PayPal Extras Mastercard: How To Get The Most Out Of It

PayPal Extras Mastercard: How To Get The Most Out Of It

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.

Citi is an advertising partner.

The PayPal Extras Mastercard® is best for users with a lot of gas and restaurant spending –- these are the categories where it produces rewards rates of 2.4%. For all other spending, including buying things through PayPal and eBay, other cash back credit cards may provide you with the better savings. It should be noted that the web is filled with poor customer service reviews for the card. Though your experience may vary, it’s a consideration that should be made before applying.

Review: Is The PayPal Extras Mastercard® Any Good?

The PayPal Extras Mastercard® can be useful when it comes to saving money on gas and restaurant purchases, but on all other spending consumers can do better. Using the credit card in the aforementioned categories will result in a rewards rate of 2.4% (as explained below), which is above average. All other spending, including PayPal and eBay purchases, will give users a rate between 0.8% to 1.6%. Using a fixed-rate cash back credit card, like the PayPal Extras Mastercard®, will offer superior savings per dollar for the typical consumer.

Good For…
Bad For…
The 2.4% rewards rate on gas and restaurant shoppingAnyone with more varied spending
One of the few ways to get a 1.5%+ rewards rate on PayPal and eBay purchasesThose who want to boost short-term value through a welcome bonus

If you tend to carry a balance month-to-month, we recommend that you avoid the PayPal Extras Mastercard®. It has a very high interest rate of 19.99%, 23.99% or 26.99% variable, which is on the higher end of the spectrum. To give you an idea of just how high this is, the average interest rate for reward credit cards in the United States is 15.99%. No matter how many rewards you earn through the card, if you’re paying interest on your balances it is almost certain to put you at a net loss.

Paypal credit card rewards rate

Bottom Line: The PayPal Extras Mastercard® can provide decent savings for consumers. However, the lack of a signup bonus, high interest rates, and reports of awful customer service make it difficult to recommend. For those who want a more surefire bet, the Citi® Double Cash Card – 18 month BT offer or another fixed-rate cash back credit card may provide a better overall value.

PayPal Extras Mastercard® Benefits & Features

The PayPal Extras Mastercard® provides reward points on all the shopping you do with it. Cardholders can earn the following: 3 points per $1 spent on gas and restaurant purchases, 2 points per $1 spent on PayPal and eBay purchases, and 1 point per $1 spent on other purchases. There are no other bonuses or opportunities to earn extra reward points.

Each year, you are capped at earning no more than 50,000 points. Unused points expire two years after they are issued, or after one year if you don’t use your card to make any purchases for 12 months.

At most, the points you earn through the PayPal Extras Mastercard® will be worth $0.0083 each. This is based on the fact that it takes 6,000 points to receive $50 in cash back -- $50 / 6,000 = $0.0083. The card also provides users with other redemption options including air, hotel, and car rental travel vouchers, as well as gift cards and merchandise. However, those redemptions will result in even lower savings. For example, you may redeem 15,400 points for a $100 travel voucher, which results in a point value of $0.006.

If we assume the benchmark value of $0.008 per point, the PayPal Extras Mastercard® provides users with a rewards rate of 2.4% on gas and dining (3 points x $0.008), 1.6% on PayPal and eBay (2 points x $0.008), and 0.8% on everything else.

PayPal Extras Mastercard® vs PayPal Credit

Whenever you checkout a purchase with PayPal, you are given the option to pay using PayPal credit. This is a way of financing your purchase, essentially acting as a microloan. Unlike using the PayPal Extras credit card, you do not earn any rewards by using PayPal credit.

In general, we do not recommend financing purchases unless they are absolutely necessary. Paying interest on anything other than an investment, such as a vehicle or home, is a bad deal. If you decide that a purchase is absolutely necessary, but you won’t have the necessary funds to pay it off at the end of the month, using PayPal credit will be the better option. This is because it should cost you less -- it has a lower APR of 19.99%, with the possibility of obtaining special 0% financing as well.

How Does The PayPal Extras Mastercard® Compare Against Other Credit Cards?

To get a better sense of the value the PayPal Extras Mastercard® holds, it’s important to consider it in the light of other available options. Below is a few quick summaries of how this card compares to other cash back credit cards.

PayPal Extras Mastercard® vs Amazon Rewards Visa Signature Card

The Amazon Rewards Visa Signature Card can provide online shoppers with better savings, so long as they don’t mind being limited to just using the affiliated site. Cardholders receive 3% cash back on all your Amazon.com purchases, and 2% cash back at gas stations, restaurants, and drugstores (1% back elsewhere). By contrast, the PayPal Extras Mastercard® flips that formula, by giving 3% on gas and restaurants, and 2% on online shopping through eBay and PayPal. If you shop a lot using eBay there is no getting around the fact that the PayPal Extras Mastercard® can provide you with the better rewards rate there –- 1.6% versus the 1% you’d get with the Amazon.com card. This card also has $0 fee, you can get both if your credit allows it, and use them in a way that is always the most favorable for you at the time of purchase.

The information related to the Amazon Rewards Visa Signature Card has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication.

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

  • On Citibank's Secure Website

The Citi® Double Cash Card – 18 month BT offer, one of our favorite cash back credit cards, users Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. The PayPal Extras Mastercard® only performs better in two categories – gas and restaurant spending. Your spending on gas and restaurants would need to make up more than 60% of your total credit card spending, before that increase would result in a greater total net savings. Even when it comes to purchases through PayPal and eBay the Citi® Double Cash Card – 18 month BT offer supplies the better deal. For consumers who want just one new credit card, and those whose spending doesn’t sway heavily towards gas and restaurants, the Citi® Double Cash Card – 18 month BT offer is the way to go.

PayPal Extras Mastercard® vs Chase Freedom Unlimited®

  • On Chase's Secure Website

The Chase Freedom Unlimited® is a 1.5% cashback card, with some additional bonus categories. Users can Earn 5% cash back on travel purchased through Chase, 3% on dining and drugstores, and 1.5% on all other purchases. What makes the card especially valuable is the fact that the rewards are given in the form of Ultimate Reward points. If you ever pair this credit card with either the Chase Sapphire Preferred® Card or Ink Plus® Business Credit Card, the value of these points will become $0.0125 or higher, pushing the rewards rate to greater limits. When you combine the Chase Freedom Unlimited® with either of the aformentioned credit cards, it will give you the ability to transfer points to participating airline and hotel partners. This can transform the fixed rewards rate of the card to beat even the gas and restaurant rate on the PayPal Extras Mastercard®.

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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).