Paypal/Synchrony Credit Card Fraud Procedures

[Fotheringay-Phipps]

I signed up for this card about 4 months ago because it offers 2% cash back, which was more than the 1.5% I had previously been getting. But it has been by far the most frustrating credit card I’ve ever owned, and this is entirely due to their extremely onerous security procedures.

For starts, they don’t free up available credit even after your payment is processed, for about a week. This can be a huge pain in the neck if you’re putting on some major charges.

But beyond that, they are constantly - and I mean constantly - flagging transactions as potentially fraudulent, and putting a hold on the card. I believe this is in part (though not entirely) because I have five authorized users on this account (besides for myself and my wife, I have three kids with cards) one of whom is overseas.

Today was the worst, though. They flagged the account, so a transaction got declined. When I called up to discuss, they couldn’t discuss it without verifying my identity. Problem was that they have no way to do this other than snail mail. My home line is a VOIP line, which is not considered secure, my email and cell phone are not registered with credit rating agencies. The only other option was a complicated multistep process involving some website, but it failed when the camera on my computer failed to read the barcode on my license. So the card is on hold until the letter gets to me in 7-10 business days.

I have other cards to use for the meantime, but I’m getting sick of this card altogether. What I’m wondering is 1) has anyone else encountered this type of situation with Paypal/Synchrony or otherwise, and 2) are there any other credit cards which offer 2% back (and no fee)?

[Joey_P]

@Fotheringay-Phipps

I have other cards to use for the meantime, but I’m getting sick of this card altogether. What I’m wondering is 1) has anyone else encountered this type of situation with Paypal/Synchrony or otherwise, and 2) are there any other credit cards which offer 2% back (and no fee)?

Chase freedom is 1% on all purchases and then 5% on rotating categories. For example, this quarter you get 5% back on gas stations, last quarter it was grocery stores. There is a limit of $1500 ($75 reward) per quarter.
Amazon give you 1% on everything, plus 5% (if you’re a prime member, otherwise 3%) on all Amazon purchases.

I know the default reward on both of these cards is lower than 2%, but the 5% can really make up for that in a hurry.

ETA, I’d just cancel that other card and be done with it. That doesn’t seem worth the trouble.

[DopeTemp]

@Fotheringay-Phipps

I signed up for this card about 4 months ago because it offers 2% cash back, which was more than the 1.5% I had previously been getting. But it has been by far the most frustrating credit card I’ve ever owned, and this is entirely due to their extremely onerous security procedures.

For starts, they don’t free up available credit even after your payment is processed, for about a week. This can be a huge pain in the neck if you’re putting on some major charges.

But beyond that, they are constantly - and I mean constantly - flagging transactions as potentially fraudulent, and putting a hold on the card. I believe this is in part (though not entirely) because I have five authorized users on this account (besides for myself and my wife, I have three kids with cards) one of whom is overseas.

Today was the worst, though. They flagged the account, so a transaction got declined. When I called up to discuss, they couldn’t discuss it without verifying my identity. Problem was that they have no way to do this other than snail mail. My home line is a VOIP line, which is not considered secure, my email and cell phone are not registered with credit rating agencies. The only other option was a complicated multistep process involving some website, but it failed when the camera on my computer failed to read the barcode on my license. So the card is on hold until the letter gets to me in 7-10 business days.

I have other cards to use for the meantime, but I’m getting sick of this card altogether. What I’m wondering is 1) has anyone else encountered this type of situation with Paypal/Synchrony or otherwise, and 2) are there any other credit cards which offer 2% back (and no fee)?

I have the same card. It used to be a Toys R Us card but switched over to the nonbranded 2% rewards card when they went under. My experience largely mirrors your own, except I am the only user on the card. I can’t even log into the website now because it won’t verify with my VOIP number. They’ve never sent me the verification through mail so my only option for getting my bill is calling them which is ridiculous. It’s a shame, but I’m going to have to cancel this card because of these draconian measures. Penfed has a straight 2% rewards credit card I believe. Luckily since I already have an account with them, it should be easy to apply for this card.

[Fotheringay-Phipps]

I can’t be bothered with rotating categories, especially since you also need to track where you are against the quarterly limit. I do use a different card for Costco and gas/travel/restaurants because I got into the habit when I first signed up for Costco and I had to use their American Express card.

On the same day I posted the above thread I applied for the Citibank 2% card. I had intended to cancel the Paypal/Syncrony bank card as soon as I got the CB one. But when it came I see that it charges 3% for all foreign transactions and I have a kid studying overseas. So I’m going to leave that card open for my son to use overseas, and use the CB card as my main one.