Revamped PayPal Cashback Card Will Earn 3% on Purchases Via PayPal

You'll get that elevated rate when you pay with PayPal at checkout. All other purchases will still earn 2% cash back.
Sara Rathner
By Sara Rathner 
Published
Edited by Erin Hurd

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

The PayPal Cashback Mastercard®, issued by Synchrony, has been a member of a growing group of credit cards earning 2% cash back on all purchases. Beginning April 5, 2022, cardholders will earn 3% cash back when they use PayPal at checkout, while still earning 2% back on purchases made wherever Mastercard is accepted. There is no cap on the cash-back rewards you can earn, and you can use PayPal for in-store, online or mobile purchases.

PayPal is accepted at a wide variety of merchants, including eBay, Zappos, Netflix and Etsy, along with airlines including American, United and JetBlue.

The annual fee will remain $0, and you can redeem cash-back rewards in any amount without having to accumulate a minimum reward balance. Your earned rewards will be available for redemption around three days after an eligible purchase. In addition to refreshing the rewards of the PayPal Cashback Mastercard®, the PayPal app and website have updated their design to make managing rewards, purchases and payments a more seamless experience.

If you already have the PayPal Cashback Mastercard®, you’ll automatically be upgraded to the card’s new rewards terms.

New applicants can sign up for a waitlist to receive more information about the card’s availability. It will be open to a select group at first but will become more available within a few weeks. Once you’re able to apply, you can do so through the PayPal app or on paypal.com. For a limited time, new cardholders can earn a sign-up bonus of $100 cash back when you spend $500 in the first 90 days. Note that you must have a PayPal account to be eligible for the card.

Find the right credit card for you.

Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.

Get Started
Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.