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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Reviews
PayPal Cashback Mastercard review: Cash-back rewards for online shoppers
Augusta Stone is a credit cards writer for TPG. She joined the TPG team in 2023 and is excited to take points and miles beginners with her on a journey toward maximizing rewards.
When Ryan worked as a TPG credit cards writer, he oversaw refreshes of card reviews and card offer stories. He enjoyed racking up cash back and helping readers maximize their points and miles for their next big trip.
also contributed to this story
January 8, 2025 • 7 min read
VASIL DIMITROV/GETTY IMAGES
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.
Editorial note:
Quick summary
A straightforward cash-back card is highlighted for those who frequently shop online, especially via a popular payment platform.
It offers a simple rewards structure with higher returns when checking out through the payment platform and a flat rate elsewhere.
The card is best suited for users who prioritize uncomplicated cash-back earnings over travel rewards or premium perks.
Minimal additional benefits are provided, but instant access upon approval is possible.
What to consider
You must be a member of the payment platform to apply and redeem rewards.
There is no welcome bonus, and perks are limited compared to some competitors.
Transferring rewards to an external bank account requires an extra step, which may be inconvenient for some users.
What you'll miss from the article
A detailed comparison of similar cash-back cards and guidance on choosing the best fit for your spending habits.
Generated by AI with support from our editorial team.
Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Editor’s note: This is a recurring post, regularly updated with new information and offers.
PayPal Cashback Mastercard overview
The PayPal Cashback Mastercard® is a decent option for straightforward cash-back earnings, especially if you shop online frequently. If you’re looking for a rewarding card that offers simple cash back — and don’t mind using the PayPal platform — this card could make a lot of sense. Card Rating*: ⭐⭐⭐
*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
The PayPal Cashback Mastercard is a good cash-back card because it offers an uncomplicated 1.5% return on everything and 3% cash back when you check out with PayPal. You can also combine your earnings with PayPal offers to rack up more rewards on your purchases with the merchant. If you prioritize cash back over travel rewards, this card fits the bill.
One downside, however, is that if you’re not a regular PayPal user, you’ll have to go through an extra step to transfer your funds to an external account. In many cases, though, this could be worth the effort. The card has no annual fee and a recommended credit score of 580.
Let’s take a closer look at the PayPal Cashback Mastercard to see if it’s right for you.
The information for the PayPal Cashback Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
It shouldn’t come as a surprise that this simplified no-annual-fee card doesn't come with many notable perks. However, you will enjoy purchase protection when you shop with PayPal, as well as a few bare-bones, generic Mastercard core benefits:
Mastercard ID Theft Protection
Mastercard Global Service, which includes lost and stolen card reporting and emergency card replacement
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Additionally, you'll get instant access to this card upon approval in most cases. This means you likely won't have to wait for the card to arrive in the mail to begin using it.
Again, this isn't the card for you if you're looking for lavish travel perks or lucrative statement credits. But if you're just looking for straightforward cash-back rewards, this card's earning potential and simple redemption process outweigh its minimal benefits list.
Earning cash back on the PayPal Cashback Mastercard
With the PayPal Cashback Mastercard, you'll earn a straightforward 3% cash back when you check out with PayPal and 1.5% cash back on all other purchases.
The biggest draw here is the option to earn 3% cash back with any retailer that accepts PayPal. This is especially attractive to those who do a lot of online shopping, since PayPal is widely accepted at online retailers. Plus, you can use PayPal's QR code to pay in eligible stores in person.
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You can also use the PayPal Rewards program to earn even more rewards on PayPal purchases.
But even when you can't use PayPal, you'll earn unlimited 1.5% cash back on all other purchases (as long as the merchant accepts Mastercard).
Although this card does not offer lucrative category bonuses, it is a good option if you want a decent earning rate on all your purchases without having to juggle a handful of cards in your wallet.
Redeeming cash back on the PayPal Cashback Mastercard
The PayPal Cashback Mastercard allows you to receive cash back at any time, with no redemption minimums.
First, rewards are available for transfer to your PayPal account within approximately three days after making an eligible purchase.
To make a transfer, you'll need to go to the "rewards" section of your PayPal account either online or via the PayPal app. Then you can select the amount of cash-back rewards you'd like to send to your PayPal account.
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If you want your rewards as true cash back in your bank account, you'll have to go through an extra step to use your cash back by transferring it to an external bank account. This is quite easy to do, but it is still a minor annoyance compared to the simplicity of other programs not tied to PayPal.
Which cards compete with the PayPal Cashback Mastercard?
There are other no-annual-fee, cash-back options to consider, including cards that earn more in nonbonus categories:
If you prefer Citi: The (see rates and fees) is a simple and rewarding cash-back card. This card allows you to earn 2% cash back on all purchases (1% when you buy and then another 1% as you pay). For more information, read our full review of the Citi Double Cash.
If you want some bonus categories: The (see rates and fees) earns 1.5% back on all nonbonus spending, plus 5% back on travel booked through Chase Travel℠, 3% back on dining (including takeout and eligible delivery services) and 3% back at drugstores. For more information, read our full review of the Freedom Unlimited.
The PayPal Cashback Mastercard is a decent (albeit no-frills) credit card for cash-back enthusiasts, especially if you're a frequent PayPayl user. If you’re in the market for a cash-back card with no annual fee, this is a good option. However, if you want a welcome bonus or more benefits, you'll want to consider other cards.
Bottom line
The PayPal Cashback Mastercard offers valuable, straightforward rewards and functions as a good starter cash-back card for those who don't want to deal with differing earning rates and loads of complicated perks. Still, those who want to earn travel rewards or gain more valuable benefits from a credit card will want to look elsewhere.
