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PayPal Credit Opinions?

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Moderator

Re: PayPal Credit Opinions?


@baller4life wrote:
Wait what?. OMG I did not know this! Thx UncleB! 😄

OK, I just dug a little deeper on this, and it looks like things might have changed.

 

On the one hand I found this, which reflects what some report they are still able to do:

 

paypalbackup.png

 

On the other hand, I'm also finding some people now report that they can't link Paypal Credit to their debit card.

 

I don't have Paypal Credit myself, so I have no way to personally test this out.  The last thing I want to do is spread misinformation, so I'm tentatively retracting my above statement until somebody on here can confirm either way.  Smiley Indifferent

 

I'm going to continue to dig around to see what else I can find on this, and I'll report back here. 

 

 

 

Message 11 of 23
Moderator

Re: PayPal Credit Opinions?

Well, this is a mixed-bag indeed.

 

I have found threads both on here and other forums where people reported being able to link Paypal Credit to their Paypal debit card, but it looks like either it's no longer possible or it never was and the authors of the other threads/post were simply mistaken.

 

I suspect people have conflated Paypal credit (Comenity) with Smart Connect (Synchrony)... Smart Connect is explicitly permitted to be linked to the debit card on Paypal's website (see screenshot in above post).  They are curiously silent about Paypal credit (formerly Bill-Me-Later), which leads me to believe it's not possible.

 

This does make sense (somewhat), since the Paypal credit accounts have a 'dynamic' credit line (approved at time of purchase) where the other credit products have a pre-determined credit line.

 

I apologize for any confusion on this, but from my search results I can see that I'm not the only one.  Smiley Sad

Message 12 of 23
Super Contributor

Re: PayPal Credit Opinions?

Well phooey. I just ordered a debit card. It's all good tho. I'm sure it will come in handy! 😉
Message 13 of 23
Moderator

Re: PayPal Credit Opinions?


@baller4life wrote:
Well phooey. I just ordered a debit card. It's all good tho. I'm sure it will come in handy! 😉

I'm sorry.  Smiley Sad

 

FWIW, the debit card is actually a pretty good product... I used mine for years as my 'bank' debit card due to the 1% cash back for PIN-less transactions.  It was a great way to get cash back during that time when other options were sparse.

 

Also, I like having a 'backup' debit card in the event I were to lose my 'real' one; since USAA has no local branches I would have to wait to get a replacement through the mail, but I could use the Paypal debit in the interim (for purchases, not at an ATM, though). 

 

And, there's always the chance that Paypal will change their policy to allow for PP credit to be used as a backup funding source... if that happens, I'll be all over PP credit myself!

Message 14 of 23
Super Contributor

Re: PayPal Credit Opinions?


@richasis wrote:

@Jdana70 wrote:
My aunt told me PayPal reports to the CB. I think she's mistaken. Is it true? I thought it was a hidden tradeline?

PayPal Credit is HIDDEN; PayPal Extras Mastercard REPORTS.


This.


Daily Drivers: Penfed Platinum Rewards; NFCU GoRewards; Discover..
Message 15 of 23
Super Contributor

Re: PayPal Credit Opinions?


@UncleB wrote:

@baller4life wrote:
Well phooey. I just ordered a debit card. It's all good tho. I'm sure it will come in handy! 😉

I'm sorry.  Smiley Sad

 

FWIW, the debit card is actually a pretty good product... I used mine for years as my 'bank' debit card due to the 1% cash back for PIN-less transactions.  It was a great way to get cash back during that time when other options were sparse.

 

Also, I like having a 'backup' debit card in the event I were to lose my 'real' one; since USAA has no local branches I would have to wait to get a replacement through the mail, but I could use the Paypal debit in the interim (for purchases, not at an ATM, though). 

 

And, there's always the chance that Paypal will change their policy to allow for PP credit to be used as a backup funding source... if that happens, I'll be all over PP credit myself!


