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PayPal Cashback Mastercard Review: How To Get The Most Out Of It

PayPal Cashback Mastercard Review: How To Get The Most Out Of It

The PayPal Cashback Mastercard® is a great option for frequent PayPal users looking to earn a high cashback flat rate on all purchases.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more. Citi is an advertising partner.

Quick facts

More details

Rates & fees

  • Credit needed: N/A
  • Earning rate: 3% cash back on PayPal purchases and 2% on all other purchases
  • Annual fee: $0
  • APR: 17.24% for Account Type 1 or 26.24% for Account Type 2 or 29.24% for Account Type 3
  • Redeeming cash back: Cash rewards never expire, redeem rewards to your PayPal balance — no minimum required
  • Other features: Identity theft protection, contactless payment, microchip technology

Quick facts

  • Credit needed: N/A
  • Earning rate: 3% cash back on PayPal purchases and 2% on all other purchases
  • Annual fee: $0
  • APR: 17.24% for Account Type 1 or 26.24% for Account Type 2 or 29.24% for Account Type 3
  • Redeeming cash back: Cash rewards never expire, redeem rewards to your PayPal balance — no minimum required
  • Other features: Identity theft protection, contactless payment, microchip technology

More details

  • Shop anywhere Mastercard is accepted
  • Cash rewards never expire
  • Get a decision in seconds

Rates & fees

  • Intro Purchase APR: N/A
  • Regular Purchase APR: 17.24% for Account Type 1 or 26.24% for Account Type 2 or 29.24% for Account Type 3
  • Intro BT APR: N/A
  • Regular BT APR: N/A
  • Annual Fee: $0
  • Foreign Transaction Fee: 2.5%
  • Balance Transfer Fee: N/A

Pros

  • $0 annual fee
  • Solid rewards rate on all purchases
  • Access to additional Mastercard benefits

Cons

  • No sign-up bonus
  • No bonus categories
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Is the PayPal Cashback Mastercard® worth it?

The PayPal Cashback Mastercard® is worth it for frequent PayPal users or consumers looking to earn a solid cashback flat rate.

Cardmembers will 3% cash back on PayPal purchases and 2% on all other purchases Not only is this a fantastic flat earning rate for all purchases, but you can redeem your rewards either through PayPal or transfer them directly to your bank account or debit card linked with your PayPal account.

If you're looking for alternative cashback card options, consider the Citi® Double Cash Card – 18 month BT offer or other fixed-rate cashback credit cards instead.

Who is the PayPal Cashback Mastercard® best for?

The PayPal Cashback Mastercard® is best for consumers looking for a simple, rewarding cashback credit card that allows you to redeem your rewards through PayPal. For those looking for more flexible cashback redemption options, like redeeming for statement credits or receiving a check in the mail, other cashback credit cards may be better options.

Earning cash back

The PayPal Cashback Mastercard® has a straightforward and valuable earning rate.

Cardmembers will 3% cash back on PayPal purchases and 2% on all other purchases

You can earn rewards shopping anywhere Mastercard is accepted, as well as when you check out using PayPal. There are no exceptions, restrictions or rotating bonus categories to account for, so shoppers who enjoy earning with a simple flat-rate rewards structure are sure to appreciate this card.

No annual fee

The PayPal Cashback Mastercard® doesn’t charge an annual fee, which makes the benefits of this card even more valuable. For fee-averse consumers, the PayPal Cashback Mastercard® can be a nice cashback card option.

Redeeming rewards

The PayPal Cashback Mastercard® makes redeeming cash back easy:

  • You can redeem your cashback rewards anytime
  • Your rewards never expire
  • There’s no minimum required to redeem your rewards
  • You can redeem your rewards either directly to your PayPal balance or to the bank account or debit card linked to your PayPal account

These redemption options are nice, as redeeming rewards for cash back allows you to maintain your rewards value of 2% of every purchase you make. Credit cards that earn points or miles sometimes have a lower value than the cash back you earn at face value.

Note, however, that regardless of how you choose to redeem your rewards, you must have an active account with PayPal.

Other benefits

The PayPal Cashback Mastercard® comes with a few built-in Mastercard benefits worth noting.

Mastercard is available 24/7 to ensure you're protected against identity theft. They'll search the internet to make sure your personal information isn't being sold, as well as helping you clear your name with credit rating agencies should there be an issue.

