PayPal to discontinue PayPal key

Unfortunately starting April 20, 2022, Paypal will discontinue the virtual Paypal key. No word as to why.

That's too bad. I was thinking about getting this too.

What is Paypal key? Is it similar to a VAN?

BrutalBodyShots wrote: ↑Tue Mar 22, 2022 5:34 pm What is Paypal key? Is it similar to a VAN?

Sorta but it gave you a debit card number which made it extremely abuseable for things like paying rent, which lots of people used it for. I personally only used it so I could always get 3% by linking it to my AOD card because it allowed me to use my card on otherwise shady websites. I just disposed of the Key when I was done. Noticed the option was gone last week so figured this was coming.

I was wondering what the angle was that was killing it. It’s a shame they can’t just block those MCC‘s.

But there weren’t very many 5% Paypal categories, so most people we’re only getting 2%, most.

Birdman wrote: ↑Tue Mar 22, 2022 9:58 pm I was wondering what the angle was that was killing it. It’s a shame they can’t just block those MCC‘s. But there weren’t very many 5% Paypal categories, so most people we’re only getting 2%, most.

Honestly I think PayPal was just losing lots of money. In this situation they're paying fees on both ends since they're the ones charging the credit card in the background.

how did they expect to make money to begin with? If it’s using the visa MasterCard network they have to pay them, although for debit that’s very cheap, relatively. What do you mean paying on the other end? Isn’t it something the date they chose though? were they in Colorado when they chose it? lol. Maybe they were going to include it as part of a premium service package or require a membership or something who knows?

Birdman wrote: ↑Tue Mar 22, 2022 10:17 pm how did they expect to make money to begin with? If it’s using the visa MasterCard network they have to pay them, although for debit that’s very cheap, relatively. What do you mean paying on the other end? Isn’t it something the date they chose though? were they in Colorado when they chose it? lol. Maybe they were going to include it as part of a premium service package or require a membership or something who knows?

What I mean is that PayPal was paying swipe fees for the debit card with the merchant accepting it and the swipe fees for the credit card that they were hitting for the funding. I have no idea what they were thinking when they decided to offer it. They do say they want to focus on their debit card offering so maybe it will come to the debit card but I highly doubt it after the abuse the business debit went through with the PayPal Cashback being combined for 3%.

Saeren wrote: ↑Tue Mar 22, 2022 10:22 pm

Birdman wrote: ↑Tue Mar 22, 2022 10:17 pm how did they expect to make money to begin with? If it’s using the visa MasterCard network they have to pay them, although for debit that’s very cheap, relatively. What do you mean paying on the other end? Isn’t it something the date they chose though? were they in Colorado when they chose it? lol. Maybe they were going to include it as part of a premium service package or require a membership or something who knows?

What I mean is that PayPal was paying swipe fees for the debit card with the merchant accepting it and the swipe fees for the credit card that they were hitting for the funding. I have no idea what they were thinking when they decided to offer it. They do say they want to focus on their debit card offering so maybe it will come to the debit card but I highly doubt it after the abuse the business debit went through with the PayPal Cashback being combined for 3%.

Actually IIRC, the merchant pays the interexchange fee to the network not the other way around, for the privilege of being able to charge the card. Roughly 2.5%-3% for credit/debit 1%, depending on plan and provider. So the MasterCard network would split the one percent with PayPal, since Interexchange fees are split between the network and issuing bank. Then Paypal would have to initiate a separate credit transaction to charge the credit card which costs them in bulk, they’re probably paying less than 2, but still. Even if they were paying 1 1/2% and getting a half percent from the merchant transaction it’s still costing them money. Am I missing something or did I go wrong somewhere? Maybe that’s why they only rolled it out selectively?

Birdman wrote: ↑Thu Mar 24, 2022 10:15 am

Saeren wrote: ↑Tue Mar 22, 2022 10:22 pm

Birdman wrote: ↑Tue Mar 22, 2022 10:17 pm how did they expect to make money to begin with? If it’s using the visa MasterCard network they have to pay them, although for debit that’s very cheap, relatively. What do you mean paying on the other end? Isn’t it something the date they chose though? were they in Colorado when they chose it? lol. Maybe they were going to include it as part of a premium service package or require a membership or something who knows?

What I mean is that PayPal was paying swipe fees for the debit card with the merchant accepting it and the swipe fees for the credit card that they were hitting for the funding. I have no idea what they were thinking when they decided to offer it. They do say they want to focus on their debit card offering so maybe it will come to the debit card but I highly doubt it after the abuse the business debit went through with the PayPal Cashback being combined for 3%.

Actually IIRC, the merchant pays the interexchange fee to the network not the other way around, for the privilege of being able to charge the card. Roughly 2.5%-3% for credit/debit 1%, depending on plan and provider. So the MasterCard network would split the one percent with PayPal, since Interexchange fees are split between the network and issuing bank. Then Paypal would have to initiate a separate credit transaction to charge the credit card which costs them in bulk, they’re probably paying less than 2, but still. Even if they were paying 1 1/2% and getting a half percent from the merchant transaction it’s still costing them money. Am I missing something or did I go wrong somewhere? Maybe that’s why they only ruled it out selectively?

The fee schedule is all convoluted which is why I just said swipe fees. I know PayPal pays something both ways, I just don't know the total breakdown. If it's not free, and PayPal Key is, they're not really getting anything out of it besides insight into purchases of their customers. That's valuable info but it may not be valuable enough considering the people who knew about it were the ones that were doing select transactions through it, not general spend.

Yeah maybe you’re right they just found it wasn’t valuable enough.