An interesting PayPal arrangement...

[espinja]

Hello, everyone,

For anyone who hasn't noticed, PayPal is offering 1.5% cashback for debit card purchases. I just purchased $96.83 USD from my WWD reseller storefront, using a "MasterCard Credit Card," (which is really my PayPal debit card) and received a $1.45 cashback reward.

Basically, all I did was choose "credit card" as my payment method during checkout. You must also elect to use PayPal as the payment method you accept for your eBay auctions, to qualify.

Here's How/Where:

1. Browse to PayPal

2. Click on "Auction Tools"

3. Scroll down, then click "PayPal Preferred"

One requirement is that you must sell at least one item on eBay every three weeks, but it's been a long time since I sold anything, and I'm still getting the cashback reward. Maybe they're planning to change this, later, but for now, it's still paying out.

Here's the verbiage:

Customers frequently ask:

Why am I getting cashback?

Because PayPal wants to reward you for being "PayPal Preferred," we will credit you 1.5% on all debit card purchases when you keep PayPal as the only online payment option for all of your eBay listings.

"For which debit card purchases will I receive this 1.5% cashback bonus?"

You will receive 1.5% cashback anytime you use your PayPal MasterCard for a credit card purchase (i.e. when you sign a receipt rather than entering your PIN).​

Yeah, I know, it's not much... But... Given how heated debates get at the difference in prices at WildWest/GoDaddy and others, I thought there might be an applicable audience, here.

Enjoy..!

Joe E.

 

[pelican]

only paypal mastercard can get cashback. any other credit card cant?

 

[jojoyohan]

I guess not. I'd think before getting one. Unless your buying a house with it I don't see the point in getting one.

 

[Anthony Ng]

Hello, everyone,

For anyone who hasn't noticed, PayPal is offering 1.5% cashback for debit card purchases.

Thanks for the interesting info, but affiliate links (https://www.paypal.com/.../mrb/pal=...) are NOT allowed. Post edited.

 

[adrian83]

Hey,

I have a Merchant Account and whenever someone with a PayPal debit card pays me my discount rate is 1.95% higher then my usual rate.

That's because the managed to get their card into the Mastercard's "Unqualified" category so they get more comission from merchants so they can give the 1.5% cash back.

 

[espinja]

whoops... i'm sorry...

Thanks for leaving the post, though... I'll not make the same mistake, again...

 

[adrian83]

I'm just saying that the 1.5% comes from the merchant's pocket not from PayPal

 

[espinja]

Hey,

I have a Merchant Account and whenever someone with a PayPal debit card pays me my discount rate is 1.95% higher then my usual rate.

Hmm... Can you check something for me? On paypal's site, click on "fees" in the footer. On a premier/business account, a fee of 1.9% plus $0.30 is assessed for each credit card payment transaction received by you. Do your other customers pay out of their paypal balance, directly to you, which means no fee?

That's because the managed to get their card into the Mastercard's "Unqualified" category so they get more commission from merchants so they can give the 1.5% cash back.

I don't understand. What does the categorization affect? I'd like to learn more about that...

 

[cwsteam.com]

interesting. Thanks for the info, but the Debit Card is only available with the US.

 

[espinja]

I'm just saying that the 1.5% comes from the merchant's pocket not from PayPal

Well, you pay a fee when someone uses their credit card to pay you, no matter who your payment processor is.


I'm sorry... I didn't mean to be unclear in my first post.

The cashback reward is paid, for ANY purchase you make with your paypal debit card, when you use it as a MasterCard, rather than an ATM card.

yesterday, i paid for videos at BlockBuster by swiping my paypal debit card, clicked the "credit" button (not ATM, or DEBIT). Today, paypal will put 1.95% of my total purchase, back in my paypal account.

This pays you back, ANYWHERE MasterCard is accepted, but you have to swipe as a credit card, not as an ATM card.

It also works with any online purchase, but you have to indicate you're using a credit card. When you check out, choose credit card, NOT "pay using PayPal."

Hope that clears things up...

 

[clemzonguy]

Just one problem...

Some merchants FORCE you to use debit. In fact most of the cashiers will tell you that they do not have an option to change it when they really do. For example if you go to walmart you will not get the option to do credit at all. This was not true a year ago.

 

[adrian83]

Mastercard (I think Visa too) has two categories of cards from the merchant's perspective. Qualified and Un-Qualified. I'm not sure what they means, but I just know that if a cardholder with a Un-Qualified card makes a purchase, the merchant has a higher discount rate (which means the merchant is charged more for the transaction).

PayPal debit cards are in Un-Qualified category so the merchant is charged more and more commission is given to the card issuer (in this case PayPal). I think this was introduced so that banks/card issuers can give casebacks, travel points and so on...

It doesn't have anything to do with direct PayPal to PayPal payments. Also on online transactions there's no difference between debit cards and credit cards. The only difference is on retail purchases that you have to use your PIN number in the transaction for credit cards.

 

[espinja]

only paypal mastercard can get cashback. any other credit card cant?

The paypal debit card gives back 1.95% fairly quickly.

As for other credit cards... That's a question for the banks that issued the card to you...