PayPal Cashback Mastercard Review 2024

• This card does not offer a welcome bonus.
• Earn 3% cash back when checking out with Paypal and 2% on all other purchases.

Alternatives to the PayPal Cashback Mastercard

Blue Cash Everyday® Card from American Express

Partner OfferApply Now →

Apply Now

On American Express's Website

Rates & Fees/ Terms Apply

Welcome Bonus

Earn $200

Annual Fee

$0

Credit Score

Excellent/Good

Regular APR

19.24%-29.99% Variable

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

Chase Freedom Unlimited®

Apply Now →

Apply Now

On Chase Bank USA, NA's Website

Welcome Bonus

Up to $300 cash back

Annual Fee

$0

Credit Score

Excellent, Good

Regular APR

20.49% - 29.24% Variable

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel, 4.5% on dining and drugstores, and 3% on all other purchases.

Citi Double Cash® Card

Apply Now →

Apply Now

On Citi's Website

Rates & Fees

Welcome Bonus

Earn $200 cash back

Annual Fee

$0

Credit Score

Excellent, Good, Fair

Regular APR

19.24% - 29.24% (Variable)

Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

• Introducing the PayPal Cashback Mastercard
• PayPal Cashback Mastercard Quick Facts
• What Is the PayPal Cashback Mastercard Best For?
• PayPal Cashback Mastercard Rewards
• Other PayPal Cashback Mastercard Benefits
• How To Maximize the PayPay Cashback Mastercard
• Fine Print
• How the PayPal Cashback Mastercard Stacks Up
• Is the PayPal Cashback Mastercard for You?
• Methodology
• Frequently Asked Questions (FAQs)

The PayPal Cashback Mastercard®* offers 3% cash back when checking out with Paypal and 2% on all other purchases with a $0 annual fee. That’s a strong return with no strings attached. There are no category bonuses to keep track of, no limits on reward earnings and no minimum redemption threshold. It doesn’t get simpler than that.

The only catch is that you must have a PayPal account (which is free to open) to apply for the card and those with good or excellent credit are more likely to qualify. Once approved, you can expect to be charged a high annual percentage rate (APR), 20.24% - 32.24% variable APR based on credit worthiness, for all purchases with no introductory rates—which means it’s a card most suited for those who pay off their balances in full each month.

• Earn 3% cash back when checking out with Paypal and 2% on all other purchases
• Welcome bonus: This card does not offer a welcome bonus
• No category restrictions
• No cap on earnings
• Cash rewards never expire
• Requires a free PayPal account to apply
• Instant access to your credit line for PayPal purchases

The PayPal Cashback Mastercard®* is a reasonable choice for individuals who frequently shop online and prefer straightforward rewards. This card stands out for its simplicity, offering a flat cash-back rate on all purchases without any category restrictions or spending caps and a bonus on purchases made through PayPal. With no annual fee and the versatility of cash-back rewards, this card is well-suited for everyday shoppers seeking uncomplicated yet effective reward structures, making it a valuable addition to the wallet of savvy online consumers and PayPal enthusiasts.

Earning Rewards

Rewards on this card are uncomplicated: You’ll earn a flat 3% cash back when checking out with Paypal and 2% on all other purchases. There are no categories to keep track of and no limits to how much you can earn. That makes this card a great choice for someone who values simplicity.

This card does not offer a welcome bonus.

Redeeming Rewards

Redeeming rewards with this card is just as easy as earning them. Your rewards are calculated each day and you can redeem them in any amount with no minimum thresholds.

To redeem your rewards, you’ll transfer them to your PayPal account, where they can then be used toward PayPal purchases or transferred to a linked bank account. There are no options to convert your rewards to statement credits, gift cards or to book travel. Because of this, you’ll need to keep your PayPal account open and in good standing to be able to redeem your rewards.

Rewards Potential

Forbes Advisor uses data from various government agencies to determine both baseline income and spending averages across various categories. The 70th percentile of wage earners bring in $118,438 annually and we base our sample household spending on that number.

