The PayPal Cashback Mastercard® offers a solid 3% cash-back earnings for eligible PayPal purchases and 2% cash-back earnings everywhere else that accepts Mastercard, making it one of the highest cash-back cards for regular purchases. If you’re a PayPal user and an online shopper, this is a card to consider.
About the PayPal Cashback Mastercard
The PayPal Cashback Mastercard® earns 3% when purchases are made through PayPal and 2% cash back on all other spending. If you’re an online shopper and are able to use PayPal to checkout or use PayPal in-store, that’s a great rate.
Several other cards offer higher cash-back rewards in specific categories, like groceries, restaurants or travel, but often exclude larger retailers, such as Walmart or Target, and earn a lackluster 1% to 1.5% in the non-bonused areas. With the PayPal Cashback Mastercard, you’ll earn at least 2% on eligible purchases and 3% if you can make the purchase via PayPal. The ubiquity of PayPal on the web at checkout also increases the appeal of the card. But paying through PayPal may not be convenient or your preferred way to pay online. And, the card’s ongoing APR is relatively high, making this card best for those who plan to pay their bill in full and on-time each month.
Just know that in order to apply for the card, you’ll have to have a PayPal account, which is free to open. And be aware that unlike similarly structured cash-back cards, there’s no welcome bonus, intro 0% APR offers or other headlining perks with the PayPal Cashback Mastercard.
PayPal Cashback Mastercard basics
- Annual fee: $0.
- Welcome bonus: None.
- Rewards: 3% on purchases made online or in-store with PayPal, 2% on all other purchases.
- Regular APR: 19.24% – 31.24% variable.
- Other benefits: Basic Mastercard benefits include ID theft protection, Mastercard global services and a discount on airport concierge services.
- Does the issuer offer a pre-approval tool? Yes.
- Recommended credit score: Not available.
PayPal Cashback Mastercard other details
PayPal Cashback Mastercard rewards
The PayPal Cashback Mastercard offers 3% cash back on purchases made through your PayPal account and 2% on all other purchases. The credit card is connected to your PayPal account and the rewards accrue in your PayPal Balance account. From your PayPal Balance, you can redeem for other PayPal purchases or transfer it to a linked bank account.
The cash-back rewards for this card are unlimited. Cash back is posted and available to use within three days in your PayPal Balance account. Redemptions are limited to cash back as there is no rewards program associated with this card.
PayPal Cashback Mastercard rewards potential
Using government data and other publicly available information, We estimate that a household in the U.S. that would be in the market for this card has an annual income of $84,352 and $25,087 in expenses they are likely to be able to charge to a credit card.
Assuming someone pays for one-third of their credit card expenses via PayPal with the PayPal Cashback Mastercard, they’d earn $250.86 back. The remaining two-thirds of credit card expenses, or $16,724.66 at 2% cash-back would net an additional $334.48 for a total of $585.34 in cash-back earnings annually.
PayPal Cashback Mastercard APR details
Cardholders will be approved for one of three account types with a corresponding APR based on creditworthiness. The current rates for the three different account types are as follows:
- Account Type 1: 19.24%.
- Account Type 2: 28.24%.
- Account Type 3: 31.24%.
The card issuer acknowledges there are a limited number of applicants that are expected to qualify for account type 1 and account type 2. In other words, most applicants will be approved for account type 3 and be paying a 31.24% interest rate.
That’s high. This is not a good card to carry a balance on. Be sure to pay it off if you want the rewards without the drawbacks of paying expensive interest fees.
The APR is variable and will change based on the prime rate.
PayPal Cashback Mastercard pros
- Straightforward cash-back earnings structure: Earning cash back on this card is simple: 3% cash back on purchases made through PayPal with the card and 2% on all other purchases. There are no rotating categories to keep track of.
- No annual fee: You won’t be charged a fee to use this card. For a card that earns 2% cash back on all purchases and 3% on all purchases made through PayPal, there’s quite a bit of potential to earn cash back without paying a fee to use the card.
- Unlimited cash back: There’s no cap on the amount of cash back you can earn with this card.
