In 2011, PayPal came up with the Extras Mastercard with a point system and rewards, easy online application, and a number of other facilities. With services that seemed too good to be true, it felt like every online shopper’s dream had finally become reality. After compiling a number of customer reviews, however, the research shows that the credit card may not be as ideal as it first appears. What initially seemed to be a good option for a frequent online shopper may in fact be a way to lose more money than save it. This article discusses the downside of the Paypal Extras Mastercard through the complaints that have surfaced from its many users.
The biggest complaint amongst users is the credit card’s interest rate. In the application page of the credit card, the interest rate is not listed. However, if you delve further in the website, you’ll understand why it’s not so prominent. The interest rate is a staggering 19.99% to 23.99% for purchases. This is exceedingly high for an average shopper who can find his money being drained away by the interest rate alone. In some cases, when you don’t qualify for a credit card, you will automatically be considered for an option called the Paypal Smart Connect. This is a line of credit as opposed to an actual credit card which you can use to purchase goods on eBay. However, the interest on this higher than a regular card, amounting to 26.99%
The main bait used by Paypal was its points system after the collection of which you were entitled to a reward. You can earn one point for a regular purchase with Mastercard, two points for anything you buy on Paypal or eBay, and three for restaurant and gas expenses. When you’re applying for the card, the rewards are rather vague saying that you can get gift cards, cash, and travel vouchers. What is not mentioned is how much each of the points you gather are worth in terms of dollars. The logistics are that when you collect 2,500 points, you are eligible for a $15 gift card from Applebee’s. This means that one point only amount to $0.006. Similarly, getting 15,400 enables you to get a travel voucher of a $100. Odds are that you spent two times more to get those points than what you are getting back.
While this may sound discouraging, there are many reward plans available that aren’t so heavy on the pocket. Others like Citibank or Chase can give you deals that you might find more rewarding. Paypal Extras Mastercard may sound tempting at first, but when you do some research and add up your expenses and returns, you might find that the result is not as great as you had expected. However, every person’s experience and priorities are different, so it is best to do a full research and see what is convenient for you. Be sure to read all the terms and conditions and do your calculations ahead of time before you apply for Paypal Extras Mastercard.