PayPal Debit MasterCard® Cardholder Agreement and Privacy Notice


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PayPal Debit MasterCard® Cardholder Agreement

Last Update: October 19, 2016



Terms and Conditions/Definitions for the PayPal Debit MasterCard

This PayPal Debit MasterCard Cardholder Agreement ("Agreement") outlines the terms and conditions between you and The Bancorp Bank and applies to your use of the PayPal Debit MasterCard issued by The Bancorp Bank, Wilmington, Delaware, an FDIC insured member institution. This Agreement applies to you in addition to the PayPal User Agreement and other applicable agreements between you and PayPal.

"Debit Card" means the PayPal Debit MasterCard issued to you by The Bancorp Bank. "Issuer" means The Bancorp Bank. "You" and "your" means the person or persons who have received the Debit Card and are authorized to use it as provided for in this Agreement. "We," "us," and "our" mean the Issuer, our successors, affiliates, assignees and our third party service providers. PayPal, Inc. (“PayPal”) is the entity managing the Debit Card program.  "Card Account" means the records we maintain to account for the value of claims associated with the Debit Card.  Any references to “days” found in this Agreement are calendar days unless indicated otherwise. All capitalized terms shall have the definitions provided in this Agreement. By applying for the Debit Card, you agree to be bound by the terms and conditions in this Agreement, so please read it carefully. The expiration date of the Debit Card is identified on the front of it. You agree to sign the back of the Debit Card immediately upon receipt. The Debit Card will remain the property of the Issuer and must be surrendered upon demand. The Debit Card is nontransferable and it may be canceled, repossessed, or revoked at any time without prior notice subject to applicable law. We may refuse to process any transaction that we believe may violate the terms of this Agreement.

Write down your Debit Card number and the customer service phone number provided in this Agreement on a separate piece of paper in case your Debit Card is lost, stolen, or destroyed. Please read this Agreement carefully and keep it for future reference.


  1. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW CARD ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens a Card Account. What this means for you: When you open a Card Account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see a copy of your driver’s license or other identifying documents.
  2. Debit Card. The Debit Card allows you to access the funds held in your PayPal balance.
  3. Activation. You must activate your Debit Card before it can be used. You may activate the Debit Card by calling 866-888-6080 or online by logging into your PayPal account and following the activation instructions on the card carrier. For your security, you will need to provide personal information in order to verify your identity and complete the activation process.
  4. Your Representations and Warranties. By activating the Debit Card or by retaining, using or authorizing the use of the Debit Card, you represent and warrant to us that: (i) you are at least 18 years of age (or older if you reside in a state where the majority age is older); (ii) you are a U.S. citizen or legal alien residing in the fifty (50) states of the United States or the District of Columbia; (iii) you have provided us with a verifiable U.S. street address (not a P.O. Box); (iv) the personal information that you provide to us in connection with the Debit Card is true, correct and complete; (v) you received a copy of this Agreement and agree to be bound by and to comply with its terms; and (vi) you accept the Debit Card.
  5. Using your Debit Card.
    1. Purchases and ATM Withdrawals. With your Personal Identification Number ("PIN"), you may use your Debit Card to obtain cash at any Automated Teller Machine ("ATM") that displays the MasterCard®, Maestro®, or Cirrus® Acceptance Mark for a fee as outlined below.  If given the option, select "Checking Account" when using an ATM. You may withdraw money from an ATM in an amount up to your available PayPal balance subject to your daily limit.  Additional PIN information is available below in Section 7 (Personal Identification Number). You may also use your PIN at any Point of Sale ("POS") device, as permissible by a merchant that bears the STAR® or PULSE® Acceptance Mark. Each time you use your Debit Card, you authorize PayPal to reduce the value available in your PayPal balance by the amount of the transaction and any applicable fees.   For transaction limit details, see the section below captioned “ATM Withdrawal and Spending Limits.”
    2. Split Tender Transactions. Some merchants do not allow cardholders to conduct split transactions where you would use the Debit Card as partial payment for goods and services and pay the remainder of the balance with another form of legal tender. If you wish to conduct a split transaction and it is permitted by the merchant, you must tell the merchant to charge only the exact amount of funds available in your PayPal balance. You must then arrange to pay the difference using another payment method. Some merchants may require payment for the remaining balance in cash. If you fail to inform the merchant that you would like to complete a split transaction prior to swiping your Debit Card, your Debit Card is likely to be declined.
    3. Authorization 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 place a hold on your PayPal balance for up to ten (10) days 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 in your PayPal balance. If you authorize a transaction and then fail to make a purchase of that item as planned, the approval may result in a hold for that amount of funds for up to thirty (30) days. All transactions relating to car rentals may result in a hold for that amount of funds for up to sixty (60) days.

