PayPal Key - anybody use it?

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meebers
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PayPal Key - anybody use it?

Post by meebers »

Almost signed up for it but thought I should get some opinions? :shock:

PayPal Key is a virtual card and a new way to use your PayPal account anywhere cards are accepted online.
nalor511
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Re: PayPal Key - anybody use it?

Post by nalor511 »

I've used it. It was great, got rewards on things I wouldn't have, at places that do not accept Paypal. But now, a lot of cards have added processing fees for going through PayPal (treating PayPal more like a cash advance), to counteract this tactic, and I have not used it since. https://www.doctorofcredit.com/some-maj ... quare-etc/
Jags4186
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Re: PayPal Key - anybody use it?

Post by Jags4186 »

nalor511 wrote: Mon Aug 23, 2021 8:46 pm I've used it. It was great, got rewards on things I wouldn't have, at places that do not accept Paypal. But now, a lot of cards have added processing fees for going through PayPal (treating PayPal more like a cash advance), to counteract this tactic, and I have not used it since. https://www.doctorofcredit.com/some-maj ... quare-etc/
Unless I’m missing something, this article doesn’t have anything to do with PayPal Key. This article refers to using PayPal to send money peer-to-peer to someone else via credit card. In those situations, PayPal charges the sender 3% fee and then the sender is potentially hit with cash advance charges by their CC company.

OP, PayPal Key has limited uses. The primary one I’ve found is that it codes as “debit” allowing you to pay for certain things that either don’t accept, or charge a fee for credit. This was taken advantage of early in PayPal Key’s existence — for example - Plastiq, tax payments, etc. Those loopholes have closed.

Today, I use PayPal Key to pay for my Verizon FIOS bill. Verizon offers a $10/mo debit discount and I have my Chase Ink Cash linked to earn 5% back on my Verizon bill. If I tried to pay directly with my Chase Ink card I’d lose my $10/mo debit discount.
Topic Author
meebers
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Location: Florida

Re: PayPal Key - anybody use it?

Post by meebers »

Jags4186 wrote: Mon Aug 23, 2021 8:54 pm
nalor511 wrote: Mon Aug 23, 2021 8:46 pm I've used it. It was great, got rewards on things I wouldn't have, at places that do not accept Paypal. But now, a lot of cards have added processing fees for going through PayPal (treating PayPal more like a cash advance), to counteract this tactic, and I have not used it since. https://www.doctorofcredit.com/some-maj ... quare-etc/

OP, PayPal Key has limited uses. The primary one I’ve found is that it codes as “debit” allowing you to pay for certain things that either don’t accept, or charge a fee for credit. This was taken advantage of early in PayPal Key’s existence — for example - Plastiq, tax payments, etc. Those loopholes have closed.

Today, I use PayPal Key to pay for my Verizon FIOS bill. Verizon offers a $10/mo debit discount and I have my Chase Ink Cash linked to earn 5% back on my Verizon bill. If I tried to pay directly with my Chase Ink card I’d lose my $10/mo debit discount.
OK That is interesting, thanks for the reply
vshun
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Re: PayPal Key - anybody use it?

Post by vshun »

It works as a debit card and is very helpful when your 5% category card lists Paypal as category. For instance, for this quarter
1. Activate Discover card Q3 category (Paypal, restaurants).
2. Connect PayPal Key to charge your Discover card.
3. Pay everywhere online with Paypal key debit card number, get rewards thru Discover up to $1500 spend per card (comes to $75)
4. Buy with $75 Discover card reward thru Discover portal egift certificate worth about $83 in Lowes or Marshalls/TJMax/Homegoods
calwatch
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Re: PayPal Key - anybody use it?

Post by calwatch »

It's great when you don't want to share your credit card number. As does the previous poster I use it to take advantage of the periodic Paypal category bonuses on credit cards and make my charitable donations for charities which will take credit cards but won't take Paypal.
opus360
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Re: PayPal Key - anybody use it?

Post by opus360 »

With the Chase Freedom Q4 category as Paypal, I am thinking of how to maximize this.

1) Is Paypal Key still available? I heard Paypal has a waitlist.

2) Can I use my wife's credit card to link to my Paypal Key account? (Wife doesn't have Paypal nor Paypal key.)
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anon_investor
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Re: PayPal Key - anybody use it?

Post by anon_investor »

opus360 wrote: Sat Sep 25, 2021 8:00 am With the Chase Freedom Q4 category as Paypal, I am thinking of how to maximize this.

1) Is Paypal Key still available? I heard Paypal has a waitlist.

2) Can I use my wife's credit card to link to my Paypal Key account? (Wife doesn't have Paypal nor Paypal key.)
Paypal Key appears only available to some. It is not available to me yet.

You can't link someone else's CC to your Paypal account, but your wife can add you as an authorized user, so yoi have your own CC to add.
opus360
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Re: PayPal Key - anybody use it?

Post by opus360 »

anon_investor wrote: Sat Sep 25, 2021 8:07 am
opus360 wrote: Sat Sep 25, 2021 8:00 am With the Chase Freedom Q4 category as Paypal, I am thinking of how to maximize this.

