PayPal Cashback Mastercard Review 2024
The PayPal Cashback Mastercard offers a compelling 3% cash back on PayPal purchases and 1.5% on everything else.
Detailed Review
The PayPal Cashback Mastercard® is designed for those who frequently use PayPal for their purchases. With no annual fee and straightforward cash-back rewards, it promises to be a hassle-free card for everyday spending. But how does it compare to other cash-back cards on the market?
Key Facts at a Glance
- Annual Fee: $0
- Rewards Rate: 3% cash back on PayPal purchases, 1.5% on all other purchases
- Intro Offer: None
- Regular APR: 20.24% – 34.99% Variable APR
- Foreign Transaction Fee: 3%
- Credit Score: 690-850 (Good to Excellent)
Pros and Cons
Pros
- No Annual Fee: A major advantage, making it cost-effective for all users.
- High PayPal Rewards: Earn 3% cash back on purchases made via PayPal.
- Easy Redemption: Redeem rewards without any minimum threshold.
Cons
- Membership Requirement: Must have a PayPal account to apply.
- No Intro APR: Lack of a 0% introductory APR offer.
- Foreign Transaction Fee: 3% fee on international purchases.
PayPal Cashback Mastercard: Detailed Breakdown
Rewards Structure
The PayPal Cashback Mastercard offers two primary rewards rates:
- 3% Cash Back on PayPal Purchases: This high rewards rate makes it one of the most lucrative cash-back options for those who shop frequently through PayPal.
- 1.5% Cash Back on All Other Purchases: While decent, this rate is easily matched or exceeded by other cards with no category restrictions.
Ease of Use
- Simplicity: With just two reward rates to remember, the card is straightforward and user-friendly.
- Wide Acceptance: Usable anywhere Mastercard is accepted, making it versatile for both online and in-store purchases.
- Instant Access: Approved users can start using their card immediately through PayPal before the physical card arrives.
Redemption Options
- Flexible Redemption: Redeem rewards directly into your PayPal account, or transfer them to a linked bank account or debit card.
- No Minimum Threshold: Redeem as little as one cent worth of rewards, offering flexibility not found in many other cards.
How Does It Compare?
Competitor Analysis
| Card | Annual Fee | Rewards Rate | Intro Offer | Foreign Transaction Fee |
|---|---|---|---|---|
| PayPal Cashback Mastercard® | $0 | 3% on PayPal purchases, 1.5% on all others | None | 3% |
| Citi Double Cash® Card | $0 | 2% on all purchases (1% when you buy, 1% when you pay) | $200 cash back (limited time) | None |
| Discover it® Cash Back | $0 | 5% on rotating categories, 1% on all other purchases | Unlimited Cashback Match in the first year | None |
| Chase Freedom Unlimited® | $0 | 5% on travel through Chase, 3% on dining and drugstores, 1.5% on other purchases | Up to $300 cash back | 3% |
| Blue Cash Everyday® Card from American Express | $0 | 3% on supermarkets, gas, and online retail in the U.S., 1% on others | $200 statement credit | 2.7% |
FAQ
Is the PayPal Cashback Mastercard a Good Card?
Yes, if you frequently use PayPal and prefer a simple rewards structure, this card is a great choice due to its 3% cash-back rate on PayPal purchases and no annual fee.
How Do You Activate the PayPal Cashback Mastercard?
Once approved, your card will be automatically linked to your PayPal account, allowing you to use it immediately for PayPal purchases even before the physical card arrives.
What Are the APR and Fees?
- Regular APR: 20.24% – 34.99% Variable APR.
- Foreign Transaction Fee: 3% of each transaction in U.S. dollars.
- Annual Fee: None.
Can I Use the Card for Non-PayPal Purchases?
Yes, you can use it wherever Mastercard is accepted, earning 1.5% cash back on those purchases.
How Do I Redeem My Rewards?
Rewards can be redeemed into your PayPal account or transferred to a linked bank account or debit card without any minimum redemption requirement.
Summary
The PayPal Cashback Mastercard® is a solid option for avid PayPal users looking for straightforward cash-back rewards without an annual fee. However, the 1.5% cash back on non-PayPal purchases is less competitive compared to other cards that offer higher rates or additional benefits such as intro APR periods and foreign transaction fee waivers. If you primarily shop through PayPal and value simplicity in rewards redemption, this card could be a valuable addition to your wallet. For those seeking higher rewards on everyday purchases or travel benefits, exploring other options may be beneficial.
Tip: Combine the PayPal Cashback Mastercard with a card offering high rewards in specific categories to maximize your cash-back earnings with minimal effort.
The Bottom Line
The PayPal Cashback Mastercard offers excellent value for heavy PayPal users with its high 3% cash-back rate on PayPal purchases. Its no-annual-fee structure and easy rewards redemption make it a hassle-free choice. However, for broader spending, consider pairing it with other high-reward cards to optimize your cash-back potential.
