FR833282333_PAYPAL SMART CONNECT
T&C PLCC PDF
3/13

GE CAPITAL RETAIL BANK 
SECTION I: RATES AND FEES TABLE 
PAYPAL SMART CONNECT ACCOUNT AGREEMENT 
PRICING INFORMATION

Interest Rates and Interest Charges

Annual Percentage Rate 
(APR) for Purchases

The APR for purchases is the prime rate plus 23.74%. 

This APR will vary with the market based on the Prime Rate.

How to Avoid 
Paying Interest

Your due date is at least 23 days after the close of each billing cycle. We will not charge 
you any interest on purchases if you pay your entire balance by the due date each month.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $1.00.

Fees

Penalty Fees

•	Late Payment

Up to $35

How We Will Calculate Your Balance: We use a method called “daily balance”. See your credit card account agreement that 
follows for more details.

SECTION II: RATES, FEES AND PAYMENT INFORMATION 
PAYPAL SMART CONNECT ACCOUNT AGREEMENT

How Interest is Calculated
Your Interest Rate

The APR for purchases is the prime rate plus 23.74%. We use a daily rate to calculate the interest on the balance 
on your account each day. The daily rate for purchases is the APR times 1/365. As of December 1, 2012 the daily 
rate for purchases was .07395% (APR 26.99%). Interest will be imposed in amounts or at rates not in excess of 
those permitted by applicable law.

Daily Rates May Vary. The APR and the daily rate on your account vary with the market based on the prime 
rate. The prime rate for a billing cycle is the highest bank prime loan rate published in The Wall Street Journal in 
its Money Rates section on the last business day of the calendar month preceding the first day of the billing cycle.

If the prime rate increases, the daily rate and APR will increase. As a result, interest, your total minimum payment 
and  the  number  of  payments  it  would  take  you  to  pay  off  your  account  balance  may  increase.  We  apply  any 
change in rates because of a prime rate change to your entire account balance. A change in the prime rate will 
take effect on the first day of the first billing cycle after the change. We may select a new interest rate index if the 
prime rate is not available.

When We Charge Interest 

We charge interest on your purchases from the date you make the purchase until you pay the purchase in full. 
See exceptions below.

•	 We	will	not	charge	you	interest	during	a	billing	cycle	on	any	purchases	if:

1. You had no balance at the start of the billing cycle; OR

2.  You had a balance at the start of the billing cycle and you paid that balance in full by the due date in that 

billing cycle.

•	 	We	 will	 credit,	 as	 of	 the	 start	 of	 the	 billing	 cycle,	 any	 payment	 you	 make	 by	 the	 due	 date	 that	 we	 allocate	 to	 

purchases	if:

1. You had no balance at the start of the previous billing cycle; OR

2.  You had a balance at the start of the previous billing cycle and you paid that balance in full by the due date 

in the previous billing cycle.

How We Calculate Interest

How Fees Work 

Late Payment Fee 

We  figure  the  interest  charge  on  your  account  separately  for  each  balance  type.  We  do  this  by  applying  the 
daily  rate  to  the  daily  balance  for  each  day  in  the  billing  cycle.  A  separate  daily  balance  is  calculated  for  the 
following	balance	types,	as	applicable:	purchases	and	balances	subject	to	different	interest	rates,	plans	or	special	
promotions. See below for how this works.

  1.  How to get the daily balance. We take the starting balance each day, add any new charges and fees, and 
subtract  any  payments  or  credits.  This  gives  us  the  daily  balance.  Debt  cancellation  fees,  if  any,  are  not 
included in the daily balance. Late payment fees are treated as new purchases.

  2. How to get the daily interest amount. We multiply each daily balance by the daily rate that applies.

  3.  How to get the starting balance for the next day. We add the daily interest amount in step 2 to the daily 

balance from step 1.

  4.  How to get the interest charge for the billing cycle. We add all the daily interest amounts that were charged 

during the billing cycle.

We charge a minimum of $1.00 of interest in any billing cycle in which you owe interest. This charge is added 
proportionately to each balance type.

We will charge this fee if we do not receive the total minimum payment due on your account by 5 p.m. (ET) on the 
due	date.	This	fee	is	equal	to:

  1. $25, if you have paid your total minimum payment due by the due date in each of the prior six billing cycles.

  OR

  2.  $35, if you have failed to pay your total minimum payment due by the due date in any one or more of the prior 

six billing cycles.

The late payment fee will not be more than the total minimum payment that was due.

