PayPal has sent out an e-mail to existing Business credit card holders informing them that their accounts will be closed on 9/23/24. In addition the credit limit on the account has been reduced dramatically effective immediately (as low as $100 on some accounts).
This letter is to inform you that the PayPal Business Cashback Mastercard® is being discontinued and all credit card accounts will be closing. It also is to inform you of additional changes that the creditor is making to the terms of your account, including your credit limit and required minimum payment. Please read this letter carefully as it contains important information about your credit card account and its updated repayment terms.
Effective September 23, 2024, your above-referenced credit card account will be closed. This means that you will not be able to use your credit card account for new transactions after this date. Transactions that are still outstanding as of that date will continue to process, but any new transactions after that date will be declined. Any returns, refunds, or other credits to your credit card account will still be permitted.
Even though your credit card account will be closed to new purchases or advances, you remain obligated to pay the remaining outstanding balance in a timely manner and in accordance with the terms of your existing cardholder agreement in effect at the time of such repayment, subject to the additional changes set forth below.
Specifically, effective September 16, 2024, your new credit limit is $XXX. You understand that after this date, any transactions that would cause you to exceed your new credit limit may be declined.
PayPal has a history of closing products like this with very little notice, but I think this is a new record. Hard to have any confidence in their offerings going forwards when you’re giving a weeks notice that the account will close. Hopefully no businesses were relying on this card for managing cash flow.