      If you use your Debit Card at an automated fuel dispenser ("Pay at the pump"), the merchant may preauthorize the transaction amount up to $100.00 or more. If your Debit Card is declined, even though you have sufficient funds available, use your Debit Card to pay for your purchase inside with the cashier. This hold will be released once merchant submits the transaction for settlement. If you use your Debit Card at a restaurant, a hotel, for a car rental purchase, or for similar purchases, the merchant may preauthorize the transaction amount for the purchase amount plus up to 20% or more to ensure there are sufficient funds available to cover tips or incidental expenses that may be incurred. Any preauthorization amount will place a "hold" on your available funds until the merchant sends us the final payment amount of your purchase. It may take up to ten (10) days for the hold to be removed. During the hold period, you will not have access to the preauthorized amount.

      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, we will debit the actual transaction amount from your PayPal balance, even if this results in your PayPal balance becoming negative because no backup funding source was available in your PayPal account. You remain responsible for any negative balances in your Card Account.

      You do not have the right to stop payment on any purchase or payment transaction originated by use of your Debit Card.
    4. Card not Present Transactions. If you use the 16-digit Debit Card number without presenting your Debit Card in person (such as for a mail order, telephone, or internet purchase), the legal effect will be the same as if you used the Debit Card itself. For security reasons, we may limit the amount or number of transactions you can make with your Debit Card in these scenarios. You may not use your Debit Card for online gambling or any other illegal transaction.
    5. Foreign Transactions. If you obtain funds or make a purchase in a currency other than the currency in which your Debit Card was issued, the amount deducted from your PayPal account balance will be converted by MasterCard International Incorporated into an amount in the currency of PayPal account. The exchange rate between the transaction currency and the billing currency used for processing international transactions is a rate selected by MasterCard International Incorporated from the range of rates available in wholesale currency markets for the applicable central processing date, which may vary from the rate MasterCard International Incorporated itself receives, or the government-mandated rate in effect for the applicable central processing date. If you obtain funds or make a purchase in a currency other than the currency in which the Debit Card was issued, the Issuer may assess a foreign currency conversion fee of 1% of the transaction amount and will retain this amount as compensation for its services.  Transactions made outside the fifty (50) U.S. states and the District of Columbia are also subject to this conversion fee even if they are completed in U.S. currency.”
    6. ATM Withdrawal and Spending Limits. The standard daily limit for ATM withdrawals and cash-like withdrawals (e.g. cash advances and money transfers) is $400.00, the standard daily limit for purchases is $3,000.00. Your actual daily limits may vary (lower or higher) depending on our experience with you. All daily limits are subject to periodic review and are subject to change based on PayPal account history, activity, and other factors. PayPal retains sole discretion to apply and change these limits. You may log-in to your PayPal account to see your specific limits in effect.
  6. PayPal Debit MasterCard Fees.

    All fee amounts will be withdrawn from your Card Account and will be assessed as long as there is a remaining balance on your Card Account, except where prohibited by law. Any time your remaining Card Account balance is less than the fee amount being assessed, the balance of your Card Account will be applied to the fee amount resulting in a zero balance on your Card Account.

    ATM Domestic Withdrawal*

    $1.50 Per ATM withdrawal within US (Plus any amounts charged by the ATM owner.)

    Over the Counter Withdrawal

    $3.00 Per withdrawal if a signature is required to obtain cash.

    ATM International Withdrawal*

    $1.50 Per withdrawal from a non-US ATM. This fee will apply even if the transaction does not require a currency conversion.

    Foreign Transaction Fee

    1% of the purchase amount from a non-US merchant or use at a non-US ATM. This fee will apply even if the transaction does not require a currency conversion.