- Cash-back rewards post quickly: Within three days of earning cash-back rewards on eligible purchases, you’ll be able to transfer the cash back to your PayPal account for use.
PayPal Cashback Mastercard cons
- High APR: The terms and conditions note that a limited number of applications will be approved for the lowest two rates. This means most cardholders who are approved for the card will be paying the higher interest rate. That’s incredibly high. It’s also variable, so you could be paying even more if interest rates rise.
- Must use PayPal. To get the most benefit from this card, users must have and use a PayPal account. A PayPal account is necessary for earning 3% cash back on purchases. PayPal does charge fees for some services, such as sending money to family or friends with a credit card.
- There’s a foreign transaction fee: When you make a purchase in another country or in another currency, you’ll be charged a 3% foreign transaction fee.
- No introductory offer: There’s no sign-up bonus or 0% introductory offer on purchases or balance transfers. There are other no-annual-fee cards that offer new cardholders incentives.
How the PayPal Cashback Mastercard compares to other cash-back cards
PayPal Cashback Mastercard vs. Citi Double Cash
The Citi Double Cash card is another $0 annual fee card that earns 2% back on all purchases made on the card — 1% at the time of purchase, and 1% when you pay the bill. The 2% cash back also has no ceiling or category restrictions, much like the PayPal Cashback Mastercard. The Citi Double Cash also comes with an introductory 0% intro APR on balance transfers for 18 months. After that, the standard variable APR will be 18.49% – 28.49%, based on creditworthiness. There is also an intro balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, completed within the first 4 months of account opening. After that, the fee will be 5% of each transfer (minimum $5). It also has more flexible redemption options since it technically earns ThankYou Points, which can be redeemed for travel, gift cards, cash, and more.
PayPal Cashback Mastercard vs. Blue Cash Everyday® Card from American Express
The no-annual-fee Blue Cash Everyday® Card from American Express is another $0 annual fee card that earns 3% cash back at U.S. supermarkets, U.S. gas stations, and online retail purchases in the U.S. (on up to $6,000 in each category per year in purchases, then 1%), and 1% cash back on other purchases. Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits.
There’s also a welcome offer of $100 back in the form of a statement credit after spending $2,000 in purchases within the first 6 months of card membership. Plus, earn 20% back as a statement credit on purchases when you use your new card to check out with PayPal at merchants in the first 6 months of card membership, up to $150 back and a 0% introductory APR on balance transfers and purchases for 15 months, then a variable APR between 18.49% to 29.49%applies.
PayPal Cashback Mastercard vs. Chase Freedom Unlimited®
The Chase Freedom Unlimited is a no-annual-fee card known for earning 1.5% back on every purchase, with elevated earnings of 5% on travel purchased through Chase Ultimate Rewards®, and 3% on dining and drugstore purchases. The card also has an introductory 0% offer on balance transfers and purchases for 15 months. After that, a variable APR of 19.24% to 27.99% applies. New cardmembers are eligible for a $200 bonus after spending $500 on the card in the first three months and 5% cashback at grocery stores in the first year up to $12,000 in spending.
Should you get the PayPal Cashback Mastercard?
The PayPal Cashback Mastercard offers a lot if you can maximize the 3% bonus on purchases through PayPal to earn it. It really shines in earning high cash back in places where you typically can’t earn elevated rewards — like Target and Walmart. If you frequently shop online or feel you can take advantage of the 2% cash back across the board, this card is worth your consideration. If you can’t or don’t want to shop via PayPal, you’ll want to look to a flat-rate 2% cash-back card offering better upfront perks.
PayPal Cashback Mastercard summary
Frequently asked questions (FAQs)
No, the PayPal Cashback Mastercard does not have an introductory 0% APR offer.
Yes, the PayPal Cashback Mastercard has a 3% foreign transaction fee. This fee is incurred when you make a purchase in another country or a currency other than U.S. dollars.
The PayPal Cashback Card can be used both as a payment method within PayPal and anywhere Mastercard credit cards are accepted.
