PayPal Prepaid MasterCard® Review

(Editor Rating)

Ranking

8.6/10

The PayPal Prepaid MasterCard is the only prepaid card you can link to a PayPal account. In this review we look at the costs and features of the card.

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Card Features

9/10

Fees

8/10

Rewards

8/10

Mobile App

9.5/10



Highlights:

 

  • Cash Back Rewards
  • Mobile App
  • High Yield Savings Account

Editor's note - You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author's alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser.
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Over the years a number of readers have asked me how to transfer money to and from a PayPal account. I use a PayPal account, and I always transfer funds via my online checking account. But many readers don’t have and don’t want (or can’t get) a checking account. So for these folks, today we’ll look at a relatively inexpensive solution – the PayPal Prepaid MasterCard.

As the name suggests, this card is a prepaid MasterCard. Before we get to the details of the card, it’s important to note that it is the only prepaid card you can link to a PayPal account. Why? Because that’s how PayPal wants it. Taken directly from its website: “You can’t link a gift card, prepaid card, or one-time-use card to your PayPal account.” So if you want to use a prepaid card, you’ll have to use the PayPal Prepaid MasterCard®.

PayPal Prepaid MasterCard® Costs

If you’ve read any of my other reviews of prepaid cards, you know that the most important consideration is cost. While most cards offer reasonable fees, there are some out there that are completely outrageous. So where does the PayPal debt card fall in terms of cost? While it’s not the cheapest card available, the fees are very reasonable.
The primary fee is a $4.95 monthly maintenance fee. While some cards will waive this fee if you load a set amount on the card each month, PayPal will not. But with this fee you get free unlimited signature and PIN purchase transactions. There are fees for ATM withdrawals and loading cash on the card. Direct deposit is free. Overall, I’d rate the fees of this card a B+.

Get the Paypal prepaid card

Paypal Features

As noted above, the most important feature is the ability to link the card to your PayPal account. Once linked, you can transfer funds between accounts. If this feature isn’t important to you, there is really no reason to prefer this card over other prepaid cards.

That being said, the card does offer standard features you’d expect to find in most prepaid cards:

  • Instantly transfer money from your PayPal Account to your PayPal Prepaid MasterCard
  • Earn Cash back rewards from specially selected stores, restaurants and more
  • Use free direct deposit and get your paychecks faster
  • Get account alerts on your mobile device or download our App to check your balance and see recent transactions
  • No credit check, overdraft fees or interest charges
  • Safer than carrying cash – use it to pay for everyday purchases

Loading Money on the Card

There are several ways to load money onto the PayPal Prepaid MasterCard®. The easiest way is through direct deposit. It’s free, and you get access to your paycheck up to two days faster.

You can also load cash onto the card at one of the more than 130,000 NetSpend Reload Network locations. And of course, you can transfer money to the card from your PayPal account.

Pros and Cons

Pros

  • Connects to PayPal Account
  • High Yield Savings Account
  • Cash Back Rewards
  • Mobile App

Cons

  • Monthly Fee Cannot be Waived

Cash Back Rewards & Other Features

The PayPal Prepaid MasterCard® offers some additional features not found with many prepaid cards.

First, you can earn cash back rewards on special offers. PayPal sends these offers to you based on your spending habits.

Second, you can open a linked savings account and earn up to 5% APY on up to $1,000. That is an extremely high interest rate.

Third, if you refer friends who get a PayPal Prepaid MasterCard®, PayPal will give both of you an extra $5.

Finally, Paypal offers an Android and iPhone app. With the app, you can manage your account in several ways:

  • Check your account balance
  • Review recent transactions
  • Find a nearby reload location
  • Receive real-time activity alerts
Get the Paypal prepaid card

Author Bio

Total Articles: 1083
Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.
Article comments
29 comments
Jim Donahue says:

You can use any prepaid account with PayPal as long as you have the routing and account number unless your card isn’t issued by a bank like the Bluebird card.

Doug B. says:

The Bluebird card does provide users with a routing & account number and it can be used with Pay Pal.

Frank B says:

The bluebird card seems to have an issue, along with other prepaid cards, with paypal accepting the checking account and routing numbers provided, especially with verifying the account. Paypal won’t accept the bluebird account numbers or greendot. This is speaking from personal experience unfortunately.

Renee says:

A grade of B+ for fees? I think not. I didn’t use the card for two months and they just take $10 from me?! I knew I should have gotten Green Dot!

anon says:

Uh, dude. It says that there’s a fee of $4.95 per month, and you didn’t use it for 2 months. Do the math.

CAtHy says:

I just wanted to say… Paypal prepay is not the only card you can link to pay pal.
I have a dollar general prepay card and had no trouble linking it, although now it seems they have recalled the loading cards so now i am looking for a mew card.

