How to apply for the card PayPal Cashback Mastercard®

Discover the PayPal Cashback Mastercard® and a step-by-step guide to applying.

3% cash back when you check out with PayPal, 1.5% on other purchases, key fees like the foreign transaction fee and typical approval factors.

Overview of the PayPal Cashback Mastercard®

The PayPal Cashback Mastercard® is a cash back credit card designed to reward people who already check out with PayPal regularly.

Its core idea is simple.

You earn a higher cash back rate when you pay through PayPal, and a lower flat rate everywhere else Mastercard is accepted.

There are no rotating categories to track.

There is no annual fee to justify.

And the card is issued by Synchrony Bank on the Mastercard network.

The biggest “unlock” is behavior.

If PayPal is already your default checkout button, the card can feel like an easy upgrade.

If you rarely use PayPal, the card becomes a basic flat-rate cash back card with a lower everyday rate than many popular 2% options.

Who this card is designed for

This card is usually best for people who buy online frequently and see PayPal as a normal part of checkout.

It is also a natural fit for people who want a straightforward cash back system rather than points and transfer partners.

It can work well as a “digital wallet companion,” because it is built around PayPal usage instead of store-specific categories.

And it can be a practical secondary card if you already have a higher flat-rate card for everything else.

Credit card basics

The PayPal Cashback Mastercard® is a standard credit card.

That means you will have a credit limit, a statement balance, a minimum payment, and a due date.

If you pay your statement balance in full by the due date, you can typically avoid interest on purchases.

If you carry a balance, interest can apply based on the variable APR you are offered at approval.

The “value equation” in one paragraph

The value equation is mostly about how you pay, not what you buy.

If you often pay through PayPal checkout, the 3% tier can make your online spending meaningfully more rewarding.

If most of your purchases are in-person and not paid through PayPal, you are mostly earning the 1.5% tier, and that is where the card can fall behind stronger flat-rate cards.

So the “best use” is usually simple.

Use it for PayPal checkout purchases, and use another card for everything else if you want a higher base rate.

Quick facts (scannable summary)

Key fees (annual fee, foreign transaction fee, other common charges)

Annual fee: $0.

Foreign transaction fee: 3% of each transaction.

Cash advance fee: typically the greater of $10 or 5% of the amount of each cash advance.

Late payment fee: up to $40.

Returned payment fee: commonly around $29, depending on the card terms.

Fees can change over time, so always confirm the current pricing and terms during the application flow.

Reward structure (earning, caps, redemption basics)

You earn 3% cash back when you check out with PayPal and choose the PayPal Cashback Mastercard® as the payment method.

You earn 1.5% cash back on other eligible purchases everywhere Mastercard is accepted.

Rewards are described as unlimited, meaning there is no stated earning cap in the core structure.

Cash back is typically tracked in your PayPal rewards balance and can be redeemed in ways available inside your PayPal account experience.

Eligibility and exclusions apply, and common exclusions across most cards include things like cash advances, fees, interest, and certain cash-equivalent transactions.

Core benefits (top 5 bullets)

• $0 annual fee.
• Elevated 3% cash back when you pay via PayPal checkout with the card.
• Simple 1.5% cash back rate everywhere else Mastercard is accepted.
• Digital-first management through your PayPal account, which can feel convenient if you already live there.
• Mastercard benefits can include identity theft protection style features, depending on current benefit guides and eligibility.

Eligibility and approval: what typically matters

Credit profile expectations (general, no promises)

Approval depends on the issuer’s underwriting and your overall credit profile at the time you apply.

Most issuers evaluate payment history, utilization, the age of your credit accounts, and recent credit activity.

Income and ongoing obligations matter because the bank wants to see the line of credit fits your budget.

There is no public guarantee for approval, and two people with similar credit scores can still get different results.

Income and spending patterns that may help (general guidance)

Applications typically ask for income and housing costs.

Stable income and consistent on-time payments tend to help your profile over time.

Lower utilization can help, especially if you reduce balances before applying.

