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Earn 3% on everything using one card - RECENT UPDATE

Established Contributor

Re: Earn 3% on everything using one card

@UncleB so based on what you're saying, if you're using this setup in a place that doesn't take credit payments, you won't get the 1% back on the debit card, but with the PayPal CC as the funding source you'd still get the 2% cash back?
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Message 31 of 263
Moderator

Re: Earn 3% on everything using one card


@f4phantom2500wrote:
@UncleB so based on what you're saying, if you're using this setup in a place that doesn't take credit payments, you won't get the 1% back on the debit card, but with the PayPal CC as the funding source you'd still get the 2% cash back?

You need your PayPal balance to be at $0 balance to that debit card transactions trigger the backup funding.  It's been a few years, but in my experience PIN transactions didn't work for this - the transaction would simply be declined.  If I used the debit card as a MasterCard it would be approved, and PayPal would pull funds from the backup source.

 

If you're using your debit card at a merchant that's processing it as a PIN-less transaction then I would expect you to earn 2% from the PayPal MasterCard, if you're able to get the backup funding to kick in. 

 

In the past backup funding would kick in for online PIN-less debit transactions (thus the Amazon glitch I ran into) but I'm not sure about in-person transactions... whenever I've used my debit in-person it's either with the PIN, or it's over the MC/V network... I've never done an in-person PIN-less transaction before. 

 

Keep in mind that this isn't an exact science, and is liable (and likely) to change at any time, especially if others start taking advantage of this loophole.  For specific situations you'll really just have to try it for yourself to see what works and what doesn't. 

Message 32 of 263
Community Leader
Valued Contributor

Re: Earn 3% on everything using one card


@UncleBwrote:

@f4phantom2500wrote:
@UncleB so based on what you're saying, if you're using this setup in a place that doesn't take credit payments, you won't get the 1% back on the debit card, but with the PayPal CC as the funding source you'd still get the 2% cash back?

You need your PayPal balance to be at $0 balance to that debit card transactions trigger the backup funding.  It's been a few years, but in my experience PIN transactions didn't work for this - the transaction would simply be declined.  If I used the debit card as a MasterCard it would be approved, and PayPal would pull funds from the backup source.

 

If you're using your debit card at a merchant that's processing it as a PIN-less transaction then I would expect you to earn 2% from the PayPal MasterCard, if you're able to get the backup funding to kick in. 

 

In the past backup funding would kick in for online PIN-less debit transactions (thus the Amazon glitch I ran into) but I'm not sure about in-person transactions... whenever I've used my debit in-person it's either with the PIN, or it's over the MC/V network... I've never done an in-person PIN-less transaction before. 

 

Keep in mind that this isn't an exact science, and is liable (and likely) to change at any time, especially if others start taking advantage of this loophole.  For specific situations you'll really just have to try it for yourself to see what works and what doesn't. 


For an in person PIN-less transaction you select Credit instead of Debit. Any debit card can be processed as credit, the available balance in the bank account is treated the same as available credit on a line of credit in approval/denial of a transaction. That costs the merchant more as credit swipe fees are much higher than debit, but that's why PayPal will give you 1% for pin-less, they get a higher card issuer fee.


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Message 33 of 263
Moderator

Re: Earn 3% on everything using one card


@DaveInAZwrote:

@UncleBwrote:

@f4phantom2500wrote:
@UncleB so based on what you're saying, if you're using this setup in a place that doesn't take credit payments, you won't get the 1% back on the debit card, but with the PayPal CC as the funding source you'd still get the 2% cash back?

You need your PayPal balance to be at $0 balance to that debit card transactions trigger the backup funding.  It's been a few years, but in my experience PIN transactions didn't work for this - the transaction would simply be declined.  If I used the debit card as a MasterCard it would be approved, and PayPal would pull funds from the backup source.

 

If you're using your debit card at a merchant that's processing it as a PIN-less transaction then I would expect you to earn 2% from the PayPal MasterCard, if you're able to get the backup funding to kick in. 

 

In the past backup funding would kick in for online PIN-less debit transactions (thus the Amazon glitch I ran into) but I'm not sure about in-person transactions... whenever I've used my debit in-person it's either with the PIN, or it's over the MC/V network... I've never done an in-person PIN-less transaction before. 

 

Keep in mind that this isn't an exact science, and is liable (and likely) to change at any time, especially if others start taking advantage of this loophole.  For specific situations you'll really just have to try it for yourself to see what works and what doesn't. 


For an in person PIN-less transaction you select Credit instead of Debit. Any debit card can be processed as credit. That costs the merchant more as credit swipe fees are much higher than debit, but that's why PayPal will give you 1% for pin-less, they get a higher card issuer fee.


Yeah, that's been my experience as well.  I was referring to an in-person transaction somewhere that didn't take MC/V, and processed debit cards without requiring a PIN, but over the debit network.  So far I've only come across these online, never in person.

