PayPal Shuts Down Business Cashback Mastercard With Only One Week Notice
The PayPal Business Cashback Mastercard is being discontinued, leaving users in the lurch with lowered limits and only one week notice.
Cardholders say they were notified of the update via email today, stating all accounts will be closing effective September 23, 2024 and new, lower limits have been put into place starting today.
NOTICE OF ACCOUNT CLOSURE AND CHANGES TO ACCOUNT TERMS
Dear...:
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 $[balance]. You understand that after this date, any transactions that would cause you to exceed your new credit limit may be declined.
Users are discussing the notice in the MyFico forums, expressing frustration about how the lower credit limit was handled and hoping it will not cause additional headaches with over limit fees for pending charges.
SMB85
Got the email too. Pretty haphazard way of doing this, the account has several pending charges, and they lowered the credit limit to the existing posted charges+$100 which puts the account now several hundred "over limit" as they are still authorizations and not posted.
There better not be an overlimit fee associated with this arbitrary way of shutting down accounts. They should have at least taken into consideration your pending charges before lowering the limit.
How will PayPal discontinuing the Business Cashback Mastercard impact your online business? Let us know in the comments below!
