Frequent Contributor
Posts: 364
Registered: ‎08-23-2011
So.. How does the Paypal debit card work?

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.

FICO Scores: TU: 768 (Jan 2012), EQ: 755 (Jan 2012 Lender pull)