Boost your rewards by using PayPal with your credit cards
Using PayPal doesn't mean you can't earn credit card rewards along the way.Several card issuers offer bonuses for using their cards with PayPal. And, PayPal offers its own branded cards that allow cardholders to earn cash back or points that can be redeemed for gift cards and travel vouchers. TPG takes a look on how you can maximize your credit card rewards when using PayPal.
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Do I earn rewards using my credit card on PayPal?
Using your credit card to earn rewards with PayPal is easy. Just link your card to your PayPal account at the website and select the card when making payments. You'll earn rewards as you would with any other purchase. Several major retailers accept PayPal payments in-store and online including, Best Buy, Bed Bath & Beyond, Etsy, Brookstone, Home Depot and IKEA.
PayPal users can add multiple cards to their accounts, making it easy to rack up rewards from a number of programs at once. Any Visa, Mastercard, Discover or American Express card with a registered billing address can be used with PayPal.
Best credit cards to use with PayPal
Sometimes you'll be able to earn more by using your credit card in conjunction with PayPal. Issuers like Chase, Citibank and Discover have offered bonus rewards promotions on PayPal payments in the past year.
Discover made PayPal a 5% cash back category for Discover it Cash Back holders from June through September in 2019.
Related reading: Discover adds extra 5% cash back categories at PayPal, Target and Walmart
Like the Discover it Cash Back card, the Chase Freedom card (No longer open to new applicants) offers 5% cash back in select rotating quarterly bonus categories (on the first $1,500 in purchases each quarter you activate). Last year, it made PayPal one of those categories.
Typically, non-bonus categories earn 1% cash back with the Chase Freedom card.
The information for the Chase Freedom has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Last summer, Citi offered some cardholders a $20 statement credit for spending $120 on PayPal purchases.
Both Discover and Chase make it easy to pay with rewards when checking out with PayPal.
Related reading: Why earning 5x points while sitting on the couch is extremely easy this quarter
Branded PayPal credit cards
PayPal offers two branded credit card options: A cash back Mastercard and a rewards Mastercard. PayPal credit cards are issued by Synchrony Bank.
PayPal's Cashback Mastercard awards 2% cash back on all purchases and doesn't charge an annual fee. To apply for the card, you must have a PayPal account.
The PayPal Extras Mastercard awards 3 points per dollar spent at gas stations and restaurants, and 2 points per dollar on PayPal and Ebay purchases. Other purchases earn 1 point per dollar spent. Points can be redeemed for gift cards, travel vouchers and cash back.
Does PayPal or my bank charge a fee for using a credit card?
PayPal doesn't charge a fee on credit card payments for goods and services, but it charges a 2.9% fee on money sent to friends or family members. PayPal payments aren't cash advances. They're treated like retail transactions and shouldn't incur additional bank fees.
Can I send money with my credit card?
You can use your PayPal-linked credit card to send money to family and friends. PayPal charges a 2.9% fee plus 30 cents for the service.
Is using your credit card on PayPal a cash advance?
Payments made through PayPal aren't considered cash advances, so you shouldn't expect a fee or cash advance APR on the transaction from your bank.
Payments through PayPal could even make you money if you're using a card whose bonus is larger than the fee you'd pay to PayPal.
Is PayPal safe?
PayPal has been around since 2002 and is generally safe to use, especially if you are using PayPal to pay for goods and services. PayPal uses industry-standard security and encryption and doesn't share your credit card or banking information with payment recipients.
PayPal offers its own purchase protection on items that don't arrive or aren't as described and the credit cards paired with the account may offer their own protections.
Bottom line
Using a credit card with your PayPal account can be an easy way to earn extra rewards on the purchases you're already making, especially if you're a Citi, Chase or Discover cardholder. If you are a Discover or Chase cardholder, PayPal makes it especially easy to spend the rewards you've earned.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.