02 Jan 2023By PAYCEC
Although PayPal is not a bank, it collaborates with banks such as The Bancorp Bank and Synchrony Bank to provide products such as debit cards, prepaid cards, credit cards, and lines of credit.
PayPal allows you to link an external bank account, credit card, or debit card and use the service to securely shop online. It acts as a go-between for your payment method and merchants, keeping your payment information secure.
PayPal can also be used to make online payments or to transfer money between friends, family, and business partners.
PayPal provides a variety of financial services and products that may meet some people's banking needs. You can pay your bills with PayPal online or through the PayPal app. Some PayPal credit cards, debit cards, or financing options may be useful if you're looking for a convenient way to get more benefits from your PayPal account. Because PayPal is not a bank, any money you leave in your PayPal account is not FDIC insured in the same way that it would be in a bank account. If you want FDIC protection for your PayPal balance, you should request (and receive) a PayPal Cash Card.
PayPal may not be able to take the place of a bank. It may not be the best option if you want the security and convenience of a bank checking account or credit union share draft account. Although PayPal offers some useful financial products and tools for online payments, you should look elsewhere for the relationship that will serve as your financial home base.