Minimum Payment Calculation

Your total minimum payment is calculated as follows.
The	greater	of:

1.  $25, or $35 (which includes any past due amounts) if you have failed to pay the total minimum payment due by the due date in any one or more of the 

prior six billing cycles.

OR

2.	 The	sum	of:

a.  Any past due amounts; PLUS
b.  1% of your new balance shown on your billing statement; PLUS
c.  Any late payment fees charged in the current billing cycle; PLUS
d.  All interest charged in the current billing cycle; PLUS
e.  Any payment due in connection with a special promotional purchase with a unique payment calculation.

We  round  up  to  the  next  highest  whole  dollar  in  figuring  your  total  minimum  payment.  Your  total  minimum  payment  will  never  be  more  than  your  
new balance.

Special Promotional Financing Offer Information

At  times,  we  may  offer  you  special  financing  promotions  for  certain  transactions  (“special  promotions”).  The  terms  of  this  Agreement  apply  to  any  special 
promotions. However, any special promotional terms that are different than the term in this Agreement will be explained on promotional advertising or other 
disclosures	provided	to	you.	Below	is	a	description	of	certain	special	promotions	that	may	be	offered:	

•	 No Interest if Paid in Full Within 6 Months

•	 No Interest if Paid in Full Within 12 Months

For each promotion, if the promotional balance is not paid in full within the promotional period, interest will 
be imposed from the date of purchase at the variable Purchase APR that applies to your account when 
the promotional purchase is made.

At the time your account is opened, the variable Purchase APR is 26.99%.

•	 No Interest if Paid in Full Within 18 Months

Your Purchase APR will vary with the market based on the prime rate. 

When you make a qualifying purchase under one of these promotions, no interest will be assessed on the purchase if you pay the following (the “promotional 
balance”)	in	full	within	the	applicable	promotional	period:	(1)	the	promotional	purchase	amount,	and	(2)	any	related	optional	credit	insurance/debt	cancellation	
charges.  If  you  do  not,  interest  will  be  assessed  on  the  promotional  balance  from  the  date  of  the  purchase.  Minimum  monthly  payments  are  required. 
Regular	account	terms	apply	to	non-promotional	purchases	and,	after	promotion	ends,	to	promotional	purchases.	Offers	are	subject	to	credit	approval.	These	
promotional offers may not be available at all times for all purchases. Please see any special promotion advertising or other disclosures provided to you for the 
full terms of any special promotion offered. 

SECTION III: STANDARD PROVISIONS  
PAYPAL SMART CONNECT ACCOUNT AGREEMENT

ABOUT THE CREDIT CARD ACCOUNT AGREEMENT

This Agreement. This is an Agreement between you and GE Capital Retail Bank, 170 Election Road, Suite 125, Draper, UT 84020, for your credit card 
account shown above. By opening or using your account, you agree to the terms of the entire Agreement. The entire Agreement includes the four sections 
of this document and the application you submitted to us in connection with the account. These documents replace any other agreement relating to your 
account that you or we made earlier or at the same time.

Parties To This Agreement. This Agreement applies to each accountholder approved on the account and each of you is responsible for paying the full 
amount due, no matter which one uses the account. We may treat each of you as one accountholder and may refer to each of you as “you” or “your”. GE 
Capital Retail Bank may be referred to as “we”, “us” or “our”.

Changes To This Agreement. We may change, add or delete terms of this Agreement, including interest rates, fees and charges.

Special Promotions. The terms of this Agreement apply to any special promotion. However, any special promotional terms that are different than the 
terms in this Agreement will be explained on promotional advertising or other disclosures provided to you.

HOW TO USE YOUR ACCOUNT/CARD

Use Of Your Account. You may use your account only for lawful personal, family or household purposes. You may use your Smart Connect Account to 
fund your PayPal Account (“PayPal Account”), that you have established with PayPal, Inc. for payments for goods and services purchased by you with your 
PayPal Account (“purchases”). You may make purchases up to any credit limit we may establish. We may decline to authorize any purchase or change 
your credit limit at any time. You may use your Smart Connect Account, and may authorize others to use your Smart Connect Account, only for personal, 
family or household purposes.

You Promise To Pay. You promise to pay us for all amounts owed to us under this Agreement. 

Your Responsibility. Each accountholder will receive a card. You may not allow anyone else to use your account. If you do, or if you ask us to send a 
card to someone else, you will be responsible for paying for all charges resulting from their transactions.

Purchase Limits. To prevent fraud, we may limit the number or dollar amount of purchases you can make in any particular amount of time. We also may 
decline any particular charge on your account for any reason.

