A Simple Guide To PayPal Prepaid Mastercard® Benefits

One of the most outstanding features of PayPal Prepaid Mastercard it that you can link it to your PayPal account as soon as you activate it.

However, you can’t use the card to build your credit history and chances are you’ll have to pay some fees to use the card. Without a PayPal account, it is impossible to access all the card’s features.  

The PayPal Prepaid Mastercard prepaid card is provided by The Bancorp Bank and NetSpend.

Perhaps, the most interesting thing about the card is the option to link it to your PayPal account and you’re not required to pay any fee for direct deposit.

That said, you wouldn’t get ant credit report by using the card, monthly fees could be up to $4.95 monthly.

So if you have a PayPal account, there are several different perks of having the PayPal Prepaid Mastercard.

If you’re looking to apply for other types of credit cards, here’s how to get started.

PayPal Prepaid Mastercard Benefits

Here are the key benefits of using PayPal Prepaid Mastercard:

You Can Link The Card To Your PayPal Account

The option to link your card to your PayPal account is one of the most valued feature of the PayPal Prepaid Mastercard.

Here are things you can do when you link your PayPal account to your PayPal prepaid Mastercard:

  • Directly transfer money from your PayPal account to your card
  • You can access your card’s balance and view your transaction history on the internet.
  • Have access to PayPal’s online bill pay service
  • You can open a linked interest-earning savings account

If you decide to open the savings account, the only way to fund it is via your PayPal prepaid card. The account earns an annual percentage yield that is up to 5% on the first $1000 of your entire balance.

Aside that, the account will earn an APY of 0.5% on the extra balance. All these charges are subject to change and they are promotional.

This means they can change when you least expect and without any notice from PayPal.  

As soon as your card is activated, you can directly deposit all or some part of our paycheck, you can use the card for your federal income tax refund, as well as some state and federal government benefits

You Can Reload The Card At Over 130,000 Locations

There are more than 130,000 NetSpend locations where you can reload your PayPal Prepaid Mastercard.  

The least amount you can reload is $10 or $20 and that depends on where you intend to reload your card. The maximum amount you can reload is $500.

The FDIC insures whatever amount of money you have stored on your card. In the event that your card is lost, stolen or damaged, you can request for a replacement and all the funds you have in the previous card will be transferred to the new one.

What To Consider Before Applying For PayPal Prepaid Mastercard

If you don’t use PayPal always, there are several different options with better perks to choose from.

But if you have a PayPal account that you use every now and then, the PayPal Prepaid Mastercard could turn out to be a great option.

Find out the factors that affect your credit score here.

The Downside of PayPal Prepaid Mastercard

Activation Stress

Whatever card you get when you buy one at a retail location isn’t a permanent card and its features are limited.

PayPal allows its card holder 120 day (that’s up to 4 months) to complete their card’s activation process, and it can be really stressful.

Here are the details the issue will request for identity verification:

  • Full name
  • Date of birth
  • Home phone number
  • Physical street address
  • Social Security number

As soon as your card is activated, you will get a permanent personalized card that is a replacement for your temporary point-of-purchase card.  

The Card Fees

Several different fees are attached to the PayPal Prepaid Mastercard. Beginners are required to pay $4.95 per month.

Meanwhile the fee of your first month will be debited from your account in 36 hours from the first moment you load the card.

If you use the card to get cash from an ATM, the fee is 1.9 excluding the bank or ATM operator charges. You can have the ATM owner fee waived if you withdraw from an Allpoint® network ATM.

It’s noteworthy to mention that some fees aren’t set or revealed by PayPal but rather they are based on where you use the card and for what purpose.

For instance, you might be required to pay a fee to transfer money into your card but the amount can be different based on where you do it.

If you lose your card for whatever reasons, you could be asked to pay some fees. The costs of replacement card is $5.95. You can get the card delivered to you for free within 7 to 10 business days.

But if you want the card delivered to you within three days, you’ll have to pay an extra $20. If you want it even faster within one to two days, you’ll have to pay $25.

PayPal Prepaid Mastercard is Not Eligible For Credit Building

PayPal Prepaid Mastercard is not a debit card or a credit card and it doesn’t qualify as a card that can repair or build a credit history.

Why is that so? PayPal accounts and whatever information is associated with it are not reported to any of the three major credit bureaus (TransUnion, Equifax and Experian).

If you’re looking to improve your credit, you should consider going for a secured credit card.

How Can You Make The Most of PayPal Prepaid Mastercard?

The decision to use a prepaid card should be based on what you really need from financial services.

At best, the prepaid card can help users receive direct deposits, buy items on the internet, and budget their money more appropriately.

If you have no established credit history or very little credit history, the benefit of a prepaid card could be significant to you or perhaps if you’re looking to avoid debt.

Also, you can use prepaid cards in order to do away with checking account, money order as well as a check-cashing fees.

Yet you’ll be able to safely keep fund, pay bills on the internet and even hare money among people using companion cards.

Bluebird® By American Express

Many people are interested in the Bluebird® by American Express card for three key reasons.

  1. The card comes with no monthly fees
  2. You’re not required to pay a cash withdrawal fee when you use a MoneyPass ATM
  3. You won’t pay a cash reload fee if you reload with a debit card at Walmart, do a direct deposit or with cash.

However, bear in mind that you can buy this card for $5 at a retail location. You’re also charged $2.50 when you withdraw cash from other ATMs and you’re charged up to $3.95 to reload the card at other retailers.

Other benefits of using this card include access to reputable ticket sales for concerts, sports etc. fraud protection, purchase protection, and an assistance hotline.

Mango Visa© Prepaid Card

If you’re really interested in a prepaid card with very good perks, the Mango Visa© Prepaid Card offers an annual percentage yield that is up to 6% if you have a balance that ranges from $1 to $5,000 in a savings account you linked to the card.

This makes the card one of the best options. However, to obtain the APYY, you’re required to make direct deposits that is $800 higher than your entire out-bound transfer every month.

If you couldn’t meet up with the $800 standard, your account will only earn a 2% APY. Nonetheless, if you have a balance that is above $5000, it will earn a 0.10% APY. Also, there are other fees such as the $3 monthly charges.

American Express Serve Cash Back

If you have an American Express Serve card, you’ll be entitled to 1% cash back that will be added to your account whenever you make purchases using the card.

You’ll also get the option to add subaccounts for your family members. You won’t get a cash back for this.

Nonetheless, these benefits as well as purchase protection for items you buy with the card is why the American Express Serve® Cash Back card is a preferred option among many prepaid card holders.

You will be required to pay some fees though and they include charges for ATM withdrawals and whenever you reload cash with the cards.  

Should You Choose PayPal Prepaid Mastercard?

If you’re a PayPal fan or if you like all things PayPal, without any intention to repair or build your credit, and you’re ready to figure out the fees that could apply to how you intend to use your card, the PayPal Prepaid Mastercard can be a great option for you.

However, if none of these situations matches what you want, you should consider other better options.

Read more:

Find out how to stop identity thieves from stealing your personal data here.

Here’s a beginners’ guide to understanding credit score.

Williams Oleije

Williams Oleije

Williams Oleije is an Inbound Marketer, and a pop culture enthusiast. He's an avid researcher about how digital media is transforming marketing in several industries.

Leave a Reply