PayPal Cashback Mastercard Rewards Potential
Category	Earning Rate	Estimated Annual Spend	Estimated Annual Earnings
PayPal purchases	3%	$8,477	$254.31
All other purchases	2%	$30,860	$617.20
			Total: $871.51

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As a World Mastercard, the PayPal Cashback Mastercard®* comes with benefits, including:

• ID theft protection. Access to a team of identity theft resolution specialists and identity monitoring.
• Zero liability protection. You’re not responsible for unauthorized charges made on your card.
• Mastercard Global Service. Get emergency assistance anytime, anywhere and in any language. This includes reporting a lost or stolen card, obtaining an emergency card replacement or cash advance, finding an ATM and answering questions on your account.
• Mastercard Airport Concierge. Get a 15% savings on Airport Meet and Greet services.

Since the PayPal Cashback Mastercard offers a flat rate of cash back on all purchases and a bonus on PayPal purchases, it’s most beneficial to use it for everyday spending across a wide range of categories, but to shop through PayPal when you can.

Interest Rates

• APR for purchases: 20.24% - 32.24% variable APR based on credit worthiness

Fees

• Annual fee: $0
• Foreign purchase transaction fee: 3% of each transaction in U.S. dollars

PayPal Cashback Mastercard®* vs. Citi Double Cash® Card

One of the most direct competitors to this card is the Citi Double Cash® Card, which earns 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off.

There are a few differentiating features that will determine which card is a better fit for you. One benefit of the Citi Double Cash card is that the rewards are earned as ThankYou® Points, which can be redeemed for cash back, used to book travel or transferred to Citi’s airline transfer partners. Those points can thus potentially have more value.

Also worth noting is the Citi Double Cash’s offer of a 0% intro APR on balance transfers for 18 months. After that, the standard variable APR will be 19.24% - 29.24%, based on creditworthiness. An intro balance transfer fee of either $5 or 3%, whichever is greater, applies to transfers completed within the first 4 months of account opening. After that, the fee will be 5% of each transfer (minimum $5).

PayPal Cashback Mastercard®* vs. Chase Freedom Flex℠

If you’re looking for an all-purpose card that earns elevated rewards across a broad swath of categories, the Chase Freedom Flex℠ could be the card you’ve been searching for. For an annual fee of $0, the card earns 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases.

Rewards are earned as Chase Ultimate Rewards®, a highly flexible currency that can be redeemed for cash back, travel, gift cards, merchandise or combined with rewards earned from a Chase Sapphire Preferred® Card or Chase Sapphire Reserve® card and transferred to one of Chase’s travel transfer partners.

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

If you’re an online shopper but not necessarily loyal to PayPal, the Blue Cash Everyday® Card from American Express (terms apply, see rates & fees) might be a better fit. It 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 or at Amazon.com checkout. There’s also a welcome bonus of a $200 statement credit after spending $2,000 on purchases within the first 6 months.

Although the elevated earnings rate on online purchases is capped, you might end up ahead on your total spending due to the higher cash-back earnings on gas and groceries. You’ll also have access to Amex Offers, a program with targeted, opt-in offers that provide discounts or statement credits when making purchases at participating retailers (both online and in-store).

Unfortunately, the Blue Cash Everyday only provides a ho-hum 1% cash-back rate on most purchases, which means this card only beats the competition if you’re using it for its bonus categories.

Related: Best Credit Cards of 2024

This card is a fit for anyone who wants to earn cash back on every purchase without paying an annual fee or tracking bonus categories. The combination of 3% cash back when checking out with Paypal and 2% on all other purchases and easy redemption make it suitable as a simple-to-use rewards card if you only want to own one credit card. If you prefer to hold multiple cards, it could be a logical addition to your wallet for purchases that don’t normally fall into bonus categories. But the high APR means this card is best for someone who doesn’t typically carry a balance.

Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:

• Annual fees
• Welcome bonus offers
• Ongoing earning rates
• Value of individual points of miles
• Included travel or merchant credits
• Additional cardholder benefits

Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors come together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards.

To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.
†Purchases are subject to credit approval, and the PayPal Cashback Mastercard must be used for payment. See Rewards Program Terms for details and restrictions. ††Important information on redeeming Cash Rewards: You need to have a PayPal Balance account to use your redeemed rewards in your balance. If you do not have that account, you can only transfer your Cash Rewards to your bank account or debit card linked to your account with PayPal. *The PayPal Cashback Mastercard features no annual fee. The PayPal Cashback Mastercard is issued by Synchrony Bank pursuant to a license by Mastercard International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EMVCo, LLC.