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I just closed my Paypal Credit account.

Started by shadroch,

41 posts in this topic

shadroch

shadroch

Posted
Posted

I've had it for many years, since it was Bill Me Later and had cycled almost $100,000 through it, not counting the Paypal fees associated with it.

Last month, I bought a book off the boards for $445 and for reasons I still don't understand, it was charged as a cash advance. Got my statement yesterday and there was about $6 in interest tacked on.

I called up and was told it was a mistake on my part and PP couldn't do anything about it. talked to a supervisor and was told the same thing. I asked if we could move it into a normal purchase and she said no. I told her I was going to pay off the entire account and close it, and she offered me a one time $3 statement credit not to.

In forty years of dealing with credit card companies, I have never dealt with a less flexible company.

In the end, it will work out better for me as I'll use my Jet Blue card and get mileage.

F.I.D.O.

 

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SquareChaos

SquareChaos

Posted
Posted

I worked in payments for a few years, and PayPal isn't a payments company any longer, they're a giant bank. They honestly don't care about individual transactions, they care about large partner transactions, and that sort of behavior leads to just this sort of customer service.

 

They really should split up even further than they have, let separate divisions cater to specific areas of the business, and run them under the same market pressures as other entities in those spaces - they'd likely end up with better results... however, margins on online payments being what they are, they probably won't bother any time soon.

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lizards2

lizards2

Posted
Posted

I called up and was told it was a mistake on my part and PP couldn't do anything about it. talked to a supervisor and was told the same thing.

 

So...., tell me more.

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rjrjr

rjrjr

Posted
Posted
I've had it for many years, since it was Bill Me Later and had cycled almost $100,000 through it, not counting the Paypal fees associated with it.

Last month, I bought a book off the boards for $445 and for reasons I still don't understand, it was charged as a cash advance. Got my statement yesterday and there was about $6 in interest tacked on.

I called up and was told it was a mistake on my part and PP couldn't do anything about it. talked to a supervisor and was told the same thing. I asked if we could move it into a normal purchase and she said no. I told her I was going to pay off the entire account and close it, and she offered me a one time $3 statement credit not to.

In forty years of dealing with credit card companies, I have never dealt with a less flexible company.

In the end, it will work out better for me as I'll use my Jet Blue card and get mileage.

F.I.D.O.

 

Were you trying to use Bill Me Later on a transaction with a bank not in the U.S.? (i.e. was the seller's bank a non-U.S. bank?)

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GM8

GM8

Posted
Posted
I can understand your principles.

But just so I understand overall.

You wanted a 6 dollar credit. They only offered you 3 dollars.

So you closed the account over $3 basically ?

 

Yeah that's where I'm at too.

 

I'm all for justice and I know 'letter of the law' thrives around here and heck Paypal is a thorn in my side too, But it's $3 and it's still pretty seamless with eBay. Now you're going to get miles but have an extra step or 4 for the next 100,000 you do. You put the burden on yourself in my opinion.

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Antpark

Antpark

Posted
Posted
I can understand your principles.

But just so I understand overall.

You wanted a 6 dollar credit. They only offered you 3 dollars.

So you closed the account over $3 basically ?

I bet there's more than that.

  • Interest Free Financing -- There's usually a purchase threshold that will qualify for XX months of interest free financing as long as the balance is paid off, but it's for PURCHASES only -- Cash Advances don't qualify.
    I'm assuming Shadroch wasn't expecting any interest charges on his monthly statement from that purchase.
  • Fees and Interest - Cash Advances are usually charged at a higher interest rate than purchases. There are also usually transaction fees associated with them.
  • Like you said, principles and their lack of willingness to completely take care of the problem for a customer that's done a substantial amount of business with them.

 

 

 

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Algo

Algo

Posted
Posted
I can understand your principles.

But just so I understand overall.

You wanted a 6 dollar credit. They only offered you 3 dollars.

So you closed the account over $3 basically ?

 

Sorry but you clearly don't understand his principles, otherwise you wouldn't question the $3 - It's the principle dammit!!! Good on him!!! (Serious)

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entalmighty1

entalmighty1

Posted
Posted
I'd be pretty pissed if an employee of mine let a customer who, like you said, cycles lots of money through my business, walk away over $3 (or $6 for that matter). :screwy:

 

Exactly. It's an absurd situation. Not that it will matter in the grand scheme, but good for you Shad!

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Artboy99

Artboy99

Posted
Posted
I'd be pretty pissed if an employee of mine let a customer who, like you said, cycles lots of money through my business, walk away over $3 (or $6 for that matter). :screwy:

 

Exactly. It's an absurd situation. Not that it will matter in the grand scheme, but good for you Shad!

 

often large companies will make business decisions that do not make any sense and the employee is in the position of being unable to do anything. The employee probably couldn't give the $6 back.

 

If it was my company, and the customer is making me profit, I would do what he wants I.E. give him the 6$.

 

The company I work for lost a very profitable customer over 0.05% on an interest rate. I kept sending the request back to the decision maker with my position/ point of view until finally the response I was given was "if we bend to this client's request in this instance we will have to bend to this client's future requests for reduced interest rates. To give this client the rate they are asking for sets a precedent, and we are unwilling to do so"

They let the client walk away ( and walk away they did ) and I was left scratching my head completely baffled.

Like I said, I could understand if the customer wasn't making the company money, but in this case they were at the maximum profitability level. Just baffling.

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Doktor

Doktor

Posted
Posted

Dear god, why would you use it if you weren't paying it off during the 0% financing period? It's borderline loan-sharking or payday lending scam level interest rates otherwise.

 

At that point, you'll get a better interest rate on literally any visa card in your wallet.

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jaybuck43

jaybuck43

Posted
Posted

Shad, just as a warning, you may get a hit on your FICO score for closing your account. Assuming you have any balances on your other cards/accounts, when you close the paypal credit, it will lower your utilization total (i.e. you go from having a $100,000 total line of credit to $90,000 total line of credit). Assuming you're carrying $10,000 worth of debt, that means you go from Utilization of 10% to Utilization of 11%. Probably not enough to ding you, but your score may drop a few points. And of course, your actual numbers may vary.

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SquareChaos

SquareChaos

Posted
Posted
Shad, just as a warning, you may get a hit on your FICO score for closing your account. Assuming you have any balances on your other cards/accounts, when you close the paypal credit, it will lower your utilization total (i.e. you go from having a $100,000 total line of credit to $90,000 total line of credit). Assuming you're carrying $10,000 worth of debt, that means you go from Utilization of 10% to Utilization of 11%. Probably not enough to ding you, but your score may drop a few points. And of course, your actual numbers may vary.

 

You'll also want to pay attention to the average age of all of your open credit accounts. If your PayPal account has been around for a while it could lower that average enough to impact you. I think they want to see a greater than 70 month average on your credit accounts.

 

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