PayPal Cashback Mastercard® Review: A great fit for PayPal users

PayPal Cashback Mastercard®

Bankrate Score

Rating: 3.3 stars out of 5

3.3

Annual fee

$0

Intro offer

N/A

Rewards rate

1.5% - 3%

Earn 3% cash back on PayPal purchases. Earn 1.5% on all other purchases.

Recommended Credit Score

Fair to Good (580 – 740)

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Citi Double Cash® Card

Bankrate Score

Rating: 4.1 stars out of 5

4.1

See Rates & Fees , Terms Apply

Apply now

on Citi's secure site

Annual fee

$0

Intro offer

$200 cash back

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Rewards rate

1% - 5%

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24.

Recommended Credit Score

Good to Excellent (670 – 850)

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Blue Cash Everyday® Card from American Express

Bankrate Score

Rating: 4.6 stars out of 5

4.6

See Rates & Fees , Terms Apply

Apply now

on American Express's secure site

Annual fee

$0

Intro offer

Earn $200

Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

Rewards rate

1% - 3%

3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%. 1% Cash Back on other purchases.

Recommended Credit Score

Good to Excellent (670 – 850)

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

• PayPal Cashback Mastercard vs. the Citi Double Cash® Card

  The Citi Double Cash® Card can pack a stronger punch on general spending with up to 2 percent cash back (1 percent back when you buy, 1 percent when you pay) on all purchases. 

  The Double Cash card is also a great balance transfer card with a lengthy intro APR offer. It could be worth considering if the amount you save on interest temporarily with this card could be more than you would earn with 3 percent cash back for PayPal purchases initially.

• PayPal Cashback Mastercard vs. Blue Cash Everyday® Card from American Express

  The Blue Cash Everyday® Card from American Express doesn’t have a boosted flat rewards rate, but the card’s bonus categories could give you more than enough chances to rake in considerable cash back in everyday spending categories — even on online shopping with an exceptional range of U.S. online retailers.

  If you have a reliable budget that sticks to everyday purchases with some online shopping, and you don’t use PayPal often, the Blue Cash Everyday card is the clear winner. The Blue Cash Everyday also includes extra perks, which are strikingly absent on the PayPal card.

• Chase Freedom Flex℠

  The Chase Freedom Flex℠ card offers 5 percent cash back in quarterly rotating categories (upon activation, on up to $1,500 in purchases per quarter, then 1 percent back). The Freedom Flex also earns an unlimited 5 percent back on Chase Travel℠ purchases, 3 percent on dining at restaurants and drugstores and 1 percent on other purchases. If you don’t mind tracking categories, combining these two cards could help you rake in a considerable amount of cash back.

  On top of the rewards, it also comes with a sign-up bonus and an intro APR offer on purchases and balance transfers that could give you more than a year to pay down your debt. World Elite Mastercard benefits round out the card’s value, giving you far more perks than you’ll find with the PayPal card, such as cellphone protection, trip cancellation/interruption insurance and an auto collision damage waiver.

• Citi Custom Cash® Card

  The Citi Custom Cash® Card offers 5 percent cash back (on up to $500 each billing cycle, then 1 percent) on your top eligible spend category every billing cycle. This card offers 10 eligible bonus categories and can be a great boost for purchases outside of PayPal purchases, especially if you want to use the card for a specific expense like groceries or online shopping. 

  The card also comes with the welcome offer of 20,000 ThankYou Points after spending $1,500 on purchases in the first six months, which is worth $200 in cash back. Considering the relatively low spend requirement and lengthy window of time to earn it, this can be a nice boost that you’re missing from the PayPal Mastercard.

• PayPal users

  If you use PayPal whenever you can online (and even offline), this card can be incredibly rewarding and convenient. Considering how far-reaching the PayPal category is, you could earn 3 percent cash back in-store and online for purchases that would only earn 1 percent back on another cash back card.

• Minimalists

  Minimalist spenders can make the most of the PayPal Mastercard if they only want to hold one card and use one payment method for every purchase. You’ll earn a solid flat-rate everywhere and a generous boosted rate for purchases made using PayPal.

• Rewards value

  The primary criteria for a rewards or cash back card’s rating is its rewards value. This includes the card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

  To estimate a card’s average annual rewards earnings, we first calculate its average rewards rate based on how much it earns in different bonus categories and how closely its categories align with the average person’s spending habits, according to data from the Bureau of Labor Statistics. 

