PayPal Debit Card Agreement

>> View all legal agreements

PayPal Debit Card Agreement

Last Update: March 21, 2022


This PayPal Debit Card Agreement ("Agreement") is a contract between you and PayPal and applies to your use of the PayPal Debit Card. This Agreement applies to you in addition to the User Agreement and other applicable agreements. All capitalized terms shall have the definitions provided in this Agreement, or if a definition is not provided in this Agreement, the definition in the User Agreement shall apply. You must read, agree with and accept all of the terms and conditions contained in this Agreement. We may amend this Agreement at any time by posting a revised version on our website. The revised version will be effective at the time we post it. In addition, if the revised version includes a Substantial Change, we will provide you with 30 Days' prior notice of Substantial Change by posting notice on the "Policy Updates" page of our website.


  1. Availability. The PayPal Debit Card is no longer available to PayPal Account holders in Canada. This Agreement applies to current PayPal Debit Card (“Debit Card”) holders

  2. Linking a Backup Funding Source to your Debit Card. You may link a Verified bank account as a Backup Funding Source to the PayPal Debit Card. Having a Backup Funding Source enables you to make Debit Card transactions when your Balance is insufficient to fund the transaction.

    To add a Backup Funding Source or to edit your Backup Funding Source preferences, log into your Account, go to the “Profile” page, select “Debit Card” and add/edit your Backup Funding Source preferences.

  3. Using your Debit Card

    1. Using your Debit Card at an ATM. You may use your Debit Card at any ATM that is part of the Maestro/Cirrus ATM network. You may use your Debit Card at such an ATM to perform the following types of transactions:

      1. Withdraw cash from your PayPal Account Balance. or

      2. Find out your PayPal Account Balance.

      Note: To withdraw cash from your PayPal account, choose "Checking Account" when given the option at an ATM.

    2. Using your Debit Card to pay for purchases. You may use your Debit Card to purchase goods and services from merchants that accept MasterCard, in an amount up to your available PayPal Account Balance. In addition, if you have a Backup Funding Source linked to your Debit Card, you may use the Debit Card for purchases up to your available Balance combined with the available limit on your Backup Funding Source, subject to the limitations in Section 6 below.

      Please note that if your payment is refunded, it will always be refunded to your Balance even if the purchase was funded in whole or in part with your Backup Funding Source.

  4. Fees. Your usage of the Debit Card will result in Fees. See the Fees section of the User Agreement for additional information

  5. PayPal Preferred Rewards – Cash Back.

    1. Cash back. The PayPal Preferred Rewards program provides 1% cash back on the net amount of your eligible monthly purchases. Net amount means all eligible purchases minus reversals for any reason including returns and refunds. It may take up to 48 hours after enrollment for you to begin accruing cash back

    2. Eligibility

      1. Eligible purchases. To be eligible for cash back, the Debit Card purchase must be an online or signature-based that does not require a PIN (personal identification number). Some merchant locations offer you the option of choosing “Credit” or “ATM/Debit” when making a payment. To qualify for cash back, you must choose “Credit”.

      2. Your PayPal Debit Card must be in good standing at the time you make an eligible purchase and when PayPal makes the cash back payment.

      3. If you sell on other websites, you must enroll in the PayPal Preferred Program and turn on the “Tell Buyers that I prefer PayPal payments” preference.

    3. Pay out. The cash back will be calculated at the end of each calendar month and added to your PayPal Balance.

  6. Spending Limits. For your protection, your Debit Card is subject to the following limits:

    1. $400.00 daily limit for ATM withdrawals and other cash like withdrawals (cash advances and money transfers), and

    2. $3,000.00 daily limit for purchases, and a $1,000 daily limit for purchases where you use your bank account as the funding source, and

    3. Daily limit of 30 transactions, and

    4. Monthly usage limit of $50,000.

  7. Preauthorization Holds. When you use your Debit Card to purchase goods or services or to obtain cash from a merchant, the merchant may attempt to obtain preauthorization from us for the transaction. If the merchant makes such a request, we will place a 4 Day hold on your Account for the amount of the preauthorization request (which may vary in some cases from the amount of the actual purchase, depending on the merchant). This hold may affect the availability of funds from your Account to pay for transactions. We will not be responsible if any transactions are not completed because of the hold. If the preauthorization request varies from the amount of the actual transaction, and in the event that we cannot charge your Backup Funding Source, we will debit the entire transaction amount from your Balance, even if this results in your Balance becoming negative.

  8. Personal Identification Number/Your Electronic Signature. Your PIN is a security code, which has been designed to protect your transaction account against unauthorized use. The PIN provides enhanced security for your Account and must be used when making transactions to your Account. It is your electronic signature. Since the PIN is for security purposes, you should memorize it and it should not be disclosed to anyone. You can change your PIN at any time, and a temporary hold can be placed on your Account if the PIN has been compromised or if your Debit Card is lost or stolen. Maintaining the security of your PIN and Debit Card is your responsibility.

  9. Ownership Changes. If you authorize a name change on your Account (limited to a change due to either a divorce, marriage or birth certificate change), it will be your responsibility to destroy your old Debit Card, as well as obtaining a new PIN, or you may be liable for any losses which may occur.

  10. Requesting a second Debit Cards attached to Account. Current Debit Card holders who continue to meet the original Debit Card eligibility requirements may request a second Debit Card (i.e., for a spouse). The primary cardholder warrants and agrees that he or she will be liable for all charges incurred by the secondary cardholder to the same extent and as if they were charges made by the primary cardholder.