PayPal Cashback Mastercard Review
Are you looking for a simple, straightforward cash back credit card? One with no limits on the cash back you can earn and no rotating categories to track? PayPal’s Cashback Mastercard may be the credit card for you.
Co-branded by PayPal and Synchrony Bank, this card offers an unlimited 2% back on all purchases, making it a very competitive entry in the world of cash back cards. However, if you’re looking for extra benefits, you might want to look elsewhere. The PayPal Cashback Mastercard offsets its impressive base rewards rate with a lack of other features, such as introductory APRs or bonus offers. Additionally, the card’s ongoing APR is relatively high.
Business owners should also note that this card is marketed as a personal card. That means you won’t be able to take advantage of typical business credit card bonuses, such as free employee cards, and it may not help improve your business’s credit history directly. With that in mind, using a personal card for business still comes with some benefits.
Keep reading to get the low-down on the PayPal Cashback Mastercard.
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PayPal Cashback Mastercard At A Glance
PayPal Cashback Mastercard
21.74% - 28.74% (variable)
Neither PayPal nor Synchrony Bank clearly state recommended credit scores for potential applicants. Because of this, you’ll want your credit score to be in a healthy range (in the upper 600s or above 700).
If you’re unsure of your credit score, you can check it out via one of our favorite free credit score sites!
As is standard with credit cards, to get a PayPal Cashback Mastercard, you will need to be 18 years of age or older and live within the US or its territories. Additionally, to be eligible for the card’s rewards program, you must have an open PayPal account that’s in good standing.
Rewards & Fees
The PayPal Cashback Mastercard features a very straightforward rewards scheme: 2% cash back for every purchase. This generous rate has no cap, and there are no purchase restrictions.
A flat 2% cash back rate is very impressive, especially when considering that this card carries no annual fee. When looking at its competitors, one of the lone 2% unlimited cash back business cards — Capital One’s Spark Cash — comes with a $95 annual fee after its first year. If you intend to use a credit card for a wide range of purchases, the PayPal Cashback Mastercard is certainly worth a look.
In addition to no annual fee, the PayPal Cashback Mastercard charges no foreign transaction fee — a bonus if your business requires frequent overseas travel. For cash advances, you will need to fork over $5 or 3% of the advance (whichever is higher). However, that’s a fairly competitive fee when compared to other cards.
It’s also worth keeping in mind that PayPal partially offsets the high rewards rate and lack of an annual fee by setting the card’s APR toward the higher end. So if you plan to carry a balance, you may wind up paying more interest than you might with a different card.
After you redeem your rewards, they’ll be added to your PayPal balance. Once there, you’ll be able to treat them like a normal PayPal balance, eligible to be used at merchants that accept PayPal.
Note that PayPal does require you to redeem rewards manually; there is no automatic redemption option. Despite that downside, you can choose to redeem rewards at any time due to a lack of a redemption threshold. We like the fact that you don’t have to wait until you’ve earned an arbitrary minimum amount of cash back to redeem it.
This redemption setup could be convenient for those who make frequent purchases at online merchants who accept PayPal. However, it may pose problems if you don’t shop online frequently or at a location that accepts PayPal. If this is the case, you’ll need to go the extra step of transferring your PayPal balance into your bank account to take advantage of your rewards.
As far as Cashback Mastercard benefits go, PayPal and Mastercard include identity theft resolution services. These provide you with 24/7 access to ID theft alerts, card replacement, identity monitoring, TransUnion credit monitoring, and ID theft assistance.
You’ll also get Mastercard Global Services — 24/7 assistance with lost and stolen card reporting, emergency card replacement, and emergency cash advances.
As far as credit card benefits go, this is pretty thin gruel. There’s no introductory 0% APR, no extra cash back bonus for spending a certain amount after signup, and no fancy travel benefits. The card once offered an extended warranty on eligible purchases and price protection. PayPal has since eliminated any reference to these benefits on its Cashback Mastercard page.
PayPal Cashback Mastercard
21.74% - 28.74% (variable)
Is the PayPal Cashback Mastercard right for your business? Consider applying for this card if:
- You plan to use the card for a wide array of purchases
- Your business requires overseas travel
- You frequently buy from merchants who accept PayPal
On the other hand, you might want to pass if:
- You want a card that offers additional rewards for a specific set of categories
- You plan to carry a balance and need to avoid a higher-than-average APR
- You’re looking for bonus perks, such as introductory APR or bonus offers
Business Credit Card Rating Criteria.