The
PayPal Cashback Mastercard® is a good credit card for people with
fair credit or better who regularly make purchases through PayPal and want to earn attractive rewards regardless of what they buy and where they buy it. The card has a
$0 annual fee, and it gives at least
2% cash back on purchases.
Aside from the above-average rewards you’ll earn on purchases and the annual fee you won’t have to pay, the
PayPal Cashback Mastercard® is fairly unremarkable. It doesn’t offer an initial bonus, unlike the best credit cards giving 2%+ back on purchases. It also has a high APR, meaning you need to pay your full statement balance each month to keep interest charges from overwhelming your savings from rewards.
PayPal Cashback Mastercard® Review Highlights3% cash back on PayPal purchasesWhen you choose PayPal at checkout and use the
PayPal Cashback Mastercard® to fund the purchase, you will earn
3% cash back. You will also earn that lofty rewards rate when you use the card to send money to other PayPal users through your PayPal account. On that note, it’s worth pointing out that using this card to send money to other PayPal users is considered a purchase, not a cash advance.
As a result, this card is an excellent option for people who routinely send money to friends and family as well as those who often make purchases from retailers that accept PayPal.
2% cash back on all other purchasesThe best flat-rate cash back credit cards give 2% back on all purchases, so this card’s minimum rewards rate certainly puts it in good company. However, the
PayPal Cashback Mastercard® also lacks the $150 - $200 initial bonus offered by the best flat-rate cards.
Fortunately, you aren’t really losing out on redemption flexibility with this card. You can transfer the rewards that you earn with this card to your PayPal account. From there, you can transfer the cash back to your debit card or bank account, or you might also have the option to use the money to make purchases through PayPal, depending on what type of PayPal account you have.
$0 annual feeNot having to pay an annual fee saves you about
$22.29 per year compared to the average credit card offer. That said, this is not the only card offering at least 2% cash back on all purchases with no annual fee.
3% foreign transaction feeYou don’t want to take this card on any international excursions, or even use it to pay when checking out with an internationally based merchant online. Every purchase that’s processed outside of the U.S. will wind up costing
3% more than necessary.
20.24% - 32.24% (V) APRThe exact rate you’re assigned depends on factors such as your credit history, income and debt. But no matter what your rate is, it’s going to dwarf the 2-3% you earn with rewards. So, to save money with this card, you’ll need to avoid interest charges by paying the bill in full each month.
640+ credit score recommendedThe
PayPal Cashback Mastercard® requires
fair credit or better for approval. Based on our analysis of credit card approval rates, we recommend applying if your score is
640 or higher. You can
check your credit score for free right here on WalletHub.
No hard inquiry if you’re rejectedIf you apply for the
PayPal Cashback Mastercard® and don’t get approved, it won’t hurt your credit score. There’s only a hard inquiry into your credit history if you’re approved. A hard inquiry usually results in a small, temporary drop in your credit score. This feature therefore reduces the risk associated with applying if you’re not sure you’ll qualify.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.