PayPal Cashback Mastercard®

Quick Snapshot

• Annual Fee: $0
• APR: 19.24%, 30.99%, or 33.99% variable
• Rewards: 3% on PayPal purchases, 2% everywhere else
• Bonus: No welcome bonus
• Best For: Frequent PayPal users, online shoppers
• Credit Needed: Good to Excellent (640+)

Overview

The PayPal Cashback Mastercard® is a straightforward cash back credit card issued by Synchrony Bank designed for PayPal users. Earn unlimited 3% cash back when you checkout with PayPal online or in-store, plus 2% on all other purchases. With no annual fee and no rotating categories, it's an excellent choice for those who regularly use PayPal for shopping.

The card seamlessly integrates with your existing PayPal account, automatically depositing cash back rewards daily. If you're already part of the PayPal ecosystem for online shopping, bill payments, or sending money to friends and family, this card amplifies those benefits with competitive cash back rates.

APR Breakdown

• Purchase APR: 19.24%, 30.99%, or 33.99% variable (based on creditworthiness, accurate as of March 1, 2025)
• Maximum APR: Will not exceed 35.99%
• Balance Transfer APR: Not available (this card does not accept balance transfers)
• Cash Advance APR: Not specified
• Penalty APR: Not specified (APR may increase if account becomes delinquent)

Note: High potential APR (up to 33.99%) — best to pay in full each month. Balance transfers not available.

Benefits Overview

Travel Benefits

• Mastercard Airport Concierge (access to airport concierge services at select locations worldwide)
• Mastercard Global Services (24/7 customer service for lost/stolen card reporting)
• Emergency card replacement
• Zero fraud liability protection

Everyday Benefits

• Automatic cash back redemption to PayPal account
• No rotating categories or activation required
• No caps or limits on cash back earnings
• Rewards never expire while account is open and in good standing
• PayPal Purchase Protection (eligible purchases made through PayPal)
• 24/7 customer service

Lifestyle Benefits

• Easy integration with existing PayPal account
• Cash back deposited automatically to PayPal Cash or PayPal Cash Plus account
• Use cash back for online shopping, bill payments, or transfers

Rewards & Earning Structure

• 3% cash back on eligible purchases made through your PayPal account (online or in-store checkout) or when sending money to friends and family via PayPal
• 2% cash back on all other eligible purchases everywhere Mastercard is accepted
• No caps, limits, or rotating categories on cash back earnings
• Cash back automatically credited to your PayPal Cash account or PayPal Cash Plus account
• Rewards never expire as long as account remains open and in good standing

The 3% PayPal category is extremely broad — any purchase made by checking out with PayPal qualifies, whether online shopping, in-store NFC payments, or even sending money to friends and family through the PayPal app.

Welcome Bonus

This card does not currently offer a welcome bonus. The card focuses on its ongoing unlimited cash back rewards structure rather than introductory offers.

Fees Summary

• Annual Fee: $0
• Foreign Transaction Fee: 3%
• Balance Transfer Fee: N/A (balance transfers not available)
• Cash Advance Fee: Not specified
• Late Payment Fee: Up to $40
• Returned Payment Fee: Up to $40

Who This Card Is Best For

Ideal For

• Frequent PayPal users who regularly checkout with PayPal
• Online shoppers (many e-commerce sites accept PayPal)
• PayPal ecosystem members who use PayPal for various transactions
• Simple rewards seekers who want no category tracking
• Those wanting solid everyday earning (2% on non-PayPal is competitive)
• People who send money via PayPal (3% on friend/family payments)
• Existing PayPal account holders looking to maximize value

Not Good For

• Non-PayPal users (limited value without PayPal usage)
• International travelers (3% foreign transaction fee)
• Balance transfer needs (not available)
• Those carrying balances (high APR up to 33.99%)
• Welcome bonus hunters (no sign-up bonus)
• Premium rewards seekers (basic benefits compared to travel cards)
• Those without PayPal accounts (required for application and rewards)

Key Pros & Cons

Pros

• No annual fee makes it cost-effective for everyday use
• Strong 3% cash back rate on all PayPal purchases with no caps
• Solid 2% back on all other purchases (better than most flat-rate cards)
• No rotating categories or quarterly activation required
• Automatic redemption to PayPal account (no manual redemption needed)
• 3% earning on sending money to friends/family via PayPal
• Broad PayPal acceptance (works wherever PayPal is accepted)
• Mastercard acceptance worldwide
• Easy integration with existing PayPal account
• Mastercard benefits included (ID Theft Protection, Airport Concierge, Global Services)

Cons

• Requires active PayPal account in good standing to apply and maintain card
• High variable APR (up to 33.99%) if carrying a balance
• No welcome bonus or sign-up offer
• 3% foreign transaction fee on international purchases
• Limited travel and purchase protections compared to premium cards
• Does not accept balance transfers
• No intro 0% APR period on purchases
• PayPal Purchase Protection has exclusions (vehicles, real estate, custom goods)
• Must maintain both card and PayPal account in good standing

Alternatives to Consider

Card	Best For	Annual Fee	Rewards	Welcome Bonus
Citi Double Cash	Simple 2% everywhere	$0	2% on everything	None
Wells Fargo Active Cash	2% with sign-up bonus	$0	2% on everything	$200
Chase Freedom Unlimited	Chase ecosystem	$0	1.5%–5% tiered	$200
Discover it Cash Back	Rotating 5% categories	$0	5% rotating + 1%	Cashback Match

How the Rewards Add Up

Example Annual Value

Assuming you use PayPal frequently and spend $12,000 per year:

Category	Annual Spend	Reward Rate	Earned Value
PayPal purchases (online shopping, bills)	$6,000	3%	$180
All other purchases	$6,000	2%	$120

Total Estimated Yearly Value: $300

Minus $0 annual fee = $300 net annual value

Comparison:

• Citi Double Cash (2% on everything): $240/year on same spend
• Basic 1.5% card: $180/year on same spend
• PayPal Cashback advantage: $60/year more than Double Cash (assuming 50% spending through PayPal)

Maximizing PayPal Usage Example:
If you route 75% of spending through PayPal ($9,000):

• PayPal purchases: $9,000 × 3% = $270
• Other purchases: $3,000 × 2% = $60
• Total: $330/year (vs $240 with Citi Double Cash)

The more you can route through PayPal, the more valuable this card becomes compared to flat 2% alternatives.

Should You Get This Card?

You Should Get It If...

• You frequently use PayPal for online shopping and payments
• You can route a significant portion of spending through PayPal checkout
• You send money to friends and family via PayPal regularly
• You want simple rewards with no categories to track or activate
• You already have a PayPal account in good standing
• You value automatic cash back redemption (no manual claims)
• You want a competitive 2% rate on all non-PayPal purchases
• You pay off your balance in full each month (avoid high APR)

You Should Skip It If...

• You rarely or never use PayPal for purchases
• You frequently travel internationally (3% foreign fee is expensive)
• You need balance transfer capability (not available)
• You carry balances month-to-month (APR up to 33.99% is very high)
• You want a welcome bonus to boost first-year value
• You prefer premium travel benefits and protections
• You don't want to maintain both a credit card and PayPal account
• You want higher rewards on specific categories (dining, gas, groceries)

Apply Now

Apply for PayPal Cashback Mastercard®

Application requires an active PayPal account. Both your PayPal account and card account must remain in good standing.

Application Requirements:

• Active PayPal account in good standing
• U.S. resident, 18+ years old
• Good to excellent credit (640+ recommended)
• Valid Social Security number

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Information accurate as of December 2025. Terms and conditions apply. Please visit PayPal.com for the most current information.