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What PayPal Credit Card Partnerships Mean for Sellers

PayPal expanded its partnership with Mastercard following a similar deal with Visaannounced in July. One of the changes to come out of the new deal: consumers and small businesses will be able to instantly cash out funds held in their PayPal accounts to a Mastercard debit card.

Some of the terms of interest to sellers:

  • Customers will see a familiar digital representation of their Mastercard from their chosen issuer, ensuring them that all payments made through PayPal are protected with the same safety and security measures that they have come to expect when using a Mastercard.
  • Customers will be able to select Mastercard as their default payment method to allow for quick and easy check-out.
  • PayPal will not encourage Mastercard cardholders to link to a bank account via ACH.
  • Merchants that leverage Braintree (owned by PayPal) as their payment platform will be able to easily integrate Masterpass into their checkout experiences, providing a seamless user experience for consumers.

How does it impact PayPal transactions on eBay, we wondered? A spokesperson explained: “If you are on eBay and go to pay, you’ll see the ability to pay directly with your card (as you can today) or to select PayPal. Once you select PayPal, it will ensure that funding sources (including Mastercard) are presented clearly and (in the near future) you’ll have the ability to default your chosen funding source for future payments.”

We’ve cherry-picked some of the changes we think are most interesting, you can find the full announcement on the Mastercard website.

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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.