PayPal Cashback Mastercard offers 2 percent cash back on all purchases

PayPal Cash Back Mastercard

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising policy

PayPal and Synchrony Bank have partnered to launch the PayPal Cashback Mastercard – a new credit card that gives cardholders 2 percent cash back on everything they buy. In addition to a simple rewards structure, the PayPal Cashback Mastercard offers a $0 annual fee and a variety of Mastercard benefits, including the following:

  • Extended warranty – When you purchase items using your PayPal Cashback Mastercard, you can double the manufacturer’s or store brand warranty – for up to one year.
  • Price protection – If there is a price reduction for an item you purchased within 60 days, you can get a reimbursement for the difference in price.
  • Identity theft resolution – Cardholders who are victims of identity theft receive complimentary alerts, card replacement and ID Theft Affidavit assistance.
  • EMV chip technology – Chip-enabled cards provide increased security when making purchases at chip-card terminals.

Hassle-free rewards

The PayPal Cashback Mastercard offers a straightforward approach to earning rewards. Unlike cards that require cardholders to activate spend categories each quarter in order to earn bonus rewards, such as the Chase Freedom and Discover it Cash Rewards, the PayPal Cashback Mastercard does not limit earning to specific categories. Instead, cardholders earn rewards on items purchased everywhere Mastercard is accepted. Also, 2 percent cash back is a high rate for a flat-rate cash back card. Only a handful of cards, including the Citi Double Cash card, offer a similar rate.

See how the PayPal Cashback Mastercard compares to similar credit cards that offer a simple rewards program structure:

CREDIT CARDS WITH SIMILAR REWARDS PROGRAMS
Credit card Cash back rewards Benefits Drawbacks
PayPal Cashback Mastercard 2% cash back on all purchases • Unlimited 2% back on general purchases
• No annual fee
• No opportunity to earn bonus rewards
• Cash back must be redeemed through your PayPal account
• No sign-up bonus
Citi Double Cash 2% cash back on all purchases • Unlimited 2% back on general purchases
• No annual fee
• No opportunity to earn bonus rewards
• No sign-up bonus
• You must pay your bill on time to earn the full 2% cash back rate
Quicksilver from Capital One 1.5% cash back on all purchases

• Unlimited 1.5% back on general purchases
• $100 sign up bonus after $500 spend in 3 months
• Get 50% discount on Spotify through April 2018
• No annual fee
• 0% intro APR on purchases and balance transfers

• No opportunity to earn bonus rewards
Navy Federal Credit Union Cash Rewards 1.5% cash back on all purchases • Unlimited 1.5% back on general purchases
• No annual fee
• No opportunity to earn bonus rewards
• No sign-up bonus
• Must be a member of Navy Federal Credit Union
Wells Fargo Cash Wise Visa 1.5% cash back on all purchases • Unlimited 1.5% back on general purchases
• $200 sign-up bonus after $1,000 spend in 3 months
• 1.8% cash back on mobile wallet purchases in first 12 months
• No annual fee
• 0% intro APR on purchases and balance transfers
• Cash back can only be withdrawn in $20 increments by ATM or phone

The content on this page is accurate as of the posting date. Please see the bank’s website for the most current version of the offer.

As you can see, the PayPal Cashback Mastercard and the Citi Double Cash card earn the highest rate of cash back among these cards. Between the two cards, the Citi Double Cash appears to be the less restrictive option, since you don’t have to have a bank account with Citi to redeem your cash rewards. However – not that we recommend getting a rewards card if you don’t intend to make your payments – keep in mind that you are required to pay your bill on time to earn the full 2 percent cash back with the Citi Double Cash card.

In the short term, a card with a sign-up bonus may be more rewarding. For instance, the Wells Fargo Cash Wise Visa offers benefits such as a $200 sign-up bonus, 1.8% cash back on Android Pay or Apple Pay purchases for 12 months and up to $600 in cell phone protection. You could easily earn more cash back with the Wells Fargo than the PayPal card in the first year. Additionally, if you plan to carry a balance on your card or transfer a balance from a different card, the Wells Fargo Cash Wise Visa is your best bet, since you won’t pay interest on purchases or balance transfers for the first 12 months.

PayPal’s fine print

To earn cash back rewards from the PayPal Cashback Mastercard, you must link the card to your PayPal account. If your PayPal account closes or becomes unlinked from your Cashback Mastercard at any time, your card will be closed. This will also cause your cash rewards to be forfeited.

See related: Wells Fargo boosts the sign-up bonus for the Cash Wise Visa to $200, Cash back cards survey: Complex is out, simple is in

 

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising policy


Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.




Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.


Updated: 11-22-2017