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The two PayPal Mastercard options offer cashback and reward extras that allow cardholders to combine reward points with their PayPal accounts to earn more on purchases both in stores and online. This PayPal Mastercard review will tell you everything you need to know before you sign up.

PayPal Mastercard Review

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PayPal is a digital wallet and an online payment system that’s changed the way we pay for things, especially in online shopping. The company made it easier than ever to transfer money between your bank accounts, get paid for your services, grab a cute gift off online sites, and PayPal or pay your friend back with the click of a button. Now, they even offer credit cards.


In this PayPal Mastercard review, find out whether the credit card options PayPal offers are worth using. We outline the main benefits and disadvantages of the programs, fees associated with these accounts, and what real people think about their PayPal cards.

What Is the PayPal Mastercard?

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There are two types of PayPal Mastercard options: cashback and extras cards. Both cards come with no annual fees and late fees that can reach up to $38 when you miss a payment. APRs vary, with the Cashback Mastercard ranging from 17.24%-28.24% and Extras Mastercard from 21.24%-25.24% depending on your credit score.


While both card options offer perks that card users enjoy, deciding whether a cashback or extra option is right for you can come down to the type of purchases you commonly make and your personal spending habits.

The Cashback Mastercard offers 2% cash-back on all your purchases, no matter what you buy or from where. You can redeem your reward directly to your PayPal account, and there is no minimum or maximum amount you need to reach in order to redeem your reward or no restrictions on what you can buy to earn a reward, unlike other cards.


This is considered an everyday spending card. Purchases don’t include cash advances, balance transfers, disputed purchases, fraudulent transactions, or convenience checks. Although, you can earn rewards on any purchase you make. Bonus rewards will also be available once in a while and typically come with a higher percent cash-back than your typical 2%.


The Extras Mastercard, on the other hand, allows you to earn varying numbers of points depending on what you buy. For example, with this card, you can earn:

  • 3x points for every $1 you spend on gas or restaurants
  • 2x points for every $1 you spend on PayPal or eBay purchases
  • 1x points for all other purchases

The points you earn are then redeemed for gift cards, travel vouchers, merchandise, or cash-back directly to your PayPal account balance. Depending on how often you shop or spend money on these certain things, you could earn more rewards than ever.


Both cards are offered from Synchrony Bank like other store cards such as Amazon, and they can be used anywhere that Mastercard is accepted. These cards both also come with standard Mastercard benefits as well, which includes:

  • Extended warranty coverage – Doubles the original manufacturer or store’s warranty for up to one year.
  • Identity theft resolution – Receive identity theft alerts and credit card replacement if you fall victim to identity theft.
  • Price protection – Reimburse the difference in price if it drops within 60 days of your purchase.
  • Microchip technology – Used by the top mainstream credit cards today, microchip technology adds protections and a secure way to pay.

Finally, these two cards differ when it comes to foreign transaction fees. If you don’t travel overseas, this is no problem for you. However, if you want to save money on the purchases you make in foreign countries, the Cashback Mastercard has no fees whereas the Extras card charges 3% per transaction.

How Do These Cards Work?

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With either of the PayPal Mastercards, you can use your card anywhere Mastercards are accepted or withdraw cash from any ATM in the world (fees may apply). If you link your PayPal card with your PayPal account, you can also make online payments for:

  • Rent
  • Bills
  • PayPal payments
  • Necessities
  • Online shopping

To use these credit cards, you will need a PayPal account. Since you redeem both cash and points through your PayPal account, you’ll need to sign up for an account if you don’t already have one. Linking your PayPal account is crucial, especially with a cashback card.


If you’re not interested in earning rewards through the purchases you make using PayPal or want to link your PayPal balance with your bank account, there are alternative credit cards that may work better for you personally. You don’t need PayPal, but cardholders without PayPal won’t receive rewards on PayPal purchases or receive 2x points on online purchases.


Redeeming your rewards is easy as well, and you can receive your rewards on a monthly basis and transfer the reward to your PayPal account for the following billing period. To make a transfer with your cashback card, follow these steps:

  • Log in to PayPal
  • Click on your Rewards Summary Page
  • Transfer the amount you choose to your PayPal balance

After the transfer is complete, you should be able to access your rewards. There’s no minimum number you need to reach to redeem a cash reward as well.


With the Extras card, the reward points you earn are credited directly to your PayPal account each month. The points are calculated each day and the total amount is rounded down to the next whole dollar amount and available for you’re the following month. Here, there is a limit though. You cannot accumulate over 50,000 points in an accounting year, which starts when you open the account.


After you have earned 6,000 points, you can earn a $50 PayPal cash credit, which equals out to a ratio of about 0.83 cents to 1. Most other reward cards on the market today offer ratios of 1:1, meaning the points are valued higher only when you redeem them.


