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The card could have great long-term value, but only if you take advantage of its PayPal bonus category
Brendan Dyer Brendan Dyer
Written by
Courtney Mihocik Courtney Mihocik
Edited by
/ 14 min
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict,this post may contain references to products from our partners. Here's an explanation for andhow we rate our cards.The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
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Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
Snapshot
3.4
Bankrate rating
Rating: 3.4 stars out of 5
Bottom line
This card has limited features, but its high flat-rate and bonus rewards could make it a winner for PayPal users.
PayPal Cashback Mastercard®
*The information about the PayPal Cashback Mastercard® has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
*
3.4
Rating: 3.4 stars out of 5
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Fair to Good(580–740)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Recommended Credit
N/A
Intro offer
Intro offer is not available for this Synchrony credit card.
2% - 3%
Rewards rate
Earn 3% cash back on PayPal purchases Earn 2% on all other purchases
Annual fee
Regular APR
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On This Page
On This Page
- Current offer details
- PayPal Cashback Mastercard pros and cons
- Reasons to get this card
- Reasons to skip this card
- PayPal Cashback Mastercard vs. other cash back cards
- Best cards to pair with the PayPal Cashback Mastercard
- Is this card worth getting?
- Rating methodology
- Frequently asked questions
PayPal Cashback Mastercard® overview
The PayPal Cashback Mastercard® could be a hit for people who use PayPal and has the potential to be a great no-annual-fee rewards card for everyone else.
This card offers unlimited 2 percent cash back on all purchases — a great flat rewards rate — and 3 percent back when you shop with PayPal. Few flat-rate cards go the extra mile by offering bonus categories and a flat rate higher than the typical 1 percent cash back found with most cash back cards.
Unfortunately, you may not easily figure out which purchases earn 3 percent cash back as not all stores let you make purchases through your PayPal account. Some may only allow direct debit card or credit card payments. Thecard also lacks a sign-up bonus, intro APR offers and other benefits that help give rewards cards long-term value. Here’s what you need to know about the PayPal Mastercard and how it stacks up against the best cash back cards.
Rewards
- 3 percent cash back on purchases made through your PayPal account or when you send money to other PayPal users
- 2 percent cash back on all other purchases
Expert Appraisal: Typical
See our expert analysisWelcome offer
- This card doesn’t have a welcome offer.
Expert Appraisal: Weak
See our expert analysisRates and fees
- Annual fee: None
- APR: 20.24 percent to 32.24 percent variable
- Cash advance fee: Either $10 or 5 percent of the amount of each cash advance
- Foreign transaction fee: 3 percent
- Late payment fee: Up to $40
- Returned payment fee: $29
Expert Appraisal: Unimpressive
See our expert analysisOther cardholder perks
- Zero Liability Protection
- Lost and stolen card reporting
- Emergency card replacement
Expert Appraisal: Unimpressive
See our expert analysis
PayPal Cashback Mastercard pros and cons
Pros
This card offers a unique combo of 2 percent cash back on all purchases with the chance to earn 3 percent cash back at merchants that accept PayPal.
The card charges no annual fee, making it affordable to pair with other rewards cards.
PayPal integration makes this a great card for people who use PayPal and want to manage their card, payments and cashback rewards all in one place.
Cons
The card has no sign-up or intro offers, limiting the card’s initial value compared to other cash back cards.
Your favorite stores may not be eligible to earn 3 percent cash back, and authorized users can only earn up to 2 percent cash back on all purchases.
This card’s APR can be higher than other cash back credit cards.
Why you might want the PayPal Cashback Mastercard
The PayPal Cashback Mastercard will be great for earning extra cash back without an annual fee if you regularly use PayPal. You earn boosted cash back rewards for purchases using PayPal, solid flat-rate cash back rewards for allother purchases and the card integrates seamlessly into a digital wallet.
Rewards: Boosted cash back for PayPal purchases
On top of its impressive 2 percent flat cash back rate on all purchases, the PayPal Mastercard offers a bonus rate of 3 percent cash back on PayPal purchases, including at stores that let you pay using the PayPal app. A powerful combination of rewards like this can set PayPal users up to earn outstanding rewards on nearly every purchase they make, whether using PayPal or not.
