PayPal Faces SEC Probe of Fees Paid to Bank Behind Debit Cards

PayPal Holdings Inc. dropped after it said it’s facing probes from both the U.S. Securities and Exchange Commission and the Consumer Financial Protection Bureau.

The SEC is investigating whether the swipe fees paid to the banks that issue PayPal’s debit cards are consistent with Federal Reserve guidelines, the San Jose, California-based company said Thursday in a quarterly regulatory filing. The agency is also investigating how PayPal reports marketing fees earned from its branded-card program.

PayPal has responded to subpoenas and requests for information it received from the SEC’s enforcement division and is cooperating with the investigation, according to the ...