PayPal Credit Card Review: A Closer Look at the PayPal Cashback Mastercard

PayPal is one of the most trusted ways to pay for online purchases. They now offer a PayPal branded credit card (two, actually). The better one is called the PayPal Cash Back Mastercard. Let’s take a closer look at this product in our PayPal credit card review.

PayPal credit card review

This card is branded as a PayPal product, but since PayPal does not actually function as a bank, they have partnered with Synchrony for this card. Synchrony is the actual card issuer for the Cash Back Mastercard. This card really has little to do with your PayPal account, and functions as any other credit card from Mastercard. Keep reading our PayPal Cash Back Mastercard review to learn more.


Card Details: At a Glance


Rewards: 2% cashback on all purchases
APR: Variable, 21.49% to 28.49%
Annual Fee: None
Signup Bonus: None
Perks: No minimum redemption, no cashback earning cap, extended warranties, price protection
Issuing bank: Synchrony, in partnership with PayPal

The PayPal Cashback MasterCard earns a flat 2% cashback on all purchases, with no cap and no minimum to redeem. Cashback can be redeemed to your PayPal account, where you can then transfer it to your bank or use it for a PayPal purchase.

There’s no annual fee, although the APRs are on the high side (ideally, you should never carry a balance anyways). There is no signup bonus, although this is fairly common for 2% cards with no annual fee.


Pros and Cons

Pros: Solid cashback rate, no annual fee, relatively easy to get approved for
Cons: Payments take a long time to clear, requires a PayPal account, no signup bonus

Overall, this is a simple but solid card. 2% cashback puts it among the best no annual fee cards in terms of rewards. It’s also fairly easy to get approved for, as Synchrony is typically one of the more forgiving card issuers. Keep in mind, however, that if Synchrony finds your credit to be insufficient for this card, you may be offered a lower-level card that doesn’t offer the same perks.

Another thing to note is that this card requires a PayPal account to even apply. If you don’t actively use PayPal, that’s a downside. Rewards also have to be redeemed into your PayPal account, adding an extra (unnecessary) step. The APR range is quite a bit higher than alternatives like the Citi Double Cash. Lastly, some people have reported that payments to your card account take a LONG time to clear, sometimes up to 5-7 days. During that time, the pending payment will not affect your available credit. So, if the card was maxed out but you pay it in full, you may have to wait up to a week before you will have any credit available.


PayPal Credit Card Review: Bottom Line

Overall, this is a good credit card – but there are better options.

For active PayPal users, it’s a solid 2% cashback option. However, the interest rates are notably higher than some popular alternatives, and there’s no signup bonus.

If you want a PayPal branded card, the Cash Back Mastercard described in this review is definitely a better choice than the PayPal Extras Mastercard, which we don’t recommend.

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