Most flat-rate cash back rewards cards only offer a flat rate on general purchases, with no additional bonus categories. Flat-rate rewards programs like these can keep things simple and hassle-free, but you may miss out on a higher rate in your biggest spending categories.
By pairing a flat 2 percent rewards rate on general purchases with 3 percent cash back on PayPal purchases, the PayPal Mastercard combines the best features of flat-rate and bonus-category cash back cards. However, to earn 3 percent cash back, you must be the primary cardholder. You also have to make purchases through your PayPal account, which you can do online or in-store as long as the merchant accepts PayPal as a form of payment. If the store doesn’t accept PayPal, you’ll earn 2 percent cash back. But the PayPal Mastercard’s lower barrier of entry and long-term rewards potential make it a worthy addition to anyone who regularly uses the PayPal app to make in-store or online purchases.
Rates and fees: No annual fee for unlimited boosted cash back
Rewards cards with boosted cash back rates sometimes have annual fees that eat into your yearly rewards balance. There are exceptions to this rule, like the Blue Cash Everyday® Card from American Express and the Citi Custom Cash® Card, but spending caps hamper these cards’ long-term value.
The PayPal Cashback Mastercard joins these top cash back credit cards as one of the most generous rewards cards that cost nothing to hold, and leads the pack as a competitor that doesn’t place a rewards cap on its highest rewards category.
Even if you don't use PayPal often, it’s a solid alternative to other flat-rate cash back cards with its 2 percent rate on all other purchases outside of PayPal.
Bankrate Insight
Several popular brands accept PayPal, which means you’ll have enough flexibility to maximize this card’s boosted rate just about anywhere. PayPal lists the merchants that accept PayPal as a payment method on its website. It includes a comprehensive list of popular fashion, travel, entertainment, electronics, and athletic brands.
PayPal integration: Simple and secure account management
This card provides added convenience and functionality by integrating with the PayPal app. You can manage your card, PayPal account, cash back, rewards redemptions and mobile wallet from within the app. Although tracking card activity is not always complicated, the PayPal app gives you a one-stop location for managing your money.
Not only can seamless in-app integration protect you from credit card fraud with PayPal’s security features, like encryption and fraud detection, but you can use the PayPal app to view your card account details and PayPal activity in one place. Plus, you can use the PayPal app to make purchases using your PayPal Cashback Mastercard, meaning you won’t need to enter card details every time you make an online purchase.
If you’re wary about online purchases using your credit card, the PayPal app can be a barrier between your card information and merchants. Although exceptions to this process exist, merchants typically receive payments from PayPal, and your information remains private.
To redeem your rewards, you just need to select your cash back balance and choose a redemption method. You can redeem cash back rewards for PayPal purchases, a direct deposit to your bank account or as a statement credit. Redemptions for PayPal purchases can be more convenient than standard credit card rewards, especially if you’re a frequent PayPal user. To make it even easier, redemption options for PayPal purchases appear during checkout, where you can apply your rewards balance as a payment method to cover part or all of your purchase.
Why you might want a different cashback card
If you don’t use PayPal, this card could be tough to maximize. Even if you are a PayPal user, this card lacks some outstanding features like a welcome offer, an intro APR period and the many perks and benefits found on rival cards.
No welcome offer: Low first-year value compared to other cards
If you were hoping to get a headstart building a cash back balance with your next credit card, you might be disappointed to learn that the PayPal Cashback Mastercard doesn’t have a welcome offer, frequently found on many cash back cards. Cardholders typically can earn anywhere from $50 to $250 in cash back rewards for meeting a minimum spending requirement as part of a signup bonus. Although spending requirements can inspire overspending, the extra cash back is often worth it.
Consider another rewards or cash back card if you want a welcome offer. However, if PayPal makes up a majority of your budget, you might be better off earning a regular 3 percent back on PayPal purchases than a one-time $200 cash back bonus.
APR: A poor choice for transferring or carrying a balance
Intro APR periods are sometimes a lifeline for cardholders who want a break from interest payments to whittle down their credit card debt. Or they’re a great feature for new cardholders who want to chase a welcome offer’s spending requirement. The PayPal Mastercard doesn’t have an intro offer for either new purchases or balance transfers, making it a poor choice for current cardholders who want to transfer a balance or finance a large, upcoming purchase.
