topic Re: PayPal Debit card with 5% categories?! in Credit Cards

PayPal Debit card with 5% categories?!

unsungivy — Sun, 15 Sep 2024 14:47:06 GMT

This seems new:

How to earn rewards

The PayPal Debit Card lets you earn 5% cash back on a monthly category of your choice, whether you're shopping in-store or online. The categories are:

groceries

gas

restaurants

clothing

health and beauty

Your selected monthly category expires at the end of each month, so you'll need to log into your PayPal app to choose a category offer each month, even if you select the same category.

PayPal limits the cash back to up to $1,000 of spending in your chosen category each month, which means you pocket an extra $50 for every month you max out your spending.

https://www.cnbc.com/amp/select/paypal-debit-card-earns-5percent-cash-back/

Uh, a 1k cap is twice the spend on a Citi Custom Cash monthly. Did a debit card just become the best Groceries card?

Also a valid U.S. Restaurants choice if you didn't get the Redstone, since 5% in Dining is rare.

I initially saw this in the PayPal app, and went looking to see what the monthly categories were.

Additionally, since you can auto-load PayPal WITH a debit card, might work for a few of the 1%+ debit cards out there for stacking bonuses?

Re: PayPal Debit card with 5% categories?!

MissLiz — Sun, 15 Sep 2024 15:29:54 GMT

There was a post about this last month:

https://ficoforums.myfico.com/t5/Personal-Finance/PayPal-5-cash-back-debit-card/m-p/6782897#M261805

Re: PayPal Debit card with 5% categories?!

unsungivy — Sun, 15 Sep 2024 15:59:25 GMT

@MissLiz wrote:
There was a post about this last month:
https://ficoforums.myfico.com/t5/Personal-Finance/PayPal-5-cash-back-debit-card/m-p/6782897#M261805

Huh, I searched for "PayPal Debit" and didn't find that at all. Maybe because it's hidden off in a "lesser" forum.

I had P2 grab it just now. It didn't show up for him on the website, just via the PayPal app on the phone, which is where I originally saw it myself. Doing so, it was easy, just a few clicks. Picked Restaurants as the 5% category for the rest of the month, and requested a physical card be sent.

Re: PayPal Debit card with 5% categories?!

Anonymous — Sun, 15 Sep 2024 17:06:47 GMT

@unsungivy wrote:
@MissLiz wrote:
There was a post about this last month:
https://ficoforums.myfico.com/t5/Personal-Finance/PayPal-5-cash-back-debit-card/m-p/6782897#M261805
Huh, I searched for "PayPal Debit" and didn't find that at all. Maybe because it's hidden off in a "lesser" forum.

Yes, personal finance doesn't seem a great choice as this is really acting very much like a credit card. Just activated mine to see what happens. I have both a personal and biz account so must make sure not to mix them up

Re: PayPal Debit card with 5% categories?!

unsungivy — Sun, 15 Sep 2024 18:07:53 GMT

@Anonymous wrote:
@unsungivy wrote:
@MissLiz wrote:
There was a post about this last month:
https://ficoforums.myfico.com/t5/Personal-Finance/PayPal-5-cash-back-debit-card/m-p/6782897#M261805
Huh, I searched for "PayPal Debit" and didn't find that at all. Maybe because it's hidden off in a "lesser" forum.

Yes, personal finance doesn't seem a great choice as this is really acting very much like a credit card. Just activated mine to see what happens. I have both a personal and biz account so must make sure not to mix them up

Yeah for all intents and purposes, this should be part of a 5% CC lineup, even though it's not technically a CC. Seems like a fantastic addition... too bad it has FTF!

Re: PayPal Debit card with 5% categories?!

ElvisCaprice — Sun, 15 Sep 2024 18:31:54 GMT

No SUB, but no hard pull either. Have it already, but haven't done a thing with it. Maybe one of the special offers along with a category might come in handy someday?

Re: PayPal Debit card with 5% categories?!

Wu-Credit — Sun, 15 Sep 2024 20:17:29 GMT

@unsungivy wrote:

Additionally, since you can auto-load PayPal WITH a debit card, might work for a few of the 1%+ debit cards out there for stacking bonuses?

Matches perfectly with the Affinity Debit with the same cap. Makes it 6% for me

Re: PayPal Debit card with 5% categories?!