    *If you use an ATM for any transaction, including a balance inquiry, you may be charged a fee by the ATM owner even if you do not complete a withdrawal. This ATM fee is a third party fee amount assessed by the individual ATM operator only and is not assessed by us. This ATM fee amount will be charged to your Card Account.
  7. Personal Identification Number. Your PIN is a security code, which has been designed to protect your Card Account against unauthorized use. You will be prompted to select a PIN when you activate your Debit Card.   For activation instructions, please see Section 3 (Activation). The PIN is your electronic signature which provides enhanced security for your Card Account and may be used when making transactions to your Card Account.  You should memorize your PIN and it should not be shared with anyone. Do not write or keep your PIN with your Debit Card. When entering your PIN, be sure it cannot be observed by others and do not enter your PIN into any terminal that appears to be modified or suspicious.  If your PIN has been compromised or you wish to change it for any reason, you can change it at any time by logging in to your PayPal account.  If your Debit Card is lost or stolen, a temporary hold can be placed on your Card Account by calling PayPal at 866-888-6080. Maintaining the security of your PIN and Debit Card is your responsibility. If you believe that anyone has gained unauthorized access to your PIN, you should advise us immediately.
  8. Requesting a second Debit Card attached to your PayPal account. Current Debit Card cardholders who continue to meet the original Debit Card eligibility requirements may request an additional Debit Card for another person.  The maximum number of additional Debit Cards permitted is one (1).  You must notify us to revoke permission for any person you previously authorized to use the Debit Card.  If you notify us to revoke another person’s use of the Debit Card, we may revoke your Debit Card and issue a new Debit Card with a different number. 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.
  9. Authorized Users. You are responsible for all authorized transactions initiated and fees incurred by use of your Debit Card. If you permit another person to have access to your Debit Card or Debit Card number, we will treat this as if you have authorized such use and you will be liable for all transactions and fees incurred by those persons.
  10. Documentation of Transfers.
    1. You can get a receipt at the time you make any transfer to or from your Card Account using your Debit Card at an ATM or at a point of sale.
    2. You may access your transaction history and balance by logging into your PayPal account and clicking on the "History" tab. You should do this regularly to verify the activity on your Card Account.
  11. Returns and Refunds. If you are entitled to a refund for any reason for goods or services obtained with your Debit Card, you agree to accept credits to your Debit Card for refunds and agree to the refund policy of the merchant. Neither the Issuer nor PayPal is responsible for the delivery, quality, safety, legality or any other aspects of the goods or services that you purchase from others with the Debit Card. If you have a problem with a purchase that you made with your Debit Card, or if you have a dispute with the merchant, you must handle it directly with the merchant.
  12. Card Replacement. If you need to replace your Debit Card for any reason, please call 866-888-6080 to request a replacement Debit Card. You will be required to provide personal information which may include the 16-digit Debit Card number, your full name and transaction history.
  13. Confidentiality. See The Bancorp Privacy Notice for information about confidentiality and disclosure of Card Account information. To read the Privacy Notice, visit PayPal’s website. Notwithstanding the Privacy Notice, we may disclose information to third parties about your Debit Card or the transactions you make:
    1. Where it is necessary for completing transactions;
    2. In order to verify the existence and condition of your Debit Card for a third party, such as a merchant;
    3. In order to comply with government agency, court order, or other legal, regulatory or administrative reporting requirements;
    4. If you consent by giving us your written permission;
    5. To our employees, auditors, affiliates, service providers, or attorneys as needed; or
    6. Otherwise as necessary to fulfill our obligations under this Agreement.
  14. Our Liability for Failure to Complete Transactions If we do not properly complete a transaction from your Debit Card on time or in the correct amount according to our Agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:
    1. If through no fault of ours, you do not have enough funds available on your Debit Card to complete the transaction;
    2. If a merchant refuses to accept your Debit Card;
    3. If an ATM where you are making a cash withdrawal does not have enough cash;
    4. If an electronic terminal where you are making a transaction does not operate properly, and you knew about the problem when you initiated the transaction;
    5. If access to your Debit Card has been blocked after you reported your Debit Card lost or stolen;
    6. If there is a hold or your funds are subject to legal or administrative process or other encumbrance restricting their use;
    7. If we have reason to believe the requested transaction is unauthorized;
    8. If circumstances beyond our control (such as fire, flood, or computer or communication failure) prevent the completion of the transaction, despite reasonable precautions that we have taken; or
    9. Any other exception stated in our Agreement with you.
  15. Your Liability for Unauthorized Transfers
    1. Contact PayPal at once if you believe your Debit Card has been lost or stolen, or that someone has transferred money or may transfer money from your Card Account without your permission, or you could lose all the money in your Card Account. Under MasterCard Rules, you will not be held responsible for unauthorized transactions if you have used reasonable care in protecting your Debit Card from loss or theft and you have promptly reported to us when you knew that your Debit Card was lost or stolen.  Zero Liability does not apply to MasterCard payment cards that are used for commercial purposes, or anonymous prepaid cards (until such time as the identity of the cardholder has been registered with us).  In the event that MasterCard Zero Liability does not apply, if you notify us within two (2) business days after you learn of any unauthorized transactions, you can lose no more than $50.00 if someone used your Debit Card without your permission.  If you do not notify us within two (2) business days after you learn of the loss or theft of your Debit Card and we can prove that we could have stopped someone from using your Debit Card without your permission if you had promptly notified us, you could lose as much as $500.00.  
    2. Also, if you become aware of and/or your statement shows transactions that you did not make, notify us at once following the procedures stated in the paragraph labeled "Information About Your Right to Dispute Errors." If you do not notify us in writing within sixty (60) days after you become aware of the transaction and/or after the statement was made available to you, you may not get back any value you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the value if you had notified us in time. If your Debit Card has been lost or stolen, we will close your Card Account to keep losses down.
  16. Other Miscellaneous Terms Your Debit Card and your obligations under this Agreement may not be assigned. We may transfer our rights under this Agreement. Use of your Debit Card is subject to all applicable rules and customs of any clearinghouse or other association involved in transactions. We do not waive our rights by delaying or failing to exercise them at any time. If any provision of this Agreement shall be determined to be invalid or unenforceable under any rule, law, or regulation of any governmental agency, local, state, or federal, the validity or enforceability of any other provision of this Agreement shall not be affected. This Agreement will be governed by the law of the State of Delaware except to the extent governed by federal law.
  17. Amendment and Cancellation We may amend this Agreement by posting a revised version on the PayPal website. The revised version will be effective at the time we post it. In addition, if the revised version includes a change to the terms of this Agreement that reduces your rights or increases your responsibilities (a “Substantial Change”), we will provide you with a thirty (30) day prior notice of Substantial Change by posting notice on the "Policy Updates" page of the PayPal website. However, if the change is made for security purposes, we can implement such change without prior notice. We may cancel or suspend your Debit Card or this Agreement at any time. You may cancel this Agreement and your Debit Card by calling Customer Service at 866-888-6080. Your termination of this Agreement will not affect any of our rights or your obligations arising under this Agreement prior to termination.
  18. Information About Your Right to Dispute Errors

