So in my last post, Part I, I gave a brief overview of both RadPad and Plastiq, and how to take advantage of both services to either stop having to write checks to your landlord each month, meet minimum spend for newly acquired credit card bonuses, build your credit, and/or rack up some serious travel reward miles/points in the process.
I concluded the following:
- If you're a renter, and you want to pay rent with your debit card, use RadPad because it is fee-free.
- If you're a homeowner, and you want to pay your mortgage with your debit card, you can only use Plastiq, and you will be charged a 1% fee.
- If you're either a renter/homeowner, and you want to pay rent/mortgage using your credit card, use Plastiq, because its 2.5% fee is lower than RadPad's 3.49% fee.
PayPal Business Debit MasterCard
Ok, why am I bringing this up? First of all, you have a PayPal account, don't you? If you don't, no worries, I'm not judging you, but seriously, where have you been??? j/k. Secondly, the PayPal Business Debit MasterCard (PPBDMC) is a debit card provided by PayPal, linked to your PayPal account. Thirdly, this card gets 1% cash back for any non-PIN transactions... basically transactions run as credit.
Here is where I connect the dots. We've already established that RadPad is fee-free when paying your rent with debit, and Plastiq charges 1% when paying your mortgage with debit. If we first look at using debit to pay with Plastiq, essentially the 1% fee and the 1% cash back cancel each other out. It's a wash, so let's forget Plastiq and debit for right now (we'll come back to it in Part III). However, RadPad is fee-free when using debit... so what does that mean? If you pay a $1,000 rent payment each month, using the PPBDMC, guess what... you MAKE $10! So over a year, you're "saving" $120 on rent. How 'bout dem apples?!
The good thing about this card being linked to your PayPal account, is that your bank account is probably linked to your PayPal account as well. Basically, any non-PIN transaction that you use the PPBDMC with, you are now essentially earning 1% cash back. Now don't get so excited that you go out shopping only using this card. Remember, there are plenty of stellar 2% cash back cards out there, even several 5% cash back cards, along with other travel credit cards that could net you >1% in equivalent travel rewards.
How To Get The Card
To be eligible for the PayPal Business Debit MasterCard (make sure it is the business card, as this is the one that gets 1% cash back), you have to have a Business PayPal account. Keep in mind that the fees are exactly the same, regardless of account, so this upgrade essentially allows you to take every single kind of payment out there, AND allows you to apply for this card. Upgrading your account is super simple to do:
- Log into your PayPal account.
- Click on the wrench (settings) button in the top right of your account.
- Under 'Account Options', you should have the option to 'Upgrade to a Business account'
- Run through the steps, and voila, you have a business account!
Once you have a PayPal Business account, you can now sign up for the PPBDMC at this link. This card has no annual fee, and really is a means for you to make some money back on money you are going to spend every month anyways!
We already know that RadPad and Plastiq can benefit us in some way or another, if we're willing to learn the process, and take a few extra steps each month to pay our rent/mortgage. If you're a renter, and looking to "get something" out of paying rent each month, at no cost (actually at a profit!), then the PPBDMC is for you!
Stay tuned for Part III, where I teach you how to generate those miles/points using the PPBDMC! Say whaaaaaaa?!
*Please use any of the Plastiq links on this post, as they are referral links. If you sign up using my link, I get 400 FFD (fee free dollars) and you get 200 FFD with your first payment of $20 or more! Thanks!