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PayPal Student Debit MasterCard® Cardholder Agreement and Privacy Notice

Last Update: August 19, 2014


Terms and Conditions/Definitions for the PayPal Student Debit MasterCard Cardholder Agreement

This PayPal Debit Student Cardholder Agreement ("Agreement") is a contract outlining the terms and conditions between you and The Bancorp Bank and applies to your use, and the Child's use, of the PayPal Student Debit MasterCard (“Student Card” or “Card”) issued by The Bancorp Bank, Wilmington, Delaware, an FDIC insured member institution. This Agreement applies to you in addition to the PayPal Student Account Agreement and other applicable agreements between you and PayPal.

"Debit Card" or "Card" means the Debit Card issued to You by The Bancorp Bank. “Issuer” means The Bancorp Bank. “You” and “your” means the Parent or Child who have received the Card and are authorized to use the Card as provided for in this Agreement. “We,” “us,” and “our” mean the Issuer, our successors, affiliates, assignees and our third party service providers. “Card Account” means the records we maintain to account for the value of transactions associated with the Card. All capitalized terms shall have the definitions provided in this Agreement, or if a definition is not provided in this Agreement, the definition in the PayPal User Agreement shall apply. By accepting and using the Student Card, you agree to be bound by the terms and conditions in this Agreement. You agree to sign the back of the Card immediately upon receipt. The expiration date of the Card is identified on the front of your Card. The Card will remain the property of the Issuer and must be surrendered upon demand. The Card is nontransferable and it may be canceled, repossessed, or revoked at any time without prior notice subject to applicable law. We may refuse to process any transaction that we believe may violate the terms of this Agreement.

Our business days are Monday through Friday, excluding federal holidays, even if we are open. Any references to “days” found in this Agreement are calendar days unless indicated otherwise.

Write down your Card number and the customer service phone number provided in this Agreement on a separate piece of paper in case your Card is lost, stolen, or destroyed. Please read this Agreement carefully and keep it for future reference.



  1. Obtaining Your Card. The Parent must apply for the Student Card. By creating a Student Account with PayPal you are also requesting a Student Card Account. The Bancorp Bank and PayPal retain sole discretion to accept or reject any application for a Student Card. The USA PATRIOT Act is a federal law that requires all financial institutions to obtain, verify, and record information that identifies each person who opens a Student Card Account. What this means for you: When you open a Student Card Account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see a copy of your driver’s license or other identifying documents at any time.
  2. Debit Card. The Debit Card allows you to access the funds which PayPal has placed with us in accordance with Section 5 of the PayPal User Agreement.
  3. Activate Your Card. You must activate your Card before it can be used. You may activate the Debit Card by calling 800-314-8298 or online by logging into your PayPal Account and following the activate instructions on the card carrier. For your security, you will need to provide personal information in order to verify your identity and complete the activation process.
  4. Your Representations and Warranties.By activating the Card or by retaining, using or authorizing the use of the Card, you represent and warrant to us that: (i) you are at least 13 years of age (or older if you reside in a state where the majority age is older); (ii) you are a U.S. citizen or legal alien residing in the United States or the District of Columbia; (iii) you have provided us with a verifiable U.S. street address (not a P.O. Box); (iv) the personal information that you provide to us in connection with the Card is true, correct and complete; (v) you received a copy of this Agreement and agree to be bound by and to comply with its terms; and (vi) you accept the Card.
  5. Using the PayPal Student Card.
    1. Purchases and ATM withdrawals.With your Personal Identification Number ("PIN"), you may use your Debit Card to obtain cash at any Automated Teller Machine ("ATM") that displays the MasterCard®, Maestro®, or Cirrus® Acceptance Mark for a modest fee as outlined below. If given the option, select "Checking Account" when using an ATM. You may withdraw money from an ATM in an amount up to your available Student Account Balance subject to your daily limit. You may also use your PIN at any Point of Sale ("POS") device, as permissible by a merchant that bears the MasterCard®, STAR® or PULSE® Acceptance Mark. Each time you use your Debit Card, you authorize us to reduce the value available in your Student Account by the amount of the transaction and any applicable fees.
    2. Parent suspension. You may suspend the Child's use of the Card by changing the Student Card Account permissions.
    3. Split Tender Transactions.Some merchants do not allow cardholders to conduct split transactions where you would use the Card as partial payment for goods and services and pay the remainder of the balance with another form of legal tender. If you wish to conduct a split transaction and it is permitted by the merchant, you must first tell the merchant to charge only the exact amount of funds available in the Student Card Account. You must then arrange to pay the difference using another payment method. Some merchants may require payment for the remaining balance in cash. If you fail to inform the merchant that you would like to complete a split transaction prior to swiping your Card, your Card transaction is likely to be declined.
    4. Authorization Holds. If you use the Student Card at an automated fuel dispenser (“Pay at the pump”) the merchant may preauthorize the transaction amount up to $100 or more. If the Card is declined, even though there are sufficient funds available, use your Student Card to pay for your purchase inside with the cashier. This hold will be released once merchant submits the transaction for settlement. If you use the Card at a restaurant, a hotel, for a car rental purchase, or for similar purchases, the merchant may preauthorize the transaction amount for the purchase amount plus up to 20% or more to ensure there are sufficient funds available to cover tips or incidental expenses that may be incurred. Any preauthorization amount will place a “hold” on your available funds until the merchant sends us the final payment amount of your purchase. Once the final payment amount is received, the preauthorization amount on hold will be removed.

