Updated
Feb 28, 2022 Some offers mentioned on this page may be outdated. To confirm offers and credit card details, check the issuer’s website.
PayPal Cashback Mastercard
What we like:
Frequent users of PayPal
| Intro Offer | None |
| Rewards Rate | 2% cash back on all purchases |
| Regular APR | 22.24% – 29.24% |
| Annual Fee | $0 |
The new PayPal Cashback Mastercard has a lot to offer PayPal account holders. It gives two percent cash back on all purchases that accumulates until PayPal deposits the cash into your online account at the end of the year.
The payment program brings PayPal one step closer to being an official financial institution, with the full spectrum of bank-like offerings.
The PayPal Cashback Mastercard and its enticing rewards may make sense for you. However, it does come with some factors to consider in the fine print, such as the rates. Here is the low down on the pros and cons of the PayPal Cashback Mastercard.
How to Get the PayPal Mastercard
Only PayPal account holders are eligible to apply for thePayPal Cashback Mastercard. PayPal accounts are easy to set up online, and personal accounts are free. The card is only available to people living in the United States and its territories, and those who are 18 or older.
The main benefit is the two percent cash back on all purchases. Unlike some other cash back credit cards on the market, there are no restrictions or rotating categories. Whether you are buying groceries, gasoline, fast food, or anything else, you will receive two percent cash back. Once a year, the balance of your cash-back account is funneled into your PayPal account.
The card also comes with several standard benefits offered on many exclusive credit cards, like extended warranties on most products for up to one year. It also comes with microchip technology and identity theft protection, which is increasingly importance in today’s technology-dependent world. Finally, PayPal offers a 60-day money back guarantee on any item that falls in price after a purchase.
PayPal Cashback Mastercard’s Basic Terms
This PayPal credit card has a relatively high annual percent rate (APR) of between 21.49 to 28.49 percent. Interest rates on this card are about 23.74 percent, but PayPal does not provide information available on the interest rate for balance transfers on its website. The PayPal credit card cycle is every 23 days, slightly shorter than its competitors. Cash advance transactions cost a minimum of $5, or three percent of the total transaction.
The penalties for making late payments are $38, which is a high price to pay especially if you only miss by a day. The full fee structure and legal terms are not available through PayPal, but if you are interested, you can view them through its card issuer Synchrony Bank.
The Downsides
According to some of the reviews on PayPal credit cards, the financial institution that issues the credit cards, Synchrony Bank, has poor customer service. People have reported not receiving notice of overdue bills, steep late payment fees, and generally poor customer-service interactions.
Also, the credit card comes with an extremely high-interest rate compared to other cards. Most credit reputable cards have interest rates under 20 percent, versus up to 28.49 percent for this card. If you have a history of financial instability, and late payments, this is not the card for you.
Bottom Line
While the PayPal Cash Back Mastercard may make sense for some frequent PayPal users, some of the best cash back credit cards on the market may offer lower interest rates and better terms. If the customer reviews are true, this card has room to offer better customer service. The PayPal credit card is only a good financial decision for those who can pay the full balance every month.
Not satisfied? Check out the best credit cards that we have reviewed.