Citi Double Cash vs. PayPal Cashback: It’s a 2%-Back Showdown

Both earn a high flat rate with no annual fee, so consider their redemption options, APRs, other fees and your use of PayPal.
Sara RathnerAug 11, 2021
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When it comes to flat-rate cash-back credit cards, 1.5% back is the typical standard — but 2% back is not unheard of.

In that category, the Citi® Double Cash Card – 18 month BT offer has been a perennial favorite, but there's another big player in town: the PayPal Cashback Mastercard®.

Both cards offer the same 2% cash-back rate on all purchases. (The Citi® Double Cash Card – 18 month BT offer earns 1% when you buy and another 1% when you pay it off.)

Neither card charges an annual fee, and neither will snag you a sign-up bonus.

But other key features set these cards apart, including redemption options and APRs. Here's how to choose between them — as well as some other credit cards that earn 2% cash back on purchases.

The basics: How these two cards stack up

Here's a side-by-side comparison of the Citi® Double Cash Card – 18 month BT offer and the PayPal Cashback Mastercard®:

Key features

Citi® Double Cash Card – 18 month BT offer

PayPal Cashback Mastercard®

Annual fee

$0

$0

Ongoing rewards

2% cash back on everything: 1% as you buy and 1% as you pay it off

2% cash back on everything.

Sign-up bonus

None

None

Redemption options

Statement credit, direct deposit or check.

Redeem to your PayPal account, or to your bank account or debit card linked to your PayPal account.

Minimum redemption threshold

$25

None

APR

An intro 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 13.99% - 23.99% Variable APR

The ongoing APR is 19.99% - 26.99% Variable APR

Foreign transaction fee

3%

3%

Nerdy tip: Some travel cards offer also offer 2X back on all purchases, but they tend to charge annual fees, and redemption options aren't as flexible as cash back.

Why choose the Citi® Double Cash Card – 18 month BT offer?

Citi® Double Cash Card
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You don’t have, or want, a PayPal account

In order to apply for the PayPal Cashback Mastercard®, you must have a PayPal account. You can open one before applying, and it's free. But if you’ve never used PayPal before and have no desire to start now, the Citi® Double Cash Card – 18 month BT offer becomes the obvious choice.

You pay your credit card bill in full

With the Citi® Double Cash Card – 18 month BT offer, you’ll earn 1% cash back as you make purchases and another 1% back as you pay your credit card bill, for a total of 2% cash back. But if you don't pay your bill off for a particular purchase, you’ll get only 1% cash back (on the purchase itself), plus you'll pay interest on the balance, potentially wiping out your earnings regardless. NerdWallet recommends paying your monthly credit card bill in full and on time.

You have a balance to transfer

The Citi® Double Cash Card – 18 month BT offer offers an intro 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 13.99% - 23.99% Variable APR. If you're looking for a breather on a high-interest balance, you could move it to this card. The 3% balance transfer fee is a factor to think about, but it’s on the lower end for that kind of fee. Keep in mind that you don’t earn cash back on a transferred balance, just on new spending. If your plan is to pay off debt interest-free while not using your credit card for new purchases, there are balance transfer cards with even longer introductory 0% APR periods.

You want a variety of redemption options

Redeem a minimum of $25 worth of cash-back rewards for a statement credit, check or direct deposit to either your Citi checking or savings account, or another checking account you’ve used to pay a Citi credit card bill at least twice.

Why choose the PayPal Cashback Mastercard®?

PayPal Cashback Mastercard
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You want instant gratification

While you have to wait seven to 10 days to get your physical card in the mail, once your application is approved for the PayPal Cashback Mastercard®, you’ll be granted a temporary credit line to begin using right away.

You want to redeem at any time in any amount

Unlike the Citi® Double Cash Card – 18 month BT offer, which requires that you accumulate a minimum of $25 in rewards before you can redeem them, the PayPal Cashback Mastercard® has no such minimum redemption threshold. This makes it easy to offset smaller expenses like cab rides and cappuccinos. And since you redeem rewards directly into your PayPal balance, it’s even easier to stash away your cash-back rewards to later transfer to your roommate for your share of the electric bill.

