PayPal Eliminating the 1.5% cash back tier

[val2525]

If I'm reading it right, everyone will be moved to the current, standard 1% cash back. The oldsters were grandfathered in.

www.ecommercebytes.com/cab/abn/y15/m06/i11/s01

Fine by me, I need to start transferring PP net profits to my bank account anyway, so now I have double incentive (Other incentive is I'll need bank statements with income deposits when I move). Thanks, PayPal!

(cheapskates)

[SA]

I'm actually quite surprised that they are still offering a cash back. Not going to lie though, I love getting that kick back every month.

[val2525]

Why are you surprised they're still offering one? Several of my credit cards give me cash back, as do my client's cards.

[bettyblackbent]

Probably because it's a debit card not a credit card. Not many perks for debit card users out there.

[SA]

Yep. Surprised that now that they've grown And they've pretty much gotten all ebay sellers in the bag---it's like they don't really have to offer it anymore.
And because it's a debit card and not a credit card.

[Emerald_Door]

I think they give cash back only on the "credit" card purchases. If your purchase is processed as a debit, you don't get the cash back. At least, that's how it used to work.

[bettyblackbent]

Yup. But most debit cards don't give you anything no matter how it's processed.

[SA]

Right. I realize that. But even my bank debit card can be "run" as credit.

The difference is a credit card, you're borrowing money. A debit card, you're using the money that's already yours. But with Paypal, you can keep your balance at $0, use the credit option and receive cash back, and have it pulled straight from your checking account. If you do that, Paypal really doesn't make money. If you keep a balance, sure, they're making a little money off of you. I see why credit card companies do it-an incentive to charge money on your card in hopes you don't pay it--making their money on interest.

[Deleted]

When you run a debit card as credit, the issuer makes more more money via credit card processing fees from the merchant.  Both my banks offer rewards programs/cash back with their debit cards if you use them as credit.

[Deleted]

I was one of the oldies getting 1.5%. I'm sad that it's going away. I made around 30-40 a month on that card just using it mainly to buy inventory!

[Deleted]

I find it rather sad that the corporate giants feed the peons a few crumbs and then take them away, while gloating of their billions...

[Deleted]

I'm going to miss the 1.5% too. I like to pay my fees with my paypal card as a credit card and earn cash back on my fees. 1% is still something at least.

[Deleted]

I liked the 1.5% too, I believe at one time it was 2% (maybe around 2007-2008) so they are slowly getting away from the higher percentages I guess. Usually those cutback rewards are done on credit cards where there is a chance the interest from overcharging will offset any reward they give the consumers. As a debt card there is no interest so it does make sense for them.