To redeem the points you’ve earned through your Extras card, follow these steps:

  • Log in to PayPal
  • Click on PayPal Mastercard (which will transfer you to Synchrony Bank)
  • Select the category you want to search for or the reward you wish to redeem
  • Make your redemption
  • Click on Rewards and Offers

It’s important to note that if you don’t make the required minimum payment on your card each month, you forfeit the ability to earn or redeem your points. Accounts need to be in good standing to receive benefits and utilize the reward programs offered.


If you don’t have PayPal, you can redeem your rewards through a statement credit. To do so, you will need to call the phone number located on the back of your Mastercard.

What Makes the PayPal Mastercard Unique?

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What makes the PayPal Mastercards unique is that the credit card is linked to your PayPal account. PayPal is quickly becoming widely popular and is now a typical means of payment through huge online retailers like Target, Best Buy, and Macy’s. It even works with Samsung Pay or Google Pay.


To sign up for a PayPal Mastercard, all you need to do is set up the account online through your PayPal. Personal accounts are free, and the card is available to people in the United States over the age of 18. Unlike other credit cards and especially other cash-back cards, there are no restrictions and the categories never rotate.


There are other benefits that make this card stand apart from other credit cards as well, such as extended warranties and microchip technology to add a layer of identity protection. Although these traits are becoming more popular and common in cards, this top-of-the-line technology is great.

Pricing Information

There are no annual fees to obtain a PayPal Mastercard, but every credit card comes with fees.

What the Public Thinks

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Most reviewers and customers alike are happy with the PayPal Cashback

Mastercard. There aren’t any glaring negatives to the card unless you don’t use PayPal.


The main drawback to the PayPal Extra card is the low ratio of value to the dollar on the points you earn. The money you spend won’t go as far, and you won’t receive as many rewards with these options as you can with other reward-based cards offered from other companies. Plus, the process of redeeming your points with this card is sometimes complicated.


For example, cardholders need to reach a minimum before they can redeem the points, and each of these thresholds is different for each type of redemption. To earn rewards, you need to meet the following minimums:

  • Gift cards – 800 points
  • Merchandise – 3,000 points
  • Travel rewards – 15,000 points
  • Cash-back with PayPal – 6,000 points

If you plan to redeem a travel reward, your airplane ticket, hotel booking, or car rental need to be redeemed with at least 21 days in advance. This can be a drawback if you don’t plan accordingly, and it makes using your points a bit more difficult for many users.


One of the biggest downsides of PayPal credit cards that reviews have pointed out is that the financial institution in charge, Synchrony Bank, offers poor customer service. Many people have said they didn’t receive overdue bill notices yet had to pay increasingly steep late payments. Plus, the customer support interactions people mention are not highly positive.


Plus, both the PayPal cards come with steep interest rates. Compared to other cards out there, you could easily pay rates under 20% if you have good credit whereas these cards can reach nearly 30%. If you have trouble missing payments or don’t plan to pay off your balance immediately with each statement, this may not be the right card for you.

How the PayPal Mastercard Matches up to Competition

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For a complete PayPal Mastercard review, it’s important to compare these card options with other reward cards available on the market. Look at how the PayPal Cashback and Extra cards stack up to the competition to create an informed decision.


If rewards are important to you, there are better reward card options out there than the PayPal Extras credit card. The low value makes the points not quite worth the money you put into them, and nearly any other card based on points will match up better.


When it comes to cashback cards, you can keep things simple with the PayPal Cashback card. Other cards, like the Citi Double Cash Card, allow you to earn 2% cashback as well and another 1% when you pay off your statement balance. Redeeming rewards with other cashback cards is often easier as well because you don’t have to use PayPal to redeem it.


The PayPal Extras card works well for people who use their credit cards to pay for gas or restaurants. Yet, any of the other purchases in another category may provide subpar rewards. You can choose the type of reward you receive, which provides more freedom than you may see with some other reward card options. But there’s no point in using any reward other than cash back or gift cards.


Another downside to PayPal’s reward card is that, unlike other reward cards available, the points you earn will expire after 24 months. If you don’t use them, you lose them.


If you want to earn the most reward for your money, cards like the Blue Cash Preferred Card from American Express offers a much higher percentage in cash back or the Capital One Venture Rewards Credit Card offers travel rewards that are more flexible.

What We Think

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If you use PayPal for many of your purchases online, locally, or in foreign countries, the PayPal Cashback card is a great option. It offers decent cash-back percentages on anything you buy and you have low drawbacks from customers and reviewers alike. However, where PayPal Mastercard reviews become glummer is with the PayPal Extras card, which doesn’t offer as much for your money as other cards.


However, if you don’t pay off your balance each month, there are other reward and cash-back credit cards on the market that has better terms and lower interest rates. If you buy things online often using your PayPal account and pay off the balance in full and quickly, you should have no trouble.


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