      It may take up to
      ten (10) days for the hold to be removed. During the hold period, you will not have access to the preauthorized amount.

      When you use the 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 Student Card Account for up to ten (10) 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 Student Card Account. 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 Student Card Account balance, even if this results in your Student Card Account balance becoming negative. You remain responsible for any negative balances in your Student Card Account.

      You do not have the right to stop payment on any purchase or payment transaction originated by use of your Student Card. You may not make preauthorized regular payments from your Student Card 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 relating to car rentals may result in a hold for that amount of funds for up to sixty (60) days.
    5. Card not Present Transactions. If you use the Card number without presenting the Card in person (such as for a mail order, telephone, or internet purchase), the legal effect will be the same as if you used the Card itself. For security reasons, we may limit the amount or number of transactions you can make on the Card in these scenarios. You may not use your Debit Card for online gambling or any other illegal transaction.

    6. Foreign Transactions. If you obtain your funds or make a purchase in a currency other than the currency in which your Card was issued, the amount deducted from your funds will be converted by MasterCard International Incorporated into an amount in the currency of your Card. The exchange rate between the transaction currency and the billing currency used for processing international transactions is a rate selected by MasterCard International Incorporated from the range of rates available in wholesale currency markets for the applicable central processing date, which may vary from the rate MasterCard International Incorporated itself receives, or the government-mandated rate in effect for the applicable central processing date.

    7. ATM withdrawal and spending limits. Student Card transactions are subject to a standard daily limit of $150.00 for ATM withdrawals and cash-like withdrawals (e.g. cash advances), a standard $500.00 daily limit for purchases, and a standard $2,000.00 monthly limit for all Card transactions. PayPal retains sole discretion to apply and change these limits.

  6. PayPal Student Card Fees.

    All fee amounts will be withdrawn from your Card Account and will be assessed as long as there is a remaining balance on your Card Account, except where prohibited by law. Anytime your remaining Card Account balance is less than the fee amount being assessed, the balance of your Card Account will be applied to the fee amount resulting in a zero balance on your Card Account.

    US ATM Withdrawal (Debit Card ATM Withdrawal From)

    $1.50 Per ATM Withdrawal within US (Plus any amounts charged by the ATM owner.)

    Signature Withdrawal (Debit Card Cash Advance To)

    $3.00 Per Signature Withdrawal if a signature is required to obtain cash.