Credit Limit. You will be assigned a credit limit that we may increase or decrease from time to time. If we approve a purchase that makes you go over your 
credit limit, we do not give up any rights under this Agreement and we do not treat it as an increase in your credit limit.

HOW AND WHEN TO MAKE PAYMENTS

When Payments Are Due. You must pay at least the total minimum payment due on your account by 5 p.m. (ET) on the due date of each billing cycle. 
Payments received after 5 p.m. (ET) will be credited as of the next day. You may at any time pay, in whole or in part, the total unpaid balance without any 
additional	charge	for	prepayment.	If	you	have	a	balance	subject	to	interest,	earlier	payment	may	reduce	the	amount	of	interest	you	will	pay.	We	may	delay	
making credit available on your account in the amount of your payment even though we will credit your payment when we receive it.

Payment Options. You can pay by mail or online. We may allow you to make payments over the phone but we will charge you a fee to make expedited 
phone payments. Your payment must be made in U.S. dollars by physical or electronic check, money order or a similar instrument from a bank located in 
the United States.

How To Make A Payment. You must follow the instructions for making payments provided on your billing statement. If you do not, credit of your payment 
may be delayed up to five days. Your billing statement also explains how information on your check is used.

Payment Allocation. We will apply the required total minimum payment to balances on your account using any method we choose. Any payment you 
make in excess of the required total minimum payment will be applied to higher APR balances before lower APR balances. Applicable law may require or 
permit us to apply excess payments in a different manner in certain situations, such as when your account has a certain type of special promotion.

INFORMATION ABOUT YOU 

Using and Sharing Your Information. When you applied for an account, you gave us and PayPal, Inc. information about yourself that we could share 
with each other. PayPal, Inc. will use the information in connection with the credit program and for things like creating and updating its records and offering 
you special benefits. More information about how we use and share information is set forth in the privacy policy for your account. 

Address/Phone Change. You agree to tell us right away if you change your address or phone number(s). We will contact you at the address or phone 
number in our records until we update our records with your new address or phone number. 

Consent To Communications. You consent to us contacting you using all channels of communication and for all purposes. We will use the contact 
information you provide to us. You also consent to us and any other owner or servicer of your account contacting you using any communication channel. 
This may include text messages, automatic telephone dialing systems and/or an artificial or prerecorded voice. This consent applies even if you are charged 
for the call under your phone plan. You are responsible for any charges that may be billed to you by your communications carriers when we contact you.

Telephone Monitoring. For quality control, you allow us to listen to and/or record telephone calls between you and us.

Consent  to  Electronic  Disclosures.  When  you  applied  for  this  Account,  you  agreed  to  receive  Electronic  Communications  from  us  regarding  your 
Account,  which  may  include  disclosures  required  by  applicable  federal  or  state  law  (collectively,  “Communications”).  These  Communications  include 
the Agreement, Statements and Privacy Policy, disclosures relating to any optional debt cancellation product you elect to purchase, including, without 
limitation, any Truth in Lending Act disclosures and other federal and state law disclosures, notices and communications in connection with the application 
for, the opening of, maintenance or collection of an Account. Communications may be sent to your email address. Communications may include your name 
and some information about your Account, including your balance or the due date for your payment. Electronic Communications may be disclosed to any 
party with access to your Account or email account or hardware or software used to view your Account or email account. At our option, we may provide 
you with paper Communications, such as paper Statements. In addition, if we provide you with paper Statements, we may switch to providing you with 
electronic Statements instead upon notice to you, unless you have withdrawn your consent to receive Electronic Communications as set forth below. You 
may withdraw your consent to receive Electronic Communications and elect to receive paper Communications by writing to P.O. Box 965004, Orlando, FL 
32896-5004. However, if you do so, we may close your Account to future Purchases and Cash Advances and you will be required to pay off any balances 
under the terms that apply to your Account at the time you withdraw your consent.

IMPORTANT INFORMATION ABOUT YOUR ACCOUNT 

Closing Your Account. You may close your account at any time by sending a letter to the address shown on your billing statement or calling customer 
service. We may close your account at any time, for any reason. If your account is closed, you must stop using it. You must still pay the full amount you 
owe and this Agreement will remain in effect until you do.

Collection Costs. If we ask an attorney who is not our salaried employee to collect your account, we may charge you our collection costs. These include 
court costs and reasonable attorneys’ fees.

Credit Bureau Reporting. We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your 
account may be shown in your credit report. Tell us if you think we reported wrong information about you to a credit bureau. Write to us at P.O. Box 965005,  
Orlando, FL 32896-5005. Tell us what information is wrong and why you think it is wrong. If you have a copy of the credit report that includes the wrong 
information, send us a copy. 