If your plan is to use the card primarily for rewards, paying in full is usually the cleanest way to keep rewards valuable.

Application flow

This is not an invite-only product.

Most people apply through PayPal’s application flow and receive a decision or next steps.

Some applicants may be asked for verification information depending on identity checks and underwriting needs.

Fees and costs you must understand first

Annual fee breakdown and what’s included

The annual fee is $0, which makes it easy to keep long term if it continues to match your habits.

It also means you are not relying on credits or premium perks to break even.

Your value comes from the rewards structure and your ability to use the 3% PayPal tier consistently.

APR and the “rewards reality check”

The PayPal Cashback Mastercard® is often described as having a variable APR, and the exact rate depends on creditworthiness.

If you carry balances month to month, interest charges can exceed the value of cash back quickly.

If your priority is rewards, the best-case scenario is paying in full and using the card strategically for PayPal checkout purchases.

If your priority is financing, focus more on APR and your payoff plan than on the rewards headline.

Foreign transaction fee reality check

This card charges a foreign transaction fee, typically disclosed as 3%.

That matters for international travel and for overseas online merchants that process transactions in a foreign currency.

If you travel frequently, you may want a separate no-foreign-transaction-fee card for international spending.

You can still use this card domestically for PayPal checkout where it earns best.

Cash advances and “cash-like” transactions

Cash advances usually have immediate interest, additional fees, and higher APRs than purchases.

Many rewards programs also exclude cash advances and similar transactions from earning cash back.

For most people, cash advances are best treated as an emergency tool, not a normal feature.

Rewards: earning and redemption (the real math)

How you earn with the PayPal Cashback Mastercard®

The earnings are based on checkout method.

When you check out with PayPal and select the PayPal Cashback Mastercard® as your funding source, you earn 3% cash back on eligible purchases.

When you pay everywhere else Mastercard is accepted, you earn 1.5% cash back on eligible purchases.

That structure naturally pushes the card toward online usage.

In-store usage can still be fine, but the value is less distinctive at 1.5%.

Why “PayPal checkout” is the key detail

Some people assume that buying from an online store that offers PayPal automatically means 3%.

The practical detail is that you must actually check out using PayPal and choose the PayPal Cashback Mastercard® as the payment option.

If you type the card number directly into a merchant checkout page, that is typically treated as a normal card purchase, and it generally earns the 1.5% tier.

A simple habit helps.

If you want 3%, look for the PayPal button and complete checkout through PayPal.

“Unlimited rewards” and what it usually means

The card is marketed as having unlimited cash back.

In plain English, this typically means there is no published cap like “up to $1,500 per quarter.”

That does not mean every transaction earns rewards.

Like most cards, there are usually exclusions for certain transaction types and certain fees.

How to think about redemption

Because this is a PayPal-linked card, redemption tends to feel like an extension of your PayPal balance and PayPal account tools.

For many people, the easiest redemption is using rewards to reduce spending friction.

You can treat cash back as money that offsets future purchases, reduces your card balance, or supports your PayPal account usage, depending on the options provided in your account.

The best redemption method is the one you will actually use consistently.

If you redeem rarely, rewards become “mental clutter.”

If you redeem on a schedule, rewards feel like a real benefit.

Example: a realistic year for a PayPal-heavy shopper

Assume you spend $20,000 per year on a mix of online and in-person purchases.

Assume $8,000 of that is paid via PayPal checkout using this card at 3%.

That portion would earn about $240 in cash back.

Assume the remaining $12,000 is paid as normal card purchases at 1.5%.

That portion would earn about $180 in cash back.

In this simplified example, total cash back would be about $420 for the year.

These numbers are illustrative and assume purchases are eligible and not excluded by program rules.

Example: when the card is not a great everyday choice

Assume you spend $25,000 per year, but only $1,000 of that is paid through PayPal checkout.

At 3%, that $1,000 earns about $30.

The remaining $24,000 earns 1.5%, which is about $360.

Total would be about $390.

A flat 2% card on $25,000 would be about $500, in a simplified comparison.

