PayPal offers new debit card

August 11, 2009 1:59:53 PM PDT
PayPal is offering a new debit card that targets the parents of high school and college students. PayPal allows users to make payments and money transfers through the internet. It's also the payment method used on the E-Bay auction Web site.

PayPal's 'student account' uses a MasterCard debit card. It's tied to a parent's PayPal account instead of a bank account. Parents can transfer money into the student debit card from any other account.

PayPal claims the cards make it easier for parents to track where money is going.

There is also no overdraft fee.