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PayPal Mastercard Review – Does It Pay to Apply?

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Do you have an active PayPal account that you frequently use? Do you need to build credit? PayPal Mastercard offers two different options for PayPal users. You can apply to receive the PayPal Cashback Mastercard or the PayPal Extras Mastercard.

Which card should you choose? We have broken down the features, pros, and cons of each card to help you make an informed decision.

If you are interested in linking a credit card to your PayPal account, read on to see which one is better suited to your financial lifestyle.

What is PayPal Mastercard?

Both the PayPal Cashback Mastercard and the PayPal Extras Mastercard are issued by Synchrony Bank. They can be used anywhere Mastercard is accepted.

How Do I Qualify for the PayPal Mastercard?

To qualify for the PayPal Mastercard, you must have a PayPal account (personal or business), be at least 18 years old, and reside in the United States. The card is also subject to credit approval. Once approved, your available credit line is a reflection of your credit history and income.

PayPal Cashback Mastercard®

PayPal Cashback Mastercard


  • 2% cash-back on all purchases
  • Redeem cash-back directly to your PayPal account (no min or max to redeem)
  • Extended warranties on products purchased for up to one year
  • 60-day money-back guarantee on price reductions after purchase
  • 23-day credit card cycle
  • Standard Mastercard benefits

Annual Fee 



  • 22.24% variable (Type 1)
  • 26.24% variable (Type 2)
  • 29.24% variable (Type 3)

Rates as of April 2019, rates are on the rise since the card was initially issued. The APR percentage you receive will be based on your credit report when you apply for the card.

Cash Advance APR


Cash Advance Fee

$5 or 3% of the amount of each cash advance (whichever is greater)

Late Fee

Up to $38

Foreign Transaction Fee


How Do I Transfer My Cash Rewards?

PayPal Cashback Transfer Rewards

Receive 2% cashback whenever you use your card. PayPal adds cash back rewards to your PayPal account. There is no threshold to redeem your cashback. Earned rewards will be added to your account the following billing cycle.

You must have an active PayPal account in good standing to receive your rewards. Your rewards will be linked from your PayPal Cashback Mastercard to your active Paypal account. You can receive cash rewards as a positive balance in your PayPal account or to a bank account or debit card directly linked to your PayPal account.

To transfer your cash rewards

  • Simply log-in to your PayPal account
  • Click on the Rewards Summary Page to see your current rewards
  • Transfer some or all of your available rewards to your PayPal account

Remember, you must have a good standing PayPal account to be eligible and transfer rewards. If your account is closed, you will forfeit any rewards associated with your PayPal Cashback Mastercard. If your PayPal account is temporarily suspended, you may still be able to earn rewards but not redeem them until your account is reinstated.

What Purchases Count Towards Rewards?

The PayPal Cashback Mastercard gives you a 2% cashback on everything you purchase. There are no categories or special dates to manage.

Eligible purchases are net purchases of goods or services. These purchases do not include credits, returns, balance transfers, cash advances, convenience checks, disputed or unauthorized purchases.

Sometimes, PayPal will make you aware of a bonus reward for certain purchases that pay higher than the average rate of 2%. These opportunities are not guaranteed and are intermittent based on PayPal’s promos. When there is a bonus opportunity, you will receive the rewards in the same way your regular 2% rewards are processed.


  • No category exclusions to earning cashback
  • Shorter than average credit card cycle (23 days)
  • Decent reward payoff for those with good credit, who can pay on-time and in-full every month


  • Late payment fee $38 (even if you are one day late)
  • High-interest rate compared to the industry average (most credit cards have an APR of below 20%, the PayPal Mastercard soars up to nearly 30%)
  • If you receive an interest charge and when added to your credit card balance it puts you over your credit line, you may automatically receive a derogatory mark on your credit report
  • Poor customer service


PayPal Extras Mastercard®

PayPal Extras Mastercard

  • 3x points per $1 spent on restaurants and gas
  • 2x points per $1 spent on Paypal and eBay purchases
  • 1x points on all other purchases
  • Redeem points for gift cards, merchandise, travel vouchers, or cash-back to your PayPal balance

ID Theft Protection™

Mastercard provides this service to its users at no additional cost. They make sure your ID is safe and secure online and help you clear your name with credit rating companies.