This is why the card tends to shine when PayPal usage is meaningful, not occasional.

Benefits deep dive

Digital-first experience inside PayPal

If you already use PayPal, the management experience can feel familiar.

You can view activity, rewards, and payments through the same ecosystem you already use for checkout.

That can reduce the friction of remembering “one more app.”

It can also make rewards feel more connected to your real spending behavior.

Mastercard network acceptance

Because it is a Mastercard, acceptance is broadly strong in the U.S. and at many merchants worldwide.

That said, acceptance is not the only travel factor.

The foreign transaction fee still makes it less ideal for international usage.

Identity and security oriented benefits

Mastercard-branded cards often include certain security and identity-related tools.

The specifics can vary by product, version, and benefit guide updates.

A safe approach is to treat these benefits as a bonus rather than the primary reason to choose the card.

If you want to rely on a protection benefit, confirm the current benefit guide for your exact card.

What this card is not trying to be

This is not a luxury travel card.

It is not positioned around lounge access, airline status, or premium travel insurance.

It is designed to be a practical cash back tool for online spending through PayPal.

If you want premium perks, you will likely need a different product category.

Pros and cons

Pros

• $0 annual fee keeps long-term ownership simple.
• 3% cash back at PayPal checkout can be excellent for frequent PayPal users.
• 1.5% cash back everywhere else is easy to understand and requires no category tracking.
• Unlimited earning structure with no stated cap in the core rewards design.
• Familiar account management for people who already use PayPal often.

Cons

• The 1.5% base rate can lag behind flat 2% cash back cards for non-PayPal purchases.
• A 3% foreign transaction fee makes it less attractive for international travel and foreign currency purchases.
• No rotating categories means fewer “spike” opportunities like 5% quarters, if you enjoy that style of maximizing.
• If you rarely use PayPal checkout, you may not access the main value proposition.

Who this card is best for (and who should skip)

Best-fit profiles (3 profiles)

Profile 1 is the online shopper who uses PayPal checkout often and wants to earn more without learning a points system.

Profile 2 is the freelancer or side-hustle operator who buys tools and services online and regularly pays through PayPal.

Profile 3 is the two-card minimalist who will use this card for PayPal purchases and use a separate flat-rate 2% card for everything else.

Not a fit if… (3 profiles)

Not a fit 1 is someone who wants one card that earns a strong flat rate everywhere without thinking about checkout method.

Not a fit 2 is a frequent international traveler who wants no foreign transaction fees.

Not a fit 3 is someone who rarely uses PayPal checkout and mostly shops in person.

Head-to-head comparisons (SEO powerhouse)

PayPal Cashback Mastercard® vs a flat-rate 2% cash back card

Flat-rate 2% cards typically win on consistency.

They pay the same strong rate whether you pay online, in-store, with a wallet, or with the physical card.

PayPal Cashback Mastercard® can beat a 2% card when you pay through PayPal checkout at 3%.

But it can lose when most of your purchases earn only 1.5%.

In real life, the best approach is often a blend.

Use PayPal Cashback Mastercard® for PayPal checkout spending.

Use a flat-rate 2% card for everything else.

PayPal Cashback Mastercard® vs Citi® Double Cash style cards

Double Cash style cards can produce an effective 2% in a two-step structure tied to buying and then paying.

PayPal Cashback Mastercard® is based on checkout channel, not payment behavior.

If you want a higher everyday rate across all spending, a 2% card can feel easier.

If you have a PayPal-heavy lifestyle, the 3% tier can be hard to ignore.

PayPal Cashback Mastercard® vs rotating 5% category cards

Rotating-category cards can deliver very high rewards in specific quarters, but they require activation and category planning.

PayPal Cashback Mastercard® avoids that complexity.

It trades calendar-based maximization for a consistent PayPal-based advantage.

If you prefer low maintenance and you already use PayPal often, the PayPal model can feel more natural.

If you enjoy maximizing and your spending matches rotating calendars, a 5% category card can produce higher spikes.

