PayPal Cashback Mastercard®

Quick Snapshot

• Annual Fee: $0
• APR: 19.24%, 30.99%, or 33.99% variable
• Rewards: 3% on PayPal purchases, 1.5% on everything else
• Bonus: None
• Best For: Frequent PayPal users, online shoppers
• Credit Needed: Fair to Good (580+)

Overview

The PayPal Cashback Mastercard® is designed for the millions of PayPal users who want to earn cash back on their purchases. With unlimited 3% cash back when you checkout with PayPal and 1.5% on all other purchases, this no-annual-fee card offers straightforward rewards with no rotating categories or spending caps.

What makes this card unique is its seamless integration with the PayPal ecosystem. Cash back is earned daily and automatically deposited into your PayPal account, where you can use it immediately for purchases, send it to friends and family, transfer it to your bank account, or redeem it for statement credits. For frequent online shoppers who already use PayPal regularly, this card amplifies rewards on purchases you're already making.

Issued by Synchrony Bank, the PayPal Cashback Mastercard is accepted anywhere Mastercard is accepted worldwide, making it versatile for both online and in-store purchases.

APR Breakdown

• Purchase APR: 19.24%, 30.99%, or 33.99% Variable (based on creditworthiness) - effective March 1, 2025
• Balance Transfer APR: Same as Purchase APR
• Cash Advance APR: 33.99% Variable
• Penalty APR: None specified

Note: The card offers three APR tiers depending on your credit profile. Higher credit scores typically qualify for the 19.24% rate, while lower scores may receive 30.99% or 33.99%.

Benefits Overview

Rewards Integration

• Instant Cash Back Access: Daily Cash back automatically deposited to PayPal account
• Flexible Redemption: Use immediately for purchases, transfers, or statement credits
• No Minimum Redemption: Access rewards with no threshold or waiting period
• No Expiration: Cash back never expires

PayPal Benefits

• Seamless Checkout: One-click checkout at millions of merchants
• Purchase Protection: PayPal Purchase Protection on eligible transactions
• Fraud Protection: PayPal and Mastercard Zero Liability Protection
• Digital Wallet Integration: Links directly to PayPal digital wallet

Mastercard Benefits

• ID Theft Protection: Access to identity theft resolution services
• Extended Warranty: Adds up to one additional year to eligible warranties
• Price Protection: Price protection on eligible purchases (terms apply)
• Mastercard Global Service: 24/7 customer support worldwide

Everyday Benefits

• No Annual Fee: Keep the card long-term without yearly costs
• Contactless Payments: Tap-to-pay enabled for secure transactions
• Digital Wallet Support: Apple Pay, Google Pay, Samsung Pay compatible
• Mobile App Management: Manage account through PayPal and Synchrony apps

Rewards & Earning Structure

Earning Rates

• 3% cash back on all purchases when you checkout with PayPal (online or in-store)
• 3% cash back when sending money to other PayPal users through your PayPal account
• 1.5% cash back on all other purchases everywhere Mastercard is accepted
• No limits: Unlimited cash back with no caps or category restrictions
• Earned daily: Cash back posted to your account on completed purchases

Where You'll Earn 3%

The 3% rate applies when you:

• Check out with PayPal online at millions of merchants
• Use PayPal in-store at retailers that accept PayPal payments
• Send money to friends, family, or businesses through your PayPal account
• Pay with your PayPal balance or linked payment methods

Popular merchants where you can earn 3%:

• Online retailers: Amazon (when checking out with PayPal), eBay, Walmart, Target, Best Buy
• Subscription services: Netflix, Spotify, Adobe, Microsoft
• Food delivery: Uber Eats, DoorDash, Grubhub (when using PayPal)
• Travel: Booking.com, Expedia, Airbnb (with PayPal checkout)
• And thousands more merchants that accept PayPal

Redemption Options

• PayPal Account: Automatically deposited and available immediately
• Statement Credit: Apply to your card balance through PayPal
• Bank Transfer: Move funds from PayPal to your linked bank account
• Send Money: Use cash back to send money to others via PayPal
• Shop: Spend directly from your PayPal balance
• Gift Cards: Redeem through PayPal for various retailers

Welcome Bonus

None. The PayPal Cashback Mastercard does not offer a sign-up bonus.

While the lack of a welcome offer is a drawback, the ongoing 3% rate on PayPal purchases can provide significant long-term value for frequent users.