    18.1 Protection for Unauthorized Transactions and Other Errors. When an Unauthorized Transaction or Other Error occurs in your Card Account, including Unauthorized Transactions that occur because your Debit Card has been lost or stolen, we will cover you for the full amount of every eligible Unauthorized Transaction or Other Error as long as you follow the procedures discussed below in Section 18.2.

    An "Unauthorized Transaction" is a type of error that occurs when money is sent from your Card Account that you did not authorize and that did not benefit you. For example, if someone steals your Debit Card and PIN, uses the Debit Card to access your Card Account, and makes a withdrawal from your Card Account, an Unauthorized Transaction has occurred. If you give someone your Debit Card and give them permission to use it, you will be responsible for all transactions conducted by them on your Card Account even if they have conducted more transactions than you authorized, unless you notified us that transfers by that person are no longer authorized.

    In addition, "Other Errors" occur when money is either incorrectly taken from your Card Account or incorrectly placed into your Card Account, or when transactions are incorrectly recorded in your Card Account. Other Errors that are covered by us are limited to the following events: if you send a payment and it is incorrectly debited from your Card Account; if an incorrect amount is credited to your Card Account; if a transaction is missing from or not properly identified in your Card Account statement; if you receive an incorrect amount of money at an ATM; and if there is a computational or mathematical error by us.

    You may request documentation or information regarding your Card Account or transaction to determine whether an Unauthorized Transaction or Other Error exists by contacting us through the Contact Us link at the bottom of each page of the PayPal website.

    18.2 Notification Requirements.

    In case of errors or questions about your electronic transactions, call 866-888-6080 or write to Cardholder Services, PayPal Debit Card Department, Attn: Dispute Resolution, P.O. Box 45950, Omaha, NE 68145-0950 if you think your statement or receipt is wrong or if you need more information about a transaction listed on the statement or receipt. We must allow you to report an error until sixty (60) days after the earlier of the date you electronically access your Card Account, if the error could be viewed in your electronic history, or the date we sent the FIRST written history on which the error appeared. You may request a written history of your transactions at any time by calling us at 866-888-6080 or writing us at PayPal Debit Card Department, Attn: Dispute Resolution, P.O. Box 45960, Omaha, NE 68145-0950 You will need to tell us:
    1. Your name and Debit Card number
    2. Why you believe there is an error, and the dollar amount involved
    3. Approximately when the error took place

If you provide this information orally, we may require that you send your complaint or question in writing within ten (10) business days.

