topic Re: PayPal 5% cash back debit card in Personal Finance

PayPal 5% cash back debit card

Pppoolboy — Sun, 25 Aug 2024 11:34:11 GMT

Not sure if it's new but it's new to me: I just opened a PayPal 5% cash back debit card (I already have the PayPal Cash Back Mastercard credit card.) It draws money from a linked bank account as needed.

Does anyone else have this? I'm big into rewards credit cards and this gives 5% on a category of choice each month, which includes categories like groceries, restaurants, gas, etc. You have to choose the category each month and then can't change the choice until the next month.

The card caps out at $1000 spend per month and my main category is dining so I guess I'll be replacing my current Amex gold & Altitude go with it (at least for the first $1000 per month). I pay my balance in full each month so the "credit" aspect of credit cards is not especially meaningful although I guess one could say that a person can eke a few more bucks out of a credit card's grace period by paying on the last day if that money is invested during the grace period.

I realize it's a paltry $10 extra bucks per month on $1000 spend vs. a 4% cash back card and many folks can (and will) argue that the extra money isn't worth the trouble, but I'm a bit of a rewards-maximizer. Earlier this year I applied for the Redstone 5% back card and was denied so I closed my accounts with them.

Has anyone else seen this card or is it new? I haven't been able to find anything online about it.

Re: PayPal 5% cash back debit card

Anonymous — Sun, 25 Aug 2024 13:17:22 GMT

@Pppoolboy

!! < !

Was this a direct advertised offer in email or the mail? Do you have screen shots of this page?

I can find no mention of 5% on the debit on the Paypal site besides a single question in a FAQ page. And google search only brings up one mention in a reddit post and this post here.

Re: PayPal 5% cash back debit card

MissLiz — Sun, 25 Aug 2024 13:23:45 GMT

@Anonymous wrote:
@Pppoolboy
!! < !

Was this a direct advertised offer in email or the mail? Do you have screen shots of this page?

I can find no mention of 5% on the debit on the Paypal site besides a single question in a FAQ page. And google search only brings up one mention in a reddit post and this post here.

I looked it up too when I read this post.

https://www.paypal.com/us/digital-wallet/manage-money/paypal-debit-card

Re: PayPal 5% cash back debit card

MissLiz — Sun, 25 Aug 2024 13:25:46 GMT

@Anonymous This guy breaks it down well.

https://m.youtube.com/watch?v=CD0_oyML68w

Re: PayPal 5% cash back debit card

Anonymous — Sun, 25 Aug 2024 13:36:41 GMT

@MissLiz

Yes, but that video and the "main" paypal debit card page makes no mention of a 5% monthly choosable catagory. Only refers to the "adding of online shopping offers"

I was able to find this paypal page

https://www.paypal.com/us/campaign/ppdc-debit-5per-cashback-category-tnc

That has this wording

"How it Works: The PayPal Debit Card 5% cash back monthly category rewards feature allows Eligible Participants to earn PayPal Rewards Points (“Points”) on up to one thousand dollars ($1,000) of spend on Eligible Transactions with their Card (up to $50 cash equivalent once redeemed) in their selected monthly rewards category during a calendar month (the “Monthly Reward Category”). Eligible Participants must select a 5% cash back Monthly Reward Category in the PayPal App each calendar month to participate, and only one Category can be selected per month."

This is the only place I can find this wording. And I dug for it.

Re: PayPal 5% cash back debit card

FicoMike0 — Sun, 25 Aug 2024 16:30:45 GMT

I've never done paypal, this is all new to me. 5% is tempting.

From what I can find, first you open a PayPal account, then you open a pp balance account. At this point, "Any funds in your Balance Account represent unsecured claims against PayPal, unless you have opened a (“PayPal Debit Card account”), enrolled in Direct Deposit, or bought or received cryptocurrency with your personal PayPal Balance account. In that case, PayPal places the U.S. dollar funds held in your Balance Account in one or more Program Banks where they will, subject to certain conditions, be eligible for pass-through FDIC insurance, ..."

https://www.paypal.com/us/legalhub/pp-balance-tnc

This last point concerns me a little.