  Based on this data, we determine a “chargeable” spend (which purchases are likely to be put on a credit card and earn rewards) of around $22,500. Some of the major spending categories include that contribute toward the annual spend include:

  • Groceries: $5,700
  • Dining out: $3,600
  • Entertainment: $2,400
  • Gas: $3,100
  • Apparel and services: $1,900

  Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 22 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

  This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases, as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value

  With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other rewards cards.

• Rates and fees

  We also rate cards based on how much it costs to keep them in your wallet or carry a balance. 

  To start, each rewards or cash back card is scored based on whether it offers an intro APR and how its ongoing APR compares to the rates available on other rewards or cash back cards. 

  We also score each card based on how its annual fee influences its overall value. 

  We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value, but if a card offers terrific value via its ongoing rewards and perks, it can earn a high score even if it carries a high annual fee. 

  With this in mind, we rate a card based primarily on how its ongoing rewards value and ongoing perk value (such as annual credits or bonuses) stack up against other cards in the category when you subtract its annual fee.

• Flexibility

  We rate each card’s flexibility based on the restrictions it imposes on earning and redeeming rewards and factor this rating into a card’s overall score. 

  Flexibility factors include whether a card only allows you to earn a high rewards rate on a small amount of spending or requires you to meet a certain earning threshold before you can redeem rewards. We also examine whether your points are worth less when you redeem for some options versus others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners. 

• Perks

  We also score each card’s set of features – its perks and benefits — against five tiers of features to provide a rating. 

  We break down these tiers as follows:

  • Tier 1 has less than standard card features (an ultra-streamlined card that offers basic utility and next to nothing in the way of ancillary benefits. 
  • Tier 2 includes the benefits you’d expect on standard Visa or Mastercard credit cards, such as free access to your credit score, car rental insurance and $0 liability for fraudulent charges. 
  • Tier 3 includes “prime card” or better-than-average card features like cellphone insurance, lost luggage insurance, concierge services and purchase protection. 
  • Tier 4 includes luxury features such as airport lounge access, elite status with an airline or hotel and credits for expedited security screening membership programs. 
  • Tier 5 includes the sort of exemplary benefits you’ll find on top-tier luxury cards, such as high-value travel credits, cardholder memberships and other unique and valuable perks.

• When can I start using the PayPal Mastercard?

  You’ll have instant access to your PayPal Mastercard through a virtual card. This can come in handy for online purchases or if you have a sudden emergency. Adding your virtual card to your digital wallet is a good way to keep track of it until your physical card is delivered.

• What credit score is required for the PayPal Mastercard?

  You’ll have the best approval odds if you apply with a fair to good credit score (A FICO score of 580 or higher, or a VantageScore of 601 or higher). This makes the PayPal Mastercard an accessible option if you don’t have the best credit, and want a more versatile option than several other co-branded cards geared toward credit builders.

• Which bank is the PayPal Mastercard connected to?

  The PayPal Mastercard is issued through Synchrony Bank, which is known for its co-branded credit cards and store cards. If you’re having trouble with your card, whether payment is not going through or there's an unauthorized purchase, contact the number on the back of your card or customer support at Synchrony Bank. 

What cardholders think

PayPal Cashback Mastercard®

4.2

39 ratings

In May 2024, Bankrate collaborated with third-party SliceMR to survey 6160 cardholders nationwide. Bankrate and Slice MR collected, averaged and presented website analytics and cardholder responses to six questions on a 5-point scale. Responses are unedited and have not been reviewed or approved by credit card issuers.

85% of customers recommend this card

Score breakdown

5 stars

36%

4 stars

49%

3 stars

15%

2 stars

0%

1 star

0%

Score by category

Overall 4.2 / 5

Extra perks 3.0 / 5

Meets financial needs 4.1 / 5

Privacy and security 4.3 / 5

Customer service 3.8 / 5

Online portal or mobile app 4.4 / 5

In May 2024, Bankrate collaborated with third-party SliceMR to survey 6160 cardholders nationwide. Bankrate and Slice MR collected, averaged and presented website analytics and cardholder responses to six questions on a 5-point scale. Responses are based on individual cardholder’s product details, and therefore cannot be verified for accuracy. User ratings are unedited and have not been reviewed or approved by credit card issuers, nor do these ratings reflect Bankrate’s own reviews of these cards.