PayPal Cashback Mastercard Review: 2% Cash Back on Everything

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PayPal Cashback Mastercard®

PayPal Cashback Mastercard®

Editor’s Score: (3.7/5)
Learn more externa link icon at our partner’s secure site
Rewards rate:

Get 2% cash back* every day, every purchase, every time you use your card. No exceptions. No rotating categories to keep track of.

  • Intro bonus: N/A
  • Regular APR: 19.99%, 23.99% or 26.99% (Variable
  • Recommended credit score: 670-850 (Good to Excellent)

The PayPal Cashback Mastercard* offers a flat 2% cash back on each dollar you spend, which you can redeem toward your PayPal balance. There’s no annual fee, and you can use your PayPal funds for purchases, money transfers, and withdrawals to your own bank account.

You will need a PayPal account to be approved for this credit card, but you can sign up for free before you apply.

At a Glance

  • Earn 2% back on every purchase you make 
  • No annual fee
  • 19.99%, 23.99%, or 26.99% variable APR

Pros

  • Flat 2% cash back on every purchase

  • No annual fee

  • No foreign transaction fees

Cons

  • No welcome bonus

  • Few cardholder benefits

  • High APR

Additional Card Details

In addition to the standard 2% cash back on every purchase, you may also be eligible to earn bonus rewards on certain categories as they’re available. But outside of cash back rewards, the PayPal Cashback Mastercard is light on benefits. Cardholder perks primarily include standard identity theft protection, account monitoring, and contactless payment options.

If you lose or misplace your card, you can also rely on Mastercard Global Service, which includes benefits like 24-hour assistance with lost and stolen credit cards, emergency card replacement, and emergency cash advances.

Should you get the PayPal Cashback Mastercard?

The PayPal Cashback Mastercard is a great choice for simple cash back rewards — especially if you already have and use a PayPal account regularly. It can also make a valuable addition to your wallet for savings on expenses that fall outside rewards categories you already earn, like travel or groceries. 

But the extra step of transferring rewards to PayPal before you can spend them or transfer to your bank account might be a drawback for some, compared to a 2% cash back card like the Citi® Double Cash Card* (1% cash back when you buy, and 1% as you pay for those purchases) allows for direct redemption for statement credits or deposit to your bank account. 

Unlike many cash back cards available today, the PayPal Cashback Mastercard also offers no initial welcome bonus or introductory 0% APR on purchases. And if you’re looking for meaningful cardholder benefits or perks beyond cash back rewards, you won’t find many with this card. 

Still, when it comes to simplicity, a flat 2% cash back card with no annual fee is very good. Based on average American spending totals, we estimate this card’s value at $265.16 per year.  

Before you apply, consider the value you’ll get from this card compared to others, based on your individual spending habits. You might benefit more from a rotating or tiered cash back card with higher rewards on your most frequent purchases, for example. Or if you enjoy added perks and benefits, consider pairing this card with a more premium travel rewards option

How to Use the PayPal Cashback Mastercard

Since the PayPal Cashback Mastercard offers flat cash back without any rotating categories or limits, maximizing your rewards haul should be easy. All you have to do is use your PayPal Cashback Mastercard for all your purchases and bills, and you’ll rack up more rewards over time. 

If you do have other rewards cards, you can really maximize by strategizing when you’ll use those cards for bonus rewards, and your PayPal Cashback Mastercard for spending that doesn’t fall within bonus categories.

Once you’re ready to redeem your cash back, log into your PayPal account to make the transfer. You can redeem at any time; there’s no minimum amount needed to transfer rewards to your account.

If you have a PayPal Cash or PayPal Cash Plus account, you can use your rewards to make purchases and payments or transfer money, just like any PayPal balance. If you do not have a PayPal Cash or PayPal Cash Plus account, however, your only option is to transfer your rewards from Paypal to a bank account or debit card linked to your account.

Most importantly, make sure you don’t spend more with your card than you can afford to pay off each month. Even with 2% cash back on every purchase, this card’s variable APR of 19.99%, 23.99% or 26.99%, can quickly wipe out your rewards and lead to debt if you carry a balance.

PayPal Cashback Mastercard Compared to Other Cards

PayPal Cashback Mastercard®

PayPal Cashback Mastercard®

Editor’s Score: (3.7/5)
  • Intro bonus:
    N/A
  • Regular APR:
    19.99%, 23.99% or 26.99% (Variable
  • Recommended credit:
    670-850 (Good to Excellent)
  • Learn more externa link icon At our partner’s secure site
Citi® Double Cash Card

Citi® Double Cash Card

Editor’s Score: (4.4/5)
  • Intro bonus:
    N/A
  • Annual fee:
    $0
  • Regular APR:
    13.99% – 23.99% (Variable)
  • Recommended credit:
    670-850 (Good to Excellent)
  • Learn more externa link icon At our partner’s secure site
Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

Editor’s Score: (4.5/5)
  • Intro bonus:
    60,000 points
  • Annual fee:
    $95
  • Regular APR:
    15.99% – 22.99% Variable
  • Recommended credit:
    670-850 (Good to Excellent)
  • Apply Now externa link icon At Chase’s secure site

Bottom Line

Editorial Independence

As with all of our credit card reviews, our analysis is not influenced by any partnerships or advertising relationships.

The PayPal Cashback Mastercard offers a competitive 2% cash back on every purchase you make for no annual fee. It can be a solid choice if you’re looking for basic cash rewards or a card to pair with other higher-earning rewards cards already in their wallet, especially if you already use PayPal regularly and don’t mind the extra step of transferring rewards. Just remember, you’ll forgo any extra perks like a signup bonus, introductory 0% interest and added cardholder benefits. 

Before you apply, compare how this card suits your spending compared to other no-fee cash back credit cards with excellent earning potential, added benefits, and more.

*All information about the PayPal Cashback Mastercard® and Citi® Double Cash Card has been collected independently by NextAdvisor and has not been reviewed by the issuer.

Frequently Asked Questions

What credit score do I need for the PayPal Cashback Mastercard?

For the best chances of qualifying for the PayPal Cashback Mastercard, you’ll need good to excellent credit, or a score of at least 690.

How do I redeem my PayPal Cashback Mastercard rewards?

You can redeem your rewards directly to your PayPal account. From there, you can use it to make purchases and pay other users, or transfer the balance to your linked bank account.

Does the PayPal Cashback Mastercard charge an annual fee?

The PayPal Cashback Mastercard does not charge an annual fee.