Microchip Technology

The PayPal Mastercard is embedded with the EMV Chip Technology to keep your information safe and secure.

Annual Fee 



  • 22.24% variable (Type 1)
  • 26.24% variable (Type 2)
  • 29.24% variable (Type 3)

Rates as of April 2019, rates are on the rise since the card was initially issued. The APR percentage you receive will be based on your credit report when you apply for the card.

Cash Advance APR


Cash Advance Fee

$5 or 3% of the amount of each cash advance (whichever is greater)

Late Fee

Up to $38

Foreign Transaction Fee


How to Redeem Points from your PayPal Extras Mastercard

Paypal Extras Mastercard Redeem Points

  • Log-in to your PayPal account
  • Choose “PayPal Mastercard” to be transferred to Synchrony Bank
  • Click on “Rewards & Offers”
  • Search through the different categories to see available rewards
  • Choose your selected reward
  • Redeem for reward

PayPal Cash Mastercard and PayPal Prepaid Mastercard

Be careful not to confuse PayPal’s Cash Mastercard and PayPal’s Prepaid Mastercard as credit cards. Both of these options are debit cards.

What can I get with my PayPal Mastercard Points?

Earn 800 Points:

Redeem for gift cards for restaurants, gas, retail and more

Earn 3,000 Points:

Cash points in for merchandise ranging from housewares to electronics and sports equipment

Earn 6,000 Points:

Get $50 Cash Rewards, credited into your PayPal balance**

Earn 15,000 Points:

Receive a travel voucher for future airfare, hotel or car rental

**Important information on redeeming Cash Rewards to your PayPal balance: You need to have a PayPal Cash or PayPal Cash Plus account to have a balance. If you do not have one of those accounts, you can only transfer your Cash Rewards to your bank account or debit card linked to PayPal.


  • If you mainly use your credit card for gas and restaurants, you will get more value using the PayPal Extras Mastercard.


  • Rewards can be confusing and difficult to redeem. For example, travel rewards must be booked 21 days in advance.
  • Minimum spend threshold to be eligible for a reward (2,200 points for gift cards, 3,000 points for merchandise, 6,000 points for $50 cashback to your PayPal account, and 15,000 points for travel vouchers or airfare, hotels or car rental)


Frequently Asked Questions about PayPal

How Do I Get a PayPal Mastercard?

Subject to credit approval. You must be at least 18 years old and reside in the US or its territories to apply.
Click here to apply online for the PayPal Extras Mastercard.
Click here to apply online for the PayPal Cashback Mastercard.

Can I Use the PayPal Mastercard Anywhere?

You can use your PayPal Mastercard as a payment source in your PayPal account and anywhere Mastercard is accepted (both in-store and online). There are currently over 24 million locations and counting.

Can I Use the PayPal Mastercard to Build Credit?

Yes. The PayPal Mastercard works like any major credit card. Making purchases and paying off the monthly balance in full will help you build your credit. Once you have established on-time monthly payments, you may be eligible for a credit line increase. The increase will steadily build your credit and allow you more buying power.

Can I Get a Cash Advance on my PayPal Mastercard?

Yes. We may offer you the opportunity to get a cash advance with convenience checks that we send you. We may not honor a convenience check for any reason stated on the check. You can also get cash or make a withdrawal from any institution or ATM that accepts the card or the account. In addition, we will treat any purchase of certain cash like items as cash advances.

Cash like items includes, for example, money orders, cashier’s checks, traveler’s checks, electronic or wire transfers, foreign currency or other in bank transactions, tax payments, lottery tickets or other legalized gambling transactions, court costs, bail bonds, and fines.

How do I Make a Payment on my PayPal Mastercard?

