Paypal debit card
I've been toying with the ides of getting one of these paypal debit cards. Does anyone use one? and if so could you tell some of the pros and cons with them.
I've been toying with the ides of getting one of these paypal debit cards. Does anyone use one? and if so could you tell some of the pros and cons with them.
Comments
You can make cash withdrawals up to $300 per day at any no-fee ATM (think Wawa on the East Coast) for free.
No fee to use, takes money directly from your Paypal account and bypasses your local bank account (think tax avoidance).
There's no drawback that I know of.
You have almost no consumer protection with a debit card, versus a credit card.
Also, most money just sitting with Paypal is in a non-FDIC insured account.
Lifetime cash back deposited: $959.43 USD
You get 1% cash back on all credit card purchases, deposited monthly into your PP.
You can make cash withdrawals up to $300 per day at any no-fee ATM (think Wawa on the East Coast) for free.
No fee to use, takes money directly from your Paypal account and bypasses your local bank account (think tax avoidance).
There's no drawback that I know of.
That doesn't help with tax avoidance at all. The IRS only looks at your bank account if the bank reports suspicious activity (submits an SAR), or in the case of an audit. In the latter case, they could just as easily scrutinize your Paypal account.
By the way, here's my little inspiration for anyone who doesn't use this:
Lifetime cash back deposited: $959.43 USD
I get 2% back on my credit card, and have had about $500 in rewards in the last month due to business trips.
Even if I could qualify for your 2% credit card (which I wouldn't), that would mean I'd have to transfer all earnings from PP into a regular bank account, then cut a check or billpay to the CC company directly from there, to cover what I spent on the card while trying to svoid directly using my Paypal funds though the debit card.
I think you're making it more complicated than it needs to be.
I guess if the majority if your spending is done through paypal, and the majority of your income comes through paypal, the card would be a convenience, but I still think it's suboptimal compared to the alternatives.
I really don't think anyone should keep a large amount of money sitting in their paypal account anyway, due to the lack of federal coverage, and the fact that Paypal is not a bank and is notorious for holding funds inappropriately.
I use it more for that than as an actual credit card (don't like keeping money sitting in Paypal too long since it's not FDIC insured), but it's handy at the post office too for the APC and for shipping international.
paypal debit card is the death of anyone with access to the internet...you can buy everything your limit can hold..if you can be trusted with credit cards then go for it...if not, stay away!
huh you can only use up to your balance
Why? Unless you have a spending problem that prevents you from using a credit card safely, a debit card is worse than useless.
You have almost no consumer protection with a debit card, versus a credit card.
Also, most money just sitting with Paypal is in a non-FDIC insured account.
But if you use the debit card to instantly pull money out of your paypal account rather than wait for a bank transfer.