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7.8

PayPal Cashback Mastercard Review

3% on PayPal purchases, 2% everywhere else

Ranked #7 in Cashback Credit Cards
Visit PayPal Cashback Mastercard →

Quick Summary

The PayPal Cashback Mastercard offers a straightforward rewards structure: 3% cash back on PayPal purchases and 2% on everything else. For frequent PayPal users, this card maximizes rewards on a payment method many already use regularly. With no annual fee, no category tracking, and no caps on cashback, it provides simple and effective rewards for those entrenched in the PayPal ecosystem.

Score Breakdown

Rewards Rate8.0
Sign-Up Bonus7.0
Annual Fee Value8.5
Flexibility7.8
Perks7.5

What We Like

  • ✓ 3% back on PayPal purchases
  • ✓ 2% flat rate on all other purchases
  • ✓ No annual fee or caps
  • ✓ No categories to track
  • ✓ Seamless PayPal integration

What Could Improve

  • ✗ Requires PayPal account
  • ✗ Limited sign-up bonus
  • ✗ 3% foreign transaction fee
  • ✗ Fewer perks than competing cards

Features

Earn 3% on PayPal purchases and 2% on all other purchases with no earning caps. Cash back is automatically deposited to your PayPal balance. The card includes Mastercard World Elite benefits such as cell phone protection, ID theft protection, and Mastercard Airport Concierge. Zero fraud liability protects against unauthorized use.

Pricing

No annual fee. The sign-up bonus is typically modest or nonexistent. No intro APR offer is currently available. Regular APR is 20.99%-29.99% variable. Cash back is redeemed directly to your PayPal balance with no minimums.

Usability

The card manages through the PayPal app and website, which is clean and familiar to PayPal users. Cash back appears in your PayPal balance automatically. The card works anywhere Mastercard is accepted, and integrating it as a PayPal payment method is automatic. However, dedicated card management features are more limited than bank-issued cards.

Key Specifications

Annual Fee$0
Cash Back Rate2% - 3%
Sign-Up BonusLimited
Intro APRNone
Regular APR20.99% - 29.99%
Foreign Transaction Fee3%
Credit Score NeededGood

Final Verdict

The PayPal Cashback Mastercard is a solid choice if you frequently use PayPal for purchases. The 3% on PayPal transactions combined with a 2% floor creates a simple, effective rewards structure. However, for non-PayPal purchases, other cards like the Citi Double Cash or Wells Fargo Active Cash offer the same 2% with better sign-up bonuses and perks.

MR
Reviewed by , Financial Products Editor | Our Methodology