I am having a similar issue. I have both PayPal Credit and PayPal Smart Connect (both forms of credit that PayPal offers). I set PayPal Credit as my default payment option for online purchases that accepts PayPal payments. Whenever I purchase something online, my PayPal Smart Connect gets charged for my purchases, instead of PayPal Credit. PayPal needs to fix this issue. For now, my only solution is to open a case in the Resolution Center to get a refund back for my purchases. This has happened three times. I do hope they fix this problem.
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