Fees Summary

• Annual Fee: $0
• Foreign Transaction Fee: 3% of each transaction in U.S. dollars
• Balance Transfer Fee: 5% of transfer amount ($5 minimum)
• Cash Advance Fee: 5% of advance amount ($10 minimum)
• Late Payment Fee: Up to $41
• Returned Payment Fee: Up to $41

Who This Card Is Best For

Ideal For

• Frequent PayPal users who shop online regularly
• Online shoppers who prefer PayPal's security and convenience
• Small business owners who receive PayPal payments
• Gig economy workers using PayPal for income (Uber, freelancing, etc.)
• Those sending money through PayPal to friends, family, or businesses
• Everyday spenders wanting solid 1.5% base rewards with no annual fee
• Budget-conscious consumers seeking simple cash back without fees or caps

Not Good For

• International travelers (3% foreign transaction fees eliminate value abroad)
• Those who rarely use PayPal (limited 3% earning opportunities)
• Rewards maximizers seeking 2%+ flat rates or rotating 5% categories
• Welcome bonus hunters (no sign-up bonus offered)
• Those with excellent credit (may qualify for cards with better base rates)

Key Pros & Cons

Pros

• Unlimited 3% cash back when checking out with PayPal (no caps or limits)
• Solid 1.5% on all other purchases everywhere Mastercard is accepted
• No annual fee makes it free to carry long-term
• Daily cash back deposited directly to PayPal account
• No minimum redemption requirements—access funds immediately
• Cash back never expires
• Widely accepted at millions of online and in-store merchants
• Simple earning structure with no rotating categories
• PayPal Purchase Protection on eligible transactions
• No impact to credit score if you're declined (soft pull for pre-qualification)

Cons

• No welcome bonus or sign-up offer
• High APR rates (19.24%-33.99% depending on creditworthiness)
• 3% foreign transaction fees make international use expensive
• Base 1.5% rate is lower than some competing cards (Citi Double Cash offers 2%)
• Requires using PayPal to earn 3% rate
• Limited premium benefits (no travel insurance, lounge access, etc.)
• Issued by Synchrony Bank, which some users find has less favorable terms
• 3% rate only applies when explicitly checking out with PayPal (not automatic on all online purchases)

Alternatives to Consider

Card	Best For	Annual Fee	Rewards	Welcome Bonus
Citi® Double Cash Card	Simple 2% flat rate	$0	2% on all purchases	$200 bonus
Capital One Quicksilver	1.5% unlimited + intro APR	$0	1.5% unlimited, 5% travel	$200 bonus
Chase Freedom Unlimited®	Bonus categories + travel	$0	1.5%-5% categories	$200 bonus
Discover it® Cash Back	Rotating 5% + first-year match	$0	5% rotating, 1% other	Cashback Match

How the Rewards Add Up

Example Annual Value

Assuming $15,000 annual spending with moderate PayPal usage:

Category	Annual Spend	Reward Rate	Cash Back Earned
PayPal online purchases	$5,000	3%	$150
PayPal money transfers	$1,000	3%	$30
All other purchases	$9,000	1.5%	$135
Total Annual Value:	$15,000	—	$315

Heavy PayPal User Scenario

Assuming $15,000 annual spending with heavy PayPal usage:

Category	Annual Spend	Reward Rate	Cash Back Earned
PayPal online purchases	$10,000	3%	$300
PayPal money transfers	$2,000	3%	$60
All other purchases	$3,000	1.5%	$45
Total Annual Value:	$15,000	—	$405

Note: The more you use PayPal for purchases, the higher your rewards. Heavy PayPal users can earn significantly more than the base 1.5% rate.

Should You Get This Card?

You Should Get It If...

• You frequently shop online using PayPal checkout
• You send money through PayPal regularly to friends, family, or businesses
• You're a freelancer or gig worker receiving PayPal payments
• You shop at major retailers that accept PayPal (Amazon, eBay, Walmart, Target)
• You want simple cash back with no categories to track or activate
• You value instant access to your rewards through PayPal
• You don't want to pay an annual fee

You Should Skip It If...

• You rarely use PayPal for purchases (limited 3% opportunities)
• You travel internationally frequently (3% foreign fees are costly)
• You're seeking a welcome bonus (this card offers none)
• You want 2%+ flat-rate rewards on all purchases
• You need premium travel benefits or purchase protections
• You have excellent credit and can qualify for better rewards cards

Apply Now

Apply for PayPal Cashback Mastercard®

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Information accurate as of December 2025. Terms and conditions apply. Please visit the issuer's website for the most current information.