When I go to transfer money on PayPal I notice that it lists my bank as well as my debit card as options to transfer money to. They both go to the same place (my checking account) so this had me confused. Is a debit card just another option to list in case you don't feel comfortable giving your bank information to PayPal?
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1 Answer
You asked,
Is a debit card just another option to list in case you don't feel comfortable giving your bank information to PayPal?
The answer is basically yes.
In the back end of Paypal's connection to your bank, the debit card is simply another method of accessing the account it is attached to. It's a method that's meant for everyday transactional use. This is as opposed to using your actual bank account number, which sends the transaction on a channel that's more typically used for offline purposes - it's the difference between paying for groceries or paying a bill.
There are several subtle differences between the transactions (things like who pays for it, how much it costs, what the rules are for reversing or handling errors, etc) but from the point of view of typical use for moving money out of your PayPal balance, the differences don't really matter much.
It's also notable that debit cards aren't inherently a 1:1 relationship to a specific account. It's possible to have two cards on one account, for instance, and the people holding those cards may want to manage their finances separately for some transactions, and hence they may end up with the two cards linked to separate PayPal accounts, for instance.
In the end, the money does go to the same place, and PayPal essentially offers both as a convenience.
