In a Nutshell
The PayPal Cashback Mastercard® offers a simple rewards structure with a solid cash back rate on all purchases.This offer is no longer available on our site: Chase Freedom Flex℠
PayPal Cashback Mastercard®
| PayPal Cashback Mastercard® | |
|---|---|
| Rewards structure | 3% cash back on PayPal purchases, and 1.5% on all other purchases |
| Ease of redeeming cash back | Easy |
| Annual fee | None |
- What you need to know about each card
- Winner: Paypal Cashback Mastercard®
- What to consider when applying for a cash back credit card
- Not sure either card is for you? Consider these alternatives.
What you need to know about PayPal Cashback Mastercard®
Here’s what you need to know about the PayPal Cashback Mastercard®.
PayPal Cashback Mastercard®: Good for easy rewards
The PayPal Cashback Mastercard® keeps things simple. It offers a flat 3% cash back on every purchase you make with PayPal, and 1.5% cash back on all other purchases. There’s no need to remember rotating categories or other complications. And to make things even easier, you can redeem cash back in any amount. You don’t have to wait until you’ve earned a minimum.
There’s a catch, though — you need to transfer your cash back rewards to your PayPal account. Once transferred, you can use your rewards two ways. If you have a PayPal Balance account, you can use the cash back to make purchases or send money to pay a PayPal balance. Otherwise, you can transfer your rewards again from your PayPal account to a linked bank account or debit card.
Here are the card’s key features.
- No annual fee
- You must have an active PayPal account
- 3% cash back on PayPal purchases
- 1.5% cash back on all other purchases
- No minimum redemption requirement
- Accepted online and in store anywhere Mastercard is accepted
What to consider when applying for a cash back credit card
Cash back credit cards aren’t the only type of rewards cards, but they’re popular for a good reason — they’re easy to understand. Use your card and you’ll get cash back — there’s no complicated points or miles system. Cash is also more flexible. You can redeem your cash back toward anything you can buy.
When you’re applying for a cash back credit card, you’ll need to decide whether you want a card that offers flat-rate rewards or a card that has bonus categories.
As a rule of thumb, flat-rate cards pay a midlevel cash back rate on every purchase, usually 1.5% to 2%. Bonus category cards can offer as much as 6% cash back on certain types of purchases but will offer a lower rate, usually 1%, on nonbonus category purchases.
If you want to keep things simple, go for one flat-rate rewards card. If you’re the type who likes to optimize, you can try carrying multiple cards that each offer bonus rewards for one category of spending. Just make sure that the rewards categories align with the way you already spend and that you pay attention to the fees each card charges so you can decide whether they’re worth it.
Not sure this card is for you? Consider these alternatives.
If you’re still in the market for a cash back card but don’t this credit card is for you, consider one of these alternatives.
- Chase Freedom Flex℠: If you want a credit card with bonus categories that change every few months, take a look at this card.
- Citi Double Cash® Card: If you want to earn cash back on every purchase but don’t want to open a PayPal account, this card could be a good choice.