This PayPal Prepaid MasterCard review discloses the key features of this debit card. You will learn about the card’s pros and cons, as you will come to a conclusion whether it is worth to apply for it.
PayPal Prepaid MasterCard Review
In fact, there are several cards from PayPal. This is a prepaid debit card, which can be used by the users who stash large amounts of funds at PayPal. Otherwise, there are barely any reasons to get this PayPal card.
The Card’s Key Features and an Overview
Monthly fee: $4.95.
Purchase APR: none.
Recommended credit score: none.
Most suitable for: customers who want to spend their PayPal money in-store.
Credit card features:
- It is required to have a PayPal account in order to get this PayPal Prepaid MasterCard.
- There is an option of using a savings account that offers an interest rate.
- The monthly fee of $4.95 cannot be waived.
- Free and instant transfers from a PayPal account.
- There are no ATMs that offer reloads or withdrawals without a fee.
PayPal, a revolutionary payment service, has attracted many users from all corners of the world. Nowadays, hundreds of millions users tend to use this service for getting paid or paying someone for services and goods, and such a credit card may be a convenient way to access one’s money. However, is it worth to get this credit card?
As you can see from the card’s short description above, it comes with a monthly fee of $4.95, which is rather a significant amount – some of the best performing credit cards have lower fees. Payoneer, a competing payment and money transfer service, also offers a similar prepaid debit card to its customers.
However, Payoneer charges a fee of $29.95 per year, which is almost twice as lower than the annual fee of this card (it amounts to $59.4). Moreover, Payoneer charges the annual fee for an account, which can have 3 or more prepaid cards (in other currencies, such GBP or EUR). Besides, the transaction fees are typically lower at Payoneer than PayPal.
On the other hand, you get access to the funds of your PayPal account once you get this credit card. This card allows you to make free and instant money transfers from your PayPal account to your PayPal Prepaid Mastercard. Yet, there is quite a low limit for PayPal transfers: you can transfer not more than $300 in a day.
But unlike the cards from Payoneer, you can reload your PayPal Prepaid MasterCard in other ways as well. With this debit card, you get access to more than 130,000 locations of the NetSpend Reload Network – these are the places where you can reload your credit card. Keep in mind, however, that you may be charged a fee of up to $3.95 per reload. Another way to reload your debit card is through mobile check deposits via the Ingo Money app: the fees vary between 1% and 4%.
Spending and Cash Withdrawals
When it comes to using this PayPal card, you can use it in any place where MasterCard cards are accepted. There are no purchase fees and you may receive cash back for completing purchases. Cash back rewards can be redeemed at the end of each billing period (month).
If you wish to withdraw cash from your PayPal debit card, you can do it at basically any ATM. Yet, bear in mind that there is a basic $1.95 fee per each withdrawal, as well as an ATM operator may charge an additional fee. If you decide to withdraw cash at a bank branch, you will be charged a fee of $2.50. Keep in mind that there is also a $1 fee for declined transactions (in case you have, for example, insufficient funds on the card).
Another thing to watch out is the so-called “purchase cushion” feature. Basically, this feature may grant you up to $10 in a negative balance, if you have made a direct deposit before. Yet, you must pay the negative balance within the next 60 days, or you risk your PayPal Prepaid MasterCard getting cancelled.
Additional Features of the PayPal Prepaid MasterCard
At the beginning of this review, we have compared this PayPal card with the cards from Payoneer – and PayPal Prepaid MasterCard seems to be beaten in that competition. But when it comes to the number of features, this PayPal card seems to be doing far better.
In the first place, you should make sure that you have linked your PayPal card to your account in this service. That will allow you to access PayPal online services, such as a cash back rewards program (which is, however, quite limited), a savings account, transaction history, card balance, and online bill pay. Then, PayPal will offer you to get a card for a secondary holder for free.
Another worthwhile feature of this service is actually a savings account that you can open. As a matter of fact, you will earn 5% yield on a balance of up to $1,000 and an additional 0.50% for any balance higher than that. So, if you have a balance of your savings account equal to $2,000, you will earn $55 interest at the end of the year. Given that, you must have a balance of $2,200 in order to compensate the card’s monthly fees.
As you could read above, you need to link your PayPal card to your account with this service. Then, you will be able to check your card’s balance in a number of ways for free: on the PayPal website, through the customer service, or via email/text messages. But if you want to check your balance at an ATM, you will be charged a fee of $0.50 for each inquiry.