How to apply (step-by-step)

Application steps

Step 1 is to confirm you have an active PayPal account and that your personal details are accurate.

Step 2 is to review the current offer terms, including the rewards structure, fees, and APR range.

Step 3 is to decide how you plan to use the card, especially whether PayPal checkout will be a major part of your spending.

Step 4 is to gather your basic information, including address history, income, and housing costs.

Step 5 is to submit the application through the PayPal application flow.

Step 6 is to complete any verification steps if requested by the issuer.

Step 7 is to set up online access and payment settings so you do not miss due dates.

Step 8 is to create a simple habit rule for yourself, like “PayPal checkout equals this card,” so you earn 3% intentionally.

What to prepare before you apply

Know your annual income and your monthly housing payment.

Make sure your PayPal account profile information matches your legal identity details.

If you want to avoid interest, plan how you will pay the statement balance in full each month.

If you shop internationally, plan to use a different card to avoid foreign transaction fees.

What happens after approval

You will receive the credit line, then you can start using the card according to the issuer’s setup process.

You can begin using it for PayPal checkout purchases to capture the 3% tier when eligible.

You can set autopay or reminders to avoid late payments.

You can review transactions early to confirm you are earning the rate you expect.

Alternatives if you want similar value with a different style

Best alternative if you want a higher base rate everywhere

If you want one primary card for nearly everything, a flat-rate 2% cash back card can be simpler and often stronger on total yearly return.

This is especially true if PayPal checkout is only a small portion of your spending.

Best alternative if you want category spikes

If you like the idea of earning 5% in specific categories sometimes, rotating-category cards can be useful.

They require more attention, but they can outperform on the right quarters.

Best alternative if you want travel friendliness

If you travel internationally often, a card with no foreign transaction fees is usually a better travel companion.

You can still keep a PayPal-focused card for domestic online spending where it earns best.

FAQs

Is the PayPal Cashback Mastercard® worth it?

It can be worth considering if you use PayPal checkout often enough to benefit from the 3% tier.

If most of your purchases would earn 1.5%, it may be less competitive than flat 2% cards.

Does it have an annual fee?

No, it is marketed with a $0 annual fee.

How do I earn 3% cash back?

You typically earn 3% when you check out with PayPal and select the PayPal Cashback Mastercard® as the payment method.

If you do not use PayPal checkout, purchases typically earn the base rate instead.

What is the base earning rate?

The base earning rate is 1.5% cash back on eligible purchases everywhere Mastercard is accepted.

Does the card charge foreign transaction fees?

Yes, a foreign transaction fee is typically disclosed for this card, commonly 3%.

Is there a welcome bonus?

A welcome bonus is not consistently advertised for this card.

Offers can change, so review the current offer terms shown in your application flow.

Do rewards expire?

Cash back expiration rules depend on the program terms.

If expiration matters to you, confirm the current rewards program rules inside your account materials.

Can I use it in-store?

Yes, it is a Mastercard and can be used where Mastercard is accepted.

Just remember that in-store purchases usually earn the base rate unless the transaction is processed through PayPal in an eligible way.

Are all purchases eligible for cash back?

No rewards program is truly “all purchases.”

Transactions like cash advances, fees, interest, and certain cash-equivalent transactions are commonly excluded.

The exact exclusions are defined in the rewards terms for your account.

What is the best way to use this card day to day?

A simple strategy is to use it for PayPal checkout purchases to earn 3% when eligible.

Then use a different card with a higher flat rate for everyday non-PayPal purchases if you want to maximize total cash back.

Disclosures and updates

Rates and fees disclaimer

Rates, fees, rewards tiers, and program terms can change at any time.

Your APR, credit limit, and approval outcome depend on creditworthiness and the issuer’s underwriting.

Always review the current terms, pricing, and rewards rules shown during your application.

Editorial and affiliation disclosure

This article is for informational purposes only.

We are not PayPal.

We do not represent Synchrony Bank or Mastercard.

We are not affiliated with any institution mentioned.

All trademarks belong to their respective owners.