PayPal Credit, formerly known as Bill Me Later, is a credit line offered by PayPal that allows users to make purchases online and pay for them later. When using PayPal Credit, users can also choose to use a PayPal Credit Mastercard, which can be used to make purchases in-store or online. However, like any other credit card, the PayPal Credit Mastercard comes with fees that users should be aware of.
PayPal Credit Mastercard Fees Overview
The PayPal Credit Mastercard fees are structured in a way that rewards responsible payment behavior while penalizing late payments. The fees associated with the PayPal Credit Mastercard include interest charges, late fees, and foreign transaction fees. Interest charges are applied to the outstanding balance when the minimum payment is not paid on time or when the promotional period ends. The interest rate for the PayPal Credit Mastercard is 19.99% variable APR, which is comparable to other credit cards on the market.
Interest Charges and Minimum Payments
The interest charge on the PayPal Credit Mastercard is calculated based on the daily periodic rate, which is the annual percentage rate divided by 365. The daily periodic rate is then multiplied by the outstanding balance to calculate the daily interest charge. The minimum payment due is calculated as the greater of $25 or 2% of the outstanding balance, plus any late fees or interest charges. It’s essential for users to make on-time payments to avoid interest charges and late fees.
| Fee Type | Fee Amount |
|---|---|
| Interest Charge | 19.99% variable APR |
| Minimum Payment | $25 or 2% of outstanding balance |
| Foreign Transaction Fee | 2.9% of transaction amount |
| Late Fee | Up to $38 |
Late Fees and Foreign Transaction Fees
In addition to interest charges, the PayPal Credit Mastercard also comes with late fees and foreign transaction fees. Late fees are applied when the minimum payment is not paid on time, and the amount can be up to $38. Foreign transaction fees, on the other hand, are applied when the card is used to make purchases in a foreign currency, and the fee is 2.9% of the transaction amount. Users should be aware of these fees and take steps to avoid them, such as setting up automatic payments and avoiding foreign transactions when possible.
Avoiding Fees and Interest Charges
To avoid fees and interest charges on the PayPal Credit Mastercard, users should make on-time payments and pay more than the minimum payment due. Users can also take advantage of promotional financing offers, such as 0% interest for 6 months, to avoid interest charges. However, it’s essential to read the terms and conditions carefully to understand the promotional offer and any associated fees.
By understanding the fees associated with the PayPal Credit Mastercard and taking steps to avoid them, users can make the most of their credit line and avoid unnecessary charges. It's also essential for users to monitor their account activity regularly and report any suspicious transactions to PayPal.
How can I avoid interest charges on my PayPal Credit Mastercard?
+To avoid interest charges on your PayPal Credit Mastercard, make sure to pay more than the minimum payment due each month. You can also take advantage of promotional financing offers, such as 0% interest for 6 months, to avoid interest charges. However, be sure to read the terms and conditions carefully to understand the promotional offer and any associated fees.
What is the foreign transaction fee for the PayPal Credit Mastercard?
+The foreign transaction fee for the PayPal Credit Mastercard is 2.9% of the transaction amount. This fee is applied when the card is used to make purchases in a foreign currency.
