19.74% - 31.74%
Balance Transfer Fee
Good - Excellent
If PayPal is your go-to payment processor and you don’t tend to carry a balance on your credit cards, the PayPal Cashback Mastercard could be a good option for you.
You can immediately claim your cash back into your PayPal account to spend or transfer to your bank account, and there are cash back bonuses. However, the card does have some limitations and drawbacks. This includes the foreign transaction fee and the inability to balance transfer with a 0% introductory APR.
If you’re looking for a simple rewards credit card, you’ll need to assess whether you can maximize the rewards of this card or whether you would be better suited to another cash back card.
- Immediate Rewards
- Earn High Cashback in Select Stores
- Purchase Protections
- Mastercard Benefits
- No Welcome Bonus
- No Intro APR
- Foreign Transaction Fee
What are card income requirements?
There are no official income requirements for the PayPal Cashback Mastercard, but you do need to have good to excellent credit. While your income will be evaluated as part of the application process, it will not be the only factor that is considered when an approval decision is being made.
Can I get pre-approved?
PayPal does not offer pre approval for the card on its official website, but some customers may receive a mailer or other marketing which offers pre approval.
Does the card provide travel insurance?
While you can access global assistance with the PayPal Cashback Mastercard, the benefits package does not include any form of travel insurance.
In this Review
Simulation: How Much Rewards You Can Earn?
Check out the table below to see how many points you could earn by using the PayPal Cashback Mastercard. The table estimates how many points you could earn based on your typical spending in different categories.
Please keep in mind that the table is just an estimate, and your actual earnings may vary depending on your spending habits and other factors. However, it can give you a good idea of the potential benefits of this card.
Spend Per Category
PayPal Cashback Mastercard
$10,000 – U.S Supermarkets
$3,000 – Restaurants
$3,000 – Airline
$4,000 – Paypal
$4,000 – Gas
Estimated Annual Cashback
Pros and Cons
Just like any other credit card, the PayPal Cashback Mastercard has some advantages and disadvantages:
No Welcome Bonus
High Cashback in Select Stores
No Intro APR
Foreign Transaction Fee
Unlike how regular reward cards work, you don’t need to wait for your rewards with the PayPal Cashback Mastercard.
The cash back is earned each day when completed purchases are posted to your account. You can then redeem your rewards to your PayPal account to spend as you like.
Although the top tier rewards are limited to PayPal purchases, you may still be able to earn 3% when you’re shopping in store. In select stores, you can check out using the PayPal app and PayPal QR codes.
Just remember to select your PayPal Cashback Mastercard as your funding source to qualify for the 3% cash back.
When you shop with PayPal you can enjoy purchase protections. In the event that something is wrong with eligible purchases, you can file a claim for a refund and have the money placed back into your PayPal account.
Since the PayPal Cashback is a Mastercard, you can access some core benefits. These include ID theft protection and zero liability protection. This means that you can access a team of resolution specialists in the event of fraudulent activity and you won’t be held responsible for any unauthorized charges.
Cardholders can also access global services if you run into issues with your card if you’re away from home. You can also save money on airport concierge services.
With most reward credit cards, you’ll get a welcome bonus if you meet a spend requirement within a specified amount of time after opening your account.
These bonuses can be quite generous and can provide as much as several hundred dollars. Unfortunately, there isn’t even a mediocre welcome bonus with this card.
Unlike many rewards and cashback cards, the card does not have an introductory 0% APR offer for the first few months of being an account holder.
This means that you’ll start paying the regular APR on any balance that you carry on the card.
Although PayPal is a global brand, the card does still have a foreign transaction fee of 3%, which is waived with many other cards.
While this may seem like a small amount, it does mean that for every $1,000 you spend abroad with your card, you’ll get hit with a $30 fee.
Who is the PayPal Cashback Mastercard Best For?
Since this is a branded credit card, it is best for those who are brand loyal to PayPal. If you already have a PayPal account and typically use it regularly for your online purchases, you are likely to find this card beneficial. You can earn cash back on both PayPal and other types of purchases, and gain instant access to your rewards on the same day that the transaction is posted to your account.
The card could also be a good option for those who feel frustrated waiting to accumulate rewards on their credit card purchases. Unlike most reward credit cards, you don’t need to wait a month or until you reach a minimum redemption amount. You can simply withdraw the rewards to your PayPal account and then use the funds as you like. Paypal also offers debit and prepaid cards.
If you would like to check more alternative cash back and rewards cards, here are some options:
1.5% – 5% 5% on travel purchased through Chase Ultimate Rewards, 3% on dining at restaurants, including takeout and eligible delivery services, 3% on drugstore purchases and 1.5% cash back on all purchases
Up to $300 additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year)- worth up to $300 cash back
1-5% 5% cashback on up to $1,500 in rotating category purchases each quarter when you activate the bonus category (then 1%), as well 1% percent cash back on all other purchases
1-3% 3% cash back on your eligible top spend category, 2% on the next, and 1% on the rest
1% – 3% 3% cash back at Apple and select Apple pay partners, 2% on other Apple pay purchases, and 1% on all other purchases
1-3% 3% Cash Back at U.S. supermarkets / U.S. online retail purchases/ U.S. gas stations on up to $6,000 per year in purchases, then 1%
$200 $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months
1-3% 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings, 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other purchases. The 3% and 2% cash back available on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter (then 1%)
$200 $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening
1-5% 5% cash back on your highest eligible spend category each billing cycle up to the first $500 spent and 1% cash back thereafter
$200 $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening (20,000 ThankYou® Points, which can be redeemed for $200 cash back)
How To Maximize The PayPal Cashback Mastercard
As a cash back credit card, there are some ways to make the most of this card:
If you want to be able to quickly redeem your cashback, you will need to make sure that you’ve linked your new PayPal Cashback Mastercard with your PayPal account.
It is always a good idea to keep financial accounts including your PayPal account, in good standing. However, if you do have a negative balance on your PayPal account or have any other issues, it may delay receipt of rewards.
Since you can scan your PayPal QR code and claim 3% cash back on your purchases at partner stores, it is a good idea to check out the list of brands. This will help you familiarize yourself with your favorite retailers to maximize your cash back.
Periodically, PayPal has bonus reward promotions for certain purchases or brands. This means that you can earn a higher amount of cash back over the standard 2%.
Redeeming rewards with this card is extremely simple. All you need to do is click on redeem at any time and the funds will be moved into your PayPal account. There are no minimum redemptions or time restrictions.
The cash back is posted to your account the same day the transaction appears on your account. Once the funds are in your PayPal account, you can use them for purchases or transfer the money into a linked bank account.
You do need to have good to excellent credit for this card, but the only other restriction is that you need to have a PayPal account open and in good standing.
This card is not a good idea if you don’t typically pay your bill in full each month. Although credit cards are notorious for charging high APRs, this card has very high rates, particularly considering that it is designed for those with good to excellent credit.