Anonymous — Mon, 16 Sep 2024 02:32:07 GMT

@unsungivy wrote:
@Anonymous wrote
Yes, personal finance doesn't seem a great choice as this is really acting very much like a credit card. Just activated mine to see what happens. I have both a personal and biz account so must make sure not to mix them up
Yeah for all intents and purposes, this should be part of a 5% CC lineup, even though it's not technically a CC. Seems like a fantastic addition... too bad it has FTF!

I posted this in the other less seen thread. I will post it here as well.

--------

I do not have a Costco membership, nor do I want one, so I can't test this myself and report my findings.

Costco payment is Visa or "Most Pin based Debit Cards" and a quick look says Costco gas codes as gas.

So, the 5% question is will the Paypal Debit Card with "Gas" choosen as the monthy catagory work at the Costco gas stations?

Re: PayPal Debit card with 5% categories?!

ElvisCaprice — Mon, 16 Sep 2024 04:49:41 GMT

I do not have a Costco membership, nor do I want one, so I can't test this myself and report my findings.

Costco payment is Visa or "Most Pin based Debit Cards" and a quick look says Costco gas codes as gas.

So, the 5% question is will the Paypal Debit Card with "Gas" choosen as the monthy catagory work at the Costco gas stations?

I don't see why not, as long as you have available funds in the account. I would check but I drive Electric these days. Don't miss gas powered one bit.

Re: PayPal Debit card with 5% categories?!

ptatohed — Mon, 16 Sep 2024 07:46:03 GMT

Since it's a debit card, you'll need to keep $1000 in a non-interest-bearing account. If we value MMAs or HYSAs at 5% APY right now, then (1/12) (5%) ($1,000) = $4.17 not earned each month. $50-$4.17 = $45.83 = 4.58% CB, not 5%.

Re: PayPal Debit card with 5% categories?!

Wu-Credit — Mon, 16 Sep 2024 11:04:23 GMT

@ptatohed wrote:
Since it's a debit card, you'll need to keep $1000 in a non-interest-bearing account. If we value MMAs or HYSAs at 5% APY right now, then (1/12) (5%) ($1,000) = $4.17 not earned each month. $50-$4.17 = $45.83 = 4.58% CB, not 5%.

You must have missed the part where you can auto-reload your balance. No need to keep funds in there 😜

Re: PayPal Debit card with 5% categories?!

unsungivy — Mon, 16 Sep 2024 13:11:08 GMT

@ElvisCaprice wrote:

I do not have a Costco membership, nor do I want one, so I can't test this myself and report my findings.

Costco payment is Visa or "Most Pin based Debit Cards" and a quick look says Costco gas codes as gas.

So, the 5% question is will the Paypal Debit Card with "Gas" choosen as the monthy catagory work at the Costco gas stations?

I don't see why not, as long as you have available funds in the account. I would check but I drive Electric these days. Don't miss gas powered one bit.

Indeed... and free charging at work makes me REALLY glad I got mine pre-pandemic! So much money saved.

Re: PayPal Debit card with 5% categories?!

Wavester64 — Mon, 16 Sep 2024 16:12:11 GMT

@Wu-Credit wrote:

@ptatohed wrote:
Since it's a debit card, you'll need to keep $1000 in a non-interest-bearing account. If we value MMAs or HYSAs at 5% APY right now, then (1/12) (5%) ($1,000) = $4.17 not earned each month. $50-$4.17 = $45.83 = 4.58% CB, not 5%.
You must have missed the part where you can auto-reload your balance. No need to keep funds in there 😜

So you're saying you don't need to keep $1000 in there? Trying to find the downside of getting this debit card.

Re: PayPal Debit card with 5% categories?!

Wu-Credit — Mon, 16 Sep 2024 17:31:53 GMT

@Wavester64 wrote:
@Wu-Credit wrote:

@ptatohed wrote:
Since it's a debit card, you'll need to keep $1000 in a non-interest-bearing account. If we value MMAs or HYSAs at 5% APY right now, then (1/12) (5%) ($1,000) = $4.17 not earned each month. $50-$4.17 = $45.83 = 4.58% CB, not 5%.
You must have missed the part where you can auto-reload your balance. No need to keep funds in there 😜
So you're saying you don't need to keep $1000 in there? Trying to find the downside of getting this debit card.

No. Not sure how some are assuming this? $1000 is the max spend to earn 5%, not the required balance.

There is no downside if one already has PayPal, aside from adding another piece of plastic to your collection and picking a category every month.

Re: PayPal Debit card with 5% categories?!

