The PayPal Prepaid MasterCard is a prepaid debit card aimed at PayPal users, especially those without bank accounts. Having a personal or premier PayPal account is essential to having access to many of the card’s services, including the ability to convert funds from a PayPal balance into cash.
Issued by The Bancorp Bank and managed by NetSpend, the PayPal Prepaid MasterCard lets you buy things wherever MasterCard debit cards are accepted and access your transaction history online if you have a PayPal account. And there’s no credit check required to get this card.
But it’s an expensive card with a fixed monthly fee and few ways to avoid other charges. You can add funds at any NetSpend Reload Network location and withdraw cash at ATMs, but there are generally fees for these types of transactions. The card has an optional savings account with a promotional 5% interest rate that might help offset some of the fees, though.
The PayPal Prepaid MasterCard may be right for you if:
- You already have a PayPal account or are willing to sign up for one.
- You can’t get a bank account but want some of the convenient services of online banking.
- You’re interested in saving online with a high yield or can take advantage of PayPal’s rewards program.
» MORE: NerdWallet’s best prepaid debit cards
PayPal Prepaid MasterCard
| Pros | Cons |
|---|---|
|
You can make instant transfers from a PayPal balance to this card. And there's no fee. |
Some costs cannot be avoided. The monthly fee of $4.95 can't be waived. There's also no free ATM or reload network, though some retailers offer free reloads. |
|
There is no credit check to get this card, and no bank account is required. |
No online transfers to other cards or accounts can be made directly from the card. |
|
Protective feature called a "virtual account" lets a card have a temporary number used for purchases instead of the real card number. |
No mobile check deposit feature is available on the PayPal PrePaid app. |
At a glance
| Fees or Features | Description |
|---|---|
| Monthly fee (as part of a monthly plan) |
$4.95 |
| Reloads | Direct deposit: $0 Cash or checks at NetSpend Reload Network locations: $0 to $3.95 Online transfers from PayPal to the card: $0, with two delivery speeds (instant and 3-5 business days) Over-the-counter at financial institution: $0 when funded by bank account (3-5 business days for delivery); $1.95 for "instant bank transfers" funded by debit cards + any fees the bank charges |
| Withdrawals | Domestic ATM cash withdrawal: $1.95 + potential ATM operator fee* Over-the-counter at a financial institution's branch: $2.50 + any fees that the bank charges International ATM withdrawal: $1.95 + 2.5% foreign transaction fee + potential ATM operator fee Retail checkout: $0 (select "debit" and enter PIN during purchase at a retail or grocery store checkout) |
| Limits | Minimum initial load: $10 or $20, depending on purchase location Maximum daily load: $2,500 Maximum daily ATM withdrawal: $940 Maximum purchase limit (per 24 hours): $4,999 Daily limit for instant bank transfers: $250 (all transfers must be in increments of $100 or less) |
| Other notable fees | Activation fee: $0 for online orders; $4.95 at a retailer (such as CVS Pharmacy and Safeway) Foreign transaction fee: 2.5% of U.S. dollar amount for purchases or ATM withdrawals |
| Other services | Online bill pay: $0 with e-checks; fee varies with MoneyGram Bill Payment Express Replacement fee for lost, stolen or damaged card: $5.95 Declined ATM transaction or preauthorized ACH debit payment: $1 Balance inquiry: $0 online or by telephone, $0.50 at ATMs Check mailing fee: $5.95 |
| Protections | MasterCard's zero liability policy for unauthorized purchases and PayPal's purchase protection policy (if card is used as funding option for PayPal account) |
| Rewards | PayPal Prepaid Cash Back Rewards program with select items eligible for cash back based on your shopping history (outside of your control) |
*Allpoint Network ATM in U.S. doesn’t charge an operator fee.
Where the card shines and where it doesn’t
The PayPal Prepaid MasterCard is the only prepaid debit card that lets you make instant transfers from a PayPal balance. From there, you can convert funds to cash from an ATM or use the card to make debit purchases at stores. When you link to a PayPal account, you have access to your card account, card balance, online bill pay, transaction history and a limited cash-back rewards program. Having that link to PayPal is crucial to use these services.
The card shares two big features with the NetSpend card. You can take advantage of a free savings account with a promotional 5% yield on balances of up to $5,000, or up to $250 in earned interest after a year. Balances over $5,000 receive a rate of about 0.50%. The card’s other similar feature is its access to over 130,000 NetSpend reload locations nationwide.
But this prepaid debit card isn’t cheap, and it lacks some services. The monthly fee is $4.95, or about $60 a year, and there are no free ATM or reload networks. Adding cash or checks to the card at a NetSpend location ranges from $0 to $3.95, depending on the retailer, but $3.95 is common. Direct deposit and PayPal transfers are the two main options for free reloads. The card doesn’t have a mobile check deposit feature or way to send money online independently of PayPal. Most withdrawal options, especially from ATMs or bank branches, have fees, but you can get cash back when you make purchases at many retail and grocery store checkouts.If you don’t use PayPal that much or can’t benefit from the savings account yield, consider prepaid debit cards with more services and fewer fees.
Spencer Tierney is a staff writer at NerdWallet, a personal finance website. Email: spencer@nerdwallet.com. Twitter: @SpencerNerd.
No comments:
Post a Comment