Support local small businesses while you shop with PayPal’s Pay with Rewards feature
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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.
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.
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.
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 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 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.
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.
*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.
Featured photo by Bloemenmarkt / Getty Images.
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Receive 1 Free Night Award every year after your Card account anniversary. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy points) at hotels participating in the Marriott Bonvoy program.
- Limited Time Offer: Earn 125,000 Marriott Bonvoy Bonus Points after spending $5,000 in purchases on your new Card in your first 3 months of Card Membership. Offer expires 8/31/22.
- 6x points at hotels participating in the Marriott Bonvoy™ program.
- 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
- 2x points on all other eligible purchases.
- Receive a 7% discount off standard rates for reservations of standard guest rooms at hotels that participate in the Marriott Bonvoy program when you book directly. Terms and Conditions Apply.
- Receive 1 Free Night Award every year after your Card renewal month. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy points) at a participating hotel. Certain hotels have resort fees.
- Enjoy Complimentary Marriott Bonvoy Gold Elite Status with your Card.
- Terms apply.
- See Rates & Fees