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PayPal Debit card with 5% categories?!

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UncleB
Credit Mentor

Re: PayPal Debit card with 5% categories?!


@DoppelgangerD wrote:

So after getting this all set up, obtained the debit card, funded PP account, selected category, ready to go...

Before I've even tried it, there's a nasty glitch...

 

Normally I do not keep funds in my PP account, but I do use the PP credit card, and I've got my settings configured to charge the credit card and not my PP balance.

However I just purchased an item on eBay and it came out of my PP balance.

Didn't even realize till a couple hours later, so I went through all my PP settings, and again they are configured to use the credit card and not the balance, and I also tried to duplicate the transaction on eBay, and there doesn't seem to even be a way to choose a different option there either.

So it appears that I'm not going to get 3% CB for PP purchases unless my PP balance is $0, and if I want to get 5% CB with the debit card, I have fund the balance moments before each purchase.

This is obviously not going to work at all, and I'm quite irked at the moment.

 

EDIT:

Just contacted Papal over the phone and they said that my option for payments on eBay was set to use the balance first.

That seemed odd to me because there is no way to change it on eBay, or even see what the setting is 

The CSR said they changed it in the system so it'll now charge the card first.

I can only surmise that perhaps if I had completely removed the PayPal payment option from eBay, and then re-added it, maybe then it would have let me select to use the credit card first (?).

At least (hopefully) the issue is now fixed (for me), but for anyone else who may have the same setup, take notes and take action if needed before finding out by trial and error.

 

Thank goodness it was a small purchase too and only lost out on $.28, lol.


I've had Paypal for 24+ years so you can say I'm a fan, but man, their back-end system is janky as hell.  I've learned to deal with it (the "autopay" feature can be especially problematic if one isn't aware of it) but they really need to do some work to improve transparency.  And don't even get me started on the 'hidden/gift' addresses they keep on file behind the scenes even when they've been deleted from one's profile (this can be fixed with a phonecall, but it shouldn't even be a thing).

 

My account is old enough that I have the 'Paypal Business Debit Card' even though my PP account is personal (I don't think this is possible now?).  Anyway, it looks like I don't get to play with the new offering, but I'll be watching from the sidelines to see how it works out for you all. Smiley Happy

Message 41 of 72
CaneVariant
Valued Member

Re: PayPal Debit card with 5% categories?!

I can confirm multiple fast food chains getting the points. Can not confirm McDonald's. However, McDonalds shows as a 5% + 5% cash back bonus via online so not sure what the Doc crowd is seeing.
Starting Score: 575
Current Score: 648
Goal Score: 670


Message 42 of 72
unsungivy
Established Contributor

Re: PayPal Debit card with 5% categories?!


@CaneVariant wrote:
I can confirm multiple fast food chains getting the points. Can not confirm McDonald's. However, McDonalds shows as a 5% + 5% cash back bonus via online so not sure what the Doc crowd is seeing.

Which Fast Food restaurants did, specifically? And do they code as the Fast Food MCC on MasterCards normally, or are they just under the Restaurants MCC and kind of Fast Food-ish?

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Message 43 of 72
CaneVariant
Valued Member

Re: PayPal Debit card with 5% categories?!

@unsungivy The following have shown rewards points: Panda Express, Del Taco, Der Wiernerschnitzel, In and Out, Einstein Bagels plus multiple deli's around my work. Only "restaurant" that didn't code is my work cafeteria. Not sure how they code for MC. Paying attention to credit card rewards/cash back is new to me so I do not have any other DP's except all of these also code as 2% cashback on the Upgrade debit card system as well. Going to try a butcher shop/deli close to work tomorrow to see how it codes. It has been coding Grocery 1% on Upgrade. Dining is my biggest monthly spend and so far so good. Should be able to average ~ $70 - $75 monthly between PayPal debit and Upgrade Cashback rewards. Might even go for the "debit trifecta" and get the Quontic debit card to "load" paypal for another $10 a month. Very solid for a credit re-builder.
Starting Score: 575
Current Score: 648
Goal Score: 670


Message 44 of 72
unsungivy
Established Contributor

Re: PayPal Debit card with 5% categories?!


