Cards App and iTunes Store/Apple ID with PayPal and Security Code

Anyone else run into the issue when trying to purchase a completed card from the Cards app on the iPhone (iOS 5) if you have PayPal as your iTunes Store/Apple ID payment method? The app repeatedly asks for your CVV/CSC 3-digit (MasterCard/Visa) or 4-digit (American Express) security code from your card, but PayPal of course does not have this! The only way I could purchase a card from the app was to switch my payment method back to a debit/credit card in iTunes on my computer and then go back into the app and it worked.