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PayPal Cashback Mastercard® Review

PayPal Cashback Mastercard® Review

Rewards
3% cash back on PayPal purchases and 2% on all other purchases
Annual Fee
$0
Purchase APR
16.49% for Account Type 1 or 25.49% for Account Type 2 or 28.49% for Account Type 3
Edited by
Julie Sherrier
Reviewed by
Tracy Brackman
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Who is the PayPal Cashback Mastercard® best for?

If you want a straightforward approach to earning cash back rewards, you should consider a credit card with a flat rewards rate on most spending and no spend caps or rotating categories, like the PayPal Cashback Mastercard®.

Issued by Synchrony Bank, the PayPal Cashback Mastercard® lets you earn 3% cash back on PayPal purchases and 2% on all other purchases You can redeem cash back rewards directly to your PayPal balance at any time with no redemption threshold.

To apply for the PayPal Cashback Mastercard®, you must first set up a PayPal account. Once you are approved and activate your card, a temporary line of credit will be added to your account (in most cases), which you can begin using on PayPal immediately. Your physical card will arrive in the mail within seven to 10 business days.

We’ll review the pros and cons of the PayPal Cashback Mastercard®, and show how it compares to a similar cash back cards, like the Citi® Double Cash Card – 18 month BT offer.

PayPal Cashback Mastercard® overview

    • Shop anywhere Mastercard is accepted
    • Cash rewards never expire
    • Get a decision in seconds
  • Identity theft protection
  • Microchip technology
  • Contactless payment
  • 24/7 assistance through Mastercard Global Service

Intro Purchase APR

N/A

Regular Purchase APR

16.49% for Account Type 1 or 25.49% for Account Type 2 or 28.49% for Account Type 3

Intro BT APR

N/A

Regular BT APR

N/A

Annual Fee

$0

Cash Advance Fee

N/A

Foreign Transaction Fee

2.5%

Balance Transfer Fee

N/A

Pros and cons of the PayPal Cashback Mastercard®

Pros

  • Simple rewards structure
  • Mastercard acceptance
  • $0 annual fee

Cons

  • Limited redemption options
  • High APR

What we like about the PayPal Cashback Mastercard®

  • Simple rewards structure

    With the PayPal Cashback Mastercard®, you won’t have the hassle of keeping track of rotating bonus categories or spending caps. The card lets you earn 3% cash back on PayPal purchases and 2% on all other purchases.

  • Mastercard acceptance

    Along with using the PayPal Cashback Mastercard® to make purchases on PayPal, the card can be used everywhere Mastercard is accepted – both in stores and online.

  • Annual fee

    The PayPal Cashback Mastercard® charges a $0 annual fee.

What to watch out for with the PayPal Cashback Mastercard®

  • Limited redemption options

    Typically, cash back credit cards let cardholders redeem rewards for cash, statement credits or deposits to an eligible bank account. But with the PayPal Cashback Mastercard®, you can only redeem rewards as a deposit into your PayPal Balance account.

    If you don’t have a PayPal Balance account, you can transfer rewards to the bank account or debit card that’s linked to your account with PayPal.

  • High interest rate

    If you carry a balance from month to month on your PayPal Cashback Mastercard®, you will be subject to a high APR of 16.49% for Account Type 1 or 25.49% for Account Type 2 or 28.49% for Account Type 3.

Alternate cashback card to the PayPal Cashback Mastercard®

Compare it to the Citi® Double Cash Card – 18 month BT offer

| Disclosures
Citi® Double Cash Card – 18 month BT offer
Citi® Double Cash Card – 18 month BT offer
on Citibank's secure site
N/A
16.24% - 26.24% (Variable)
$0
Earn 2% on every purchase with unlimited 1% cash back when you
  • Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
  • For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
  • Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 16.24% - 26.24%, based on your creditworthiness.
  • Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
  • If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
  • There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
660 850

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

If you like the thought of earning 2% cash back on every purchase, but want more flexibility in how you redeem those rewards, the Citi® Double Cash Card is a solid option.

With the Citi® Double Cash Card , cardholders earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Rewards can be redeemed for a check, a statement credit to your card account, a direct deposit to an eligible savings or checking account or converted to ThankYou® points.

But where the Citi® Double Cash Card stands out the most is its balance transfer offer. Cardholders receive an introductory APR of 0% for 18 months on balance transfers – essentially giving you a year and a half to pay off the transfer before incurring interest. Once the promotional period ends, the regular APR of 16.24% - 26.24% (variable) applies.

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening. Additionally, the introductory APR is only valid on balances transferred within the first four months of account opening.

Similar to the PayPal Cashback Mastercard®, the Citi® Double Cash Card doesn’t have restricting bonus categories to keep track of or activate. There are also no caps on the amount of cash back you can earn.

Additionally, the Citi® Double Cash Card has a $0 annual fee.

Compare the PayPal Cashback Mastercard® to similar cards

The information related to the PayPal Extras Mastercard® has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication.

Comparison of four different credit cards
PayPal Cashback Mastercard® Citi<sup>®</sup> Double Cash Card – 18 month BT offer PayPal Extras Mastercard® Capital One Quicksilver Cash Rewards Credit Card
PayPal Cashback Mastercard® Citi® Double Cash Card – 18 month BT offer PayPal Extras Mastercard® Capital One Quicksilver Cash Rewards Credit Card
Read Review
Apply Now
on Citibank's secure site
Review Coming Soon Apply Now
on Capital One's secure site
Welcome Offer
$100 cash back bonus after your first $500 spent For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening. No bonus One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
Rewards Rate
3% cash back on PayPal purchases and 2% on all other purchases Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. 3 points per $1 spent on gas and restaurant purchases, 2 points per $1 spent on PayPal and eBay purchases, and 1 point per $1 spent on other purchases 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Annual Fee
$0 $0 $0 $0
Intro Purchase APR
N/A N/A N/A 0% intro on purchases for 15 months
Regular APR
16.49% for Account Type 1 or 25.49% for Account Type 2 or 28.49% for Account Type 3 16.24% - 26.24% (Variable) 19.99%, 23.99% or 26.99% variable 16.49% - 26.49% (Variable)
Intro Balance Transfer APR
N/A 0% for 18 months on Balance Transfers N/A 0% intro on balance transfers for 15 months (3% fee on the amounts transferred within the first 15 months)
Regular Balance Transfer APR
N/A 16.24% - 26.24% (Variable) N/A 16.49% - 26.49% (Variable)
Balance Transfer Fee
N/A There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening. N/A 3%
Recommended Credit
Excellent/Good Excellent/Good Excellent/Good Excellent/Good
Card Details
PayPal Cashback Mastercard® Citi® Double Cash Card Additional card details unavailable Capital One Quicksilver Cash Rewards Credit Card

Is the PayPal Cashback Mastercard® right for you?

Overall, the PayPal Cashback Mastercard® is a concrete option if you want a cash back credit card with a $0 annual fee. But if you’re planning to transfer a balance from a different card, the Citi® Double Cash Card is the better choice.

Or, if you would prefer a card that lets you earn bonus points in specific categories, you may want to consider the PayPal Extras Mastercard®. Along with a $0 annual fee, the PayPal Extras Mastercard® offers 3 points per $1 spent on gas and restaurant purchases, 2 points per $1 spent on PayPal and eBay purchases, and 1 point per $1 spent on other purchases. Points can be redeemed for gift cards, travel vouchers, cash back to your PayPal balance and more.