I spoke with PayPal support today regarding the upcoming removal, on September 23, of the back-up funding source for the PayPal Business Debit MasterCard*.
I was told I was not the only PayPal customer objecting to this new policy and for similar reasons. I am hoping the cacophony of user complaints will stop this policy change. I know PayPal makes money on my transactions, even with my 1% cash-back. But this change will eliminate 99% of my PayPal transactions.
* With a back-up funding source, you do not need a PayPal balance to make purchase with the card, it will draft from your funding source. This essentially turns the card into a pass-through debit card, earning you cash-back and allowing a little more distance from your bank for security. As well, if you accept payments via PayPal, those funds are instantly available to you via the card. This is has huge utility for business. (And personal, just never let them know you are using it for personal purchases.)