topic Re: PayPal Smart Connect in Credit Cards

PayPal Smart Connect

Cotton_Britches — Mon, 02 Jan 2012 16:47:29 GMT

Does this report to the credit bureau as a store card?

Re: PayPal Smart Connect

Datx — Mon, 02 Jan 2012 17:05:04 GMT

It reports as a 'credit card' for me. I think normally cards are reported as credit cards or charge cards. I don't believe I seen a card reported as a 'store card' before.

Re: PayPal Smart Connect

pizzadude — Tue, 03 Jan 2012 03:58:58 GMT

If you are asking whether it reports as a consumer finance account ~ it does not. It shows just like a credit card/revolving account.

Re: PayPal Smart Connect

Duke-of-Earl — Tue, 26 Jun 2012 06:39:26 GMT

Apparently there's more to PayPal than I had realized. I usually think of it as a sort of online deposit account: You and others can put funds in, you can transfer funds out to others, etc. -- but all on a positive balance, not a debt/credit situation. So it's a surprise to me that they are (also?) credit cards, reporting to CRAs, etc.

Is there still a "regular PayPal" account, more or less as I described above, possibly corrected for errors due to my ignorance? Does it allow debt (negative) balances? And does it also report to CRAs?

Re: PayPal Smart Connect

pizzadude — Tue, 26 Jun 2012 15:42:39 GMT

@Duke-of-Earl wrote:
Apparently there's more to PayPal than I had realized. I usually think of it as a sort of online deposit account: You and others can put funds in, you can transfer funds out to others, etc. -- but all on a positive balance, not a debt/credit situation. So it's a surprise to me that they are (also?) credit cards, reporting to CRAs, etc.

Is there still a "regular PayPal" account, more or less as I described above, possibly corrected for errors due to my ignorance? Does it allow debt (negative) balances? And does it also report to CRAs?

PayPal by itself is just as you described ~ an online account funded by you from which you send payments to others. It does not report to your CRAs as it is not a credit product by itself.

PayPal Smartconnect is a line of credit that you can apply for which can be linked to your PayPal account, it allows you to fund PayPal payments to others from your credit line. SmartConnect reports to the CRAS as a revolving line of credit.

Re: PayPal Smart Connect

Cotton_Britches — Tue, 26 Jun 2012 17:44:21 GMT

@Duke-of-Earl wrote:
Apparently there's more to PayPal than I had realized. I usually think of it as a sort of online deposit account: You and others can put funds in, you can transfer funds out to others, etc. -- but all on a positive balance, not a debt/credit situation. So it's a surprise to me that they are (also?) credit cards, reporting to CRAs, etc.

Is there still a "regular PayPal" account, more or less as I described above, possibly corrected for errors due to my ignorance? Does it allow debt (negative) balances? And does it also report to CRAs?

Your regular PayPal account can have a negative balance. When you swipe your PayPal card, the merchant obtains an authorization on the card for the purchase amount. If he doesn't put the actual charge through within the time allowed, the authorization will fall off your card and the merchant will try to collect those funds at a later date (usually within a couple of days). If, for some reason, you no longer have enough funds in your PayPal account to cover the charge, PayPal will pay the merchant but your account will remain negative for that amount until you add funds to the account.

If you have your PayPal account linked to your Smart Connect account, PayPal will use funds from that credit line to pay the amount due.