    Non-US ATM Transaction-Using an ATM that is not in the US (Debit Card ATM Withdrawal From)

    $1.50; Per withdrawal from a non-US ATM. This fee will apply even if the transaction does not require a currency conversion.

    Foreign Transaction Fee (Debit Card Signature Purchase To or Debit Card ATM Withdrawal From)

    1%; Per purchase from a non-US merchant or use at a non-US ATM.. This fee will apply even if the transaction does not require a currency conversion

    If you use an ATM for any transaction, including a balance inquiry, you may be charged a fee by the ATM owner even if you do not complete a withdrawal. This ATM fee is a third party fee amount assessed by the individual ATM operator only and is not assessed by us. This ATM fee amount will be charged to your Card.

  7. Rewards or Cash back. The Student Card does not have a reward or cash back program.
  8. Personal Identification Number / Account History. The PIN issued with the Student Card is a security code, which has been designed to protect your transaction Card Account against unauthorized use. The PIN provides enhanced security for your Student Card Account and must be used when making debit transactions to your Student Card Account. It is your electronic signature. Since the PIN is for security purposes, you should memorize it and it should not be disclosed to anyone. You should not write or keep your PIN with your Card. When entering your PIN, be sure it cannot be observed by others and do not enter your PIN into any terminal that appears to be modified or suspicious. You can change your PIN at any time, and a temporary hold can be placed on your Card Account if the PIN has been compromised or if your Card is lost or stolen. Maintaining the security of your PIN and Card is your responsibility. If you believe that anyone has gained unauthorized access to your PIN, you should advise us immediately.
  9. Authorized Users, Third Party Liability. You are responsible for all authorized transactions initiated and fees incurred by the use of the Card. If you permit another person to have access to the Card or Card number, we will treat this as if you have authorized such use and you will be liable for all transactions and fees incurred by those persons.
  10. Documentation of Transfers.You may access the transaction history and balance by logging into the Student Card Account on www.paypal.com and clicking on the "History" tab. You should do this regularly to verify the activity on your Card Account.
  11. Returns and Refunds. If you are entitled to a refund for any reason for goods or services obtained with your Card, you agree to accept credits to your Card for refunds and agree to the refund policy of the merchant. If you have a problem with a purchase that you made with your Card, or if you have a dispute with the merchant, you must attempt to resolve it directly with the merchant first.
  12. Card Replacement. If you need to replace the Card for any reason, please contact customer service at 866-888-6080 to request a replacement Card. You will be required to provide personal information which may include your Card number, full name, transaction history.
  13. Confidentiality. To read the Privacy Policy governing the confidentiality and disclosure of your Card Account information, go online at www.paypal.com and click the link for legal agreements at the bottom of any page. Notwithstanding the Privacy Policy, we may disclose information to third parties about your Card or the transactions you make:
    1. Where it is necessary for completing transactions;
    2. In order to verify the existence and condition of your Card for a third party, such as a merchant;
    3. In order to comply with government agency, court order, or other legal, regulatory or administrative requirements;
    4. If you give us your written permission;
    5. To our employees, auditors, affiliates, service providers, or attorneys as needed; or
    6. Otherwise as necessary to fulfill our obligation under this Agreement.
  14. Our Liability for Failure to Complete Transactions. If we do not properly complete a transaction from your Card on time or in the correct amount according to our Agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:
    1. If through no fault of ours, you do not have enough funds available on your Card to complete the transaction;
    2. If a merchant refuses to accept your Card;
    3. If an ATM where you are making a cash withdrawal does not have enough cash;
    4. If an electronic terminal where you are making a transaction does not operate properly, and you knew about the problem when you initiated the transaction;
    5. If access to your Card has been blocked after you reported your Card lost or stolen;
    6. If there is a hold or your funds are subject to legal process or other encumbrance restricting their use;
    7. If we have reason to believe the requested transaction is unauthorized;
    8. If circumstances beyond our control (such as fire, flood, or computer or communication failure) prevent the completion of the transaction, despite reasonable precautions that we have taken; or
    9. Any other exception stated in our Agreement with you.
  15. Your Liability for Unauthorized Transfers.
    1. Contact us at once if you believe your Card has been lost or stolen. Telephoning is the best way to minimize your possible losses. If you believe your Card has been lost or stolen, or that someone has transferred money from your Card Account without your permission, call us at 866-888-6080. Under MasterCard Rules, your liability for unauthorized MasterCard transactions on your Card Account is $0.00 if you notify us within two (2) business days and you exercise reasonable care in safeguarding your Card from loss, theft, or unauthorized use. This reduced liability does not apply if a PIN is used as the method of verification for a disputed transaction or you have reported two (2) or more incidents of unauthorized use in the immediately preceding twelve (12) month period. If you notify us within two (2) business days learning that your Card has been lost or stolen, you can lose no more than $50.00 if someone used your Card without your permission. If you do not notify us within two (2) business days after you learn of the loss or theft of your Card and we can prove that we could have stopped someone from using your Card without your permission if you had promptly notified us, you could lose as much as $500.00.
    2. Also, if you become aware of and/or your statement shows transactions that you did not make, notify us at once following the procedures stated in the paragraph labeled “Information About Your Right to Dispute Errors”. If you do not notify us in writing within sixty (60) days after you become aware of the transaction and/or after the statement was made available to you, you may not get back any value you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the value if you had notified us in time. If your Card has been lost or stolen, we will close your Card Account to keep losses down.
  16. Other Miscellaneous Terms. Your Card and your obligations under this Agreement may not be assigned. We may transfer our rights under this Agreement. Use of your Card is subject to all applicable rules and customs of any clearinghouse or other association involved in transactions. We do not waive our rights by delaying or failing to exercise them at any time. If any provision of this Agreement shall be determined to be invalid or unenforceable under any rule, law, or regulation of any governmental agency, local, state, or federal, the validity or enforceability of any other provision of this Agreement shall not be affected. This Agreement will be governed by the law of the State of Delaware except to the extent governed by federal law.
  17. Amendment and Cancellation. From time to time, we may amend this Agreement by posting a revised version on the PayPal website and mailing you a revised version to Your address of record. The revised version will be effective at the time we post it. In addition, if the revised version includes a Substantial Change, we will provide you with thirty (30) days prior notice of Substantial Change by posting notice on the "Policy Updates" page of the PayPal website. However, if the change is made for security purposes, we can implement such change without prior notice. We may cancel or suspend your Card or this Agreement at any time. You may cancel this Agreement by returning the Card to us. Your termination of this Agreement will not affect any of our rights or your obligations arising under this Agreement prior to termination.
  18. Information About Your Right to Dispute Errors.

