I had been thinking about getting a Paypal Credit Card rather then getting my account verified by adding my bank account. I rather keep that info to myself then give paypal my banking info. Well looking into what paypal offers made me NOT want to get that credit card anymore.

Do not apply for a Paypal credit card without seeing this review! Here’s why the Paypal MasterCard rewards program is a horrible idea.

Paypal Credit Card Review
Their credit card was first introduced all the way back in 2001 and has been chugging along ever since. It is heavily promoted by the company; users are often bombarded with its advertisement both on the site and even in emails. They changed the name to Paypal Extras MasterCard for 2011 and introduced a new rewards program.

Interest Rate
Surprisingly when I went to the official Paypal credit card application page, I saw no mention whatsoever of interest rates. After I clicked on the “Apply Now” I discovered why they weren’t exactly shouting 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, but both are high. You either get 19.99% or 23.99% APR for purchases.

If you don’t qualify for the credit card, they will automatically consider you for “Paypal Smart Connect” instead. This is not a credit 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 at the time of this review!

Rewards
Being that the interest is outrageously high, I was hoping that the rewards would be at least one redeeming quality on the card. Here's how the new Paypal credit card rewards program works:
1 point per dollar on regular purchases
2 points per dollar on Paypal and eBay
3 points per dollar on restaurants and gas
Sounds good, right? It won't after you dig a little deeper...

When I first saw this, I said to myself "It looks like they improved their credit card rewards." It is an improvement, but still a lousy deal. Here's why...

When I clicked "Apply For Paypal Credit Card" I didn't see any information about how much much my points would worth. They said you could get gift cards, cash back, merchandise and travel, but I didn't see any examples of how many points those things would cost.

After speaking to their outsourced customer support (her accent was so thick, I had to ask her to repeat things several times) I was provided the following examples for rewards:
2,500 points = $15 Applebee’s gift card (This equals out to measly $0.006 per point!)
6,000 points = $50 cash back on Paypal account (That's a pitiful $0.0083 per point!)
15,400 points = $100 travel voucher (You're only getting $0.0065 per point!)
Verdict
At first glance the Paypal MasterCard looks like a good idea but after reviewing the rewards and doing the math, you realize what a crappy deal it actually is. It's an especially bad deal for regular purchase because based on the above examples, you would be earning far less than 1% on that spending. If you were thinking of using the Paypal credit card to finance a purchase, you need to turn around and run because the APR is absolutely outrageous.
Paypal Credit Card Review: The Ugly Side Exposed

My WORD! 26.99% is highway robbery. I believe PayPal is riding the gravy train on biscuit wheels!!

Thanks for passing along the information about another one of PayPals schemes. If we all continue to watch each others' backs and share tidbits about PayPal they are less likely not to get the best of us.

I didn't want to link my bank account to my paypal account for security reasons so I thought gettin the paypal credit card would be a good idea. Well that was until I came across their outrageous fees. No way! So I ended up begrudgingly giving them my bank account info instead.

WOW thanks for the info I love groups like this, we need to stick together and share knowledge as we receive it

I know the credit industry is watching their accounts and trying to safeguard against losing a lot in bankruptcies, etc. but here we go again, paypal trying to act like a bank or financial institution when it helps them but I'll be damned if they really do run like a regulated business.

Their credit card is something I would NOT even ponder!

is there any way to avoid paypal stripping me of my money? It just seems like no matter what, this free service ends up being a very expensive deal.

How many ways can paypal rip off their users? Does anyone know?
Paypal needs to be shut down, at least for false advertising. They promise the world and give you nothing but hell.