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PayPal Cashback Mastercard Review

PayPal Cashback Mastercard Review

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Aug 30, 2019. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

The information related to the PayPal Cashback Mastercard® has been collected by CompareCards and has not been reviewed or provided by the issuer of this card prior to publication.

If you want a straightforward approach to earning cashback rewards, you should consider a credit card with a flat rewards rate and no spend caps or rotating categories like the PayPal Cashback Mastercard®.

Issued by Synchrony Bank, the PayPal Cashback Mastercard® lets you earn 2% cash back on every purchase. You can redeem cash back rewards directly to your PayPal balance at any time with no redemption threshold.

In order to apply for the PayPal Cashback Mastercard®, you must have a PayPal account. If you don’t currently have a PayPal account, not to worry. You can easily set one up.

Once you are approved and activate your card, a temporary line of credit will be added to your account (in most cases), which you can begin using on PayPal immediately. Your physical card will arrive in the mail within seven to 10 business days.

In this review, we’ll break down the pros and cons of the PayPal Cashback Mastercard®, as well as how it compares to a similar flat-rate cash back card: the Citi® Double Cash Card – 18 month BT offer.

Where the PayPal Cashback Mastercard® stands out

Simple rewards structure. With the flat-rate PayPal Cashback Mastercard®, you won’t have the hassle of dealing with rotating categories or spending caps. Cardholders earn 2% cash back on every purchase.

Mastercard acceptance. In addition to using the PayPal Cashback Mastercard® to make purchases on PayPal, the card can be used everywhere Mastercard is accepted, both in stores and online.

$0 annual fee. The PayPal Cashback Mastercard® offers a $0 annual fee.

Additional PayPal Cashback Mastercard® benefits

  • ID theft protection
  • Microchip technology
  • 24/7 assistance through Mastercard Global Service

Where the PayPal Cashback Mastercard® falls short

Redemption options. When it comes to redeeming your rewards, the PayPal Cashback Mastercard® doesn’t offer many options. Cash back can only be redeemed through your PayPal account.

No sign-up bonus. Although the PayPal Cashback Mastercard® offers cash back on every purchase, it does not come with a sign-up bonus.

Daily spending limit. The PayPal Cashback Mastercard® comes with a spending limit of $3,000 per day and a cash ATM withdrawal limit of $400 per day. You will also be limited to 30 daily transactions.

Compare it with the Citi® Double Cash Card – 18 month BT offer

If you like the thought of earning 2% cash back on every purchase, the Citi® Double Cash Card – 18 month BT offer is another solid option. With the Citi® Double Cash Card – 18 month BT offer, cardholders earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.

  • Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.

  • 0% for 18 months on Balance Transfers

  • 15.99%– 25.99% (Variable)

Highlights
  • 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 15.99% - 25.99% based on your creditworthiness.
  • The standard variable APR for Citi Flex Plan is 15.99% - 25.99% based on your creditworthiness.
  • Balance Transfers do not earn cash back
  • Earn 2% cash back on purchases:  1% when you buy and 1% as you make payments for those purchases.
  • To earn cash back, pay at least the minimum due on time
  • No categories to track, no caps on cash back, no annual fee

See additional details for Citi® Double Cash Card – 18 month BT offer

More Info

Like the PayPal Cashback Mastercard®, the Citi® Double Cash Card – 18 month BT offer doesn’t have restricting bonus categories to keep track of or activate. There are also no caps on the amount of cash back you can earn.

See how else the cards compare side by side in the table below.

PayPal Cashback Mastercard® Citi® Double Cash Card – 18 month BT offer
Annual fee $0 $0
Intro APR on purchases None None
Intro APR on balance transfers None 0% for 18 months on Balance Transfers
Regular purchase APR 22.24%, 26.24% or 29.24% variable 15.99%– 25.99% (Variable)
Regular balance transfer APR 22.24%, 26.24% or 29.24% variable 15.99%– 25.99% (Variable)
Rewards 2% cash back on every purchase Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.
Sign-up bonus N/A No bonus
Foreign transaction fee None 3%

If you’re planning to travel abroad, the PayPal Cashback Mastercard® will be the better choice, since it does not charge foreign transaction fees. The Citi® Double Cash Card – 18 month BT offer, on the other hand, charges 3% of each purchase transaction in U.S. dollars when you use your card outside of the country.

If you want to transfer debt from a different credit card, however, the Citi® Double Cash Card – 18 month BT offer is the better option. The card comes with an introductory APR of 0% for 18 months on Balance Transfers ⁠— essentially giving you a year and a half to pay off the transfer before incurring interest. Once the promotional period ends, the regular balance transfer APR is 15.99%– 25.99% (Variable).

Keep in mind that the Citi® Double Cash Card – 18 month BT offer charges a balance transfer fee of 3% of each balance transfer; $5 minimum. Also, the introductory APR on balance transfers is only valid on transfers completed within four months of opening your account.

The bottom line

Overall, the PayPal Cashback Mastercard® is a concrete option if you want a flat-rate cash back credit card with a $0 annual fee. But if you’re planning to transfer a balance from a different card, the Citi® Double Cash Card – 18 month BT offer is the better choice.

Or, if you would prefer a card that lets you earn bonus points in specific categories, you may want to consider the PayPal Extras Mastercard®. Along with a $0 annual fee, the PayPal Extras Mastercard® offers 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. Points can be redeemed for gift cards, travel vouchers, cash back to your PayPal balance and more.


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