PayPal Business Cashback Mastercard Accounts Shutting Down
PayPal sent out emails today informing PayPal Business Cashback Mastercard cardholders that their accounts will be closed. PayPal is giving cardholders a very short notice about the closure.
They are lowering credit limits to just $100, or $100 plus current balance as of today. Then, effective September 23, 2024, your credit card account will be closed.
Here’s the text of the email:
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.XX. You understand that after this date, any transactions that would cause you to exceed your new credit limit may be declined.
Please review the following change to the calculation of your minimum payment amount after the effective date:
Important Changes to Your Account Terms
Effective October 30, 2024, the way the minimum payment is calculated on your account will be changing. This change will be in effect for your credit card account until your outstanding balance is paid in full.
Minimum Payment:
The minimum payment due for each billing cycle will be the greater of:
- $35.00 and
- The sum of
- Any past due amounts; and
- Any fees assessed during the billing cycle; and 1.00% of the account balance as of the last day of the October 2024 billing cycle; and
- the applicable periodic rate on your card times the balance on your account as of the October 2024 billing cycle; and
- 4.00% of any charges posted to your account after October 2024 billing cycle
The minimum payment due will never be more than the outstanding balance on your account. If you pay more than the minimum payment due for a billing cycle but less than the outstanding balance, you are still required to pay the minimum payment due in the next billing cycle.
If your credit card account is subject to an annual fee and you were billed for such a fee less than 12 months ago, you will be refunded the portion of the fee corresponding to the remaining billing cycles covered by your annual fee. Any such refund will be credited to your credit card account. If you have authorized a merchant to automatically charge your credit card account (such as utility companies or internet providers), you are responsible for changing your payment method directly with each merchant If you fail to do so, you understand that such charges may be declined and you may be liable for any fees, charges, or losses you may incur as a result.
If you have authorized a merchant to automatically charge your credit card account (such as utility companies or internet providers), you are responsible for changing your payment method directly with each merchant. If you fail to do so, you understand that such charges may be declined and you may be liable for any fees, charges, or losses you may incur as a result.”
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