The Card’s Advantages and Disadvantages
Even though this PayPal Prepaid MasterCard may seem not as good at a first sight, there are both solid advantages and drawbacks. At this stage of our review, we are going to disclose the card’s pros and cons.
These are the pros of the PayPal debit card:
- Instant and free access to your funds on PayPal. Actually, there is nothing to comment. Getting this card is the easiest way to access your funds.
- Cash back on certain purchases. And even though the card grants cash back on certain purchases, the cash back rewards program is not transparent and clear enough. Besides, the cash back rewards are quite low, compared to some of the best performing credit cards.
- Savings account. PayPal pays a generous interest rate on your funds in the savings account, varying from 5.00% to 5.50% yield.
- An ability to add a secondary cardholder. Sometimes, this is simply needed.
At the same time, there are the following cons of having this card:
- This card doesn’t help you to build (or rebuild) your credit. Considering that this card is actually considered a debit card, you can’t build your credit with this card. This will not help you to gain access to better credit cards in the future.
- A hefty monthly fee. Obviously, one of the main things that makes this card disadvantageous appears to be its monthly fee. Considering that the fees amount up to almost $60 in a year, it is natural that many PayPal users turn away from this card.
- There are fees on almost any type of transactions. If you want to withdraw cash, you have to pay a fee. If you want to reload your card from elsewhere than PayPal, you have to pay a fee. You have to pay a fee even for a balance inquiry at an ATM. And even though the number of fees you pay can be reduced (by checking your balance online, for example), the fees are really abundant.
- You need to have a PayPal account for getting access to most of the card’s features. Without having a PayPal account, you can’t use a savings account, access your funds online, or view the history of transactions.
- The card is not issued by PayPal. If you think that PayPal Prepaid MasterCard is issued by PayPal, you are wrong. The card is issued NetSpend.
- Low limits on reloads from PayPal. As we have pointed out in this PayPal Prepaid MasterCard review above, you can transfer only $300 in a day.
Overall, this prepaid debit card appears to be not that bad choice after all. But there are only certain cases when you can apply for this PayPal card. If you have an online business and you get paid via PayPal, or you have accumulated large funds and need to gain access to those funds, you may consider applying for PayPal Prepaid MasterCard. All in all, apply for this card only if you frequently have transactions via PayPal, and the monthly fee is not critical to you.
But if you don’t need to access your funds on PayPal, there are barely any reasons to get this debit card. It won’t help you improve your credit, the cash back rewards are rather scarce, and the monthly fee is too high. There are definitely better options.
Compare PayPal Prepaid MasterCard
In this part of our review, we will compare this prepaid debit card from PayPal with some cards available on the market. This will help you make a founded, justified choice and select a card that will better suit your needs.
PayPal Prepaid MasterCard vs Capital One Platinum Credit Card
Monthly fee: $0.
Purchase APR: 24.99%.
Recommended credit score: from 630 to 850.
Most suitable for: customers who want to improve credit score.
Credit card features:
- 0% balance transfer fee.
- 0% foreign transaction fee.
- Zero fraud liability.
- Get access to a higher credit limit if you pay your card on time for 5 times in a row.
In this review above, we have actually listed a few reasons why you may consider applying for PayPal Prepaid MasterCard. The key suggestion for that is that you should apply for this card if you don’t mind paying an almost $60 annual fee and need this card for regular cash withdrawals. But the PayPal card is definitely not an option if you just have a low credit score.
If you don’t have a good credit, we recommend you to apply for the Capital One Platinum Credit Card. Unlike the PayPal card, it comes without an annual fee. Additionally, this is an unsecured credit card, which means that you can use credit funds with ease.
On the other hand, this Capital One credit card has a high purchase APR, which is actually caused by a low credit score of yours. Another reason to apply for this credit card may be a 0% foreign transaction fee, which means that you can freely use this card abroad. It also comes with a feature of zero fraud liability, implying that you won’t be held accountable for unauthorized transactions.
Basically, this is a credit card designed for rebuilding your credit. After you rebuild your credit to the “good” score at least, we recommend you to look for a card with more generous rewards. But even with this credit card from Capital One, you are likely to get access to a higher credit limit if you pay your card on time. All in all, this is a decent credit card option.