    18.1 Protection for Unauthorized Transactions and Other Errors.When an Unauthorized Transaction or Other Error occurs through your Card Account, including Unauthorized Transactions that occur because your Card has been lost or stolen, we will cover you for the full amount of every eligible Unauthorized Transaction or Other Error as long as you follow the procedures discussed below in Section 18.2.

    An "Unauthorized Transaction" is a type of error that occurs when money is sent from your Card Account that you did not authorize and that did not benefit you. For example, if someone steals your Debit Card and PIN, uses the Debit Card to access your Card Account, and makes a withdrawal from your Card Account, an Unauthorized Transaction has occurred. If you give someone your Card and give them permission to use it, you will be responsible for all transactions conducted by them on your Card Account even if they have conducted more transactions than you authorized, unless you notified us that transfers by that person are no longer authorized.

    In addition, "Other Errors" occur when money is either incorrectly taken from your Card Account or incorrectly placed into your Card Account, or when transactions are incorrectly recorded in your Card Account. Other Errors that are covered by us are limited to the following events: if you send a payment and it is incorrectly debited from your Card Account; if an incorrect amount is credited to your Card Account; if a transaction is missing from or not properly identified in your Card Account statement; if you receive an incorrect amount of money at an ATM; and if there is a computational or mathematical error by us.