I see similar similar language with my fidelity cma, they "sweep" funds daily into bank accounts. I guess I have more confidence in fidelity than paypal.

I suppose you can limit risk by limiting your balance.

Re: PayPal 5% cash back debit card

FicoMike0 — Sun, 25 Aug 2024 16:35:49 GMT

@Pppoolboy So, how does it work, as far as fees? Any fees transferring funds in or out? Can you do ach push and pull with real banks? Fund with a debit card?

How about transfer speed? Ach usually takes 2-3 days, better or worse here?

Re: PayPal 5% cash back debit card

ptatohed — Mon, 26 Aug 2024 05:32:54 GMT

@Pppoolboy wrote:
Not sure if it's new but it's new to me: I just opened a PayPal 5% cash back debit card (I already have the PayPal Cash Back Mastercard credit card.) It draws money from a linked bank account as needed.

Does anyone else have this? I'm big into rewards credit cards and this gives 5% on a category of choice each month, which includes categories like groceries, restaurants, gas, etc. You have to choose the category each month and then can't change the choice until the next month.

The card caps out at $1000 spend per month and my main category is dining so I guess I'll be replacing my current Amex gold & Altitude go with it (at least for the first $1000 per month). I pay my balance in full each month so the "credit" aspect of credit cards is not especially meaningful although I guess one could say that a person can eke a few more bucks out of a credit card's grace period by paying on the last day if that money is invested during the grace period.

I realize it's a paltry $10 extra bucks per month on $1000 spend vs. a 4% cash back card and many folks can (and will) argue that the extra money isn't worth the trouble, but I'm a bit of a rewards-maximizer. Earlier this year I applied for the Redstone 5% back card and was denied so I closed my accounts with them.

Has anyone else seen this card or is it new? I haven't been able to find anything online about it.

Link to where you opened it???

Re: PayPal 5% cash back debit card

SomeGuy — Mon, 26 Aug 2024 05:51:45 GMT

Do you already have the card? I just ordered one in case the 5% is true. I was able to find a few references to the 5% monthly category on various PayPal websites, but I haven't seen it for myself just yet.

Re: PayPal 5% cash back debit card

mistay — Mon, 26 Aug 2024 20:22:51 GMT

I just received an email from Paypal today, advertising new card features, including the 5% cash back offer on select categories every month. I was doing some Googling and that's how I found your post! I'm excited to use this for gas/groceries, etc. !

Re: PayPal 5% cash back debit card

Anonymous — Tue, 27 Aug 2024 16:51:22 GMT

https://www.doctorofcredit.com/paypal-launches-debit-card-that-earns-5-back-on-one-category-up-to-1000/

Re: PayPal 5% cash back debit card

Anonymous — Tue, 27 Aug 2024 17:52:38 GMT

Fine. I just ordered one. Lets see how this works out.

Edit: It is ordered and currently usable in "digital" form in the Paypal app.

But as of yet there is no "-Tap- Choose your monthly cash back category" available, or even referenced, in the app.

Will update after physical card arrives.

Re: PayPal 5% cash back debit card

SouthJamaica — Tue, 27 Aug 2024 18:24:34 GMT

@Anonymous wrote:
Fine. I just ordered one. Lets see how this works out.

Edit: It is ordered and currently usable in "digital" form in the Paypal app.

But as of yet there is no "-Tap- Choose your monthly cash back category" available, or even referenced, in the app.
Will update after physical card arrives.

I ordered it too.

I did find a link to choose the monthly cash back category. It was on the first page when I went to the mobile app.

I have a hunch I'm going to regret getting this, but I'll bet it's something @ptatohed would like

Here's what they say about activating your monthly category:

Tap Accounts.
Tap Choose your monthly cash back category (you must have a PayPal Debit Card to choose a category).
Select the cash back category that you would like to activate for the current month and tap Next.
When the category offer details are shown, tap Got it.

Re: PayPal 5% cash back debit card

Wu-Credit — Tue, 27 Aug 2024 18:25:32 GMT

The app needs to be updated for the 5% monthly categories to show. I closed mine a few weeks back, some of the targeted offeres were okay (merchants, occasional 5% category). Those are now gone and replaced by this. I ordered another one lol.

