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As of March 2019 this trick is dead as Paypal started phasing it out in batches. It was a good run and I am proud of presenting such a solution to a great community that helped me build my credit like a pro from the get go.
Hello,
If you have paypal cashback card that means you earn 2% on everything.
Paypal offers a debit card for PayPal business accounts that is funded by your paypal balance so let's say you have PayPal business debit card and you have $50 paypal balance then you can use your PayPal business debit card to make purchases up to $50. To get a PayPal business debit card you just request it and you receive it in the mail. This is how the cards looks with a really cool chip.
This card earns 1% cashback and if your paypal balance is zero you can link this card to a backup funding method so you can still use it and earn 1% cashback. Backup options are bank accounts and debit cards. You can also link it to credit cards offered by paypal as a backup option. If you link it to paypal cashback card you will earn 2% from the credit card and 1% from the debit card so 3% cashback in total.
Couple of things to consider:
- You only earn 1% cash back on purchases that don't require pin code (buy online giftcards then use them at THAT store).
- You must earn at least $1/month for cash back to post to paypal account i.e. spend at least $100 on the card per calendar month.
- You need to keep paypal balance at zero before making any transaction that way the whole amount goes through the 2% credit card.
- YOU CAN USE THIS CARD AT PLACES THAT DON'T ACCEPT CREDIT CARDS AND STILL EARN 2% CASHBACK (DMV, some gas stations, small stores).
I hope you find this useful.
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RECENT UPDATE
In a desperate attempt to promote their new PayPal personal debit card, PayPal made the business product exclusive for PayPal business accounts. Some users who got this card on their personal PayPal accounts have received an email that their business debit card will be shutdown by September. If you are currently using this 3% setup on a personal PayPal account I highly recommend upgrading your PayPal account to a business account. Also people reported that they can't apply for the PayPal 2% cashback credit card if they have a PayPal business account, they had to downgrade to PayPal personal account to be eligible to apply for the 2% credit card. If you are trying to get into this setup I recommend applying for the credit card then upgrading your account to business and applying for the debit card.
Thanks
I already used this this method and earned cash back on the credit card.
I used plastiq, coinbase, regular purchaes.
@patoot10wrote:Hello,
If you have paypal cashback card that means you earn 2% on everything.
Paypal also offers debit cards that are funded by your paypal balance so let's say you have paypal debit card and you have $50 paypal balance then you can use your paypal debit card to make purchases up to $50. Debit cards come in two versions (personal and business) however you don't need to own a business to get the business version. To get a paypal debit card you just request it and you receive it in the mail.
The card I am talking about in the topic subject is Paypal Business debit card.
This card earns 1% cashback and if your paypal balance is zero you can link this card to a backup funding method so you can still use it and earn 1% cashback. Backup options are bank accounts and debit cards. However you can also link it to credit cards offered by paypal. If you link it to paypal cashback card you will earn 2% from the credit card and 1% from the debit card so 3% cashback in total.
A couple of things to consider:
- You only earn 1% cash back on purchases that don't require pin code (buy online giftcards then use them at that store).
- You must earn at least $1/month for cash back to post to paypal account i.e spend at least $100 on the card per calendar month.
- You need to keep paypal balance at zero before making any transaction that way the whole amount goes through the 2% credit card.
- You can use this card at places that don't accept credit cards and still earn 2% cashback (DMV, some gas stations, small stores).
I hope you find this useful.
I’ve read about this strategy elsewhere before but I haven’t seen any follow up post indicating it actually works. Have you been able to confirm 3% overall cashback and that PayPal doesn’t shut it down on one of the cards?
This would be pretty cool as I already have both. I guess that also means I can try it out myself too. Lol.
@AnonymousThis would be pretty cool as I already have both. I guess that also means I can try it out myself too. Lol.
Please do. There are no data points that says this works. It looks like it would work on paper but actual use may be another story.
@Jetboywrote:
@AnonymousThis would be pretty cool as I already have both. I guess that also means I can try it out myself too. Lol.Please do. There are no data points that says this works. It looks like it would work on paper but actual use may be another story.
I’ll give it a go and report back when I know.
I suppose you could still get 3 percent with a couple of extra steps.
earn the 2% and transfer it to your PayPal balance on the statement date.
Then use the debit to spend the PayPal balance this earning 1% on those purchases.
admittedly it would stretch out over many months if there wasn’t massive spend.
Even then it would be a 2 month process at a minimum