The PayPal Cashback Mastercard® is a compelling option for individuals searching for a cash-back credit card that doesn't charge an annual fee.¹ This card offers 3% cash back² on PayPal purchases and 1.5% cash back on all other purchases without any restrictions on earning cash back . It's a straightforward choice for anyone seeking hassle-free cash-back rewards on their spending. However, if you are a frequent traveler or don't use PayPal often, there are better flat-rate cash back credit card options.
Quick Highlights
- Variable APR of 19.24% to 33.99%. Rates as of 6/3/2025. (This APR will vary with the market based on the Prime Rate.)
- Earn unlimited cash back at millions of merchants without restrictions or rotating categories
- Earn 3% cash back every time you shop with PayPal
- Access your cash back immediately since it's earned daily on completed purchases
Current Offer Details
Currently, there is no ongoing account opening or welcome bonus for new cardholders of the PayPal Cashback Mastercard.
Value Of Rewards
Since you can only earn cash back with this credit card, it's easy to understand how much you're getting: 3% for any PayPal purchase and 1.5% for anything else.
How You Earn Rewards
With the PayPal Cashback Mastercard, you can earn cash back on every purchase you make without the hassle of tracking categories or limiting the amount you can earn. Every purchase you make will consistently earn 3% cash back on PayPal purchases and 1.5% everywhere else Mastercard is accepted.
How To Redeem Rewards
The rewards earned with the PayPal Cashback Mastercard can be redeemed in several ways.
To receive a balance credit, you can log in to your PayPal account and transfer your cash back rewards to your PayPal balance. You can use this PayPal balance for online purchases or transfer to a linked bank account.
If you don’t have a PayPal balance account, you can redeem your rewards directly to your bank.
Redemption Potential
The redemption potential of the rewards earned with the PayPal Cashback Mastercard is straightforward. By earning 3% cash back on PayPal purchases and 1.5% back on all other eligible purchases, cardholders can accumulate significant rewards over time or redeem them the day after their purchase posts.
There is no cap on the amount of cash back you can earn, making it possible to accumulate substantial rewards.
Rates And Fees
Cash advance: Either $10.00 or 5.00% of the amount of each cash advance, whichever is greater
Cash advance APR: 32.24% Late fees: Up to $40.00 Returned payment: $29.00 Foreign transaction fees: 3.00% Annual fee: $0.00/yr
Variable APR of 20.24% to 32.24%. Rates as of 9/1/2023.
Best Card To Pair With The PayPal Cashback Mastercard
Pairing the Chase Freedom Unlimited® credit card with the PayPal Cashback Mastercard can be an excellent option for users who want to maximize their cash back rewards without paying annual fees.
The Chase Freedom Unlimited® credit card earns users an unlimited 3% on restaurants, 3% at drug stores, 5% on travel (purchased through Chase Ultimate Rewards), and 1.5% on every other purchase. On the other hand, the PayPal Cashback Mastercard earns users 3% cash back on PayPal purchases and 1.5% back on all other eligible purchases.
Users should use the Chase Freedom Unlimited® credit card for all restaurant, drugstore, and travel purchases.
The PayPal Cashback Mastercard should be used for PayPal purchases and any other purchases.
This credit card setup would still have no annual fees, but it's important to understand both charge a foreign transaction fee, so neither should be used when shopping abroad.
Who Is The PayPal Cashback Mastercard For?
The PayPal Cashback Mastercard is a cash back rewards credit card offered by Synchrony Bank and linked to your PayPal account. It is best suited for those who want up to 3% unlimited cash back on all eligible purchases without the hassle of tracking categories or limiting the amount they can earn.
This card is particularly attractive for those who make frequent purchases and want a simple way to earn cash back rewards without paying an annual fee.
However, there may be better choices than the PayPal Cashback Mastercard for those who want a wider range of reward options, as the cash back rewards can only be redeemed to your PayPal balance account, or a bank deposit if you don’t have a PayPal balance account. Additionally, the card's interest rate may be higher than other credit cards, so it may not be ideal for those carrying a balance or planning to make large purchases.
Pros
High 3% PayPal rate: Every checkout completed with PayPal earns 3% cash back* without rotating categories or caps
Fast reward posting: Cash-back is credited to your PayPal balance as soon as the purchase posts
Soft-pull application: Synchrony runs only a soft inquiry unless you’re approved, meaning a denial won’t hurt your credit score
Cons
3% foreign fee: All non-U.S. transactions are dinged 3%, erasing most or all of the cash-back when you travel
No sign-up bonus: The card currently offers no welcome bonus
PayPal account dependency: Closing or losing access to your PayPal account automatically closes the credit line
