PayPal Cashback Mastercard Credit Card Review: Is It Worth It?

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A Great Cash-Back Credit Card for Online Shoppers

The PayPal Cashback Mastercard® offers generous cash-back rewards on everyday purchases that exceed what you can earn with some of the more popular rewards credit cards. This card is ideal for those who want to earn elevated rewards on everyday spending without tracking rotating category bonuses. Cardholders earn 3% cash back on purchases made with PayPal plus 2% cash back everywhere else. Considering how widely accepted PayPal is, these rewards can stack up significantly. Best of all, it has no annual fee, so you don’t have to weigh its benefits every year against its cost.

^{Cash back on purchases are subject to credit approval, and the PayPal Cashback Mastercard must be used for payment. See Rewards Program Terms for details and restrictions}

Pros

High cash back rate even for non PayPal purchases
Great for people who shop online a lot where you can checkout with PayPal
No annual fee
No rotating categories

Cons

No sign-up bonus
Some cash back cards have higher rates in some categories

Card Highlights

Unlimited 3% cash back on PayPal purchases and 2% everywhere Mastercard is accepted
$0 annual fee
Rewards don’t expire
No rotating categories to keep track of
Zero liability for unauthorized charges

The PayPal Cashback Mastercard is an excellent choice for anyone looking for a no-annual-fee card offering generous cash-back rewards without rotating categories. Rewards don’t expire and all purchases are protected with zero liability against unauthorized charges.

Earning Rewards

3% cash back on PayPal purchases online and in stores: Earn unlimited 3% cash back on PayPal purchases online. You can even earn 3% cash back when shopping in-store with eligible retailers by scanning your PayPal QR code.
2% on everything else: Earn unlimited 2% cash back on all eligible purchases, which is a great way to earn elevated rewards on everyday spending.

The PayPal Cashback Mastercard's unlimited 3% cash-back rate creates a lot of earning potential. After all, PayPal partners with many popular retailers like eBay, Walmart, Amazon, Best Buy and The Home Depot. The high, flat rewards rate and unlimited earning ability make it one of the best credit cards for online shopping.

See Rewards Program Terms for details and restrictions

Quick Tip

Some restaurant and food delivery apps allow you to choose PayPal as a payment method when placing your order, so you can earn 3% back on some dining expenses.

Redeeming Rewards

The PayPal Cashback Mastercard makes it fairly easy to redeem rewards, which can be done in a couple of ways:

Transfer rewards to your bank account or debit card. You can transfer your cash-back earnings into your PayPal account within three days of the purchase date. Once they’ve been transferred to your account, the rewards can be transferred to your bank account or debit card.
Redeem to your PayPal account balance. If you have a PayPal balance account, you can use the rewards to make payments, purchases or send money to other PayPal users.

A PayPal Balance account is PayPal’s version of a checking account. You can add funds to the account for purchases, send money and buy cryptocurrencies. You can even set up direct deposits and deposit checks into your PayPal Balance account. There’s no monthly fee or minimum balance requirement.

^{Important information on redeeming Cash Rewards: You need to have a PayPal Balance account to use your redeemed rewards in your balance. If you do not have that account, you can only transfer your Cash Rewards to your bank account or debit card linked to your account with PayPal.}

Card Benefits and Perks

The PayPal Cashback Mastercard is a simple, straightforward cash-back card. While it doesn't come with a ton of perks, there are benefits to owning the card:

No annual fee
Generous 3% cash-back rate on PayPal purchases, 2% on everything else
Rewards don’t expire
Rewards are easy to redeem
Unlimited cash back potential

The rewards rates are easy to remember, and there are no rotating categories to track. Simply earn an unlimited 2% back on most purchases or 3% back when you pay with PayPal.

Drawbacks

There are some downsides to consider when deciding whether to apply for the card:

No welcome bonus
3% foreign transaction fee
No intro APR
Requires PayPal account

While the PayPal Cashback Mastercard offers strong flat-rate cash back on your spending, those who spend a lot on common rewards categories may earn more with a rewards credit card. The 3% foreign transaction fee also means you should avoid using this card when traveling abroad.

Annual Fee

The PayPal Cashback Mastercard has no annual fee, which makes it easy to justify keeping the card long-term. The card also offers a high ongoing cash-back rate on purchases, which is impressive for a no-annual-fee card.

^{See Terms and Rates for New Accounts.}

APRs

The PayPal Cashback Mastercard has a 20.24% - 32.24% Variable APR (rates as of 9/1/2023), based on your creditworthiness and the market prime rate.

If you plan to carry a balance on your credit card or want to leverage a card with an introductory APR for a large purchase, you should consider a credit card with a 0% intro APR offer instead.

