Discover Lets Select Cardholders Redeem Rewards via PayPal

If you have an eligible Discover card, you can redeem cash back or miles toward PayPal purchases. Step one: Link your Discover card to your PayPal account.
Sara Rathner
By Sara Rathner 
Edited by Kenley Young

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Discover is giving eligible cardholders a new way to redeem rewards, and it may be welcome news for online bargain hunters who haven't yet wrapped up their holiday shopping lists.

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Select Discover cards now allow you to redeem cash-back earnings and miles via PayPal when making a purchase. With this redemption option, $1 in rewards equals $1 to spend through PayPal, which is similar to the way Discover's "Shop With Points" via Amazon works.

Cards eligible for the PayPal "Pay With Rewards" program include:

You can redeem any amount of rewards through PayPal, but some restrictions apply. For example, you can't redeem rewards for recurring payments, in-store transactions, non-U.S. dollar transactions or peer-to-peer transactions.

And you must first link your eligible Discover card to your PayPal account. In fact, even if you don't plan to use the PayPal redemption option, it's still a good idea to link your eligible Discover card in this way. That's because from July 1 through Sept. 30, 2020, PayPal will be a featured bonus category for eligible Discover cards, just as it was in the third quarter of 2019.

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