How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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LendingTree is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products. We are compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order).

Advertising Disclosure

LendingTree is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products. We are compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order).
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American Express Disclosure
Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.

American Express Disclosure

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PayPal Cashback Mastercard® Review

Updated on:
Content was accurate at the time of publication.
LendingTree's Review

How LendingTree Rates Credit Cards?

Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.
3.3
PayPal Cashback Mastercard®
Rewards Rate
3% cash back on PayPal purchases and 1.5% on all other purchases
Annual Fee
$0
Purchase APR
20.24% for Account Type 1 or 31.99% for Account Type 2 or 34.99% for Account Type 3
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It was not reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Citi is an advertising partner.

Our take: High rewards rates and a $0 annual fee make the PayPal Cashback Mastercard® a must-have for frequent PayPal users. But if you don’t regularly make purchases on PayPal, we recommend looking at cards with more flexible redemption options.

Pros and cons

Pros

  • Generous rewards rate on general purchases
  • Wide acceptance
  • $0 annual fee

Cons

  • Limited redemption options
  • High interest rates

Is the PayPal Cashback Mastercard® worth it?

If you use PayPal regularly and want to earn cash back on your purchases, the PayPal Cashback Mastercard® is worth considering. You’ll earn 3% cash back on PayPal purchases and 1.5% on all other purchases, and you can redeem your rewards directly to your PayPal Balance account at any time.

But if you rarely use PayPal, there are several rewards cards that offer higher earning rates in categories that might better fit your spending habits. Further, if you need to carry a balance, we recommend finding a card with lower ongoing interest rates.

PayPal Cashback Mastercard® overview

    • Shop anywhere Mastercard is accepted
    • Cash rewards never expire
    • Get a decision in seconds
  • Recommended Credit
    Credit scores ranges may vary. Your individual chance at approval may vary due to factors such as creditors using a particular variation at their discretion
  • 660 720 850
    Good / Excellent
  • Identity theft protection
  • Microchip technology
  • Contactless payment
  • 24/7 assistance through Mastercard Global Service

Intro Purchase APR

N/A

Regular Purchase APR

20.24% for Account Type 1 or 31.99% for Account Type 2 or 34.99% for Account Type 3

Intro BT APR

N/A

Regular BT APR

N/A

Annual Fee

$0

Cash Advance Fee

Either $10.00 or 5% of the amount of each cash advance, whichever is greater

Foreign Transaction Fee

3%

Balance Transfer Fee

N/A

PayPal Cashback Mastercard® benefits

  • Generous rewards rate on all purchases

    With the PayPal Cashback Mastercard®, you’ll earn 3% cash back on PayPal purchases and 1.5% on all other purchases. The rewards rate on general purchases is competitive, since even the most popular cash back cards typically offer a maximum of 2% cash back on all purchases.

    Plus, earning rewards is simple. You won’t have the hassle of keeping track of rotating bonus categories or spending caps. You’ll also earn these rewards automatically, and there’s no limit to how much you can earn.

  • Wide acceptance

    Along with using the PayPal Cashback Mastercard® to make purchases on PayPal, you can use your card everywhere Mastercard is accepted – both in stores and online. Since Mastercard has one of the highest acceptance rates in the U.S. and worldwide, you’ll be able to use your PayPal Cashback Mastercard® practically everywhere you shop.

  • $0 annual fee

    The PayPal Cashback Mastercard® charges an annual fee of $0. While there are many credit cards without an annual fee, only a few can match the PayPal Cashback Mastercard®’s rewards rate on all purchases.

PayPal Cashback Mastercard® drawbacks

  • Limited redemption options

    Typically, cash back credit cards let cardholders redeem rewards for cash, statement credits or deposits to an eligible bank account. But with the PayPal Cashback Mastercard®, you can only redeem rewards as a deposit into your PayPal Balance account. Rewards can then be used to make purchases and payments, send money to other PayPal users or as a transfer to the bank account or debit card that’s linked to your PayPal account.

    Note that if you don’t have a PayPal Balance account, you can only transfer your rewards to the bank account or debit card that’s linked to your PayPal account. A PayPal Balance account is linked to your PayPal personal account and allows you to make purchases, hold a balance and transfer money. (Learn more about PayPal Balance accounts on the PayPal site.)

  • High interest rate

    The PayPal Cashback Mastercard® comes with an APR of 20.24% for Account Type 1 or 31.99% for Account Type 2 or 34.99% for Account Type 3. The type of account you receive depends on your credit worthiness and other factors, so if you can’t qualify for Account Type 1, you’ll be subject to a high APR.

    If you tend to carry a balance from month to month, opt for a card with a 0% intro APR or a lower ongoing interest rate to avoid racking up high-interest credit card debt.