Default. You are in default if you make a late payment, do not follow any other term of this Agreement or become bankrupt or insolvent. If you default 
or upon your death, we may (a) request payment of the full amount due right away, (b) take legal action to collect the amounts owed, and/or (c) take any 
other action allowed. 

Disputed Amounts. The billing rights summary in section IV of this Agreement describes what to do if you think there is a mistake on your 
bill. If you send us correspondence about a disputed amount or payment, you must send it to the address for billing inquiries. We do not 
give up any rights under this Agreement if we accept a payment marked “payment in full” or given with any other conditions or limitations.

Unauthorized Use. If your card is lost, stolen or used without your consent, call us immediately at 1-866-571-3012. You will not be liable for unauthorized 
use on your account, but you will be responsible for all use by anyone you give your card to or allow to use your account.

IMPORTANT INFORMATION ABOUT THIS AGREEMENT 

Assignment. We may sell, assign or transfer any or all of our rights or duties under this Agreement or your account, including our rights to payments. We 
do not have to give you prior notice of such action. You may not sell, assign or transfer any of your rights or duties under this Agreement or your account.

PayPal Account. You are not required to apply and/or have a Smart Connect Account in order to have a PayPal Account, but you must have a PayPal 
Account in good standing in order to apply and/or have a Smart Connect Account. If your PayPal Account is suspended, limited or closed for any reason, 
including but not limited to, a breach of any of the terms of the PayPal Account user agreement, then you understand that you will not be able to use this 
Smart Connect Account. In addition, if you are in default under this Agreement, then your PayPal Account may be suspended or canceled at PayPal, Inc.’s 
sole discretion.

Assignment of Rights in Certain Funds Held By PayPal. If you obtain a credit from us for any purchase, you agree that effective as of the time when 
such credit is issued, you will be deemed to have transferred to us any of your rights or interests in any funds held by PayPal for your benefit or otherwise, 
that resulted, directly or indirectly, from such purchase. 

Enforceability. If any part of this Agreement is found to be void or unenforceable, all other parts of this Agreement will still apply.

Governing Law. Except as provided in the Resolving a Dispute with Arbitration section, this Agreement and your account are governed by federal law 
and, to the extent state law applies, the laws of Utah without regard to its conflicts of law principles. This Agreement has been accepted by us in Utah.

Waiver. We may give up some of our rights under this Agreement. If we give up any of our rights in one situation, we do not give up the same right in another 
situation.

RESOLVING A DISPUTE WITH ARBITRATION 

PLEASE  READ  THIS  SECTION  CAREFULLY.  IF  YOU  DO  NOT  REJECT  IT,  THIS  SECTION  WILL  APPLY  TO  YOUR  ACCOUNT,  AND  MOST 
DISPUTES BETWEEN YOU AND US WILL BE SUBJECT TO INDIVIDUAL ARBITRATION. THIS MEANS THAT: (1) NEITHER A COURT NOR A 
JURY WILL RESOLVE ANY SUCH DISPUTE; (2) YOU WILL NOT BE ABLE TO PARTICIPATE IN A CLASS ACTION OR SIMILAR PROCEEDING; 
(3) LESS INFORMATION WILL BE AVAILABLE; AND (4) APPEAL RIGHTS WILL BE LIMITED.

•	What	claims	are	subject	to	arbitration

1.  If either you or we make a demand for arbitration, you and we must arbitrate any dispute or claim between you or any other user of your account, 

and us, our affiliates, agents and/or PayPal, Inc., if it relates to your account, except as noted below. 

2.		We	will	not	require	you	to	arbitrate:	(1)	any	individual	case	in	small	claims	court	or	your	state’s	equivalent	court,	so	long	as	it	remains	an	individual	
case in that court; or (2) a case we file to collect money you owe us. However, if you respond to the collection lawsuit by claiming any wrongdoing, 
we may require you to arbitrate.

3.  Notwithstanding any other language in this section, only a court, not an arbitrator, will decide disputes about the validity, enforceability, coverage 
or scope of this section or any part thereof (including, without limitation, the next paragraph of this section and/or this sentence). However, any 
dispute or argument that concerns the validity or enforceability of the Agreement as a whole is for the arbitrator, not a court, to decide.