Other Fees

The PayPal Cashback Mastercard has several other fees worth noting.

For starters, the card has a 3% foreign transaction fee on purchases.

In addition, cardholders will incur a fee for late payments and for returned payments. Additionally, cash advance transactions carry a fee of 5% or $10, whichever is greater.

Recommended Credit Score

The PayPal Cashback Mastercard does not disclose its specific credit score requirement. However, applicants with good to excellent credit (generally scores of 670 or higher) may be more likely to be approved. If you don’t meet this criteria, it’s best to improve your credit score before applying.

How the PayPal Cashback Mastercard Compares

Card	Bonus Offer	Annual Fee	Rewards Rate	Learn More
PayPal Cashback Mastercard® Apply Now		$0	2%-3%Cashback More Info Earn 3% cash back on PayPal purchases and 2% on all other purchases.	Apply Now
Citi Double Cash Card® Apply Now Rates & Fees	$200Cash Bonus More Info Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.	$0	2%Cashback More Info Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.	Apply Now Rates & Fees
Chase Freedom Unlimited® Apply Now	1.5%Extra Cash Back More Info Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.	$0	1.5% - 5%Cashback More Info Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases	Apply Now

PayPal Cashback Mastercard® vs. Citi Double Cash Card®

The PayPal Cashback Mastercard and the Citi Double Cash Card®, from our partner Citi, are rewards credit cards that offer cash-back rewards with no annual fee. The Citi Double Cash offers a flat 2% cash back on all purchases (1% cash back when you purchase and an additional 1% when you pay your bill).

You should choose the PayPal Cashback Mastercard if you want a higher rate of return on purchases, especially if you are an avid online shopper. But if you want more flexibility in how rewards are redeemed, then the Citi Double Cash would be a better option. The Double Cash lets you transfer rewards to Choice Privileges, JetBlue TrueBlue and Wyndham Rewards. If you have another Citi card that earns Citi ThankYou Points, then you can link your rewards and transfer them to over a dozen airline and hotel transfer partners.

However, not everyone wants to learn about award programs to get the best value from their points. If you’re looking for simplicity, the PayPal Cashback Mastercard delivers on that front.

PayPal Cashback Mastercard® vs. Chase Freedom Unlimited®

The PayPal Cashback Mastercard and Chase Freedom Unlimited® are great no-annual-fee cards for everyday spending. Whichever card you choose will come down to your spending habits.

Those who spend considerably on the Freedom Unlimited's rewards categories such as dining (3% back) and drugstore purchases (3% back) will benefit more from the card. If you leverage the Chase portal for travel, you'll also get an impressive 5% back on those purchases. The Freedom Unlimited has the added benefit of a welcome bonus, which the PayPal Cashback card lacks. But if your expenses are more varied and you don't want to keep track of rewards categories, then the Paypal Cashback is an easier, hassle-free option.

It’s also worth noting that the Freedom Unlimited is subject to the Chase 5/24 rule. If you’ve applied for five or more credit cards in the last 24 months with any bank, you likely won’t be approved.

Who Is the PayPal Cashback Mastercard Good for?

The PayPal Cashback Mastercard is an excellent option for people who want to earn elevated cash back rewards on their everyday purchases without an annual fee. The potential to earn an unlimited 3% back at popular merchants that accept PayPal can be quite lucrative, especially since it applies to millions of retailers and popular stores like Target and Walmart. Avid online shoppers and those who want a hassle-free rewards structure will find a lot of value in the PayPal CashBack Mastercard as an everyday credit card.

However, the PayPal Cashback Mastercard may not be the best choice for someone with high balances that they carry from month to month. This is because there is no introductory APR rate offered with this card. The card also doesn’t offer a welcome bonus, so if you want to save up cash back for a travel purchase or a rainy day, you might want to consider a travel credit card or a card with a sign-up bonus.

Frequently Asked Questions

You can use your PayPal credit card anywhere Mastercard is accepted. Just note that if you use it abroad, you will incur a 3% foreign transaction fee.
The PayPal Cashback Mastercard is available to U.S. residents 18 and older with a valid Social Security number and a PayPal account in good standing.
The PayPal credit card is issued by Synchrony Bank and accepted everywhere Mastercard is accepted.

Ariana Arghandewal

Ariana Arghandewal is a rewards travel expert and founder of Pointchaser, an online publication dedicated to rewards travel topics. She brings over a decade of experience writing about travel, points, miles and credit cards. Her expertise includes her roles as an editor for distinguished travel and finance publications such as NerdWallet, The Points Guy and FlyerTalk. She has also authored many articles featured in major financial news & travel channels like Forbes, U.S. News Weekly, Business Insider & Fodor’s Travel.

PayPal Cashback Mastercard® Review: Best for Online Shoppers