Terrible experience with PayPal credit

[Kathbradfish]

So three weeks ago I decided to try out PayPal Credit as an easy way to keep track of transactions, with an eye on using it for my non-profit. This has been the worst experience of my life. Very few Customer Service Reps go off script "our security is "protecting you" and therefore your purchase was declined (27 times including 20 that they requested I try while they are onthe phone) switch browsers (I did twice) check with your credit card company (made me look stupid as they pointed out if I can use it everywhere else it is obviously a PayPal issue) Check address to make sure they are the same (they are) delete account (did this twice) "Ma'am this works for me, so if you want to say your account isn't providing the survice promised (that it will work?) that is on you" "PayPal decides on a transaction by transaction basis whether you can make the purchase" )HUH??? PayPal decides if I can use my account or not (including on the sites they recommended???). That last one is against the law btw. So here is what I've learned : "Is it accurate to say that PayPal may unpredictably blocklegitimate transactions at any time with no explanation as to why" The answer was "Yes, we block a huge number of transactions every day and it is out policy not to explain why." The problem isn't with credit, your browser. PayPal's system is not broken. This is their POLICY. and it is not for your protection", PayPal is clearly willing to inconvenience youbMOST of the time in order to protect THEMSELVES from the risk. Making this a TERRIBLE product, the question then becomes does it actually violate Consumer Protection Law through its algorithm. I for one want to find out

[DPCreations]

PayPal Credit works fine as long as you meet the requirements for the offer.  Lenders have a right and obligation to deny credit to users who do not meet the risk levels required by the lender.

PayPal Credit will be offered at time of purchase when all requirements are met for the seller, the product, and the financial situation of the buyer.  PayPal security and risk models are not disclosed as that is to prevent frudulent use of the system.

If you want a product with consisten offerings, then just use a credit card or a bank equity loan.

[Kathbradfish]

I guess you are having difficulty understanding what I wrote. 1) I met the criteria and was given a credit line 2) I not only followed all verification processes but also the additional verification process confirmed through public record 3) each of the sellers are recommended by PayPal and accept PayPal credit 4) It is the algorithm that has a fault in it, that it needs a shopping pattern to accept transactions but as a new customer you can't establish one because the decline each individual purchase 5) If you think it is legal for a Creditor to offer a line of credit and the control the purchase Ms you make even when you are within the defined perimeters of the agreement thanyou know less than nothing about Consumer Protection Law. Would you like the governing Law? I worked 15 years for a Big Four Financial Advisory Firm, I would be happy to get it for you. Otherwise please don't lecture me about why I am wrong to expect a product to work as it is contractually expected to . If you have a helpful suggestion, feel free to add that and it will be much appreciated

[DPCreations]

1) is not relevant.

PayPal Credit is not a credit line as you would expect with a bank credit line account with checks.

PayPal Credit is conditional for each purchase a your situation is evaluated in real time.  There is no guarantee of available for all purchases.

That's just the way PayPal Credit works and that's about all you need to understand about PayPal Credit.

[Kathbradfish]

WHAT? From PayPal: "PayPal Credit is a line of credit from Comenity Capital Bank that gives you the flexibility to pay for your purchase now, or pay over time.". Huh, so I guess they are, and are therefore subject to the same laws as any other credit line. But hey, thanks for playing (BTW) The way the think they are getting around this, is by running the Security algorithm in "Wallet" BEFORE the Credit inquiry, so they can claim that the CREDIT LINE didn't reject it. I guess we will see on Monday when I speak to FCPB whether this is viable.

[TSI]

DPCreations - 

Again, you are incorrect.  As a moderator you should know these answers.

PayPal Credit is an APPROVED CREDIT LINE. They DO NOT check your "financial situation" each time you make a purchase!!!!  All you have to do is read the FAQ section of the PayPal Credit website.  If it were not t a "usual credit line" as you claim, it would be false advertising and fraud.

To the original poster - I have been having the same issues as you for the past month. Every purchase gets denied. It is not a matter of being able to select PP Credit as a funding source or not. It is not a matter of the merchant not accepting PP credit, as DPCreations states.  It is a matter of PP itself flagging your account for some reason, and requiring a check of your identity.  Or some other issue. For me, each time requires a call to Pay Pal of 30+ minutes. Sometimes they can verify my identity and get the transaction to go through; sometimes they can't. 

If PP and Comenity Capital Bank are offering this as a credit product, it should be available to be used by its account holder for any reason unless they violate the terms of the credit agreement.  In the case of PP Credit, they approve you for a service with favorable terms, and then don't let you use it, and you can't get a decent reason out of their reps.

This crap that DPCreations is posting on all the PP Credit questions is wrong.   He makes it sound like PayPal credit is the most elite financial institution on the world. This is not an Amex Platinum card, sir. It is a credit line offered by a random bank.  It is also a business. They should want you to use their product because they make money. The point I am trying to make is, there's a serious issue with PayPal's computer "risk management" system, especially because the agents can't over ride it once your identity has been confirmed. Seriously, they have checked my identity so many times and in so many ways, they know my entire life story now. 

[DPCreations]

Actually, @TSI, you are the one with incorrect information.

First, I am not a moderator, nor a representative of PayPal or PayPal Creidt, but I have been using PayPal Credit for many years without a problem.

Second, PayPal Credit does check creditworthiness. as indicated on their web site:  "PayPal Credit is subject to credit approval as determined by the lender, Comenity Capital Bank."  

And there is more.  You have not provided any indication that credit is denied when one has a high rating and other good credit factors.  Is your own credit rating really high?  Do you have multiple credit cards totally more than $10,000 available credit and using only $2,000 credit?  Do have have a well-established banking history?  These are are factors which impact on your creditworthiness.  PayPal won't extend credit for specific purchases when the risk is high.

Here is another statement from PayPal Credit FAQ:

"PayPal Credit is a credit account that you can use to make purchases and send money. Comenity Capital Bank will review and consider your credit report and other credit related information prior to opening your account and establishing your credit line. Creditworthiness is determined by Comenity Capital Bank."

The credit limit is not a guarantee that funds will be available when and where you want to make a purchase.

[Kathbradfish]

So 5 minutes after writing this I received the following: "We declined your transaction for your safety. As you know, your transaction was recently declined. What you may not know is that it was because your payment card wasn’t confirmed. Let’s make sure it doesn’t happen again. For your safety, we must confirm you are indeed the cardholder to prevent fraud. " THE PAYMENT CARD (PREFERENCE) was PAYPAL CREDIT. I CONFIRMED (RECONFIRMED MY IDENTITY YESTERDAY). seriously ? wTH is wrong with you people?

[Kathbradfish]

So 5 minutes after writing this I received the following: "We declined your transaction for your safety. As you know, your transaction was recently declined. What you may not know is that it was because your payment card wasn’t confirmed. Let’s make sure it doesn’t happen again. For your safety, we must confirm you are indeed the cardholder to prevent fraud. " THE PAYMENT CARD (PREFERENCE) was PAYPAL CREDIT. I CONFIRMED (RECONFIRMED MY IDENTITY YESTERDAY). seriously ? wTH is wrong with you people?

[DPCreations]

Do you have a credit card confirmed on your account?