Pay Pal Debit Card

If you have an online Paypal account (you'll need a premier or business account, not just a personal one), you are eligible for a Paypal Debit Card.  You can get one by logging into your Paypal account and filling out a simple online application.  Once you have your card, you can use it to make purchases in any amount up to the current balance in your Paypal account.  You can also link a backup funding source to your Paypal Debit Card, such as a credit card or checking account.  Once you exceed the amount in your Paypal account, purchases will be charged to your backup funding source.  You can apply separately for a Paypal Buyer Line of Credit which you can then link to the Debit Card.  Once the line of credit is linked to your debit card, you can use the debit card as a credit card with a credit limit equal to the limit on your credit line.  But beware.  The Paypal Buyer Line of Credit, which is serviced by GE Money, comes with a hefty 22.5% interest rate. 

In addition, you can use your Paypal Debit Card to withdraw cash from ATMs up to the amount available in your Paypal account.  Your Paypal account will be charged a flat fee of $1 per ATM withdrawal.  However, at the present time you cannot use the Paypal Debit Card to take cash advances from your Paypal Buyer Line of Credit or other backup funding source.  If you sign up for the Paypal Preferred Rewards Program, which is free, you will get 1% cash back on all purchases you make with the Paypal Debit Card that don't require entry of a PIN.  The cash back rewards are deposited automatically into your Paypal account shortly after your purchase is processed. 

There are some definite disadvantages to the Paypal Debit Card.  If the Paypal website is down for whatever reason, your card will not work.  There's also a daily limit of $400 on ATM withdrawals.  Plus the fraud protection is less than robust.  Paypal advertises 100% protection against fraud and theft.  But you're only protected if you report fraudulent charges to Paypal within two business days.  It's also annoying that you can't use the card to take cash advances from your line of credit or other backup funding source.  However, if you frequently have a balance in your Paypal account or if you have a Paypal Buyer Line of Credit, this card offers an additional means of accessing your funds.