Gil says:

I love this product. I gave up on banks 3 years ago and so far I’ve never looked back. 4.95 fee is very reasonable fee to maintain the account open. Of course there is no over draft protection which is the main reason why I stopped using banks. And the fact that I can transfer money from my PayPal account to my prepaid is an added bonus especially for those who sell online. I usually don’t use ATM and I simply get cash back from stores that offer it so I am not worried about the 2.50 fee to withdraw money from the account. All and all it’s a great product for on line sellers and those who are sick and tired of banks Nickle and diming your accounts.

Jessica Wright says:

This sounds just like me. I was tired of banks nickel and diming me too. I left banks in the dust and never looked back. I also withdraw money from registers anywhere accepted. I would suggest this card and account to others

marie says:

i don’t like these card fees. $4.95 adds up over time and i don’t like the fact that my hard earned money is taken out every month.

Alex says:

A low monthly fee and the ability to earn some cash back rewards from selected stores and restaurants. The PayPal prepaid mastercard is my far one of my favorite prepaid cards.

Alison says:

It is true that you can link other debit cards to your Paypal account – I have a Wired Plastic debit card linked to mine. However – and this is important – you cannot transfer funds FROM your Paypal account to your debit card. PayPal only allows you to transfer funds from your account to an actual checking account, or this Paypal prepaid MasterCard. I have tried to use the routing and account numbers associated with my various prepaid debit cards (bluebird, netspend, etc) to link to paypal as a checking account – and none of these have worked. So, while some cards out there have fewer fees, if withdrawing Paypal funds is a must and you don’t have a checking account, this really is the only option.

Kotobuki says:

you can transfer from your paypal to paypal prepaid instantly..it’s called “paypal instant transfer”..the one your referring to is “paypal basic transfer” which is the second option.

Kotobuki says:

If you want money from paypal transferred to a different card or bank quickly, get the Kaiku card..its the second card i have on hand an it works similar an pretty much instantly when i send money to it from my paypal and use its banking numbers too.

Matthew Mathias says:

I enjoy the paypal mastercard. I could careless of the $4.95 monthly fee. This is the only prepaid card that you can do instant transfer from paypal with. Try to do that with any other card other then the actual paypal business debit card. which is issued through paypal directly which has no monthly fees or limits.

Kelicia says:

So with this paypal card am i able to use it online to shop and in store

Rob Berger says:

Yes.

J cruz says:

Can you add money to your PayPal account from the PayPal prepaid MasterCard? There seems to be no way to add money to PayPal with a card.

B West says:

I transferred money from my direct express prepaid card, which is purchase only because it is for disabled benefits. However, it cannot be LINKED to my PayPal account like a regular checking account. I think that’s the difference. How would that be beneficial? I haven’t done enough research. In the meantime, PayPal will not activate the card because they claim they need proof of my identity. They want me to send a copy of state ID, SSN, and a document, no older than 30 days, showing address. Has anyone else experienced this? Do you think it’s safe and worth it?

Candace says:

The great thing about this card is that it doesn’t have to go through the ACH process to transfer your money. If you were to make a transfer to this card from paypal it’s instant, whereas to you checking account-linked debit card takes 3-4 business days. So the 4.95 fee is well worth it to me when I need the paypal finds right then!

Nicholson, N says:

I use this card and I love it. I get my direct deposit 2 days earlier and I can only spend what I have . . . plus they give me $10 per pay over overdraft allowance so If I down to my last $2.00 on the card . . . I can actually spend $12 – which is a nice perk for emergencies.

I do know the UNIONPLUS prepaid card was pretty good to me when I had it. Both are the best in the prepaid industry in my opinion and I’m really happy with them. I use a traditional bank . . . just for check writing when absolutely necessary. I’ve been a cardholder since June 2013 with only 1 complaint.

I tried calling customer service 1x and was so turned off – i never tried again. In order to get a rep on the line, i had to enter my card number (major turnoff), then she spoke little English and to date my request hasn’t been taken care of. I can only withdraw $400 per day and needed to know if they could increase my daily allowance. This still has not been answered or resolved. My direct deposit is about $1500 on average biweekly. $400 a day allowance isn’t cutting it – when you have bills to pay. 🙁

hollind says:

DO NOT USE PAYPAL PREPAID. i cannot remember the last time i was this frustrated. bought 2 cards and loaded $500 each because i was told by walmart the max was 500 (not true) and i could not load money onto my paypal business card. once i figured this out i went to put the money all onto one card and there was a hold on my account. after hours on the phone with customer service and on hold, sending the documentation, the hold was finally lifted the next day. go to put money on the card, it works, go to use the card a couple hours later and i now have a hold on this card. even though i had just bought them both the day prior, and had my reciepts. send in documentation for the second time and this time it is denied because my drivers license is voided, as i just moved and changed address, i sent the yellow papers with it stamped and dated by the DMV which make the ID valid. along with this i sent my original ss card, birth certificate, school records, mail with my address on it, and court records. so now im stuck waiting weeks for my drivers license to come to get the money i needed 3 days ago. COOL. needless to say do not for any reason use paypal prepaid unless you feel like having your money up in the air for days.

