Support local small businesses while you shop with PayPal’s Pay with Rewards feature
Now more than ever, flexible redemption options are a valuable commodity with any rewards program. While we talk a great deal about how to maximize your points and miles to book amazing travel experiences, sometimes saving money on everyday purchases is the most practical use for your rewards — especially if it helps you avoid racking up a balance on your credit card.
Many issuers offer a way to use points as a statement credit for eligible purchases, but the process to redeem can be cumbersome and confusing to beginners. Enter Pay with Rewards by PayPal*, which offers an easy way to use your credit card rewards when you checkout with PayPal.
Related: Everything you need to know about PayPal Pay with Rewards
Using PayPal's Pay with Rewards feature
Once you log into PayPal, head to the wallet and select "Link a debit or credit card." You can then add your cards to use while you shop online. Currently, there are five rewards programs you can link to use with the Pay with Rewards feature: American Express, Capital One, Chase (currently live through Chase Pay), Citi and Discover.
Then, you simply shop at one of the millions of online stores that allow you to check out with PayPal. And you don't have to use rewards to cover the entire payment — using rewards toward only a portion of your purchase is an option.
In our evaluation of PayPal's Pay with Rewards, we found that the redemption rates were on par with other retail redemptions, and we were able to find individual comparison rates with each credit card provider pretty easily on their respective websites.
Related: How to use PayPal with your credit cards
Supporting small businesses with PayPal's Pay with Rewards
One of the primary drawbacks to many redemption options is the inflexibility of where and when you can redeem rewards. Between blackout dates, specifications on what qualifies as a travel purchase and more, beginners to the rewards game can easily get overwhelmed.
That's one way PayPal's Pay with Rewards feature can help alleviate some of that stress. You can use Pay with Rewards at millions of online retailers with PayPal at checkout — no item restrictions, no minimum purchase requirement. Millions of online businesses accept PayPal around the world — many of which are small, local businesses that would benefit greatly.
Using rewards to shop at small businesses can help you save money while supporting local business owners and your local economy. Where traditional redemption options and even other payment programs may limit you to only redeeming at certain big-name retailers, PayPal's Pay with Rewards feature gives you the freedom to shop where you want. When you check out with eligible credit cards when shopping with PayPal, you can still earn points and miles — and redeem them the way that works best for you.
Businesses to support
Small businesses need support now more than ever. Here are a couple of TPG staffer favorite online retailers that accept PayPal.
Blk & Bold
TPG credit cards writer Madison Blancaflor swears by the specialty coffee and loose leaf teas sold by Blk & Bold. You can even sign up for recurring orders if you know you'll need that coffee or tea fix on a regular basis. The best part? Blk & Bold donates 5% of its profits to support at-risk youth.
BookPeople
BookPeople is an independent bookstore in Austin, Texas, but you can also browse the store's selection online to be shipped. The store also offers subscription packages you can purchase as a gift or for yourself — for example, Signed First Club subscription members receive a signed first edition of a hardcover book each month.
The End of All Music
The End of All Music sells new and used vinyl records. This is another small business that has a brick-and-mortar store in Oxford, Miss., but you can browse online, too. You can also sign up for the Record of the Month Club.
Bottom line
According to PayPal, an estimated $59 billion in credit card rewards are earned annually, of which a third go unused. If redeeming for travel isn't in the cards for you, you may want to look into whether using the Pay with Rewards feature could be a worthwhile venture.
And don't forget — Pay with Rewards also comes with some shopping perks. When you shop with PayPal, whether with your rewards or not, you can get benefits like PayPal Purchase Protection** and return shipping***. It can be a complicated process to deal with merchants and retailers when a transaction goes wrong — whether your item didn't ship or got broken in transit — and PayPal's benefits help give you peace of mind while you shop.
Visit PayPal to learn more about the Pay with Rewards feature and how you can use your credit card rewards to help you save money on everyday purchases from your favorite businesses — big and small.
*Enrollment may be required. Available on eligible transactions. Terms apply.
** PayPal Purchase Protection is available for eligible transactions. Terms and Limitations apply.
***Return shipping on Us requires activation and is available for eligible purchases. Limitations apply.
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.