@CaneVariant wrote:
@unsungivyThe following have shown rewards points: Panda Express, Del Taco, Der Wiernerschnitzel, In and Out, Einstein Bagels plus multiple deli's around my work. Only "restaurant" that didn't code is my work cafeteria. Not sure how they code for MC. Paying attention to credit card rewards/cash back is new to me so I do not have any other DP's except all of these also code as 2% cashback on the Upgrade debit card system as well. Going to try a butcher shop/deli close to work tomorrow to see how it codes. It has been coding Grocery 1% on Upgrade. Dining is my biggest monthly spend and so far so good. Should be able to average ~ $70 - $75 monthly between PayPal debit and Upgrade Cashback rewards. Might even go for the "debit trifecta" and get the Quontic debit card to "load" paypal for another $10 a month. Very solid for a credit re-builder.

Thank you for the data points. Unfortunately I could see most of those coding as Restaurants, not as Fast Food, depending how they view themselves, so they'd need to be checked with a card that specified what category they fell into (such as the SYW or the Citi Custom Cash, which tell you the exact MCC name).

 

Butchers have their own MCC. It is not one of the standard grocery ones. Same with bakeries and dairies. I don't know of any cards that count those MCCs for the elevated cashback of the grocery or restaurant categories, even if they may generalize them as Grocery. Kind of like how most cards exclude Walmart and Target, even if it says Grocery next to the purchase. So, like everything else, it comes down to what MCC the vendor coded themselves as 🤷‍♀️ so while not useful on a national scale since that can vary across specific stores, it's good to know for your own stores you're likely to frequent!

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Message 45 of 72
Wavester64
Valued Contributor

Re: PayPal Debit card with 5% categories?!


@Wavester64 wrote:

@Bockrocker wrote:

Some comments at DoC mentioned trouble with using it as a restaurant card, not crediting at bars or fast food.  Might be better as a gas or grocery.


I had a feeling this might be the case. I'll have to do some trial and error and take  note where the 5% applies and where it doesn't. But thanks for the heads up @Bockrocker !


So far I used it at 2 different pizzerias, no fuss no muss. Got the 5%. Tried it on a mom & pop luncheonette today and eventually fast food and a restaurant/bar and lets see what happens. Smiley Happy






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Message 46 of 72
longtimelurker
Epic Contributor

Re: PayPal Debit card with 5% categories?!

I have been quite pleased so far, using it for gas.   So the obvious MyFico question:   how many can you have!   I have two PP accounts, one biz one personal, and you can't get this on the biz.   I can't remember but I assume Paypal uses SSNs

Message 47 of 72
galahad15
Valued Contributor

Re: PayPal Debit card with 5% categories?!

I'm not sure I'm 100% understanding all of the excitement of this particular FOTM card?  

 

It seems to have quite a few downsides...?

 

1.  It is a debit card, as opposed to a credit card?

2.  Because it is a debit card, as others on the thread have established it needs to be self-funded (i.e., put up your own money in advance)?

3.  Doesn't it have the same fraud risks as a regular debit card, meaning that after 2 days of not reporting fraud, you are liable for all of it?

4.  Several posters had mentioned it as interfering with their regular PayPal payments?

 

Given the above drawbacks and possibly more, why would anyone want or have a viable need for this card, if you already have 5% CB cards like US Bank, Redstone, AAA, Citi CCC, etc.?   Am I possibly missing something here or is there another major advantage of the card that I am not getting?


Message 48 of 72
Anonymous
Not applicable

Re: PayPal Debit card with 5% categories?!


@galahad15 wrote:

I'm not sure I'm 100% understanding all of the excitement of this particular FOTM card?  


1.  It is a debit card, as opposed to a credit card?

Yes. It does not have a 23 to 58 day grace period

 

2.  Because it is a debit card, as others on the thread have established it needs to be self-funded (i.e., put up your own money in advance)?

Yes. Debit cards pay with money you currently have.

 

3.  Doesn't it have the same fraud risks as a regular debit card, meaning that after 2 days of not reporting fraud, you are liable for all of it?

It isn't a Credit Card. And I do think that is wise of you to point out differences in fraud risks.

