Yes, I've seen debit cards that have $0 liability guarantees backed by the financial institution. Since this reflects well on the institution, it will typically

Yes, I've seen debit cards that have $0 liability guarantees backed by the financial institution. Since this reflects well on the institution, it will typically advertise the guarantee somewhere prominent, such as a list of features. In the US, debit cards command different processing fees for the card issuer depending on how the transaction is processed. Sometimes, when using a debit card in person, the checkout terminal will ask the customer to choose "credit" or "debit" for the transaction. Choosing "credit" instead of "debit" grants the card issuer a much larger processing fee. Some financial institutions only offer certain features (including liability guarantees or rewards) when the debit card is used to make a "credit" transaction. Almost all online debit card transactions are processed as "credit" (which does not require you to enter a PIN). About the status of PayPal: it is licensed as a money transmitter but manages a network of bank subsidiaries and third-party bank accounts to profit from interest rate arbitrage and perform other activities that banks would do. https://ftalphaville.ft.com/2015/08/06/2136828/is-it-a-bank-a-money-transmitter-or-a-silicon-valley-shadow-financier-no-its-just-paypal/ https://ftalphaville.ft.com/2015/08/06/2136828/is-it-a-bank-...