Monday, November 14, 2011

Get cash back rewards by using your debit card!

The day's when you got cash back rewards from your debit card are long over. Chase, Bank of America and Wells Fargo have stopped rewarding their checking account holders for using their debit cards long time ago. Fortunately, there is a new way you can get these rewards now the same way you used to! Well, not exactly. 
You know how you can use your checking account to pay online using PayPal? Well, they are offering a debit card that accesses your PayPal assets, or in case you don't have any (which is the way I use it) it will fund the transactions from your checking account. Once you get your PayPal Debit MasterCard, you can use it wherever MasterCard is accepted, and each time you make a purchase, the amount of the transaction is deducted from your checking account using ACH (just like your employer deposits your money when you've signed up for direct deposit).

It's not that easy though. First you need to open a PayPal account. Make sure to enter your correct information (date of birth, etc.) They will operate your money at last, so make sure they know who you are. You also have to verify your account, and address by adding an existing account with your bank (you have to do it anyways to use your new debit card) and a current credit or debit card. When you're finished doing that, just apply for PayPal's debit card. Once you receive it in mail, you (quite obviously) have to activate it. You can do it either online or by phone and select your checking account as a back-up funding. For people who would want to make some money by switching to a savings account: DON"T. Federal law prohibits you from making more than six transactions on your savings account in a calendar month. Banks have to penalize account holders for doing that, and most of them will even close your account.

Think that's it? Not that fast. PayPal's cash back rewards program is turned off by default, and you have to sign up for it. Once you've done it, you will earn rewards swiping your new PayPal debit card whenever you need to make a purchase, without the hassle of having a credit card, or if you just can't get one. Enjoy your cash back!

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