Before you apply for the Paypal credit card, here’s what they probably don’t want you to know about their Paypal Plus MasterCard.


Company History
Now a subsidiary of eBay, Paypal started out in ’99 as one of the first online payment systems that could be used by both individuals and businesses. They grew exponentially (some say in part to the $10 they used to give years ago to new users to signup) but with the success also came quite a bit of controversy. There were countless reports of Paypal accounts with money in them being permanently frozen without apparent reason. In turn the company took a lot of heat from state regulators and some, Like Louisiana, outright banned them altogether. The company eventually patched things up and made amends to pave the way fro their IPO in 2002. Ebay acquired them later that same year.

Paypal Credit Card Review
Their credit card was first introduced all the way back in 2001 and has been chugging along ever since. Officially known as the Paypal Plus MasterCard, it is heavily promoted by the company; users are often bombarded with its advertisement both on the site and even in emails. Let’s find out if this card actually measures up…

Interest Rate
Surprisingly when I went to the official Paypal credit card application page, there was no mention whatsoever of interest rates. After I clicked on the “Apply Now” I discovered why they weren’t exactly publicizing the APR… it’s extremely high! No wonder it was hidden in the fine print! At the time of this review, they had two different interest rate tiers and the one you get depends on your credit score. You either get 19.99% or 23.99% APR for purchases.

This is extremely high to say the least! In fact, when it comes to major credit cards, I would estimate that 85% to 90% give a better APR this!

If you don’t qualify for the credit card, they will automatically consider you for “Paypal Buyer Credit” instead. This is not a card but rather a small line of credit which can be used on eBay purchases, etc. Unfortunately the APR on this is even higher, coming in at a staggering 26.99% APR!

Rewards
Being that the interest is outrageously high, I was hoping that the rewards would be at least one redeeming quality on the card.

They give 1 reward point per dollar spent. Here’s what the points can be redeemed for:
  • 1,000 points – up to $7 shipping credit on a purchase made via Paypal
That equals out to be less than 1% cash back on your spending (it’s 0.07% cash back)
  • 2,500 points – a reward voucher for $25
This equals out to be only 1% cash back on your spending
  • 9,500 points – a reward voucher for $100
This equals out to be about 1.05% cash back

The above reward vouchers can then be applied to a Paypal Purchase.

Verdict
When you do the math (as shown above) you find out the rewards only equal out to be 1% on the Paypal credit card. This is a joke considering that most cards now give a straight up 1% cash back anyway - without having to save up to get “vouchers.” So as far as rewards go, this card is worthless. The APR is so ridiculously high that if you were thinking of using it to finance a purchase, you need to turn around and run! The Paypal Plus MasterCard is a ripoff in every sense.

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