Re: PayPal 5% cash back debit card

Anonymous — Tue, 27 Aug 2024 20:13:31 GMT

@SouthJamaica wrote:
@Anonymous wrote:
Fine. I just ordered one. Lets see how this works out.

Edit: It is ordered and currently usable in "digital" form in the Paypal app.

But as of yet there is no "-Tap- Choose your monthly cash back category" available, or even referenced, in the app.
Will update after physical card arrives.
I ordered it too.
I did find a link to choose the monthly cash back category. It was on the first page when I went to the mobile app.
I have a hunch I'm going to regret getting this, but I'll bet it's something @ptatohed would like

Here's what they say about activating your monthly category:
Tap Accounts.
Tap Choose your monthly cash back category (you must have a PayPal Debit Card to choose a category).
Select the cash back category that you would like to activate for the current month and tap Next.
When the category offer details are shown, tap Got it.

@Wu-Credit wrote:
The app needs to be updated for the 5% monthly categories to show. I closed mine a few weeks back, some of the targeted offeres were okay (merchants, occasional 5% category). Those are now gone and replaced by this. I ordered another one lol.

Just updated the app. Then went to "Wallet" and clicked the illustrious "Paypal Debit Card" and the link to choose monthy catagory was there.

Re: PayPal 5% cash back debit card

urbex — Fri, 30 Aug 2024 01:41:29 GMT

Can you choose the same category every month, or do they change to different options similar to Chase, Discover, etc. on their 3 month rotators?

I'm not really a fan of Paypal in general, largely because their online managment really stinks (to me, anyways) and it's been an ongoing PITA with Quicken access. But then, groceries are one of my big spends every month, though my grocery store of choice doesn't accept any credit cards. On the other hand, my total savings there tend to be far more than the 5% I'd get going elsewhere and using a CB CC.

But hey...if I could get an additional 5% more...it just might be worth dealing with PayPal for this single use...

Re: PayPal 5% cash back debit card

DoppelgangerD — Fri, 30 Aug 2024 03:56:19 GMT

Well this is the most interesting "credit" topic in a while.

Since I already have PayPal and the PP credit card, I went ahead and ordered a debit card.

Typical redundant categories, but could work out for the better if I cancel/pc an annual fee card in about 6 months.

Should be interesting to see how some purchases get categorized.

IE: Will Walmart count as grocery?

Not likely, but you never know...

Re: PayPal 5% cash back debit card

AyaMai — Wed, 04 Sep 2024 00:59:21 GMT

I have had the card for awhile, use the balance to pay my PayPal credit, PayPal Cashback World Mastercard, now I can use it at WinCo Food Grocery Chain more often since they only accept debit card. I have Target debit card with 5% cash back linked to my BOA checking account.

Re: PayPal 5% cash back debit card

SouthJamaica — Wed, 04 Sep 2024 02:51:52 GMT

@FicoMike0 wrote:
@Pppoolboy So, how does it work, as far as fees? Any fees transferring funds in or out?
No
Can you do ach push and pull with real banks?
Yes
Fund with a debit card?
Yes
How about transfer speed?
The money is in your PayPal account, so whatever experience you've had with PayPal that's what it is.
Ach usually takes 2-3 days, better or worse here?
According to their warnings, it's slower if you use bank account, almost immediate if you fund with debit card.

Re: PayPal 5% cash back debit card

Curious_George2 — Fri, 06 Sep 2024 15:09:58 GMT

@SouthJamaica wrote:
@FicoMike0 wrote:
@Pppoolboy So, how does it work, as far as fees? Any fees transferring funds in or out?
No
Can you do ach push and pull with real banks?
Yes
Fund with a debit card?
Yes
How about transfer speed?
The money is in your PayPal account, so whatever experience you've had with PayPal that's what it is.
Ach usually takes 2-3 days, better or worse here?
According to their warnings, it's slower if you use bank account, almost immediate if you fund with debit card.

Those warnings are correct. It's instant when funding with a different debit card. ACH takes multiple days.