Have you been emailed to let you know that you’re qualified for a PayPal credit card? I get these emails every few weeks even though I rarely use PayPal. Here is what you should know about these PayPal cards to help you to decide which one is most suitable for your situation. We’ll also let you know about a few alternatives, because the PayPal credit card is most often not your best option.
PayPal Cashback MasterCard
The PayPal Cashback MasterCard is one of the few cards that offer 2 percent cash back for all of your purchases. Consequently, this card stands out in the credit card market. The fixed two percent rate on all purchases beats other top credit cards. Both credit cards have the advantage that they don’t impose any annual fee on cardholders.
Rewards on the PayPal Cashback MasterCard
The PayPal Cashback MasterCard provides 2% cash back for all purchases wherever MasterCard is accepted. Your rewards will be sent to your PayPal account. These rewards will be added to your PayPal account and you must redeem them so that they can be included in your PayPal account balance.
To add cash rewards to the balance of your PayPal account, you should first log into your account, open the rewards summary page to view your cash rewards, and then include the amount to your balance. You can withdraw your balance immediately with the help of a PayPal debit card.
With other methods, withdrawing funds may take a little longer. It will take 3 to 4 business days if you request a direct deposit and 1 to 2 weeks if you choose to take a check from PayPal.
Other Benefits of the PayPal Cashback Mastercard
- There is no redemption threshold. This means that you don’t have to reach a certain level to start redeeming your rewards. You can redeem your rewards anytime by simply transferring your rewards to your PayPal balance.
- Ease of use and simplicity are big plus points. You can make good use of the high reward rate to earn plenty of cash back that is easy to compute and follow.
- There is no fee for overseas transactions.
PayPal Extras MasterCard
On the other hand, the PayPal Extras MasterCard offers rewards based on its own point system.
Rewards on the PayPal Extras MasterCard
It will offer 3 points on every dollar that you spend at restaurants and gas stations. You will get 2 points on each dollar that you can spend at eBay and PayPal. You will also get 1 point for each dollar that you spend on the rest of your purchases.
The points that you earn must be redeemed via PayPal’s online portal. You should also keep a couple of restrictions in mind. For instance, air travel and hotel rewards must be claimed at least 21 days prior to travel.
Redeeming PayPal Credit Card Points
In order to obtain various types of rewards that you earned through PayPal Extras MasterCard, you must cross the following thresholds:
- 2,200 points in the case of gift cards
- 3,000 points on merchandise ranging from sports equipment to housewares
- 6,000 points to get a $50 cash back which will be credited to your PayPal account
- 15,000 points for car rentals, hotels, airfare or travel vouchers
Remember that the maximum amount of points that you can accumulate with the PayPal Extras MasterCard is 50,000 in one accounting year (starting from the day when you first opened your account).
Calculating the cash rewards for the PayPal Extras MasterCard is a bit tricky since it involves a number of categories. You will have to be a little organized to know how much cash you are getting back and from which category.
You can redeem 6000 points to earn cash back of $50 on your PayPal Extras MasterCard. This means that each point represents about 0.83 cents which is less than a cent for each point.
Comparing the Two PayPal Credit Card Options
Using this data, you can now make a comparison of how much benefit you gain from the PayPal Extras MasterCard versus the PayPal Cashback MasterCard.
- For payment at restaurants and gas stations, the PayPal Extras MasterCard is better with 49 cents cash back on every dollar spent compared to PayPal Cashback MasterCard’s 2 cents on every dollar spent.
- When it comes to spending at PayPal and eBay, the PayPal Cashback MasterCard comes out on top.It gives 2 cents cash back for each dollar spent while the PayPal Extras MasterCard gives only 66 cents.
- Once again, for each dollar spent on the rest of your purchases, the PayPal Cashback MasterCard is much better with 2 cents compared to the 0.83 cents that you earn from PayPal Extras MasterCard.
Keep in mind that this comparison applies to the $50 cash back that you are entitled to upon reaching 6000 points from using the PayPal Extras MasterCard. The redemption rates for other categories such as merchandise and gifts will be different so you must also make a similar analysis for these types of transactions to make a comparison.
If you carry out overseas transactions with the PayPal Extras MasterCard, you will incur a 3% transaction fee. In such cases, you will be better off with the PayPal Cashback MasterCard which imposes no fee on overseas transactions.
Which is the Better Card?
It may appear that the PayPal Cashback MasterCard gives you more rewards compared to the PayPal Extras MasterCard. But the fact of the matter is that PayPal Extras MasterCard will get you more cash back for spending on gas stations and restaurants. If you spend substantial amounts on these two places, you should opt for the PayPal Extras MasterCard.
How to Apply for a PayPal Credit Card
You will need a PayPal account in order to apply for these cards. Keep in mind that the rewards will remain valid so long as your PayPal account remains open. You may apply for only one of these two cards. It is highly likely that the PayPal Cashback MasterCard is your best bet.
There are three separate APR tiers which depend on the applicant’s credit score. The APR that is charged to you will depend on your credit score.
Benefits of Having a Mastercard
Since these are MasterCard cards, you will also get the following benefits:
- Price safeguard: If you purchase some item with one of these cards and the price of that item falls within a limit of 60 days,the price difference will be reimbursed to you.
- Warranty extension: The manufacturer or store warranty for the item you purchased with the help of these cards will be increased up to one year.
- Identity theft protection: If you ever become the victim of identity theft, you will receive identity theft alerts, your credit card will be replaced and you will also get identity theft affidavit assistance.
You must pay the due amount in full by the end of each month. If you are unable to pay off the full amount, pay as much as you can. Pay the minimum payment at the very least.
PayPal Credit Card Login Information
In order to make online payments, you should first login to your PayPal account. After you click on the upper right-hand login button on PayPal.com, click on the button marked ‘wallet’ at the top. On the next page, you will see the PayPal MasterCard towards the left side (remember to first link your card to your account). Upon clicking the PayPal MasterCard, you will be taken to the Synchrony Bank Portal. You can then view your account, manage online payments and carry out other transactions.
If you are a frequent PayPal user and looking for an attractive cash-back rate, then the PayPal Cashback MasterCard is the right choice for you.
The 3 Best Alternative Credit Cards to Consider
Maybe you can do better than this credit card. If you have good credit, you should consider a few other options that will give you better benefits. The credit cards below are a few of our favorites, especially if you’re interested in traveling more. A few of these cards have signup bonuses that are big enough to redeem for multiple round trip flights. My wife and I used our Chase Sapphire Preferred signup bonus to book round trip flights for the both of us to Hawaii! It was well worth researching and getting the best credit card.
|Cash Back Alternative||Cash Back Alternative||Travel Rewards Alternative|
|Chase Freedom||Chase Freedom Unlimited||Sapphire Preferred
|Signup Bonus||$150 (15,000 pts)||Earn 3X on all purchases in the first year (up to $20,000 in purchases)||60,000|
|Bonus Spending Categories||5X on select rotating quarterly categories||1.5X on all purchases (after year 1)||2X on travel and dining|
|Extra Perks||Baggage insurance, trip insurance, rental car insurance|
|Best for People Who...||Want no annual fee|
Also have a Sapphire card
Want to earn bonus points on spend
|Want no annual fee|
Also have a Sapphire card
Want simple 1.5 bonus
points on every purchase you make
|Want a large introductory bonus
Like to Travel
|Learn More >>||Learn More >>||Learn More >>|
Decision Time: Which Credit Card is Really the Best for You?
Here at Travel Freedom, we like to travel, which is why we always prefer travel credit cards for ourselves. You might be the same as us or maybe you’d rather use your points as cashback. Either way, all of these cards earn Ultimate Rewards that can be used for either travel or as cash back.
We think that any four of these cards are a better option than the above-reviewed credit card. They earn points that are both valuable and very versatile. You can redeem them for an assortment of things including our favorite, TRAVEL!