/webapps/mpp/ua/debitcard-fullPayPal Business Debit MasterCard® Cardholder Agreement and Privacy Notice


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PayPal Business Debit Mastercard® Cardholder Agreement

Last Update: January 9, 2019




Terms and Conditions/Definitions for the PayPal Business Debit Mastercard

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

"Debit Card" or “Card” means the PayPal Business 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 the Debit Card 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 PayPal Business Debit Mastercard, you agree to comply with all the terms and conditions in this Agreement, so please read it carefully. The expiration date of the Debit Card is identified on the back of your Debit Card. 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. You acknowledge and agree that the funds accessible through use of the Card is limited to the available funds in your PayPal account or your backup funding source, as applicable. 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) 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. You may use the Card to purchase or lease goods or services everywhere Mastercard is accepted as long as you do not exceed your available balance and other restrictions do not apply. Card Account restrictions include, but are not limited to:  restricted geographic or merchant locations where there is a higher risk of fraud or illegal activity; restrictions to comply with laws or prevent our liability; and other restrictions to prevent fraud and other losses. For security reasons, we may, with or without prior notice, limit the type, amount, or number of transactions you can make on your Card.  You may not use your Card for illegal online gambling or any other illegal transaction. We may increase, reduce, cancel, or suspend any of the restrictions or add new ones at any time. Your Card cannot be redeemed for cash. 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. You may also use your PIN to obtain cash at any Point of Sale (“POS”) device, as permissible by a merchant that bears the Maestro®, STAR® or PULSE® Acceptance Mark. Additional PIN information is available below in Section 8 (Personal Identification Number). 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 Section 5f (ATM Withdrawal and Spending Limits) below.
    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 the 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 your 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 on your Debit Card in these scenarios. You may not use your Debit Card for illegal 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 balance will be converted by Mastercard International Incorporated into an amount in the currency of your 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 your 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, money transfers and over-the-counter cash withdrawals is $400.00, the standard daily limit for purchases is $3,000.00. Your actual daily limits may vary depending on PayPal’s 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 Business Debit Mastercard Fees.
    All fee amounts will be withdrawn from your PayPal account and will be assessed as long as there is a remaining balance in your PayPal account, except where prohibited by law. Anytime your remaining balance is less than the fee amount being assessed, the balance of your PayPal account will be applied to the fee amount resulting in a negative balance in your PayPal 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 signature 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 1% of the withdrawal amount 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 PayPal account.

  1. Cash Back Benefit.
    1. Cash Back. The Debit Card provides 1% cash back on the net amount of your eligible purchases made during each calendar month. Net amount means all eligible purchases minus reversals for any reason including returns and refunds. It may take up to forty-eight (48) hours after enrollment for you to begin accruing cash back.
    2. Eligibility. To be eligible for cash back: 
      1. You must have a PayPal Premier or PayPal Business Account, and you must have activated the cash back benefit.
      2. Your Debit Card purchase must be authorized as a credit transaction and processed via Mastercard.  Some merchant locations offer you the option of choosing "Credit" or "ATM/Debit" when making a purchase. To qualify for cash back, you must choose the "Credit" option if shown at the merchant location. 
        1. Transactions eligible for cash back include: Credit transactions which you sign for and which are processed via Mastercard; online transactions processed via Mastercard; and phone transactions processed by Mastercard.
        2. Transactions that are not eligible for cash back include, but are not limited to purchases processed via a debit network (including PIN-less debit transactions); cash withdrawals; and cash advances.
        3. Please note that merchants ultimately determine whether to process your Debit Card payments as credit or debit transactions, and PayPal has no control over the merchant’s selection.
      3. Your Debit Card must be in good standing at the time you make an eligible purchase and when PayPal makes the cash back payment. Fraudulent transactions are not eligible for cash back.
    3. Payout. The cash back will be calculated at the end of each calendar month and added to your PayPal balance. Payouts must be at least $1.00 USD per month for the amount to be added to your PayPal balance. Otherwise, $0.00 USD will be added to your PayPal balance for that previous month. If you close your Card Account, you will be credited for the cash back amount you have earned up to the date you close your Card Account. If you close your PayPal account during a given month, you will not be eligible to receive cash back for the month in which you close your PayPal account.
    4. Your Debit Card must be active (used for at least one eligible online or signature-based purchase) in the past twelve (12) consecutive months or your account will no longer be eligible for the cash back benefit. You must re-activate in cash back to be eligible to begin accruing cash back again.
  2. 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 your PIN when you activate your Debit Card. For activation instructions, please see Section 3 above (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 immediately 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 PayPal immediately.
  3. 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 it 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.
  4. 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.
  5. Documentation of Transfers.
    1. You can get a receipt at the time you make a transaction 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.
  6. 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.
  7. 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 your 16-digit Debit Card number, your full name and transaction history.
  8. Confidentiality. 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.
  9. 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 to complete your Debit Card 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.
  10. Your Liability for Unauthorized Transfers. If you believe your Card has been lost or stolen, or that someone has transferred money or may transfer money from your Card Account without your permission, call PayPal at 866-888-6080. 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 the following Mastercard payment cards: commercial cards, or unregistered 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 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 Card and we can prove that we could have stopped someone from using your Card without your permission if you had promptly notified us, you could lose as much as $500.00.  
  11. 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.
  12. Amendment and Cancellation. We may amend this Agreement by posting a revised version on the PayPal website (https://www.paypal.com/us/webapps/mpp/ua/debitcard-full). 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 and you will be notified of any Substantial Change in the manner provided by applicable law. 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.
  13. Information About Your Right to Dispute Transactions
    In the case of a discrepancy or questions about Debit Card transaction(s), call 866-888-6080, write to Cardholder Services, PayPal Debit Card Department, Attn: Dispute Resolution, P.O. Box 45950, Omaha, NE 68145-0950 as soon as you can.  You must contact us no later than sixty (60) calendar days after we posted the transaction(s) to the Card Account.  You may request a written history of your transactions at any time by calling 866-888-6080 or writing to 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 the 16-digit Debit Card number.
    2. A description of the transaction(s) including the date and dollar amount.
    3. Why you believe there is a discrepancy.
    ​​If you provide this information orally, we may require that you send the details listed above in writing within sixty (60) calendar days after we posted the transaction(s) you are questioning. You agree to cooperate fully with our investigation and to provide any additional information or documentation we may need for the claim.

    Once we have the required details, information, and/or documents, we will determine whether a discrepancy occurred.  Our investigation may take up to one hundred and twenty (120) days from the transaction settlement date.  If we ask you to put details in writing and you do not provide them within sixty (60) calendar days of the date we posted the transaction(s) you are questioning, we may not be able to resolve the claim in your favor. 

    We will tell you the results in writing after completing our investigation. If we determine a discrepancy occurred we will correct the discrepancy promptly and credit the Card Account.   If we decide there was no discrepancy, we will send you a written explanation.
  14. 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.
  15. 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).
  16. 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.
  17. 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.
  18. 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, if any; iv) your acquisition of the Debit Card; v) your use of the Debit Card; vi) the amount of available funds in the Card Account; vii) advertisements, promotions or oral or written statements related to the Debit Card, as well as goods or services purchased with the Debit Card; viii) the benefits and services related to the Debit Card; or ix) transactions 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 24 conflicts with any portion of the PayPal User Agreement, this Section 24 will control with respect to any Claim. Specifically, you agree that this Section 24 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 www.adr.org.
    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.