Wavester64 — Mon, 16 Sep 2024 18:12:37 GMT

Thanks @Wu-Credit

I just put in for the debit card - PP didn't ask me what choice for 5%. Maybe when the card comes and is activated it will.

Re: PayPal Debit card with 5% categories?!

Wu-Credit — Mon, 16 Sep 2024 18:26:45 GMT

@Wavester64 wrote:
Thanks @Wu-Credit

I just put in for the debit card - PP didn't ask me what choice for 5%. Maybe when the card comes and is activated it will.

I was unable to see the option at first until I updated the app. Check your app updates.

Re: PayPal Debit card with 5% categories?!

unsungivy — Mon, 16 Sep 2024 18:27:22 GMT

@Wavester64 wrote:
Thanks @Wu-Credit

I just put in for the debit card - PP didn't ask me what choice for 5%. Maybe when the card comes and is activated it will.

That's weird. It was part of the initial set-up for P2, even before requesting a physical card.

Re: PayPal Debit card with 5% categories?!

Wu-Credit — Mon, 16 Sep 2024 18:51:08 GMT

For those planning to use this debit and balance account often, here is a trick:

Add funds to your PayPal Balance with CB debit, pay CCs not listed in billpay with PayPal routing/checking on the CC website/app. Of course, this depends on if the debit card you use gives CB for adding to your balance (not just PayPal billpay). IME, some do (Affinity CB debit, Axos CB rewards checking), some don't (Primis perks).

This can work for any bills (even rent, mortgage) that only accept routing/account numbers as payment. Just make sure you turn on "enable payments" in the account & routing screen. The challenge here, however, is finding a debit card with a large enough CB cap to cover all your non-CC expenses.

Re: PayPal Debit card with 5% categories?!

ElvisCaprice — Mon, 16 Sep 2024 19:45:58 GMT

@Wu-Credit wrote:
For those planning to use this debit and balance account often, here is a trick:

Add funds to your PayPal Balance with CB debit, pay CCs not listed in billpay with PayPal routing/checking on the CC website/app. Of course, this depends on if the debit card you use gives CB for adding to your balance (not just PayPal billpay). IME, some do (Affinity CB debit, Axos CB rewards checking), some don't (Primis perks).

This can work for any bills (even rent, mortgage) that only accept routing/account numbers as payment. Just make sure you turn on "enable payments" in the account & routing screen. The challenge here, however, is finding a debit card with a large enough CB cap to cover all your non-CC expenses.

Brilliant, wasn't aware of this option. Looks like you can do auto reload with the external DB card but I plan on just doing it manually as I pay bills. What would happen if a biller tries to process from Paypal and your balance is not enough? Would paypal automatically pull funds from your external DB account (as long as this is main linked account)? Thus no need to auto/manual reload??

Hummm, not sure if Quontic DB will pay the 1% for a transfer to paypal??

Re: PayPal Debit card with 5% categories?!

Wu-Credit — Mon, 16 Sep 2024 20:03:27 GMT

@ElvisCaprice wrote:
@Wu-Credit wrote:
For those planning to use this debit and balance account often, here is a trick:

Add funds to your PayPal Balance with CB debit, pay CCs not listed in billpay with PayPal routing/checking on the CC website/app. Of course, this depends on if the debit card you use gives CB for adding to your balance (not just PayPal billpay). IME, some do (Affinity CB debit, Axos CB rewards checking), some don't (Primis perks).

This can work for any bills (even rent, mortgage) that only accept routing/account numbers as payment. Just make sure you turn on "enable payments" in the account & routing screen. The challenge here, however, is finding a debit card with a large enough CB cap to cover all your non-CC expenses.
Brilliant, wasn't aware of this option. Looks like you can do auto reload with the external DB card but I plan on just doing it manually as I pay bills. What would happen if a biller tries to process from Paypal and your balance is not enough? Would paypal automatically pull funds from your external DB account (as long as this is main linked account)? Thus no need to auto/manual reload??
Hummm, not sure if Quontic DB will pay the 1% for a transfer to paypal??

I have no idea. They do not have an overdraft option and the debit card does not auto draft from your bank if your PP balance is zero. I assume the same for ACH payments. I would not try to find out lol, just auto/manual reload to avoid issues or account shutdown.

Another perk: all purchases with the debit card are covered under PP's purchase protection program. That's rather OP for a debit card that also offers 5% CB. It's just as good as using a CC except for using funds right away, no grace period.