The PayPal Cashback Mastercard® is a PayPal credit card that’s only available to those with a PayPal account. It offers unlimited 2% cash back on every purchase, and the cash rewards never expire. Cashback rewards can be redeemed as direct deposits to your PayPal account.
Its generous rewards program and straightforward policies make the PayPal credit card an appealing resource for PayPal users. However, the card also has a relatively high APR and requires good or excellent credit to qualify.
Table of Contents
Quick Review
The PayPal credit card offers one of the best cash rewards programs on the market. Many rewards programs have complicated rules, rewards limits, and changing rewards rates based on categories (i.e., what type of purchase you’re making).
The PayPal credit card rewards program is much simpler: you earn 2% cash back on all of your purchases.
There is no limit to the amount of cash rewards that you can earn, and your cash rewards never expire. There’s also no minimum amount of cash rewards that you need to accumulate before you’re allowed to claim them, which you can do by redeeming them as credit to your PayPal account.
To get the PayPal credit card you must:
- Be at least 18 years old
- Reside in the US or its territories
- Have good or excellent credit
It’s an unsecured credit card, meaning you won’t need to put down a security deposit. Additionally, it doesn’t charge program, monthly, or annual fees, making it a low-cost card to open. However, the PayPal credit card does have a relatively high interest rate of 16.74%–23.74%.
Here are the PayPal credit card’s major pros and cons:
Pros & Cons
Other PayPal Credit Products
Along with the PayPal credit card, PayPal offers two other types of credit products:
PayPal Credit is an open-end credit account (also known as a revolving credit account) that can be used on purchases that accept PayPal. You can choose PayPal Credit as your payment option when you make an applicable purchase. If you’re approved for PayPal Credit, you start off with a minimum credit line of $250. The variable purchase APR is 23.99%.
PayPal Cash Card is a PayPal debit card you can use to access the money in your PayPal account. As this isn’t a credit card, no credit check is required to qualify. Furthermore, there are no annual or monthly fees, or minimum balance requirements. However, this card has a daily spending limit of $3,000 and a daily cash ATM withdrawal limit of $400.
This review will focus solely on the PayPal Cashback Mastercard® credit card.
PayPal Cashback Mastercard® Important Details
Basic Card Details
- Card issuer: Synchrony Bank
- Regular APR: 17.99%–29.99% (variable)
- Annual fee: $0
- Rewards rate: 2%
Additional Information
- ID Theft Protection™
- EMV Chip Technology
- Zero liability for any unauthorized charges
- PayPal Purchase Protection
PayPal Cashback Mastercard® Feature Breakdown
Here’s a closer look at the key features of the PayPal credit card:
Fees
- Annual fee: $0
- Cash advance fee: $10 or 5% of the amount (whichever is greater)
- Foreign transaction fee: 3% of each transaction
- Late payment fee: up to $40
- Returned payment fee: $29
Notably, the PayPal credit card doesn’t charge annual or monthly fees. However, the cash advance fee is rather high, so it’s not advisable to use your PayPal credit card to withdraw money from an ATM.
Interest Rates
- Purchase APR: 17.99%–29.99% (variable)
- Cash advance APR: Prime rate + 23.74%
- Minimum interest charge: $2
The PayPal credit card has a high interest rate, especially compared to other similar cards that require good to excellent credit for approval. In addition, the PayPal credit card doesn’t offer APR deductions for new cardholders, like a 0% APR for the first year of account opening.
Rewards
The biggest perks of the PayPal credit card are its cashback rewards programs.
PayPal offers unlimited 2% cash back rewards on all purchases. Many cards offer rewards with yearly (or even quarterly) cashback caps, or only offer rewards for shopping in certain categories. With the PayPal credit card, you’ll get 2 cents back for every dollar that you spend, without limit.
However, the rewards can only be redeemed on your PayPal account. Given how ubiquitous PayPal use is as a payment option, we don’t consider this a big drawback of the card.
Credit Reporting
The PayPal credit card issuer, Synchrony Bank, reports monthly to credit bureaus: Experian, Equifax, and TransUnion.
This is a definite plus. Credit reporting is important for building credit or improving your credit score, and not all lenders choose to report your activities.
Should You Get the PayPal Credit Card?
FinanceJar verdict
The PayPal Cashback Mastercard® is a good credit card for PayPal users who want to maximize their cashback rewards. With unlimited 2% cash back on all purchases, the PayPal credit card offers a straightforward and lucrative rewards program.
While this card does not charge an annual fee, it does have a high APR. If you’re unable to pay your balance in full each month, you may want to consider another card with a lower interest rate.
Who is this card for?
The PayPal credit card is a good credit card option, but not necessarily for everyone. For example, borrowers with bad credit scores or limited credit histories aren’t likely to qualify. If you’re in that group, you should look for credit cards for no credit or credit cards for bad credit instead.
On the other hand, the PayPal credit card is a particularly good choice for these borrowers:
- PayPal users: This credit card is only available to PayPal users, and rewards will be applied to your PayPal account. If you frequently use PayPal to make purchases or pay recurring bills, the PayPal credit card is a good card to add to your wallet.
- People who want easy cashback rewards: If you’re looking for a card that earns cashback rewards and you don’t want to worry about rewards categories, cashback caps, and rotating promotions, the PayPal credit card offers an easy and generous program.
Comparable Cards
PayPal Cashback Mastercard® vs. eBay Mastercard®
These credit cards are similar, as they’re both Mastercards issued by Synchrony Bank that offer cashback rewards. However, the eBay Mastercard® is only a good credit card option for frequent eBay shoppers, as rewards can only be redeemed for purchases on eBay.
The eBay Mastercard® also offers rewards categories that have the potential to earn you cashback rewards at a rate of 1%–5%, depending on what you’re buying. So while you can earn more rewards with the eBay card, rates vary across categories, and points have more limited use than with the PayPal card.
PayPal Cashback Mastercard® vs. Bank of America® Customized Cash Rewards Credit Card
Both the PayPal credit card and the Bank of America® Customized Cash Rewards card offer cash rewards. While the PayPal card offers unlimited 2% cash rewards on all purchases, the Bank of America card offers 3% cash back in the category of your choice. For example, you could designate online shopping as your chosen category and earn 3% back on purchases made online.
While the PayPal card has the broader cash rewards program, the Bank of America card offers excellent introductory offers and bonuses. The Bank of America card boasts a 0% introductory APR for the first 15 statement closing dates after you open your account. You’ll also get a $200 cash rewards bonus if you make at least $1,000 in purchases during the first 90 days.
PayPal Cashback Mastercard® vs. Amazon Prime Rewards Visa Signature Card
The choice between these two credit cards depends on how often you shop with Amazon. If you’re an active Amazon shopper with an Amazon Prime account, the cashback rewards program for the Amazon Prime Rewards card could provide more cash back than the PayPal card.
The Amazon Prime Rewards Visa Signature offers:
- 5% back for purchases made on Amazon and at Whole Foods Market
- 2% back at restaurants, gas stations, and drugstores
- 1% back on all other purchases
The card also offers limited deals wfith up to 25% cash back on the purchase of specific items from Amazon. Another advantage of the Amazon Prime Rewards card is that new cardmembers receive a $100 gift card that is instantly loaded into your Amazon account upon approval of your credit card
