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If you’re an eBay seller or shopper, you may have come across the eBay Mastercard® and wonder if it’s a worthwhile card to carry. Good news — if you’re an avid eBay shopper, this card can be a great asset. The eBay Mastercard® has a $0 annual fee and rewards program focused on eBay shopping. However, you should also keep in mind this card is reserved for PayPal account holders — so you’ll either need to have an existing account or open a free account to apply for this card.
In this review, we’ll discuss who may benefit from the eBay Mastercard® and compare it to the similar PayPal Extras Mastercard®.
Who the eBay Mastercard® is best for
Active PayPal account holders who often spend on eBay can see the most benefit from the eBay Mastercard®. You earn 3 points per $1 on eBay purchases, 2 points per $1 on gas, restaurants, and groceries, and 1 point per $1 on other purchases, which is higher than a flat-rate credit card.
But if you don’t really spend on eBay, this card doesn’t provide the best value for rewards — its everyday purchase rewards rate is subpar at 1 point per dollar spent and you can earn more rewards in gas, dining, and grocery categories by using other cards. Also, if you don’t want to open a PayPal account, clearly this isn’t a card for you and you should check out alternative cashback or rewards cards instead.
What we like about the eBay Mastercard®
The eBay Mastercard® offers an above average rewards rate for eBay spending with 3 points per $1 on eBay purchases, 2 points per $1 on gas, restaurants, and groceries, and 1 point per $1 on other purchases. Since eBay is rarely a bonus category with most other cards, this rewards rate can help you maximize rewards on the site compared to using a general-purpose card, especially since the eBay Mastercard® has a $0 annual fee.
If you use PayPal’s services, you may benefit from the PayPal Cash redemption option provided by the eBay Mastercard®. Your eBay Mastercard® account and PayPal account are linked, so points can be redeemed for cash back into your PayPal balance.
Cardholders earn 3 points per $1 on eBay purchases, 2 points per $1 on gas, restaurants, and groceries, and 1 point per $1 on other purchases. This is a great rate for eBay purchases and an average rate for gas, dining, and groceries; otherwise, it’s not the best for purchases outside those categories. You can find other flat-rate cashback or rewards cards that offer a consistent 2% or 2 points per dollar spent on all purchases, as well as cards offering high rewards rates in select categories, like travel or grocery.
What to watch out for
The eBay Mastercard® has a fairly high APR range of 21.99% to 28.99% Variable. That’s compared to general-purpose cards from the major banks, which often start their minimum APRs in the mid-teens. If you carry a balance month to month, this can cause you to rack up pricey interest charges. However, the APR shouldn’t be a major deciding factor if you practice responsible credit behavior and pay each bill on time and in full every month — that way you won’t have to worry about high interest charges.
If you happen to rack up debt on the eBay Mastercard®, you can always consider a balance transfer. There are plenty of balance transfer cards offering intro 0% APR periods up to 21 months that can provide you the needed time to pay off debt without accruing interest.
Compare it to the PayPal Extras Mastercard®
If you have a PayPal account, you may be aware of the PayPal Extras Mastercard®. This card is fairly similar to the eBay Mastercard® — but the rewards and new cardmember offer differ.
The eBay Mastercard® lets cardholders earn rewards primarily tailored to eBay purchases with 3 points per $1 on eBay purchases, 2 points per $1 on gas, restaurants, and groceries, and 1 point per $1 on other purchases. That’s compared to the PayPal Extras Mastercard® with rewards focusing more on gas and restaurant purchases — cardholders earn 3 points per $1 spent on gas and restaurant purchases, 2 points per $1 spent on PayPal and eBay purchases, and 1 point per $1 spent on other purchases. So, if you want a card that earns you more on eBay spending, consider the eBay Mastercard®. But if you don’t shop at eBay and instead are looking for gas and dining rewards, the PayPal Extras Mastercard® is the better choice.
Another difference between the cards is whether they offer a new cardmember offer or not. The eBay Mastercard® does by allowing cardholders to earn a $50 eBay gift card after you spend $150 on eBay within 30 days of account opening (valid through 12/30/18). Meanwhile, the PayPal Extras Mastercard® has no new cardmember offer. While you shouldn’t choose a card solely on bonuses, it’s nevertheless a nice perk.
Here are the key features of each card:
|eBay Mastercard®||PayPal Extras Mastercard®|
|Regular purchase APR||21.99% to 28.99% Variable||21.99% or 28.99% Variable|
|Rewards||3 points per $1 on eBay purchases, 2 points per $1 on gas, restaurants, and groceries, and 1 point per $1 on other purchases||3 points per $1 spent on gas and restaurant purchases, 2 points per $1 spent on PayPal and eBay purchases, and 1 point per $1 spent on other purchases|
|New cardmember offer||earn a $50 eBay gift card after you spend $150 on eBay within 30 days of account opening (valid through 12/30/18).||N/A|
If you’re a PayPal account holder, the eBay Mastercard® may provide you with a convenient way to combine your credit card rewards with your PayPal balance. And, you earn a high rewards rate of 3 points per dollar on eBay purchases, allowing you to earn more rewards at eBay compared to other cards. However, if you’re not an eBay shopper, the rewards provided by this card pale in comparison to those of other cashback or rewards cards. Those cards may also offer more benefits like intro 0% APR periods and purchase protections.