PayPal Business Debit Mastercard Cardholder Agreement
PayPal Business Debit Mastercard Cardholder Agreement
Last Updated: January 29, 2021
1. Contracting Party and Scope of this Agreement
This Agreement ("Agreement") constitutes a legal agreement between you and PayPal (Europe) S.à r.l. et Cie, S.C.A. ("we" or "PayPal").
It governs the issuance and the use of your PayPal Business Debit Mastercard (the "Card" or “Cards”). The Agreement supplements the PayPal User Agreement that governs your use of PayPal’s services in general.
If there is any conflict between this Agreement and the PayPal User Agreement, this Agreement shall prevail.
To be eligible for the Card you need to have an Italian PayPal Business account subject to our discretion based on risk and compliance rules and subject to the PayPal User Agreement and other applicable policies. We may reject applications for Cards at our sole discretion.
3. Receipt and Activation of Your Card.
Upon successful application the Card will be posted to you. You must activate your Card before it can be used. You may activate the Card by calling our customer services team +39 291 387 493 (fees may apply) or online by logging into your PayPal account and following the activation instructions as outlined on our website. This Card will be issued free of charge.
4. Additional Cards
Additional Cards are not available at the moment. We will indicate on our website when additional Cards will be available.
5. Possible Uses
Your Card can be used at merchants accepting Mastercard. You can use the Card to make purchases in-store, via the Internet and over the phone. The Card can be used for cash withdrawals at ATMs bearing the Mastercard Acceptance Mark.
You may only use your Card(s) for business expenses.
6. Daily Limits on Usage
Cards are subject to the following standard daily limits on usage:
Payments with your Card
Your actual daily limits may vary (lower or higher) depending on our 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 login to your PayPal account to see your specific limits in effect.
7. Authorisation of Transactions
You authorize payments with your Card by
- tapping your Card against a contactless enabled reader
- inserting the Card chip and entering your Personal Identification Number (PIN)
- entering manually or requesting a merchant to initiate a transaction on the phone providing your Card number, expiry date, security code (CVC).
- swiping the magnetic stripe and signing the transaction receipt.
You cannot cancel payments which you have already authorized and to which the payee already consented to. You may be able to cancel transactions that you have authorized for a future date (including recurring transactions) by contacting the Merchant before the date on which the payment is due to be made, or by contacting us. Further details are contained in sections 4.1 and 4.8 of the User Agreement.
8. Your Payment Obligation
When you use your Card for a transaction, i.e. give a payment order with the Card, you are obliged to reimburse the transaction amount to us. To this end, you authorise us to debit the respective amount from your PayPal balance.
Transactions made with the Card are funded solely by the EUR balance in your PayPal account. You need to have sufficient EUR balance in your PayPal account to cover the amount of the Card transaction (and any transaction fees payable to us).
You can choose to enable or disable an automatic funding arrangement (we may call this “automatic top up”) in your PayPal account settings.
If you enable automatic top up, to the extent that there is no or insufficient balance available in your PayPal account to cover a Card transaction (and any transaction fees payable to us), we may automatically use your bank account or debit card as the funding source to obtain sufficient balance in accordance with the terms of the PayPal User Agreement. The amount drawn from your bank account or via your debit card and added to the balance of your PayPal account will be in EUR and will be rounded up to the nearest multiple of EUR 5.
An example: If you do not have any PayPal balance, but would like to pay EUR 26.50 to a merchant, an amount of EUR 30 will be drawn from your bank account and credited in your PayPal account. EUR 26.50 will be used for the Card payment. You can spend the remaining PayPal balance of EUR 3.50 on other purchases.
We will prioritise the pre-existing balance in your PayPal account for a payment with PayPal and only draw an amount from your bank account or via your debit card where the balance is insufficient.
- do not enable automatic top up;
- disable automatic top up; or
- remove your linked bank account or debit card from your PayPal account,
you will not be able to use automatic top up to obtain sufficient balance in your PayPal account to fund your Card transaction in the event that the pre-existing balance in your PayPal account is insufficient. Any Card transaction that exceeds the balance in your PayPal account will be declined.
9. Cash Withdrawals
The Card enables you to withdraw cash from the EUR balance on your PayPal account at
- an Automated Teller Machine ("Withdrawal at an ATM") and
- a point of sale provided the merchant offers this possibility and subject, among other requirements, to limits which PayPal may set ("Cash at Checkout").
You may withdraw cash in an amount up to your daily limit (see section 6 of this Agreement).
