Just started to look into the Paypal debit card, and it looks like the $1 fee might not be entirely true. It appears to be a $1 charge for an atm in the US and a 1% fee if used at a foreign atm. And, the details on foreign transaction fees are a little grey as far as if you will be charged a fee for Jamaica.

Quote Originally Posted by From the Paypal website
PayPal Debit Card Fees.

Foreign Transactions If you obtain your funds or make a purchase in a currency other than the currency in which your Card was issued, the amount deducted from your funds will be converted by MasterCard International Incorporated into an amount in the currency of your Card. The exchange rate between the transaction currency and the billing currency used for processing international transactions is a rate selected by MasterCard International Incorporated from the range of rates available in wholesale currency markets for the applicable central processing date, which may vary from the rate MasterCard International Incorporated itself receives, or the government-mandated rate in effect for the applicable central processing date. If you obtain your funds or make a purchase in a currency other than US currency, The Bancorp Bank may assess a foreign currency conversion fee of 2.5% (as outlined in Section 3 below) of the transaction amount and will retain this amount as compensation for its services.

ATM Withdrawal US $ 1.00 (Plus any amounts charged by the ATM owner.)

Signature Withdrawal $ 3.00 if a signature is required to obtain cash.

Non-US ATM Transaction (Using an ATM machine that is not in the US) 1%; This fee will apply even if the transaction does not require a currency conversion.

Non-US Debit Card Usage (Making a purchase from a seller that is not in the US) 1%; This fee will apply even if the transaction does not require a currency conversion.

Exchange Rate & Fee The currency exchange rate is determined by The Bancorp Bank based on the current market price and includes a 2.5% Fee. This Fee is variable and only applies when The Bancorp Bank performs the currency conversion.
I hope that you weren't misled by a less than truthful customer service agent and maybe the terms of use have changed. I've dealt with a few of those when calling credit card companies to figure out if CDW for a rental car was covered in Jamaica. Here is the link to card agreement on paypal's website if you want to check it out for yourself.

Debit card agreement

Even if all of these fees are imposed, it still seems safer than using a regular Debit card and cheaper than wiring the money.

Mark