We will determine whether an error occurred within ten (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your Debit Card within ten (10) business days for the amount you think is in error, so that you will have the use of the money during the time it takes to complete the investigation. If you do not have federal payments (for example, Social Security benefits, tax refunds or other government payments) deposited to your Card Account, we may not credit your Debit Card. If we ask you to put your complaint or question in writing and you do not provide it within ten (10) business days, we may not credit your Debit Card.

For errors involving new Debit Cards, POS, or foreign-initiated transactions, we may take up to ninety (90) days to investigate your complaint or question. For new Card Accounts, we may take up to twenty (20) business days to credit your Card Account for the amount you think is in error.

We will tell you the results within three (3) business days after completing the investigation. If we decide that there was no error, we will send you a written explanation. Copies of the documents used in the investigation may be obtained by contacting us at the phone number or address listed at the beginning of this section. If you need more information about our error-resolution procedures, call us at 866-888-6080.

18.3 Processing Errors. We will rectify any processing error that we discover. If the error results in your receipt of less than the correct amount to which you are entitled, we will credit your Card Account for the difference. If the error results in your receipt of more than the correct amount to which you are entitled, we will debit the extra funds from your Card Account. If the error resulted in our not completing a transaction on time or in the correct amount, we will be liable for your losses or damages directly caused by this failure, unless: (a) through no fault of ours, you did not have enough available funds to complete the transaction, (b) our system was not working properly and you knew about the breakdown when you started the transaction, or (c) circumstances beyond our control (such as fire, flood or loss of Internet connection) prevented the transaction, despite our reasonable precautions.

  1. English Language Controls. Any translation of this Agreement is provided for your convenience. The meanings of terms, conditions and representations herein are subject to definitions and interpretations in the English language. Any translation provided may not accurately represent the information in the original English.
  2. Customer Service

    For customer service or additional information regarding your Debit Card, please contact PayPal at:

    PayPal Debit Card Program
    PO Box 45950
    Omaha NE 68145-0950

    Customer Service agents are available to answer your calls:

    Monday-Friday 7:00 AM-10:00 PM Central time;
    Saturday-Sunday 8:00 AM-8:00 PM Central time (holidays excluded).
  3. Telephone Monitoring/Recording

    From time to time we may monitor and/or record telephone calls between you and us to assure the quality of our customer service or as required by applicable law.
  4. No Warranty Regarding Goods or Services as Applicable

    Neither we nor PayPal are responsible for the quality, safety, legality, or any other aspect of any goods or services you purchase with your Debit Card.
  5. Arbitration

    Any claim, dispute, or controversy (“Claim”) arising out of or relating in any way to: i) this Agreement; ii) your Debit Card; iii) the Debit Cards of any additional cardholders designated by you; iv) your use of the Debit Card; v) the amount of available funds in the Card Accounts; vi) advertisements, promotions or oral or written statements related to the Debit Card, as well as goods or services purchased with the Debit Card; vii) the benefits and services related to the Debit Card; or viii) transaction on the Debit Card, no matter how described, pleaded or styled, shall be FINALLY and EXCLUSIVELY resolved by binding individual arbitration conducted by the American Arbitration Association (“AAA”) under its Consumer Arbitration Rules. If this Section 23 conflicts with any portion of the PayPal User Agreement, this Section 23 will control with respect to any Claim. Specifically, you agree that this Section 23 applies to all Claims described above instead of and in replacement of any provisions of the PayPal User Agreement. This arbitration agreement is made pursuant to a transaction involving interstate commerce, and shall be governed by the Federal Arbitration Act (9 U.S.C. 1-16).

    We will pay the initial filing fee to commence arbitration and any arbitration hearing that you attend shall take place in the federal judicial district of your residence.


    For a copy of the procedures, to file a Claim or for other information about this organizations, contact them it at: AAA, at 335 Madison Avenue, New York, NY 10017 or at

    All determinations as to the scope, interpretation, enforceability and validity of this Agreement shall be made final exclusively by the arbitrator, which award shall be binding and final. Judgment on the arbitration award may be entered in any court having jurisdiction.


    This arbitration provision shall survive: i) the termination of the Agreement; ii) the bankruptcy of any party; iii) any transfer, sale or assignment of your Debit Card, or any amounts owed on your Debit Card, to any other person or entity; or iv) expiration of the Debit Card. If any portion of this arbitration provision is deemed invalid or unenforceable, the remaining portions shall remain in force.