You may only withdraw cash from your PayPal balance at an ATM but cannot withdraw from your bank account linked with your Card(s). However, you may get Cash at Checkout if your PayPal balance isn’t enough to cover the total transaction amount (purchase amount + cash amount) and if backup funding is enabled (see section 8 of this Agreement).
You can withdraw no more than EUR 200.00 per purchase when you withdraw Cash at Checkout.
10. No Use of Your Non-EUR- Balance
It is possible to maintain balances in different currencies in your PayPal account. However, balances in currencies other than EUR (that were in your PayPal account prior to the transaction) will not be used to fulfil your payment obligation pursuant to section 8.
Example: You have a US dollar balance in your PayPal account. If you make a payment with your Card to a merchant in the US, we will not use this US dollar balance. US dollar transaction amount will be converted to EUR and we will only use your EUR balance in your PayPal Account and possibly the EUR amount which we pull from your bank account via direct debit for the payment. (see section 8).
11. Fees and Statements
- Cash withdrawal fee
You agree to pay a fee of EUR 2.00 for each cash withdrawal. This fee applies to cash withdrawals at an ATM (inside and outside Italy). The ATM provider may charge additional fees.
- No transaction fees
We do not charge any fees for payments with your Card(s).
In particular, we neither charge a cross-border fee nor a currency conversion fee for payments with your Card(s).
- Currency Conversion
In case the payment or cash withdrawal with your Card involves a currency conversion performed by PayPal, Mastercard’s foreign exchange rates at the day of settlement with the recipient’s bank will apply. Please see Mastercard Currency Conversion Calculator for Mastercard’s rates. Currency conversion charges as a percentage mark-up over reference rates issued by the European Central Bank can be found here.
PayPal is not obliged to send you messages pursuant to art. 3a (5) Cross-Border Fee Regulation (Regulation (EC) No 924/2009).
We will provide an electronic statement each month with all your payment transactions that you made by using the Card.
12. Cashback Program
PayPal provides 0.5% cashback on the Net Amount of Eligible Payments with your Card(s). This means 0.5% of the Net Amount of your Eligible Payments with your Card(s) will be credited to your PayPal account as weekly payouts.
From time to time, we might increase the cashback rate (for example to 1%) for a limited period of time. We will announce such promotional campaigns with an increased cashback rate (including eligibility criteria) in email and/or on our website to you.
Net Amount means the payment amount less the PayPal fees applicable to the payment.
Eligible Payments are all transactions with your Card(s) except for
- payments which are reversed (such as returns) or refunded;
- returns and refunds;
- fraudulent transaction or other transactions in violation of the PayPal User Agreement, PayPal’s Acceptable Use Policy or this Agreement
- withdrawals (withdrawals at an ATM and Cash at Checkout).
PayPal uses a “round half up” approach to calculate reward amounts for individual payments. Cashback calculation examples:
- EUR 10.00 purchase transaction => EUR 0.05 cashback
- EUR 10.99 purchase transaction => EUR 0.05 cashback
- EUR 11.00 purchase transaction => EUR 0.06 cashback
b. Enrollment and Availability of the Cashback Program
Your new Card and replacement Cards (lost or stolen use case) are auto enrolled to the Cashback Program.
c. PayPal Account Closure or Termination of this Agreement
If you close your PayPal account, you will not be eligible to receive cashback for the month in which you close your PayPal account. However, if you cancel your Card or terminate this Agreement, you will still be eligible to receive Cashback for the eligible transactions that are completed in the month in which you close your Card or terminate this Agreement.
13. Execution Times
The payment is initiated by the payee, namely the merchant.
If we receive the payment order on a business day after 4:00 pm Italian local time, then the payment order is deemed to be received on the next business day. Execution times (as defined below) only start running at the point of time that a payment order is deemed to be received.
After receipt of the payment order with PayPal, PayPal is obliged to ensure that the transaction amount is received by the payment service provider of the payment service recipient at the latest as follows:
Type of payment
Payments in Euro within the European Economic Area
No longer than one business day
Payments in a different currency of the European Economic Area other than Euro within the European Economic Area
No longer than four business days
Payments outside of the European Economic Area regardless of the currency
The payment is executed as soon as possible
14. Authorization Holds
When you use your 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 thirty (30) 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 account. 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 that involve incremental adjustment to preauthorization will result in a hold for that amount of funds for up to another thirty (30) days from the adjustment date. 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.
15. Card Expiry
Upon expiry of your Card, PayPal will usually automatically send you a replacement Card. Please contact us if you have not received a replacement Card upon expiry of your Card but would like to receive a new Card: + 39 291 387 492 (fees may apply).
