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PayPal Cashback Mastercard® review: Easy cash back but limited benefits

Lee Huffman
7 min read

With the PayPal Cashback Mastercard, you can earn up to 3% cash back on all purchases. When you checkout with PayPal in-store and online, you’ll get 3% cash back and complimentary purchase protection on eligible items. Plus, the card earns an unlimited 2% cash back on all other purchases. While this cash-back credit card has limited benefits, it has no annual fee and provides a simple path to earning cash back on every purchase.

  • Annual fee: None

  • Welcome offer: None

  • Rewards: 3% cash back on PayPal purchases and 2% cash back on everything else

  • More details: Complimentary purchase protection, access to Mastercard Travel & Lifestyle services

The PayPal Cashback Mastercard has three interest rate tiers, depending on your credit score and other factors. Its interest rate on purchases is 20.24%, 29.24%, or 32.24% variable APR.

An intro APR for purchases or balance transfers is not available. If you get a cash advance, it charges 32.24% variable APR with a fee of 5% of the transaction amount (min $10).

There is no annual fee with the PayPal credit card. Therefore, all of the cash back you earn is yours to keep.

This card does not currently offer a welcome bonus opportunity for new cardholders.

  • 3% cash back on PayPal transactions in-store or online

  • 2% unlimited cash back on all other purchases

  • 2% cash back on authorized user purchases

Currently, authorized users cannot link the PayPal Cashback Mastercard to their accounts. If this feature becomes available, authorized users will earn 3% cash back on PayPal purchases.

The PayPal Mastercard offers no intro APR on purchases or balance transfers.

Periodically, PayPal offers promotional financing on certain transactions. These promotions offer no interest if paid in full within six, 12, or 18 months. If these transactions are not paid off before the promotion expires, PayPal charges interest charges at the standard APR from the date of purchase.

The PayPal Cashback Mastercard has three primary ways to earn cash back on purchases.

When you pay using PayPal, you’ll earn 3% cash back on every purchase. This includes checking out with PayPal on online purchases and using the PayPal mobile app to check out in-store. To checkout in-store, scan the mobile app’s QR code at participating stores. Participating stores for online and in-store purchases include eBay, Target, Apple, and Nike.

You’ll earn an unlimited 2% cash back on all other purchases. There are no bonus categories to memorize or special promotions to activate.

Cardholders can add authorized users to their PayPal credit card at no charge. Authorized users earn an unlimited 2% cash back on every purchase. However, they cannot link the PayPal Mastercard to their PayPal accounts to earn 3% cash back.

Cash-back rewards are earned daily as completed purchases are posted to your PayPal credit card. Rewards are generally available to transfer to your PayPal account within three days of your purchase date.

You can transfer cash back to your PayPal account online or through the PayPal mobile app (Apple, Google). Once you’ve transferred your cash-back rewards to your PayPal account, they can be used to make purchases, send money to others, or deposit to your linked bank account or debit card.

The PayPal Mastercard offers limited benefits beyond cash-back rewards. One of the main benefits it includes is purchase protection on PayPal purchases.

PayPal purchase protection is different than standard credit card purchase protection, which covers purchases against damage or theft. Instead, PayPal protects customers if they don’t receive their item or the item received differs from what was ordered. This benefit covers the full purchase price of the item plus any shipping costs paid. However, if you have to return the item as part of your claim, it doesn’t reimburse those shipping charges.

Another World Mastercard benefit is access to Mastercard Travel & Lifestyle services. This suite of benefits includes complimentary amenities and upgrades, preferential treatment, and exclusive offers.

The PayPal credit card is best for people who shop online and use PayPal on a regular basis. When you use PayPal to complete your transactions, you’ll earn an unlimited 3% cash back on every purchase.

This credit card is also ideal for consumers who want a flat cash-back rate so they don’t need to remember bonus categories, activate offers, or worry about spending caps. It offers an elevated 2% cash back on every purchase, double the base rate of other credit cards with bonus categories.

  • Earn up to 3% cash back

  • No annual fee

  • Purchase protection benefits

  • No welcome bonus opportunity

  • Limited benefits for cardholders

  • Foreign transaction fees of 3%

As a Mastercard, the PayPal credit card is accepted everywhere Mastercard can be used as payment. For maximum cash back, use PayPal to checkout online or a PayPal QR code in-store. Otherwise, you’ll earn a flat 2% cash back using your Mastercard to pay the bill.

  • Make payments from your linked bank account at PayPal.com

  • Log into the PayPal mobile app (Apple, Google) to pay your credit card

  • Use your PayPal deposit balance to make payments online or through the mobile app

  • Mail payments to PayPal Credit SVCS/SYNCB, PO Box 71718, Philadelphia, PA 19176-1718

  • Call customer service at (855) 938-3684 to pay by phone

  • Customer service is available by phone from 8 a.m. to 12 midnight Eastern on weekdays and 8 a.m. to 6 p.m. Eastern on weekends

  • Live chat online or via mobile app from 9 a.m. to 9:30 p.m. Eastern, seven days a week

  • Phone number: (855) 938-384

  • PayPal Cashback Mastercard login page

The PayPal Cashback Mastercard is an excellent card for cash back, but it doesn’t offer bonus categories and its benefits are lackluster. Consumers looking to maximize cash-back rewards and receive complimentary perks should consider other options.

The American Express Blue Cash Everyday Card is an excellent choice for people who don't want to use PayPal to make purchases or whose preferred stores don't accept it. The card has no annual fee and earns up to 3% cash back at U.S. supermarkets, U.S. online retailers, and U.S. gas stations (see rates and fees). Each bonus category has a $6,000 spending cap per year, then 1% cash back after that. New Blue Cash Everyday cardholders can earn a welcome bonus of $200 after spending $2,000 within six months and utilize a 0% intro APR on purchases and balance transfers for 15 months (19.24%–29.99% variable APR after that). It includes an $84 Disney bundle credit and a $180 Home Chef credit each year, plus eligible items receive purchase protection against damage or theft. (Terms apply; cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.)

Foodies love the Capital One SavorOne Cash Rewards card because they can earn an unlimited 3% cash back on dining, entertainment, at grocery stores (excluding superstores like Walmart and Target), and on select streaming services without paying an annual fee or foreign transaction fees. Whether they're out on the town or staying at home, they're earning valuable cash-back rewards. Plus, it earns 5% cash back on hotels and rental cars booked through Capital One Travel and 1% on everything else. The SavorOne Cash Rewards card includes a $200 welcome bonus after spending $500 within three months and a 0% intro APR for 15 months on purchases and balance transfers (29.99% variable APR after that). It also earns 10% cash back on Uber purchases and includes a free Uber One membership through November 14, 2024.

For customers who want flexible rewards, the Capital One VentureOne Rewards Credit Card earns unlimited 1.25x miles on every dollar spent. It also includes a welcome bonus of 20,000 miles when you spend $500 within three months. Redeem your miles to book travel through Capital One, to cover travel purchases made directly, get cash back, buy gift cards, and more. The miles transfer to 15+ airline and hotel partners to book award flights and hotel stays. The VentureOne Rewards card has no foreign transaction fees and includes complimentary rental car protection.

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers.