The PayPal Cashback Mastercard®* offers one of the strongest cash-back rates available for a credit card with no annual fee, with an even higher rate if you can shop through PayPal.Â
It still offers a strong rate for non-PayPal transactions, but it falls flat in terms of additional card perks when compared with its flat-rate, no-annual-fee rewards credit card competitors. There's no welcome bonus or introductory APR offer, which many of PayPal Cashback Mastercard's top competitors feature.
Rewards and redemption
The PayPal card features a simple yet lucrative rewards program. Cardholders earn a strong 3% cash-back rate for purchases made using PayPal, and 1.5% cash back for everything else.Â
There are a number of major brands that you can use PayPal to facilitate your purchases with, including Apple, Best Buy, HP, Steam, Adidas, Under Armour, Target, Ebay and Walmart, to name a few. There are even some brands with a QR code at their checkout counters that you can scan to earn 3% cash back while shopping in person.
Your cash back will be added to your PayPal account approximately three days after making a qualifying purchase. From there, you can use it to fund your purchases via the payment platform.
Other card perks
Outside of its lucrative rewards, there aren't many additional perks. You'll get the standard identity theft Mastercard protection, plus purchase protection for your new purchases, but aside from that there are no additional perks or welcome bonuses to earn.
This is where the PayPal card falls short when compared with the competition. Competitors like the Wells Fargo Active Cash Card feature an introductory APR offer to help avoid interest charges. The Active Cash card even offers a few extra perks, and both cards offer new cardholders the opportunity to earn a welcome bonus.
Alternative cards
The PayPal Cashback Mastercard is a good rewards card if you make your purchases through PayPal, but it falls short in its other features. Consider these two rewards cards if you're looking for a more well-rounded card experience.
Wells Fargo Active Cash® Card*
The Active Cash Card has a few advantages over the PayPal card, despite its rewards program being slightly overshadowed. It offers 2% cash rewards for your purchases, along with a few extra perks and a welcome bonus. Cardholders can earn a $200 cash rewards bonus after spending $500 in purchases with the card in the first three months of account opening.
The card's 2% rate doesn't lock you into shopping with any one brand, which gives it an edge. But with Active Cash's welcome bonus, introductory APR offer, and other extra perks, it presents a strong alternative to the PayPal card.
You can learn more about the card in our Wells Fargo Active Cash Card review.
Blue Cash Everyday® Card from American Express
Most U.S. supermarkets and U.S. gas stations won't let you shop via PayPal, but you could still earn a strong cash-back rate for your essentials by using the Blue Cash Everyday® from American Express. It earns 3% cash back (on up to $6,000 per year in purchases in each category, then 1%) at U.S. supermarkets, U.S. gas stations and for select U.S. online retail purchases, and 1% for other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
So you'll have to work within the card's bonus categories, but it presents a good opportunity to earn rewards for necessary purchases, plus for some online shopping. It offers one of the best cash-back rates for a no annual fee card, plus adds a welcome offer and an introductory 0% APR offer for purchases and balance transfers for 15 months from the date of account opening (then 18.74% to 29.74% variable).
Get all the details in our Blue Cash Everyday Card from American Express review.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
FAQs
No, so long as your account is in good standing, your cash back won’t expire.
Yes, if you use your PayPal card outside of the country, you’ll incur a 3% fee.
Yes, you’ll need to make a PayPal account in order to apply for the card.
*All information about the Wells Fargo Active Cash Card and the PayPal Cashback Mastercard has been collected independently by CNET and has not been reviewed by the issuer.