You can make a payment on your PayPal Mastercard by going to
• Log-in to your PayPal account
• Choose the “Wallet” tab from the dashboard
• Your PayPal Mastercard will be listed under payment methods on the left-hand side of the screen (if it does not show, you have not linked the card to your account)
• Click on “PayPal Mastercard”
• You should be transferred to Synchrony Bank where all of your specific account details should be accessible.

Who is the PayPal Mastercard For?

Both Paypal Mastercards are for people who use PayPal regularly and like the flexibility of transferring money from their credit card to their PayPal account.

The main differences between the two credit cards are their features and rewards.

Who is the PayPal Mastercard Not For?

If you do not have a PayPal account and do not plan on signing up for one, the PayPal Mastercard is not for you. You will need a PayPal account to take advantage of all of the benefits that this card has to offer. Specifically, reward funds and points can be sent directly to your PayPal account.

PayPal Alternatives

There are several alternatives if the PayPal Mastercard is not for you. Here are a few of our recommendations.

Citi Double Cash Back Card

  • Credit level: Excellent or Good
  • APR: 16.24% – 26.24% Variable
  • Annual Fee: $0
  • Sign-up bonus: 0% APR for 18 months on balance transfers
  • Foreign transaction fee: 3%

Discover it® Miles Credit Card

  • Credit level: Excellent or Good
  • APR: 14.24% – 25.24% Variable
  • Annual Fee: $0
  • Sign-up bonus: Discover will match ALL the Miles you earn in your 1st year. If you earn 20,000 miles, you will automatically receive 40,000 miles. The more you use your card, the more miles you can receive. Unlimited bonus.
  • Foreign transaction fee: None

Discover it® Cash Back Credit Card

  • Credit level: Excellent or Good
  • APR: 14.24% – 25.24% Variable
  • Annual Fee: $0
  • Sign-up bonus: Unlimited bonus. Discover will match dollar for dollar all the cash back you’ve earned in your first year. No limit.
  • Foreign transaction fee: None

Capital One® Platinum Credit Card

  • Credit level: Average, Fair, or Limited
  • APR: 26.96% Variable
  • Annual Fee: $0
  • Sign-up bonus: Use this card to rebuild your credit. After making your first five payments to the card on time, you can access a higher credit line.
  • Foreign transaction fee: None

Final Thoughts

If you are a frequent user of PayPal and need a card that will help build your credit, the PayPal Mastercard is a valid choice.

One thing to consider is that neither the PayPal Cashback or the PayPal Extras Mastercard offers a sign-up bonus. With several alternatives available, if you have decent credit and need to transfer a balance or would benefit from extra money or points, it would be wise to look elsewhere.

The PayPal Extras Mastercard ironically has a 3% foreign transaction fee. The “Extras” part means more money out of my pocket for no apparent reason. Especially when the PayPal Cashback Mastercard no longer has a foreign transaction fee. Three percent may not sound like much, but with the rise of online shopping and travel, 3% can add up when you shop internationally.

If you do decide to add one of these credit cards to your wallet, I would highly recommend choosing the PayPal Cashback Mastercard. The rewards are easy to digest; there is no redemption threshold and no transaction fees.

As with any credit card, remember only to charge what you can pay off each month. The APR on both of these cards are higher than average, so use whichever credit card to choose wisely.

Further Research

Julie Thompson

Julie is a personal finance blogger with 15 years of experience in investing and maintaining profitable side hustles. She is passionate about helping others learn and utilize financial tools so they can live their best lives. Why are you giving advice on Bilt Wealth? I give advice on Bilt Wealth because I've been making money online since high school. I also manage multiple investment portfolios and run my own freelance writing business. What was your earliest experience with money? I started selling digital artwork online in high school (1999) and I was involved in the management of my first mutual fund when I started college shortly after. Are you more conservative or aggressive with your wealth-building? I just entered my 40s so I am still aggressive with my investments. However, I try to steward my money in a way that I can save, spend, and help others. If you could give people one piece of advice about money, what would it be? Consistently work on your credit score. There have been multiple times in my adult life when I was low on funds and because of my excellent credit score I was able to dig myself out of the financial rut and get back to living the lifestyle that I desired.