PayPal has sent out an e-mail to existing Business credit card holders informing them that their accounts will be closed on 9/23/24. In addition the credit limit on the account has been reduced dramatically effective immediately (as low as $100 on some accounts).
This letter is to inform you that the PayPal Business Cashback Mastercard® is being discontinued and all credit card accounts will be closing. It also is to inform you of additional changes that the creditor is making to the terms of your account, including your credit limit and required minimum payment. Please read this letter carefully as it contains important information about your credit card account and its updated repayment terms.
Effective September 23, 2024, your above-referenced credit card account will be closed. This means that you will not be able to use your credit card account for new transactions after this date. Transactions that are still outstanding as of that date will continue to process, but any new transactions after that date will be declined. Any returns, refunds, or other credits to your credit card account will still be permitted.
Even though your credit card account will be closed to new purchases or advances, you remain obligated to pay the remaining outstanding balance in a timely manner and in accordance with the terms of your existing cardholder agreement in effect at the time of such repayment, subject to the additional changes set forth below.
Specifically, effective September 16, 2024, your new credit limit is $XXX. You understand that after this date, any transactions that would cause you to exceed your new credit limit may be declined.
PayPal has a history of closing products like this with very little notice, but I think this is a new record. Hard to have any confidence in their offerings going forwards when you’re giving a weeks notice that the account will close. Hopefully no businesses were relying on this card for managing cash flow.
What a Pal!
No surprise here. PayPal must’ve needed the revenue when launched, but now they are worried about margins.
I will miss this card. Paying independent contractors with it and getting 3% has generated thousands in cash back for me. Not to mention eBay shipping, buying Gcs, etc. it was a great workhorse for those of us in e-commerce/those who have a lot digital transactions.
I’ll apply for Amex blue business plus, kinda sucks about 50k annual cap for 2x points but if I apply now I can probably hit the spend 2024. Other than that, will be looking for another $0 annual fee small business card with a good reward structure.
Sounds like it sucks sorry…
If you end up doing the switch and liking the BBP you can apply for a second one once you hit the 50k on the first one if that helps your calculations. I’ve had up to four of the same cards and Amex really doesn’t seem to care about it
I tried for the Personal version of this a few years ago, the application didn’t go through because I had my credit frozen, but somehow they managed to do a hard pull. I tried over and over again to get it removed, but to no avail. It has since fallen off. I have no desire to go through that again and will avoid any credit offers from paypal like the plague. Also, it is a bit weird the way the seem to cancel products. Are they trying to get the same reputation as Google?
Paypal is not the company it was a few years ago. 800+ credit score and 1-2 new accounts/year. Tried to sign up for it and there was an error. Got transferred 3x to Philippines customer service… dogs barking in the background. After 1 hour I gave up.
If it was that difficult to get assistance to sign up what customer service can I expect if there was a problem later.
Does this mean I won’t have to click past that annoying “apply now” interstitial any more every single time I access my account?
A lot of business card changes lately. I think because everyone has been riding the wave.
Way to train your customers to only use and abuse your offerings for the narrow window before you abruptly close them. No serious business customers need apply.
I don’t think the PayPal debit card with 5% categories will last long. Use it while your can. They’ll nerf it with zero notice
Thanks for the reminder. I’d forgotten about that already.
Wow…