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.

• 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.

• 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 "17.99% for Account Type 1 or 26.99% for Account Type 2 or 29.99% for Account Type 3".

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

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 18.74% - 28.74% (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.

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.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.