With the PayPal Cashback Mastercard, you can earn up to 3% cash back on all purchases. When you checkout with PayPal in-store and online, you’ll get 3% cash back and complimentary purchase protection on eligible items. Plus, the card earns an unlimited 1.5% cash back on all other purchases. While this cash-back credit card has limited benefits, it has no annual fee and provides a simple path to earning cash back on every purchase.

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PayPal Cashback Mastercard®

• Annual fee
  $0
• Welcome offer
  None
• Purchase APR
  19.74% - 34.49% variable

• Rewards rate
  • 3% cash back on PayPal purchases
  • 1.5% cash back on everything else

• Benefits
  • Redeem the cash rewards you earn to PayPal anytime
  • Combine merchant cash back offers with cash back you earn with your card

How to earn rewards

The PayPal Cashback Mastercard has three primary ways to earn cash back on purchases.

Use PayPal at checkout

When you pay using PayPal, you’ll earn 3% cash back on every purchase. This includes checking out with PayPal on online purchases and using the PayPal mobile app to check out in-store. To checkout in-store, scan the mobile app’s QR code at participating stores. Participating stores for online and in-store purchases include eBay, Target, Apple, and Nike.

Cash back on everyday purchases

You’ll earn an unlimited 1.5% cash back on all other purchases. There are no bonus categories to memorize or special promotions to activate.

Add authorized users

Cardholders can add authorized users to their PayPal credit card at no charge. Authorized users earn an unlimited 1.5% cash back on every purchase. However, they cannot link the PayPal Mastercard to their PayPal accounts to earn 3% cash back.

How to redeem rewards

Cash-back rewards are earned daily as completed purchases are posted to your PayPal credit card. Rewards are generally available to transfer to your PayPal account within three days of your purchase date.

You can transfer cash back to your PayPal account online or through the PayPal mobile app (Apple, Google). Once you’ve transferred your cash-back rewards to your PayPal account, they can be used to make purchases, send money to others, or deposit to your linked bank account or debit card.

Additional benefits

The PayPal Mastercard offers limited benefits beyond cash-back rewards. One of the main benefits it includes is purchase protection on PayPal purchases.

PayPal purchase protection is different than standard credit card purchase protection, which covers purchases against damage or theft. Instead, PayPal protects customers if they don’t receive their item or the item received differs from what was ordered. This benefit covers the full purchase price of the item plus any shipping costs paid. However, if you have to return the item as part of your claim, it doesn’t reimburse those shipping charges.

Another World Mastercard benefit is access to Mastercard Travel & Lifestyle services. This suite of benefits includes complimentary amenities and upgrades, preferential treatment, and exclusive offers.

Who is the PayPal Cashback Mastercard best for?

The PayPal credit card is best for people who shop online and use PayPal on a regular basis. When you use PayPal to complete your transactions, you’ll earn an unlimited 3% cash back on every purchase.

This credit card is also ideal for consumers who want a flat cash-back rate so they don’t need to remember bonus categories, activate offers, or worry about spending caps.

PayPal Cashback Mastercard benefits

• Earn up to 3% cash back

• No annual fee

• Purchase protection benefits

PayPal Cashback Mastercard potential drawbacks

• No welcome bonus opportunity

• Limited benefits for cardholders

• Foreign transaction fees of 3%

Where can you use PayPal Cashback Mastercard?

As a Mastercard, the PayPal credit card is accepted everywhere Mastercard can be used as payment. For maximum cash back, use PayPal to checkout online or a PayPal QR code in-store. Otherwise, you’ll earn a flat 1.5% cash back using your Mastercard to pay the bill.

How to make a PayPal Cashback Mastercard payment

• Make payments from your linked bank account at PayPal.com

• Log into the PayPal mobile app (Apple, Google) to pay your credit card

• Use your PayPal deposit balance to make payments online or through the mobile app

• Mail payments to PayPal Credit SVCS/SYNCB, PO Box 71718, Philadelphia, PA 19176-1718

• Call customer service at (855) 938-3684 to pay by phone

PayPal Cashback Mastercard customer service info

• Customer service is available by phone from 8 a.m. to 12 midnight Eastern on weekdays and 8 a.m. to 6 p.m. Eastern on weekends

• Live chat online or via mobile app from 9 a.m. to 9:30 p.m. Eastern, seven days a week

• Phone number: (855) 938-384

• PayPal Cashback Mastercard login page

Alternative cards to consider

The PayPal Cashback Mastercard is an excellent card for cash back, but it doesn’t offer bonus categories and its benefits are lackluster. Consumers looking to maximize cash-back rewards and receive complimentary perks should consider other options.

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Blue Cash Everyday® Card from American Express

Rates & fees, terms apply

• Annual fee
  $0
• Welcome offer
  Earn a $200 statement credit after spending $2,000 within the first 6 months
• Merchant system
  Amex
• Card type(s)
  Cash-back
• Introductory Purchases APR
  0% on purchases for 15 months
• Ongoing Purchases APR
  18.49%-29.49% Variable
• Introductory Balance Transfer APR
  0% on balance transfers for 15 months
• Recommended credit score
  Excellent, Good

• Rewards rate
  • 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 in purchases, then 1%)
  • 3% cash back at U.S. gas stations (on up to $6,000 per year in purchases, then 1%)
  • 1% cash back on all other purchases
  • Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout

• Benefits
  • Generous intro APR on purchases and balance transfers
  • Get a $7 monthly statement credit after spending $9.99 or more on a streaming subscription to the Disney Bundle, plus earn up to $15 in monthly statement credits after purchasing a Home Chef subscription

Learn more

Capital One Savor Cash Rewards Credit Card

• Annual fee
  $0
• Welcome offer
  Earn $250 cash back after spending $500 on purchases in the first 3 months
• Card type(s)
  Cash-back, Rewards
• Purchase APR
  19.74% - 29.74% variable
• Introductory APR
  0% intro APR on purchases and balance transfers for 15 months, then variable 19.74% - 29.74% APR
• Recommended credit score
  Good, Excellent

• Rewards rate
  • 8% cash back on Capital One Entertainment purchases
  • 5% cash back on hotels and rental cars booked through Capital One Travel
  • 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart and Target)
  • 1% cash back on all other purchases

• Benefits
  • Get a 0% APR on purchases and balance transfers for the first 15 months
  • No foreign transaction fees

Learn more

Capital One VentureOne Rewards Credit Card

• Annual fee
  $0
• Welcome offer
  Earn 20,000 bonus miles after spending $500 within the first 3 months
• Card type(s)
  Travel
• Purchase APR
  19.74% - 29.74% variable
• Introductory APR
  0% intro APR on purchases and balance transfers for 15 months, then variable 19.74% - 29.74% APR
• Recommended credit score
  Good, Excellent

• Rewards rate
  • 5x miles on hotels and rental cars booked through Capital One Travel
  • 1.25x miles on all other purchases

• Benefits
  • 0% intro APR on purchases and balance transfers for the first 15 months
  • Transfer your miles to more than 15 travel partners
  • Enjoy international travel without additional fees on purchases made abroad

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.