1) Is Paypal Key still available? I heard Paypal has a waitlist.

2) Can I use my wife's credit card to link to my Paypal Key account? (Wife doesn't have Paypal nor Paypal key.)
Paypal Key appears only available to some. It is not available to me yet.

You can't link someone else's CC to your Paypal account, but your wife can add you as an authorized user, so yoi have your own CC to add.

Thank you. Good idea to add as authorized user.

If added as authorized user on a Chase card, would that count against my 5/24 Chase opening account? I think Chase does not ask for SS number, but Amex does.
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beyou
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Re: PayPal Key - anybody use it?

Post by beyou »

Seems just another avenue to get a virtual card number, as some credit card companies offer. But the advantage is it works like a debit card which is sometimes favored (as per the Verizon bill example above). Also allows you to give a virtual card # and then have to hit any of your real cards.
nalor511
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Re: PayPal Key - anybody use it?

Post by nalor511 »

beyou wrote: Sat Sep 25, 2021 5:15 pm Seems just another avenue to get a virtual card number, as some credit card companies offer. But the advantage is it works like a debit card which is sometimes favored (as per the Verizon bill example above). Also allows you to give a virtual card # and then have to hit any of your real cards.
No it's not just a virtual card. It's also a way to use PayPal at places that don't accept Paypal (e.g. to get the bonus PayPal rewards), which is the point of this thread viewtopic.php?f=2&t=358521&newpost=6244 ... ead#unread
Last edited by nalor511 on Sat Sep 25, 2021 5:46 pm, edited 1 time in total.
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beyou
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Re: PayPal Key - anybody use it?

Post by beyou »

nalor511 wrote: Sat Sep 25, 2021 5:17 pm
beyou wrote: Sat Sep 25, 2021 5:15 pm Seems just another avenue to get a virtual card number, as some credit card companies offer. But the advantage is it works like a debit card which is sometimes favored (as per the Verizon bill example above). Also allows you to give a virtual card # and then have to hit any of your real cards.
No it's not just a virtual card. It's also a way to use PayPal at places that don't accept Paypal (e.g. to get the bonus PayPal rewards), which is the point of this thread viewtopic.php?f=2&t=358521&newpost=6244 ... ead#unread
I saw that thread, and as was pointed out in that thread, there is a max of $1500 spend for the Chase offer in 3 months.
I can easily go over that using Paypal.
Last edited by beyou on Sat Sep 25, 2021 7:15 pm, edited 2 times in total.
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beyou
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Re: PayPal Key - anybody use it?

Post by beyou »

There is a link to signup on the Help notes in PayPal, but it's a tease.
The page ends up with a note telling you to come back later to sign up in the future.

I do think it a great idea, but my main motivation would be same reason I use PayPal all year round.
Yes I do get extra cash back for using PayPal for just the next 3 months (I have Chase but not Discover).
But all year round, I prefer to give out as little banking info online to as few sites as possible.
My preference is to use Apple Pay and if not accepted, then Paypal.
I even used Amazon Pay one time when it was the only option besides giving out my cc to yet another site for hackers to steal,
but that is one area Amazon hasn't made traction destroying the competition.

I have used virtual CC from Citi, though not a fan of Citi lately, have closed one of two cc that I hated to use.
Instead I use Paypal to direct charges to the remaining Citi double cash when that's the best cash back.
I also like the fact that I can direct charges to any cc I choose, Chase when beneficial, others when not.
This is a security and card rewards benefit. But I can live without this for now since I already have many recurring charges
I can use traditional PayPal on and direct those charges to Chase, I will come close to or exceed the max Chase benefit without this.
But I would still use this service for the security aspect too.

Note it would appear this product is very slow to market and if anything they are reducing the benefit to the pilot users.

https://www.doctorofcredit.com/paypal-l ... aypal-key/

Lots of sites talk about this product in 2020, it's now near end of 2021 and still NOT widely available.
Some of the commentary was about REMOVING functionality :

Update 12/21/20: The demise of PayPal Key continues as readers report over the past couple of days that Paypal Key no longer works on tax payments. It was a major gain since you could be the small debit card fee and use a credit card, but Paypal has now blocked that.

Update 12/17/20: Paypal Key Will Stop Allowing American Express Cards As Funding Option (Beginning January 4)

Update 10/29/20: Multiple data points I’ve seen indicate that when Paypal Key charges your card they generally carry over the category and method of charge exactly how it would be had you used the card directly. E.g. you’ll get grocery bonus points on a Grocery purchase and you’ll trigger a Chase Offer if you use it at a merchant with a Chase Offer. Good news, though a bit surprising. Note: this won’t always work, and reader Jenny says it does not work for Amex cards.]
seawolf21
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Re: PayPal Key - anybody use it?

Post by seawolf21 »

Works great with 5% bonus cash back calendar quarters with Chase Freedom/Discover.
nalor511
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Re: PayPal Key - anybody use it?

Post by nalor511 »

seawolf21 wrote: Sun Sep 26, 2021 8:45 pm Works great with 5% bonus cash back calendar quarters with Chase Freedom/Discover.
Well, it worked in 2020, I hope it works in 4 days when I try it again :)
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