Message 34 of 263
Regular Contributor

Re: Earn 3% on everything using one card

This also holds true with the Discover Card method. I have Discover it chrome and a Discover cashback checking account. I pay for everything using the Discover it chrome which earns 1% on all purchases except gas and restaurants, that’s 2%. Then I pay off my card with my Discover cashback debit card which is 1%. It maxes at $3000 per month.

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Message 35 of 263
Valued Contributor

Re: Earn 3% on everything using one card

The only problem I have with this is that I already have the PayPal Extras card and you can't have the 2% card and the Extras card together.  I think this is a bit ridiculous, but that is their policy.  I would really like the 2% card and until my brother pays off his use of my Extras card I can't close it. (Grrrr.)    

 

They also don't product change from what they told me before.  Which is also something annoying, but expected because of how they treat Sychrony Walmart card.  (They keep trying to upgrade me to MasterCard version, but since it is a new credit line it has new history, so it shows as a new account opening date and closing of the regular card.  Target has it right, their MC keeps all the information the same except account number!)

It is by will alone I set my mind in motion.....
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Message 36 of 263
New Member

Re: Earn 3% on everything using one card


@UncleBwrote:

@DaveInAZwrote:

@UncleBwrote:

@f4phantom2500wrote:
@UncleB so based on what you're saying, if you're using this setup in a place that doesn't take credit payments, you won't get the 1% back on the debit card, but with the PayPal CC as the funding source you'd still get the 2% cash back?

You need your PayPal balance to be at $0 balance to that debit card transactions trigger the backup funding.  It's been a few years, but in my experience PIN transactions didn't work for this - the transaction would simply be declined.  If I used the debit card as a MasterCard it would be approved, and PayPal would pull funds from the backup source.

 

If you're using your debit card at a merchant that's processing it as a PIN-less transaction then I would expect you to earn 2% from the PayPal MasterCard, if you're able to get the backup funding to kick in. 

 

In the past backup funding would kick in for online PIN-less debit transactions (thus the Amazon glitch I ran into) but I'm not sure about in-person transactions... whenever I've used my debit in-person it's either with the PIN, or it's over the MC/V network... I've never done an in-person PIN-less transaction before. 

 

Keep in mind that this isn't an exact science, and is liable (and likely) to change at any time, especially if others start taking advantage of this loophole.  For specific situations you'll really just have to try it for yourself to see what works and what doesn't. 


For an in person PIN-less transaction you select Credit instead of Debit. Any debit card can be processed as credit. That costs the merchant more as credit swipe fees are much higher than debit, but that's why PayPal will give you 1% for pin-less, they get a higher card issuer fee.


Yeah, that's been my experience as well.  I was referring to an in-person transaction somewhere that didn't take MC/V, and processed debit cards without requiring a PIN, but over the debit network.  So far I've only come across these online, never in person.


if i remember correctly, the op said 3% even for places that don't accept credit cards (e.g., DMV...).  the string above implies you either don't get the 1% for using the debit card, or you don't get the 2% because you can't backstop it with the credit card.  am i reading it wrong?

Message 37 of 263
Moderator

Re: Earn 3% on everything using one card


@kabonewrote:


if i remember correctly, the op said 3% even for places that don't accept credit cards (e.g., DMV...).  the string above implies you either don't get the 1% for using the debit card, or you don't get the 2% because you can't backstop it with the credit card.  am i reading it wrong?


It may have changed since I used the Paypal Business Debit as my primary form of payment, but the way it worked for me was I only got the 1% if the transaction was over the MC/V network (not debit, either with PIN or PIN-less debit online).

 

Also, for me PIN transactions didn't trigger the backup funding (again, might have changed)... in other words, if I ran the card as debit and used my PIN (brick and mortar location) the transaction would simply decline if I didn't have funds in my Paypal account.

 

No one knows how long they'll let the 1% + 2% 'double dip' work (I suspect they'll eventually close the loophole as word gets out) but for the time being the best bet will be to simply try it and see what works for you.

Message 38 of 263
Established Contributor

Re: Earn 3% on everything using one card

The crazy thing about this double dip loophole, especially if the PayPal MasterCard is the only credit card they let you use as a backup funding source, is that any time anyone sets up the CC for backup funding and trips it, they'll be getting the double dip. So sure it's a loophole, but it's not one you gotta jump through tons of hoops to get - it just happens by tripping backup funding. You'd think they'd have figured it out.

Based on what's been said, it sounds like if you use the card in a place that only takes debit, and you have no funds in your PayPal acct and trip backup funding, you should get 2% back on these debit transactions.
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Cash back:Travel:
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Message 39 of 263
Valued Member

Re: Earn 3% on everything using one card

Please correct me if i'm wrong but you must have the Paypal business debit card for this to work.   It does not provide the extra 1% back on paypal personal debit cards.  Correct?

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Message 40 of 263