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PayPal Email Shows Underpayment of Debit Card Cashbacks

eBay sellers who use PayPal debit cards said over the weekend that the company sent them emails showing they were being shortchanged half a percent for purchases made in June. Sellers use the debit cards in order to get cashback rewards on their purchases. But some sellers who received the email and contacted customer service said reps assured them the email contained erroneous information and that PayPal was providing them with the full 1.5% cashback amount.

Sellers said PayPal sent them emails showing a 1% cashback instead of 1.5% for July purchases. A reader alerted EcommerceBytes to the problem over the holiday weekend. “Apparently, PayPal’s cashback program is experiencing an issue which results in PP debit cards being shorted 0.5% this month. PayPal debit card holders would be wise to confirm they have received their full 1.5% cash back credit, and if not, contact PayPal.”

Sellers discussed the problem on the eBay discussion boards in response to a user who asked colleagues, “Anyone else that’s been getting 1.5% only get 1% for July? Wondering if it’s a mistake or terms change.”

On another eBay discussion board, a seller said a rep told them PayPal would credit back the extra .5 percent. “The rep didn’t sound confused or surprised, so I’m wondering if it may be a known glitch…or done on purpose…”

Another said a rep explained that PayPal was having a glitch with the messages it was sending out and said manually adding up her June purchases in her account showed she had received the full 1.5 percent cashback.

Apparently PayPal gives a 1 percent cashback for new members but grandfathered in older account holders who receive the higher cashback amount, according to sellers.

Update 7/7/14: A PayPal spokesperson has told EcommerceBytes, “we’ve confirmed that these customers received the correct 1.5 percent payout.”

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.