Lacking intro APR offers doesn’t necessarily mean it’s a bad credit card, but intro offers can bring peace of mind and convenience for cardholders new to credit or recovering from debt. Not to mention, this card has a relatively high ongoing APR. On the low end, it’s a manageable20.24 percent variable. However, this card’s APR can be as high as 32.24 percent, far above the current average credit card interest rate.
Perks: Limited to just network benefits
The PayPal Mastercard carries the minimum network benefits for cardholders, including zero fraud liability protection for unauthorized purchases, lost and stolen card reporting and emergency card replacement. These perks can give you peace of mind and make handling emergencies easier, but other issuers offer much more for their cardholders.
For instance, some no-annual-fee cash back cards have complimentary memberships and statement credits available for cardholders.
How the PayPal Cashback Mastercard compares to other cash back cards
Unless you start collecting interest charges, the PayPal Cashback Mastercard is a low-cost card with an excellent cash back rate. But considering the card’s limited features, other cash back cards might be a better fit.
PayPal Cashback Mastercard®
Bankrate Score
Annual fee
$0
Intro offer
N/A
Rewards rate
2% - 3%
Earn 3% cash back on PayPal purchases Earn 2% on all other purchases
Recommended Credit Score
Fair to Good(580–740)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
$0
Intro offer
$200 cash back
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.
Rewards rate
1% - 5%
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, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24.
Recommended Credit Score
Good to Excellent(670–850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Bankrate Score
See Rates & Fees, Terms Apply
on American Express's secure site
Annual fee
$0
Intro offer
Earn $200
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Rewards rate
1% - 3%
3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%. 1% Cash Back on other purchases.
Recommended Credit Score
Good to Excellent(670–850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Best cards to pair with the PayPal Mastercard
Since the PayPal Cashback card already offers a generous flat rate and the chance to earn boosted rewards for PayPal purchases, consider pairing it with a rotating category card that has outstanding rewards rates in other categories.
Who is the PayPal Mastercard right for?
The PayPal Mastercard isn’t right for everyone, but it could be the next best addition to your wallet if PayPal is your go-to for purchases or if you prefer a low-hassle card.
Bankrate’s Take — Is the PayPal Cashback Mastercard worth it?
The PayPal Cashback Mastercard offers a top-notch flat rewards rate on both general purchases and online or in-store shopping through PayPal. This rare combination gives the card good long-term value — as long as you can take advantage of the PayPal bonus category. If you’re already a PayPal user and have a good idea of the stores thatlet you use your PayPal account, this card could be a good fit.
For everyone else, it might not be easy to find out where PayPal is accepted.PayPal lists some merchants, such as Walmart, Best Buy and Home Depot, but it doesn’t offer a full list of merchants. And some merchants are selective with how they accept PayPal. For example, Target only accepts PayPal on Target.com and the Target app. If you don’t shop at stores that earn the higher rate, you may be better off with a different flat-rate card with better perks.
The information about the Chase Freedom Flex℠ has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
How we rated this card
150+
cards rated
50+
rewards programs valued
1800
data points analyzed
40+
perks evaluated
We rate credit cards using a proprietary card scoring system that ranks each card’s estimated average rewards rate, estimated annual earnings, welcome bonus value, APR, fees, perks and more against those of other cards in its primary category.
Each card feature is assigned a weighting based on how important it is to people looking for a card in a given category. These features are then scored based on how they rank relative to the features on other cards in the category. Based on these calculations, each card receives an overall rating of 1-5 stars (with 5 being the highest possible score and 1 being the lowest).
We analyzed over 150 of the most popular rewards and cash back cards to determine where each stacked up based on their value, cost, benefits and more. Here are some of the key factors that influenced this card’s overall score and how the score influenced our review:
Frequently asked questions
Compare the best cash back credit cards
Brendan Dyer holds a Master of Fine Arts in Journalism from Western Connecticut State University and worked previously as a content editor for Regional News Network, a hyper-local TV news station contracted by Verizon FiOS1 News. As a national service volunteer, Brendan exercised a passion for helping underserved communities and demographics through direct, community service. He constantly seeks to apply his expertise as a journalist to the field of personal finance with the goal of helping people navigate the complexities of the credit card industry.
Edited by Courtney Mihocik Courtney Mihocik
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
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