Jul 162013

Paypal Smart Connect CardIn the world of online credit cards, there are many different options at a shopper’s disposal. Paypal has been a leading name in the online shopping world for many years now, so you would think that Paypal would have a competitive lease on the credit card situation. They have two different offers for shoppers: the Paypal Extras Mastercard and the Paypal Smart Connect Card. Now, GE Capital Retail Bank, the backer of both of these cards, can be rather picky with credit histories, so some people may not qualify for the Mastercard. The other option, the Paypal Smart Connect Card, is an almost laughable offering designed to snatch up the rest of the shoppers that do not have excellent credit histories.

Paypal Smart Connect Card Facts

As always, shoppers need to be wary. They need to research options before they commit to any one credit card. As such, most shoppers should be careful of lunging for this Paypal Smart Card without giving it some thorough investigation. This card is not a card at all, but is instead a credit line that is attached to your Paypal account. This is significant because it means that you can only use this credit line for purchases at stores that accept Paypal. Thus, this is primarily an online credit line. So, there will be no restaurant or gas station purchases with this credit line. On a brighter note, there is no annual fee though.

Aside from the limited utility, the Paypal Smart Card also has the highest interest rate I have ever seen, as it packs a wallop with a 26.99% interest rate! This is simply ridiculous! The normal Paypal Smart Card credit line seems to be about $600, so there isn’t much money in play here. Still, however, if you would utilize the full $600 in credit and then not pay it off within a month, you could be stuck with over $150 in interest! This is simply unacceptable for anyone that is serious about finding a good online credit card.

On top of the horrible APR, most people come away from the Paypal Smart Card with nothing but complaints. GE Capital and Paypal seem to have trouble with differentiating between the standard Paypal account and the Smart Card. Shoppers report all sorts of problems with charges being applied to the incorrect account, which in turn leads to fees and long conversations with outsourced customer service representatives.

Paypal Smart Connect Card Review and Verdict

For the sake of sanity, the Paypal Smart Card should be avoided. This credit line is limited in scope, extremely expensive, and little more than a cash in on those desperate enough to sign up for the offer. It also features horrible customer service. In all honesty, however, most (if not all) credit lines like this one have about the same level of APR. The key is to pay it off every month. If this is your plan and you can deal with the customer service, then, by all means, get this credit line. However, if you are looking something that is a bit more dynamic, look elsewhere. The official Paypal Smart Connect Card FAQ can be found here.

  2 Responses to “Paypal Smart Connect Card Review”

  1. Actually I had pay pal smart connect. My experience have been that it can be used at both gas stations and restaurants. It all depends which ones they are possibly- but it’s a lot more usable than I had originally thought. Whenever I did not have enough in my pay pal account, pay pal smart connect picked up the balance.

  2. I had a very negative experience with Paypal smart connect. DO NOT EVER USE THIS!!!!! I used my paypal smart connect to make a few purchases without any incidents so I figured this would be no problem also. I check the website the day before just to make sure I can use Paypal smart connect anywhere Paypal is accepted. so after doing my due diligence I decided to purchase tickets through Stubhub. Mind you my payment preference in Paypal is to connected to the Paypal smart connect. why is it that I proceed with the transaction and the entire amount is removed from my checking account. of course I was not happy about this. I then call Paypal customer support or lack there of and was told if I wanted a refund I would have to go through Stubhub, ok I can see this point. I then asked the customer service person if Paypal smart Connect is accepted everywhere Paypal is accepted. she proceeds to tell me I can only use smart connect is that payment option is available during the transaction. huh? I checked the website, so I decided to cut and paste the exact verbage is as follows:

    Where can I use PayPal Smart Connect?
    You can use PayPal Smart Connect to fund purchases on eBay listings that accept PayPal and anywhere else PayPal payments are accepted.

    No where in this statement does it say only if Paypal smart connect appears as an option for payment. THIS IS FALSE ADVERTISEMENT IN EVERY WAY SHAPE AND FORM. Needless to say I will pay off my account and use them little to none at all if possible.

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