    You may request documentation or information regarding your Card Account or transaction to determine whether an Unauthorized Transaction or Other Error exists by contacting us through the Contact Us link at the bottom of each page of the PayPal website.

    18.2 Notification Requirements.

    In case of errors or questions about your electronic transactions, call 866-888-6080 or write to Cardholder Services, PayPal Debit Card Department, Attn: Dispute Resolution, P.O. Box 45950, Omaha, NE 68145-0950 if you think your statement or receipt is wrong or if you need more information about a transaction listed on the statement or receipt. We must allow you to report an error until sixty (60) days after the earlier of the date you electronically access your Card Account, if the error could be viewed in your electronic history, or the date we sent the FIRST written history on which the error appeared You may request a written history of your transactions at any time by calling us at 866-888-6080 or writing us at PayPal Debit Card Department, Attn: Dispute Resolution, P.O. Box 45960, Omaha, NE 68145-0950 You will need to tell us:

    1. Your name and Card Account number
    2. Why you believe there is an error, and the dollar amount involved
    3. Approximately when the error took place

    If you provide this information orally, we may require that you send your complaint or question in writing within ten (10) business days.

    We will determine whether an error occurred within ten (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your Card within ten (10) business days for the amount you think is in error, so that you will have the use of the money during the time it takes to complete the investigation. If you do not have federal payments (for example, Social Security benefits, tax refunds or other government payments) deposited to your Card Account, we may not credit your Card. If we ask you to put your complaint or question in writing and you do not provide it within ten (10) business days, we may not credit your Card.

    For errors involving new Cards, POS, or foreign-initiated transactions, we may take up to ninety (90) days to investigate your complaint or question. For new Card Accounts, we may take up to twenty (20) business days to credit your Card Account for the amount you think is in error.

    We will tell you the results within three (3) business days after completing the investigation. If we decide that there was no error, we will send you a written explanation. Copies of the documents used in the investigation may be obtained by contacting us at the phone number or address listed at the beginning of this section. If you need more information about our error-resolution procedures, call us at 866-888-6080.

    18.3 Processing Errors. We will rectify any processing error that we discover. If the error results in your receipt of less than the correct amount to which you are entitled, PayPal will credit your Card Account for the difference. If the error results in your receipt of more than the correct amount to which you are entitled, PayPal will debit the extra funds from your Card Account. If the error resulted in our not completing a transaction on time or in the correct amount, we will be liable for your losses or damages directly caused by this failure, unless: (a) through no fault of ours, you did not have enough available funds to complete the transaction, (b) our system was not working properly and you knew about the breakdown when you started the transaction, or (c) circumstances beyond our control (such as fire, flood or loss of Internet connection) prevented the transaction, despite our reasonable precautions.

  19. English Language Controls. Any translation of this Agreement is provided for your convenience. The meanings of terms, conditions and representations herein are subject to definitions and interpretations in the English language. Any translation provided may not accurately represent the information in the original English.
  20. Customer Service
    For customer service or additional information regarding your Card, please contact us at:

    PayPal Debit Card Program
    PO Box 45950
    Omaha NE 68145-0950

    Customer Service agents are available to answer your calls:

    Monday-Friday 6:00 AM-12:00 AM Central time;
    Saturday-Sunday 8:00 AM-10:00 PM Central time (holidays excluded).
  21. Telephone Monitoring/Recording

    From time to time we may monitor and/or record telephone calls between you and us to assure the quality of our customer service or as required by applicable law.
  22. No Warranty Regarding Goods or Services as Applicable

    We are not responsible for the quality, safety, legality, or any other aspect of any goods or services you purchase with your Card.
  23. Arbitration