16. Your Obligations: Protecting Your Card and PIN
You are obliged to comply with the following obligations:
- Take all reasonable precautions to protect your Card, your PayPal account and PIN from unauthorized access by a third party. If you lose your Card or if your Card is stolen, you must inform us immediately.
- You are not allowed to
- enable a third party to use your Card;
- share your PayPal password or PIN with any other person (except for licensed payment initiation or payment account services);
- write down your PIN on your Card or any material stored with or near your Card.
17. Notification Requirement in case of Unauthorised Use of your Card
Should you notice or suspect that you have lost your Card or other device or notice or suspect an unauthorized use of your Card, you must notify us immediately.
To this end, you can log in to your PayPal account and report the Card(s) as stolen, contact PayPal’s customer service or call: + 39 291 387 492 (fees may apply).
18. PayPal’s liability for unauthorized transactions
- In the event of an unauthorized payment with your Card, PayPal is required to refund the transaction amount to your PayPal account to the extent that the amount has already been debited from your PayPal account. If the amount has not yet been debited, PayPal will not charge your PayPal account.
- Section 18 (1) does not apply if you are liable pursuant to section 19 of this Agreement (see below).
- Section 18 (1) does not apply if you did not inform PayPal about the unauthorized transaction at the latest within 13 months after the day on which the transaction was performed.
19. Your liability in case of unauthorized transactions
- You are liable to PayPal for the reimbursement of all damages incurred by PayPal as a result of the unauthorized payments with your Card if
- You acted fraudulently, or
- You violated one of the obligations pursuant to sections 16 and 17 of this Agreement intentionally or as a result of gross negligence, and if this violation enabled the unauthorized transaction.
- Section 19 (1) does not apply if you could not notify PayPal pursuant to section 17 because PayPal did not provide for the possibility to receive such notices.
- Section 19 (1) does not apply if no strong customer authentication was performed despite such an obligation applying by law.
- As soon as you have fulfilled your obligation pursuant to section 17, you are not liable for damages incurred by PayPal after your notification. This does not apply if you acted fraudulently.
20. Refunds for Card transactions initiated by or through the payee
- You are entitled to a refund from PayPal of an authorized Card payment which was initiated by or through a payee and which has already been executed if all the following conditions are met:
- The authorization did not specify the exact amount of the Card payment when the authorization was made.
- The amount of the Card payment exceeded the amount that you could reasonably have expected taking into account previous spending pattern and relevant circumstances of the case.
- You have requested the refund within a period of eight weeks from the date on which the funds were debited in your PayPal account.
You shall bear the burden of proving that such conditions are met. The refund will consist of the full amount of the executed Card payment.
- You do not have a right to a refund where:
- You have given consent to execute the Card payment directly to PayPal
- where information on the future Card payment was provided to you for at least four weeks before the due date by PayPal or by the payee; and
- if the payment in question was higher than you reasonably expected to pay due to a change in any currency exchange rate.
- Within ten business days of receiving a request for a refund, PayPal will either refund the full amount of the payment transaction or provide a justification for refusing the refund.
21. Actions we may take in case of violations of PayPal’s terms and PayPal’s right to restrict the use of the Card
We may block, restrict, suspend or terminate your Card at any time without notice and for any reason.
We may suspend or permanently suspend your use of your Card(s),
- if you violate the PayPal User Agreement, in particular section 9 of the PayPal User Agreement,
- or violate this Agreement;
Sections 9 and 10 of the PayPal User Agreement also apply to transactions with your Card.
22. Property of the Cards
The Cards remain our property. We may ask you to return or destroy your Card(s) (for example when this Agreement is terminated by you or us).
23. No Assignment
Your Card(s) and your obligations under this Agreement may not be assigned.
24. Changes to this Agreement
We may change this Agreement with two months’ prior notice subject to the conditions in section 1.6 of the PayPal User Agreement.
25. Your Right to Terminate
You may terminate this Agreement, i.e. your Card, at any time. To cancel your Card, you may contact our customer services at + 39 291 387 492 (fees may apply) or you may cancel online by logging into your PayPal account.
26. PayPal’s Right to Terminate
PayPal’s Privacy Statement also applies to the use of your Card(s).
For any disputes or issues with PayPal or this service, please refer to the Disputes section in section 14 of the User Agreement.
29. Additional Terms in the PayPal User Agreement
In addition to this Agreement, your use of the Card(s) is governed by PayPal’s User Agreement (including PayPal’s Acceptable Use Policy). You will for example find provisions and information about the applicable law, jurisdiction, arbitration, limitations of liability, language of the contract, etc.