 

4.  Several posters had mentioned it as interfering with their regular PayPal payments?

I haven't seen mention of this besides "auto-pay" settings, but I haven't read all posts. It wouldn't surprise me if people have to work around Paypal's little glitches. Like needing to go through all the "auto-pay" companies in Paypal settings after ordering the card to verify the correct card is set to default.

https://ficoforums.myfico.com/t5/Credit-Cards/PayPal-Debit-card-with-5-categories/m-p/6788205/highli... 
https://ficoforums.myfico.com/t5/Credit-Cards/PayPal-Debit-card-with-5-categories/m-p/6788939/highli... 

 

Given the above drawbacks and possibly more, why would anyone want or have a viable need for this card, if you already have 5% CB cards like US Bank, Redstone, AAA, Citi CCC, etc.?

 

  • Maybe for the ($1,000 monthly | $12,000 annual) spend cap to extend the spend caps on the 5% CC categories?
  • Maybe as a 5% backup?
  • Maybe they don't yet have these cards?
  • Maybe the Redstone is now geolocked and is near unobtianium?
  • Maybe Citi is fickle and won't give someone a Custom Cash with $500 monthly spend cap on the 5%?
  • Maybe some people (me included) can't jump through the hoops right to get Commenity to issue them an effectively geolocked AAA?
  • Maybe, ect?

Personally I grabbed this as a backup. I have not yet needed to use it, but I have no doubt that the first time I use it I will be pleased that I have it. Unless by that time they have already nerfed the card. I do not see how this card will be sustainable by them. I hope I am wrong.

 

Message 49 of 72
longtimelurker
Epic Contributor

Re: PayPal Debit card with 5% categories?!


@Anonymous wrote:

@galahad15 wrote:

I'm not sure I'm 100% understanding all of the excitement of this particular FOTM card?  


1.  It is a debit card, as opposed to a credit card?

Yes. It does not have a 23 to 58 day grace period

 

2.  Because it is a debit card, as others on the thread have established it needs to be self-funded (i.e., put up your own money in advance)?

Yes. Debit cards pay with money you currently have.

 

3.  Doesn't it have the same fraud risks as a regular debit card, meaning that after 2 days of not reporting fraud, you are liable for all of it?

It isn't a Credit Card. And I do think that is wise of you to point out differences in fraud risks.

 

4.  Several posters had mentioned it as interfering with their regular PayPal payments?

I haven't seen mention of this besides "auto-pay" settings, but I haven't read all posts. It wouldn't surprise me if people have to work around Paypal's little glitches. Like needing to go through all the "auto-pay" companies in Paypal settings after ordering the card to verify the correct card is set to default.

https://ficoforums.myfico.com/t5/Credit-Cards/PayPal-Debit-card-with-5-categories/m-p/6788205/highlight/true#M1876213 
https://ficoforums.myfico.com/t5/Credit-Cards/PayPal-Debit-card-with-5-categories/m-p/6788939/highlight/true#M1876426 

 

Given the above drawbacks and possibly more, why would anyone want or have a viable need for this card, if you already have 5% CB cards like US Bank, Redstone, AAA, Citi CCC, etc.?

 

  • Maybe for the ($1,000 monthly | $12,000 annual) spend cap to extend the spend caps on the 5% CC categories?
  • Maybe as a 5% backup?
  • Maybe they don't yet have these cards?
  • Maybe the Redstone is now geolocked and is near unobtianium?
  • Maybe Citi is fickle and won't give someone a Custom Cash with $500 monthly spend cap on the 5%?
  • Maybe some people (me included) can't jump through the hoops right to get Commenity to issue them an effectively geolocked AAA?
  • Maybe, ect?

Personally I grabbed this as a backup. I have not yet needed to use it, but I have no doubt that the first time I use it I will be pleased that I have it. Unless by that time they have already nerfed the card. I do not see how this card will be sustainable by them. I hope I am wrong.

 


RIght.   And in some situations, debit vs credit can be a feature, in that there is no impact to your credit report, so nothing perhaps interfering with getting another credit card/CLI etc.  Link them to a minor bank account to minimize risk. And really, as @Anonymous says, the $1000 a month limit can be more useful than the $500 limit on cards like Citi, or the $1,500 a quarter on the revolvers, or the $2000 a quarter on Cash+ and friends.  The ability/need to select every month has its pros and cons. 

 

From a pure rewards perspective, this is a great card, although @Anonymous concern on sustainability are probably on the mark.  But, then again, if it is nerfed no harm done, you haven't wasted an app!

Message 50 of 72
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