Alternative cash back cards to the PayPal Cashback Mastercard®

PayPal Cashback Mastercard® vs. Citi Double Cash® Card

| Disclosures
Citi Double Cash® Card
Citi Double Cash® Card
apply-now-icon Apply Now
on Citibank's secure site
Rates & Fees
N/A
18.74% - 28.74% (Variable)
$0
Earn 2% on every purchase with unlimited 1% cash back when you
  • Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
  • Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
  • Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.74% - 28.74%, based on your creditworthiness.
  • Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
  • If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
  • There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
600 660 720 850
Fair / Good / Excellent

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

If you want to earn cash back on every purchase but need more flexible redemption options, we recommend the Citi Double Cash® Card over the PayPal Cashback Mastercard®.

The rewards rate on general purchases is similar: The Citi Double Cash® Card lets you earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25. But compared to the PayPal Cashback Mastercard®, the Citi Double Cash® Card offers more ways to redeem your cash back rewards. Its redemption options include checks, statement credits, direct deposits, gift cards, travel and merchandise at Amazon.com.

Best for balance transfers: Where the Citi Double Cash® Card stands out the most is its balance transfer offer. Cardholders receive an introductory APR of 0% intro apr 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 APR of 18.74% - 28.74% (variable) applies.

PayPal Cashback Mastercard® vs. Discover it® Cash Back

| Disclosures
Discover it® Cash Back*
Discover it<sup>®</sup> Cash Back
Learn More
0% Intro APR for 15 months
18.74% - 27.74% Variable APR
$0
5% cash back at different places each quarter up to the quarterly
  • INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
  • Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
  • Redeem your rewards for cash at any time.
  • Apply and you could get a decision in as little as 60 seconds. No annual fee.
  • Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
  • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
  • Get a 0% intro APR for 15 months on purchases. Then 18.74% to 27.74% Standard Variable Purchase APR applies, based on credit worthiness.
  • Terms and conditions apply.
660 720 850
Good / Excellent
*The information related to the Discover it® Cash Back has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

If you want more generous cash back rates and are willing to put in a little legwork to get them, consider the Discover it® Cash Back. You’ll earn 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically.

With the Discover it® Cash Back, you’ll have to track and activate bonus categories each quarter in order to earn the higher rewards rate. While earning your rewards is a bit more complex, redeeming them is simple – you can deposit them directly into your bank account or apply them as a statement credit. You can also redeem points for gift cards or charitable donations.

Best for maximizing rewards: The Discover it® Cash Back is worth a spot in your wallet if you’re looking for a card with high rewards rates and a valuable sign-up bonus. With this card, you’ll get an unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.

PayPal Cashback Mastercard® vs. Chase Freedom Unlimited®

| Disclosures
Chase Freedom Unlimited®
Chase Freedom Unlimited®
apply-now-icon Apply Now
on Chase's secure site
0% Intro APR on Purchases for 15 months
19.99% - 28.74% Variable
$0
Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier r
  • INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
  • Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
  • After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
  • No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
  • Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.99% - 28.74%.
  • No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
  • Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
  • Member FDIC
660 720 850
Good / Excellent

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

If you want a card that offers generous rewards rates on general purchases and bonus categories like travel and dining, you should look at the Chase Freedom Unlimited®.

enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.

Best for jetsetters: The Chase Freedom Unlimited® offers one of the highest cash back rates on travel of all $0-annual-fee cards. Plus, you’ll get a variety of purchase and travel protections.

Is the PayPal Cashback Mastercard® right for you?

You won’t find a better rewards rate on PayPal purchases than with the PayPal Cashback Mastercard®. It’s an excellent choice if you’re a PayPal loyalist who wants a cash back credit card with a $0 annual fee.

But if you don’t frequently use PayPal, we recommend taking a look at some other rewards cards that may be better suited.

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

Frequently asked questions

Yes. The PayPal Extras Mastercard® is a points card that allows you to redeem rewards for cash back, travel vouchers, gift cards and merchandise.

No, the PayPal Cashback Mastercard® doesn’t offer a sign-up bonus.

To apply for the PayPal Cashback Mastercard®, you’ll first need to set up a PayPal account. In most cases, once you’re approved and activate your card, you’ll be able to access a temporary line of credit on your PayPal account immediately. Your physical card will arrive in the mail within seven to 10 business days.

While it doesn’t offer a formal preapproval process, the PayPal Cashback Mastercard® is unique, in that your credit score won’t go down if your application is declined. That said, if you are approved for the card, PayPal will do a hard credit pull — as such, your credit score may take a temporary hit as a result.

Applying for a PayPal Cashback Mastercard® will trigger a hard credit pull, but only if you’re approved. If your application is declined, your credit score won’t be impacted.

The information related to the PayPal Cashback Mastercard®, Discover it® Cash Back and PayPal Extras Mastercard® has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.

The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.