PayPal announced in an email to users it would soon change the name of its PayPal Cash Plus account to PayPal Balance. The company introduced PayPal Cash accounts in 2019 to comply with the new regulations by the U.S. Consumer Financial Protection Bureau.
PayPal assured users that all account features remain unchanged since this is just a name change. Users do not need to take any action because of the name change.
This change to PayPal Cash accounts has always been a bit confusing because most users had a balance in their PayPal account, which automatically added a PayPal Cash account to their PayPal account when the change happened.
To add more confusion, PayPal created another type of account, called a PayPal Cash Plus account, that was triggered if users either got the PayPal Cash Card Debit Mastercard (or the PayPal Business Debit Mastercard) or set up Direct Deposit in their PayPal app.
Here is how PayPal differentiated between these two PayPal Cash account types:
- Send money using balance.
- Hold a balance.
- Shop in-store with balance with Google Pay and Samsung Pay where accepted.
PayPal Cash Plus
- Get the PayPal Cash Card Debit Mastercard (or the PayPal Business Debit Mastercard).
- Set up direct deposit to automatically add paychecks to balance.
- Get FDIC coverage for balance if you have a PayPal Cash Mastercard.
- Get cash with the PayPal Cash Mastercard or the PayPal app at ATMs.
- Load cash to their balance at more than 85,000 retail locations nationwide with the PayPal app or by swiping the PayPal Cash Mastercard, including CVS, Dollar General, Dollar Tree, Family Dollar, Rite Aid, 7-Eleven, Walgreens and Walmart.
- Get cash at Walmart with the PayPal app.
- Scan a check to add it to balance with the PayPal app.
With this new name to PayPal Balance, it seems they have done away with two names, but some features of the PayPal Cash Plus account are still only applicable if users meet the previous requirements for a PayPal Cash Plus account.
In the recently updated PayPal Balance Terms and Conditions (T&C), PayPal also added that PayPal Balance accounts are eligible for FDIC pass-through insurance if the user purchased cryptocurrencies through PayPal.
Trading in cryptocurrencies has become a big push for PayPal as the company has run promotions and expanded the program to both PayPal and Venmo, including a new direct cashback option for Venmo Credit Cardholders.
While PayPal changing the name to PayPal Balance simplifies the terminology of its two PayPal Cash accounts and doesn’t really affect features, a few things have changed since PayPal introduced these accounts to comply with the latest government regulations.
This has also helped PayPal Balance to mature closer to being a replacement for a personal bank account for many consumers, especially since it doesn’t have monthly maintenance or other hidden fees often found at many retail banks.
In addition, PayPal announced a new partnership today with Fiserv to offer more ways for enterprise companies to directly deposit money into PayPal and Venmo accounts.
This will further make PayPal Balance a more valuable option for users that receive payments from companies using the Fiserv platform, which includes companies like Lyft, State Farm and FanDuel.
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