PayPal Cashback Mastercard overview
The PayPal Cashback Mastercard® is a decent option for straightforward cash-back earnings, especially if you shop online frequently. If you’re looking for a rewarding card that offers simple cash back — and don’t mind using the PayPal platform — this card could make a lot of sense. Card Rating*: ⭐⭐⭐
*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
The PayPal Cashback Mastercard is a good cash-back card because it offers an uncomplicated 1.5% return on everything and 3% cash back when you check out with PayPal. You can also combine your earnings with PayPal offers to rack up more rewards on your purchases with the merchant. If you prioritize cash back over travel rewards, this card fits the bill.
One downside, however, is that if you’re not a regular PayPal user, you’ll have to go through an extra step to transfer your funds to an external account. In many cases, though, this could be worth the effort. The card has no annual fee and a recommended credit score of 580.
Let’s take a closer look at the PayPal Cashback Mastercard to see if it’s right for you.
The information for the PayPal Cashback Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: Why you may want a cash-back card
PayPal Cashback Mastercard pros and cons
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PayPal Cashback Mastercard welcome offer
Unfortunately, the PayPal Cashback Mastercard doesn’t offer a welcome bonus.
This is a bit disappointing compared to some other no-annual-fee cards, but the card is still worth a look if you want to earn simple cash back.
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Related: The best welcome offers this month
PayPal Cashback Mastercard benefits
It shouldn’t come as a surprise that this simplified no-annual-fee card doesn’t come with many notable perks. However, you will enjoy purchase protection when you shop with PayPal, as well as a few bare-bones, generic Mastercard core benefits:
- Mastercard ID Theft Protection
- Mastercard Global Service, which includes lost and stolen card reporting and emergency card replacement
Additionally, you’ll get instant access to this card upon approval in most cases. This means you likely won’t have to wait for the card to arrive in the mail to begin using it.
Again, this isn’t the card for you if you’re looking for lavish travel perks or lucrative statement credits. But if you’re just looking for straightforward cash-back rewards, this card’s earning potential and simple redemption process outweigh its minimal benefits list.
Related: 6 of our favorite under-the-radar credit card perks
Earning cash back on the PayPal Cashback Mastercard
With the PayPal Cashback Mastercard, you’ll earn a straightforward 3% cash back when you check out with PayPal and 1.5% cash back on all other purchases.
The biggest draw here is the option to earn 3% cash back with any retailer that accepts PayPal. This is especially attractive to those who do a lot of online shopping, since PayPal is widely accepted at online retailers. Plus, you can use PayPal’s QR code to pay in eligible stores in person.
You can also use the PayPal Rewards program to earn even more rewards on PayPal purchases.
But even when you can’t use PayPal, you’ll earn unlimited 1.5% cash back on all other purchases (as long as the merchant accepts Mastercard).
Although this card does not offer lucrative category bonuses, it is a good option if you want a decent earning rate on all your purchases without having to juggle a handful of cards in your wallet.
Related: The best credit cards for online shopping
Redeeming cash back on the PayPal Cashback Mastercard
The PayPal Cashback Mastercard allows you to receive cash back at any time, with no redemption minimums.
First, rewards are available for transfer to your PayPal account within approximately three days after making an eligible purchase.
To make a transfer, you’ll need to go to the “rewards” section of your PayPal account either online or via the PayPal app. Then you can select the amount of cash-back rewards you’d like to send to your PayPal account.
If you want your rewards as true cash back in your bank account, you’ll have to go through an extra step to use your cash back by transferring it to an external bank account. This is quite easy to do, but it is still a minor annoyance compared to the simplicity of other programs not tied to PayPal.
Related: 5 reasons to keep a cash-back credit card in your wallet
Which cards compete with the PayPal Cashback Mastercard?
There are other no-annual-fee, cash-back options to consider, including cards that earn more in nonbonus categories:
For additional card options, check out our full list of the best cash-back cards.
Related: 5 reasons I love the Chase Freedom Unlimited as a credit card beginner
Is the PayPal Cashback Mastercard worth it?
The PayPal Cashback Mastercard is a decent (albeit no-frills) credit card for cash-back enthusiasts, especially if you’re a frequent PayPayl user. If you’re in the market for a cash-back card with no annual fee, this is a good option. However, if you want a welcome bonus or more benefits, you’ll want to consider other cards.
Bottom line
The PayPal Cashback Mastercard offers valuable, straightforward rewards and functions as a good starter cash-back card for those who don’t want to deal with differing earning rates and loads of complicated perks. Still, those who want to earn travel rewards or gain more valuable benefits from a credit card will want to look elsewhere.