    Any claim, dispute, or controversy (“Claim”) arising out of or relating in any way to: i) this Agreement; ii) your Card; iii) the Cards of any additional cardholders designated by you; iv) your purchase of the Card; v) your usage of the Card; vi) the amount of available funds in the Card Accounts; vii) advertisements, promotions or oral or written statements related to the Cards, as well as goods or services purchased with the Card; viii) the benefits and services related to the Cards; or ix) transaction on the Card, no matter how described, pleaded or styled, shall be FINALLY and EXCLUSIVELY resolved by binding individual arbitration conducted by the American Arbitration Association (“AAA”) under its Consumer Arbitration Rules. If Section 23 and Section 14 (Disputes with PayPal) of the PayPal User Agreement are in conflict in any way, this Section 23 will control with respect to any Claim. Specifically, you agree that this Section 23 applies to all Claims described above instead of and in replacement to Section 14.2 (Arbitration), Section 14.3 (Law and Forum for Disputes) and Section 14.4 (Improperly Filed Litigation) of the PayPal User Agreement. This arbitration agreement is made pursuant to a transaction involving interstate commerce, and shall be governed by the Federal Arbitration Act (9 U.S.C. 1-16).

    We will pay the initial filing fee to commence arbitration and any arbitration hearing that you attend shall take place in the federal judicial district of your residence.


    For a copy of the procedures, to file a Claim or for other information about these organizations, contact them as follows: AAA, at 335 Madison Avenue, New York, NY 10017 or at www.adr.org.

    All determinations as to the scope, interpretation, enforceability and validity of this Agreement shall be made final exclusively by the arbitrator, which award shall be binding and final. Judgment on the arbitration award may be entered in any court having jurisdiction.


    This arbitration provision shall survive: i) the termination of the Agreement; ii) the bankruptcy of any party; iii) any transfer, sale or assignment of your Card, or any amounts owed on your Card, to any other person or entity; or iv) expiration of the Card. If any portion of this arbitration provision is deemed invalid or unenforceable, the remaining portions shall remain in force.


Rev. 07/2013

The Bancorp Consumer Privacy Notice


What Does The Bancorp Do

With Your Personal Information?



Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all, sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do.



The types of personal information we collect and share depend on the product or service you have with us. This information can include:

  1. Social Security Number and income
  2. Account balances and transaction history
  3. Credit history and credit scores

When you are no longer our customer, we continue to share your information, as described in this notice.



All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, whether The Bancorp shares your information, and whether you can limit this sharing.


Reasons We Can Share

Your Personal Information

Does The Bancorp


Can you limit

this sharing?

For our everyday business purposes —

Such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus



For our marketing purposes —

To offer our products and services to you



For joint marketing with other financial companies


We don’t share

For our affiliates’ everyday business purposes —

Information about your transactions and experiences


We don’t share

For our affiliates’ everyday business purposes —

Information about your creditworthiness


We don’t share

For nonaffiliates to market to you


We don’t share



Call us, toll-free, at (866) 888-6080 or (402) 935-2017 (if calling from outside the U.S. or Canada), or visit us at www.paypal.com.


What We Do

How does The Bancorp protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

We also limit access to information to those employees for whom access is necessary.

How does The Bancorp collect my personal information?

We collect your personal information when, for example, you:

  1. open an account or apply for a loan
  2. pay your bills or make a wire transfer
  3. provide account information

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only:

  1. sharing for affiliates’ everyday business purposes – information about your creditworthiness
  2. affiliates from using your information to market to you
  3. sharing for nonaffiliates to market to you

State laws and individual companies may give you additional rights to limit sharing.




Companies related by common ownership or control. They can be financial and nonfinancial companies.

  1. Our affiliates include financial companies such as The Bancorp Bank and Bancorp Card Services Inc.


Companies not related by common ownership or control. They can be financial and nonfinancial companies.

  1. The Bancorp does not share your information with nonaffiliates.

Joint marketing

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

  1. The Bancorp does not jointly market.