•	No	Class	Actions

YOU  AGREE  NOT  TO  PARTICIPATE  IN  A  CLASS,  REPRESENTATIVE  OR  PRIVATE  ATTORNEY  GENERAL  ACTION  AGAINST  US  IN 
COURT OR ARBITRATION. ALSO, YOU MAY NOT BRING CLAIMS AGAINST US ON BEHALF OF ANY ACCOUNTHOLDER WHO IS 
NOT AN ACCOUNTHOLDER ON YOUR ACCOUNT, AND YOU AGREE THAT ONLY ACCOUNTHOLDERS ON YOUR ACCOUNT MAY BE 
JOINED IN A SINGLE ARBITRATION WITH ANY CLAIM YOU HAVE. 

If a court determines that this paragraph is not fully enforceable, only this sentence will remain in force and the remainder will be null and void, and 
the	court’s	determination	shall	be	subject	to	appeal.	This	paragraph	does	not	apply	to	any	lawsuit	or	administrative	proceeding	filed	against	us	by	
a state or federal government agency even when such agency is seeking relief on behalf of a class of borrowers, including you. This means that we 
will not have the right to compel arbitration of any claim brought by such an agency.

•	How	to	start	an	arbitration,	and	the	arbitration	process

1.  The  party  who  wants  to  arbitrate  must  notify  the  other  party  in  writing.  This  notice  can  be  given  after  the  beginning  of  a  lawsuit  or 

in  papers  filed  in  the  lawsuit.  Otherwise,  your  notice  must  be  sent  to  GE  Capital  Retail  Bank,  Legal  Operation,  P.O.  Box  29110,   
Shawnee	Mission,	KS	66201,	ATTN:	ARBITRATION	DEMAND.	The	party	seeking	arbitration	must	select	an	arbitration	administrator,	which	can	
be either the American Arbitration Association (AAA), 1633 Broadway, 10th Floor, New York, NY 10019, www.adr.org, (800) 778-7879, or JAMS, 
620	Eighth	Avenue,	34th	Floor,	New	York,	NY	10018,	www.jamsadr.com,	(800)	352-5267.	If	neither	administrator	is	able	or	willing	to	handle	the	
dispute, then the court will appoint an arbitrator. 

2.		If	 a	 party	 files	 a	 lawsuit	 in	 court	 asserting	 claim(s)	 that	 are	 subject	 to	 arbitration	 and	 the	 other	 party	 files	 a	 motion	 with	 the	 court	 to	 compel	

arbitration, which is granted, it will be the responsibility of the party asserting the claim(s) to commence the arbitration proceeding. 

3.  The arbitration administrator will appoint the arbitrator and will tell the parties what to do next. The arbitrator must be a lawyer with at least ten 
years of legal experience. Once appointed, the arbitrator must apply the same law and legal principles, consistent with the FAA, that would apply 
in court, but may use different procedural rules. If the administrator’s rules conflict with this Agreement, this Agreement will control. 

	
 
	
 
	
	
 
	
 
4.  The arbitration will take place by phone or at a reasonably convenient location. If you ask us to, we will pay all the fees the administrator or 
arbitrator charges, as long as we believe you are acting in good faith. We will always pay arbitration costs, as well as your legal fees and costs, 
to the extent you prevail on claims you assert against us in an arbitration proceeding which you have commenced.

•	Governing	Law	for	Arbitration

 This Arbitration section of your Agreement is governed by the Federal Arbitration Act (FAA). Utah law shall apply to the extent state law is relevant 
under	the	FAA.	The	arbitrator’s	decision	will	be	final	and	binding,	except	for	any	appeal	right	under	the	FAA.	Any	court	with	jurisdiction	may	enter	
judgment	upon	the	arbitrator’s	award.

•	How	to	reject	this	section

 You	may	reject	this	Arbitration	section	of	your	Agreement.	If	you	do	that,	only	a	court	may	be	used	to	resolve	any	dispute	or	claim.	To	
reject	this	section,	you	must	send	us	a	notice	within	60	days	after	you	open	your	account	or	we	first	provided	you	with	your	right	to	
reject	this	section.	The	notice	must	include	your	name,	address	and	account	number,	and	must	be	mailed	to	GE	Capital	Retail	Bank,	
P.O.	Box	965012,	Orlando,	FL	32896-5012.	This	is	the	only	way	you	can	reject	this	section.

SECTION IV: OTHER IMPORTANT INFORMATION 
PAYPAL SMART CONNECT ACCOUNT AGREEMENT

This section of the agreement includes state notices, billing rights summary and rewards terms (if applicable) and is not required to be provided 
as part of the credit card agreement posted online or provided to the CFPB.

FR833282333_PAYPAL SMART CONNECT
T&C PLCC PDF
3/13