific things like purchases under 10 dollars, ect lots to be ironed out in the next several months and even if it happens many merchants may not do it for fear of angering customers.

In any case I will in no instance pay an extra fee to use a credit card. If surcharges become widespread I will cancel all my cards except for one, and use it occasionally to keep it open just to keep my score high for a mortgage down the line.

I would go exclusively cash and coins for brick and mortar businesses, and paypal or debit cards for online transactions. In any case there probably will be some merchants who will surcharge credit cards because they can, and the consumer might have little to no choice such as my landlord for rent, doctors offices, online commerce, airlines, hotels, etc and keeping a debit card on hand for that might be a good idea.

Now two things. In no way will I ever get a checkbook. That is just out of the question. I also will not get a debit card linked to my checking account due to fraud concerns. Even if you catch it quick to limit your liability your money is still wiped out and I want to have full control over what money leaves my checking account and when.

I would still need a debit card for online or large purchases. I see paypal has a debit card. How does that work? Already saw there is no fees, except for ATM withdrawls which wouldnt be a problem as I would use my banks ATM card for that.

I know for paypal if there is insufficient funds in your paypal account, it will automatically draw from your checking account to cover the difference. That is not good and might as well just have a bank debit card in that case.

However is there a way to block that? Like if your paypal account doesn't have funds don't use a secondary payment method just decline the transaction? My fraud fears can be put to rest if that is the case because I would only load money in my paypal account when I was going to use my debit card, and leave it empty otherwise so if my number was leaked somewhere all the theif would get would be automatically declined transactions then paypal sends me a new card.

Basically a prepaid debit card with no fees. I just load money into my paypal account when i will be using the card, and put the money back in checking otherwise. I do know you can transfer to and from your bank account.

Is that possible and do any of you have a paypal debit card and what has been your experiences with it?

Basically I sure as shoot will never pay a bank or merchant for the priveledge of spending my own money with a credit or debit card and will jump through any and all hoops to keep that from happening.

[variableResistor]

I do not know much abut the pay-pal debit card. there are other options though:

Amex serve only charges fees if you add funds through a credit or debit card(free if you load with checking account) or withdrawal through ATM

 https://www.serve.com/legal/#Services_and_Charges

Ally bank checking accounts have no fees or minimum balance requirements and their debt card reimburses ATM fees:

http://www.ally.com/bank/interest-checking-account/#tabs=default

If you opt out of overdraft and only keep a small balance you can prevent large charges. You can do this with any debit card account due to federal regutions. However you might need to do this over the phone as not all banks make it easy to opt-out. They like to collect overdraft fees.

[DaveSignal]

I have used a paypal debit card before.  Its not really very usefull unless you have income coming into your paypal frequently.

I, or course, will still use my credit cards.   I will avoid places that charge fees if they are unreasonable.  But I don't think any merchant is going to hurt their profitability by charging excessive fees.

What if the merchant charged fees without explicitly calling it a credit card surcharge?   Such as, 'Buy this $100 item with cash/check/debit and get a $2 instant discount!"  Would that bother you?

[Anonymous]

I would definitely prefer the a cash discount off the advertised price, as opposed to paying extra for the advertised price. That way there are no surprises at check out.

One thing for sure though the market will find an equilibrium. The merchants can use the surcharge as a bargaining chip with the credit card companies to negotiate reasonable rates with hopefully no surcharges, and hopefully preserving some credit card rewards as well if not as generous as they are now.

As a consumer I always go with what benefits me the best. So far except for some small purchases and local businesses that are cash only I have put everything I can on my credit card for the rewards. If the merchant is offering a good enough cash discount I would take that every time. If it becomes widespread enough to where I am always paying cash I would only keep one no AF card to maintain a credit history and good score, while paying cash or debit for everything else.

If I do get a debit card I would want it for sure not linked to my checking account just so if fraud does occur all my money doesn't disappear. A card that I can load up with what I need, and transfer what I don't need back to my checking account and of course with no fees which is why paypal crossed my mind.

Another thing we haven't thought of is what does this ruling mean for other forms of payment like paying with your smartphone? This could pave the way for paypal and other payment apps as alternatives to credit cards.

[DaveSignal]

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@Anonymous wrote:

Another thing we haven't thought of is what does this ruling mean for other forms of payment like paying with your smartphone? This could pave the way for paypal and other payment apps as alternatives to credit cards.

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My paypal payments are linked directly to my credit cards.  I have bill me later also, but paypal is really just a tool for me to select either credit or bill me later.  I haven't kept a balance in my actual paypal account in years.

[Anonymous]

Actually I just thought of a better plan for if and when "Judgement Day" comes for us credit card fans.

My checking account is with Bank of America. I have the myaccess checking which is free for me with direct deposit. They also have a second checking account called an eChecking or something like that.

It is free if you never see a teller about it and enroll in online statements.

Is it possible to have two checking accounts with the same company? My plan was to open that second account and opt out of overdraft. Then when I travel move some money from my main checking account to the eChecking one and use it basically as a prepaid debit card with no fees. That way if it ever happens that my debit card number is ever hacked or stolen, I lose very little, if any money and my main checking account remains isolated.

Having a debit card linked to your main checking account just seems very risky.

Haha I have been watching the Terminator movies lately and the day credit card surcharges appear would feel like judgement day. I hope the current settlement is rejected and the banks and retailers work out something that doesn't involve surcharges. Lower the interchange fee and make rewards less generous, or give the merchant the ability to reject premium cards like Visa signature, etc because right now both the banks and retailers are fighting and both turning around and kicking the customer in the balls every chance they get.

What really makes me spit nails is when I read articles that say "Retailers and their customers" won today. Umm, no. Just retailers. The customer didn't win by having the opportunity to be charged extra.