You’re happy to use your PayPal account as a middleman

Statement credits and paper checks are not options here. You must redeem your cash back into a PayPal Cash or PayPal Cash Plus account, which is associated with your PayPal account and is where you receive payments, hold on to money, and send money from. (A PayPal Cash Plus account has added features and can be used with a PayPal-branded debit card.) If you’re already an established PayPal user, you may have one of these accounts without even realizing it. Once the cash back has been redeemed into your PayPal account, it’s yours to use on PayPal transactions or transfer to your bank account. If you don’t have a PayPal Cash or Cash Plus account, you can transfer your cash back to the bank account associated with your PayPal account. Either way you redeem cash back, it can end up in your checking account, but it needs to be funneled through PayPal first.

Alternatives to consider

These aren't the only two cards on the market that earn a higher-than-normal flat rate on everything you buy. Below are some other options:

The SoFi Credit Card

SoFi Credit Card
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The SoFi Credit Card has a $0 annual fee and can earn 2% cash back, although there is a caveat. To qualify for that 2% rate, you'll have to redeem your rewards toward investing, saving or paying down an eligible loan with SoFi. (Rewards have a value of only 0.5 cent per point if you redeem for a statement credit, for example.)

The Alliant Visa® Platinum Rewards Credit Card

With the Alliant Visa® Platinum Rewards Credit Card, you’ll earn 2 points per dollar spent on everything. (Points are worth 1 cent apiece, meaning you'll get 2% back on every purchase.). The card also offers a sign-up bonus. There's no annual fee, but you'll need to become a member of the Alliant Credit Union to qualify. If you don’t work for or belong to an eligible organization, live or work in a qualifying community, or have a relative who’s already a member, you can still join by also joining  Alliant's partner charity, Foster Care to Success. Alliant will donate $5 to the organization on your behalf. The one downside for frequent travelers: a 2% foreign transaction fee.

Nerdy tip: The Alliant Cashback Visa® Signature Credit Card earns an even higher cash-back rate, but it does carry an annual fee.

The Fidelity® Rewards Visa Signature® Card

If you want to turn your cash-back rewards into a nest egg, consider the Fidelity® Rewards Visa Signature® Card. In order to earn 2% cash back on all your purchases with this card, you must redeem your rewards into one of the following Fidelity accounts:

  • Brokerage account.

  • Fidelity Cash Management Account.

  • Fidelity-managed 529 College Savings plan.

  • Retirement account.

  • Fidelity Go account.

  • Fidelity Charitable Giving Account.

  • Fidelity HSA.

You also have the option to redeem for travel, merchandise, gift cards or a statement credit, but you won’t get the generous 2% cash-back rewards value.

Pair your 2%-back card with one of these

Chase Freedom Flex℠

Chase Freedom Flex
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The Chase Freedom Flex℠ offers 5% cash back on up to $1,500 in combined quarterly spending on bonus categories that rotate every three months (activation required); 5% on travel purchased through Chase, 3% on dining at restaurants and purchases at drugstores; and 1% on all other purchases. Plus, the card offers this sign-up bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.

Here are this year’s bonus categories:

Chase Freedom® and Chase Freedom Flex℠ bonus rewards categories for 2021

Q1 (Jan. 1 - March 31)

• Wholesale clubs. • Select streaming services. • Internet, cable and phone services.

Q2 (April 1 - June 30)

• Gas stations. • Home improvement stores.

Q3 (July 1 – Sept. 30)

• Grocery stores. • Select streaming services.

Q4 (Oct. 1 – Dec. 31)

• Walmart. • PayPal.

Use the Chase Freedom Flex℠ for the bonus categories, and switch to the Citi® Double Cash Card – 18 month BT offer or PayPal Cashback Mastercard® to earn 2% back on everything else.

The Blue Cash Preferred® Card from American Express

American Express Blue Cash Preferred Credit Card
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The Blue Cash Preferred® Card from American Express earns 6% cash back at U.S. supermarkets on up to $6,000 in spending per year (then 1%); 6% back on select U.S. streaming subscriptions; 3% back at U.S. gas stations and on eligible transit; and 1% cash back on everything else. Terms apply (see rates and fees).

Reach for this card for your expenses in those above bonus areas, and move to the Citi® Double Cash Card – 18 month BT offer or PayPal Cashback Mastercard® when you buy anything else.


To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.

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