Bob says:

Sounds like a money laundry or your looking for some PayPal loop hole effort to me. PayPal BUSINESS CARD is different than PayPal PREPAID Debit card. Business cards are issued under different terms and agreements. I am betting you were trying to move money into your paypal account as to avoid the business card fees.

Bob says:

Evaluating the fees and transfers.
Paypal debit lets you transfer money to the prepaid card. Your local Bank card debit does not allow this. Why? Your bank card is linked to your local checking or savings account, so it would be the same as transferring the funds to your checking or savings account. Paypal will transfer the funds to your checking account which is basically like transfering to your banks debit card as they are usually linked to the same local account. so whats the beef.
Fees, my local bank charged $10.00 a month, some others charge more unless you maintain a ADB (average daily balance) of more than $999.99, thus there is no montly fee. I usually dont have $1000.00 laying around so I am stuck paying a monthly fee of $10.00+. Paypal debit? 4.95 a month.Duha~ I dont use checks as there is that handy card that can be waved around so freely. So pay $10.00 a month for a local bank, or $4.95? Hummmm?????? Direct deposit (free at both local and paypal), most employers want you to do direct deposit and if you have a bank or if you use paypal…..its the same thing. so again whats the big deal?
I cant remember how many decades ago I have ever heard of 5% APY on a savings account (wait) now I do ….NEVER! Most banks offer 1%-2.5% now days and that is if you are lucky.
Dont use the card for 2 months and get charged $10.00? Wow, how much would your local bank charge for 2 months. I am sure that if I am not using the card for 2 months it is because I am flat broke and scrimping pennies. A local bank would most likely close such empty account or keep charging you as well! Count your blessings! I could scrape togeter $10.00 easily picking up Alum Cans in a ditch easier than I could $20.00!
Overdraft, banks usually charge for this, paypal gives you a little flex I think with an extra $10.00, cash in and pay that 2 month fee, youll still owe the $10.00er…but just saying.

If it were I, I would bump up the B+ rating a little. Bank institutions are no different than paypal in the sense of using a card to pay for something, and with banks high overdraft fees it wont take long until that paycheck is broke, debit cards included. Paypal prepaid, well every prepay card I have ever used will stop and show 0 balance, Instant Overdraft protection +$10.00 flex.

Net spend, Bluebird, Wally world money card…..they are all going to take your money as well.

Allen F Tomlinson says:

So i have the paypal debit card and now im being issued the paypal prepaid card as well. Why would i have 2 cards?

Bill says:

I just closed my Paypal mastercard account down. Going to stick to my
normal bank. Yes the card does have a higher cashback %. But that cash
back is not released for 1-2 billing cycles(months). Also after you make
a payment to the card, your available funds are not released for 7
business days. I can’t afford to have my money tied up that long. My
normal bank releases funds the next day and my rewards are credited
instantly.

linda lanum says:

Its a shame I remeber when paypal offered a card through there account. They gave you 2% interest on the money you had in the account and 1% cash back on every purchase. The transfer from your paypal account to the card was instant. They did not charge 4.95 a month. Well ebay bought paypal out and everything changed so you can blaim all the fee’s and money being tied up because of ebay. Now you cant a true paypal debit card unless you have a business account. It was so much better back then. Its crazy how the fortune 500 companies just keep charging more and more, im sorry but do these company’s need to make billions of dollars a year, and not do a darn thing for our country. Good ole corporate USA at its best. Oh yeah then they want to out source the call center jobs to overseas because the people in those countries will work for $5.00, this is complete B.S. If your a huge company and you are operating in our country then the jobs should stay in house (USA) that is the least they can do.

Adriana says:

If you lose or get stolen the Pay Pal prepaid Master card how do you report it or how your funds are safe ?

Michael Dorbuck says:

This card is complete garbage. I haven’t been able to do a PayPal transfer to the card in six months and customer service is no help. The only way I can add money to the card is go to the store and when I do that it is a 3.95 processing fee on top of a 4.95 monthly maintenance fee which is too much to deal with. You email them and you get a canned response. You call them and get somebody who doesn’t speak or understand English. I have been trying to get some answers for months and the only thing I have really been told is it is a PayPal problem and not anything to do with the card specifically so it is up to them to fix it which apparently they have chosen not to do. This card has given me nothing but a lot of grief and aggravation and offers me no real benefits. If they tell you that you can transfer money instantly from your PayPal account to the card that is a lie and false advertising because that option has not been available for months and probably never will be again. Poor customer service and the card not being able to do what is advertised should tell people not to get his card.

Nashman says:

All pretty true. Customer service is garbage.
I’ve had the card 2 years and NOT ONCE have any rewards popped up. It’s a feature with no backing, just an advertisement.