Okay, once more with feeling for me to understand clearly. Exactly what is the advantage of having that PayPal debit card? Thanks in advance. lol


Daily Drivers: Penfed Platinum Rewards; NFCU GoRewards; Discover..
Message 16 of 23
Moderator

Re: PayPal Credit Opinions?


@Musiclover wrote:

@UncleB wrote:

@baller4life wrote:
Well phooey. I just ordered a debit card. It's all good tho. I'm sure it will come in handy! 😉

I'm sorry.  Smiley Sad

 

FWIW, the debit card is actually a pretty good product... I used mine for years as my 'bank' debit card due to the 1% cash back for PIN-less transactions.  It was a great way to get cash back during that time when other options were sparse.

 

Also, I like having a 'backup' debit card in the event I were to lose my 'real' one; since USAA has no local branches I would have to wait to get a replacement through the mail, but I could use the Paypal debit in the interim (for purchases, not at an ATM, though). 

 

And, there's always the chance that Paypal will change their policy to allow for PP credit to be used as a backup funding source... if that happens, I'll be all over PP credit myself!


Okay, once more with feeling for me to understand clearly. Exactly what is the advantage of having that PayPal debit card? Thanks in advance. lol


Gotcha!  Smiley Happy

 

The Paypal debit card (a.k.a. "business debit card") allows you to access your Paypal balance with a MasterCard debit card.  You're able to set a back-up funding source so that if you attempt to make a purchase that's more than your Paypal balance, they will approve the purchase and will deduct funds from your back-up source. 

 

On PIN-less transactions they pay 1% cash back, so for people without traditional cash rewards cards it's a good alternative to using a bank-issued debit card.  I used it for years while I was in credit purgatory to make all my debit purchases.

 

People who have Synchrony Smart Connect (not Comenity Paypal credit) are able to use their Smart Connect account as a back-up funding source for the debit card, which is a nice arrangement especially since many people with Smart Connect got it after not quite qualifying for the Paypal MasterCard.  It allows them to use the Smart Connect account wherever MasterCard is accepted.  Now that many Smart Connect people have been upgraded to the PP MasterCard this might not be as useful as it once was, but based on what I found it's still an option.

 

If you use the Paypal debit card with a PIN it can also be used to withdraw funds from your PP account at an ATM (you don't get 1% cash back for PIN transactions), but to make the back-up funding kick in you have to use it for a PIN-less purchase at a merchant (i.e. select 'credit').

 

There are a few other creative uses, but the 'biggies' are above.  Before I had my credit cards I preferred it to my 'real' debit for the cash back, and if I were to lose it I would still have my 'real' debit card to use until my PP debit was replaced (thankfully this never happened). 

 

Hopefully this helps!  Smiley Happy

 

 

Message 17 of 23
Super Contributor

Re: PayPal Credit Opinions?

UncleB isn't the cashback now 1.5%?
Message 18 of 23
Moderator

Re: PayPal Credit Opinions?


@baller4life wrote:
UncleB isn't the cashback now 1.5%?

Some people on here are grandfathered at 1.5% cash back, but apparently as old as my own is I must have just missed it.  My own is 1%, and from what I can tell newly issued PP debit cards are also 1%.  Smiley Sad

 

(gosh, I'm just full of bad news today!)  Smiley Frustrated

 

https://www.paypal.com/us/webapps/mpp/debit-card

 

ppCreditcash.jpg

Message 19 of 23
Regular Contributor

Re: PayPal Credit Opinions?

Thanks for all your research! I was also told you could use PPC at certain retail outlets if you downloaded an app to your cell, etc. This person also told me they had auto work done & used PPC. But how? It all made no sense and when I did talk to reps @ PPC, they were not helpful. I have PPC  set up as a default\back up payment for some online places I shop so that's enough. I have other cards to use but the hidden 'factor' is  nice.

Message 20 of 23
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