PayPal Cashback Mastercard® use contactless payment for quick checkout, so you can just "Tap & Go®" wherever you see the Contactless Symbol.

PayPal Cashback Mastercard® use EMV chips for an added layer of security.

Drawbacks

  • No sign-up bonus: A major drawback of the PayPal Cashback Mastercard® is that it doesn't offer any sign-up bonus. Sign-up offers give cardmembers a great incentive to start spending right away and can be exceedingly rewarding.
  • No bonus categories: This is a great card for those who prefer to earn flat-rate rewards. For those who don't, however, other cashback cards offer bonus rewards in different spending categories, which can increase the overall rewards you earn with your card.

How does the PayPal Cashback Mastercard® compare to other credit cards?

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Editor's Rating?
N/A
Annual Fee
$0
$0
$0
More card details
Not available on ValuePenguin
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See Rates & Fees. Terms Apply. On American Express' Secure Website
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On Citibank's Secure Website
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On Chase's Secure Website

PayPal Cashback Mastercard® vs. Blue Cash Preferred® Card from American Express

See Rates & Fees. Terms Apply. On American Express' Secure Website

Verdict: A great choice for consumers looking for a cashback card with bonus categories

The Blue Cash Preferred® Card from American Express is an outstanding offer for a cashback credit card that offers 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply. Cash back can be redeemed for statement credits.

It comes with all the bells and whistles you'd expect from Amex, including a low intro APR of 0% on purchases for 12 months from the date of account opening, then an APR of 16.99%-27.99% Variable.

However, when you weed through the bonus categories offered by this card, consumers only earn 1% cash back on all other purchases not included in those spending categories. For those who prefer to earn simple flat rate rewards on every purchase rather than higher rates in a few select categories, the PayPal Cashback Mastercard® is the better choice. For consumers who prefer bonus categories, the Blue Cash Preferred® Card from American Express is the way to go.

For rates and fees of Blue Cash Preferred® Card from American Express, please click here

PayPal Cashback Mastercard® vs. Citi® Double Cash Card – 18 month BT offer

On Citibank's Secure Website

Verdict: The better flat-rate cashback card option for those looking for a top balance transfer offer

The Citi® Double Cash Card is one of our favorite cashback credit cards. Cardholders will Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

While this card has the same flat cashback rate as the PayPal Cashback Mastercard®, its distinguishing factor is its long intro APR on balance transfers. Cardmembers get an intro APR of 0% for 18 months on Balance Transfers; after that the APR will be 16.24% - 26.24% (Variable). If a balance transfer offer is appealing to you, the Citi® Double Cash Card will be the better choice.

PayPal Cashback Mastercard® vs. Chase Freedom Unlimited®

On Chase's Secure Website

Verdict: More to offer the average consumer

The Chase Freedom Unlimited® is a 1.5% cash back card that includes additional bonus categories. Users can Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases What makes the card especially valuable is the fact that you earn in Chase Ultimate Rewards® points, which increase in value when transferred to airline and hotel partners.

Ultimately, the bonus points, sign-up bonus and additional perks of the Chase Freedom Unlimited® beat out the basic rewards of the PayPal Cashback Mastercard®.

Should you get the PayPal Cashback Mastercard®?

You should get the PayPal Cashback Mastercard® if you're interested in earning high flat-rate rewards on all your purchases, but don't mind the absence of some of the other valuable perks and benefits that other cashback cards offer. For consumers looking for a simple, rewarding cashback card, the PayPal Cashback Mastercard® can be a great option.

If you'd rather earn a lower flat rate but higher rewards in bonus categories, consider a different cashback card instead.

PayPal Cashback Mastercard® FAQs

Is a PayPal Credit card hard to get?

A PayPal credit card will be hard to get if you don't meet the credit score requirements. The PayPal Cashback Mastercard® requires a 660 - 850 credit score.

Does a PayPal Credit card build credit?

You can use your PayPal credit card to build credit by paying off your monthly balance on time and in full each month. Once you've done this consistently for several months, you're likely to see your credit score increase.

Is PayPal good for credit?

Using PayPal isn't inherently good or bad for your credit. However, if you use your PayPal credit card responsibly by paying off your card on time and in full each month, you're likely to see your credit score go up.

For rates and fees of Blue Cash Preferred® Card from American Express, please click here

The information related to PayPal Cashback Mastercard® has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). ValuePenguin does not include all financial institutions or all products offered available in the marketplace.

How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).