PayPal Cashback Mastercard Credit Card Review

Paypal Credit Card on table

Get rewarded with the PayPal Cashback Mastercard

The PayPal Cashback Mastercard is an excellent option for current — or future — PayPal customers. Even if you don’t have an account with PayPal, this card’s across-the-board rewards and simplicity could make it worth your time. Also, the non-existent annual fee makes it a bit of a no-brainer.

You will need to open a PayPal account, however, so anyone who is wary of PayPal might reconsider moving forward. For the rest of us, though, the ease of use with PayPal makes it an enticing option. Receive Mastercard’s security along with PayPal’s handiness in this attractive credit card option.

What to expect from the PayPal Cashback Mastercard

It helps to know the fundamentals of a credit card before applying. Take a look at our detailed list below.

  • APR: 21.49%, 25.49% or 28.49%
  • Annual Fee: $0
  • Rewards Rates: 2% cash back on all purchases. PayPal releases occasional Bonus Cash Rewards categories that allow you to earn more than 2% cash back.
  • Intro Offer: PayPal doesn’t have an introductory offer on this card.

Even better

Let’s take a look at what else the PayPal Mastercard offers its customers.

  • Works with PayPal. If you are already a PayPal customer, you’ll appreciate this card’s quick and easy linking to your cash rewards. Your rewards are sent straight to your PayPal account and work precisely like regular cash.
  • Easy access to rewards. You can transfer the Cash Rewards you receive straight to your PayPal account. There’s little waiting time to have access to the rewards you earned.
  • Protection from identity theft. PayPal keeps an eye out for any sketchy transactions made under your name to keep you safe from identity theft at all times.
  • Unlimited rewards. PayPal doesn’t limit the amount of cash back that you can receive per year, unlike some other cards. This benefit means you can earn rewards on all of your spending for the entire year.
  • Bonus cash rewards. Occasionally, PayPal will offer Bonus Cash Rewards for spending money on certain items. All you have to do is keep an eye out for offers that PayPal sends out.

But keep your eyes open for pitfalls

What are some of the drawbacks of using this card? With a PayPal Mastercard, you could potentially bring in a high APR, but it all depends on your credit score. If you only have a decent credit score, this card will likely cost you a significant amount to keep an active balance rather than paying it off each month. However, if your credit is good or excellent, you might not pay such high interest.

Also, the card has no introductory offer. Unlike many of its counterparts, you won’t get an added reward after spending a specific amount of money in the first few months. Instead, it simply offers a flat — and unlimited — 2% cash back on everything. This could be a dealbreaker for some since there are so many cards on the market that do have introductory bonuses.

Looking for a card with a fantastic intro offer? Look into the Capital One Savor Cash Rewards Credit Card. This card gives you $300 back after you spend $3,000 in the initial three months. Additionally, the rewards are great: 4% cash back on restaurants and entertainment, 2% cash back in grocery stores and 1% cash back on everything else. You will be charged a $95 annual fee, but for the first year, they waive the charge. If you don’t mind tracking rewards categories, this card could work well for you.

How to maximize your PayPal Cashback Mastercard rewards

To get the most out of this credit card, you would want to use it for all your purchases and then pay off your card at the end of each month. Therefore, you would receive 2% cash back on everything you buy. There is no maximum amount of rewards you can get, so using it on all your purchases shouldn’t be an issue.

Furthermore, the options for using your rewards are convenient with this card, especially if you already use PayPal. This card can be used in conjunction with PayPal Cash or Cash Plus account. If you have a PayPal Cash or PayPal Cash Plus account, you can spend money directly from your PayPal account. Otherwise, you will have to transfer the rewards to your personal bank account, but this typically only takes one business day — and there’s no transfer fee. You can also send your money to your bank account instantly, but PayPal will take out a fee totaling 1% of the transfer amount (up to $10) for that service.

Also, don’t forget to keep an eye out for PayPal’s intermittent announcements of their Bonus Cash Rewards opportunities. Spending in bonus categories would allow you to rack up even more rewards.

Bottom line

Overall, this card is an excellent option for customers who don’t have time to track rewards categories. It gives you a solid 2% back on everything, and you don’t have to think about it. Although there are other cards that will offer you a higher percentage back, conserving your mental energy could be worth a lower rewards rate.

Also, there’s no annual fee. If you’re a PayPal customer or could be convinced to become one, there’s not much to lose by signing up for this card. As long as you don’t keep a high balance on it month-to-month, especially for those of you with less-than-stellar credit, the card could help you earn rewards back for your everyday spending.

Tiffany Verbeck

Tiffany Verbeck is a freelance writer focusing on personal finance, travel, and the great outdoors. She uses her master’s degree in writing to help businesses tell their stories better. Her work has appeared in The Financial Diet, Fast Capital 360, myWorth, Matador Network, and more. You can find her full portfolio at