PayPal Launches Debit Card That Earns 5% Back On One Category (Up To $1,000)

Update 11/2/24: Tech is now showing up for November. Hat tip to Eternal Blue

PayPal has launched a new debit card where cardholders can choose one category to earn 5% cash back on, up to a limit of $1,000 per month in spend. Currently it seems that the card is invite only mode and you can check your PayPal account to see if you’re eligible Available to everybody now. Some things to note:

  • There is no annual fee
  • You have to select your category each month, otherwise you won’t earn 5%
  • Categories you can choose are here:
    • Grocery
    • Dining
    • Gas
    • Clothing
    • Health/beauty
  • Full terms here

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382 Comments
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Bockrr
Bockrr (@guest_2111358)
August 3, 2025 00:42

I thought I was going crazy after I couldn’t find a way to set category by website or app even when clicking through the email reminding me to set it. Turns out the button to set category disappears if you lock the card when not using it 😭

Nun
Nun (@guest_2093527)
July 7, 2025 09:05

Are there any MCGC or vgc that can be loaded to PayPal? Then I can use that balance for pp debit card purchases. I assume nothing works? Thanks

James
James (@guest_2083793)
June 23, 2025 22:02

After much pestering for weeks, my brother finally opened his PayPal debit card today.

However, now after opening, he has no mention whatsoever anywhere on/in his account regarding the 5% cashback. He can’t choose a 5% category or anything. It’s almost like he opened the card but seemingly will not be getting 5%.

Has anybody encountered this? I can’t find any mention anywhere online of a similar issue.

Better Planet Bob
Better Planet Bob (@guest_2083796)
June 23, 2025 22:04

I think you have to activate the 5% category on the PayPal app, not the PayPal website.

James
James (@guest_2083804)
June 23, 2025 22:24

Yep he’s in the iPhone app.

There is just literally no mention anywhere in his app anywhere regarding the 5% debit rewards. It’s maddening.

Of course now he’s irritated because this is the second thing I’ve pestered him into that doesn’t work properly for him lol.

Eric 🔗
Eric 🔗 (@guest_2085447)
June 24, 2025 17:07

What was the 1st?

James
James (@guest_2085475)
June 24, 2025 17:19

Chime. Everything that worked to trigger the bonus just a week prior didn’t work for him.

And voila now he seems to be the only person in the world who opened a PayPal debit card with 5% bonus option.

Eric 🔗
Eric 🔗 (@guest_2085538)
June 24, 2025 17:50

I think that you forgot to include the word “no” there. 😉

James
James (@guest_2085567)
June 24, 2025 18:12

Ahh yep.

Eric
Eric (@guest_2088092)
June 27, 2025 18:15

It should be under “Your card” field and then and then within that page, you can select the 5% cash back category.

Shawn
Shawn (@guest_2093437)
July 6, 2025 23:54

Only pester him for not-new things in the future. Ideally things that you’ve already done

James
James (@guest_2093446)
July 7, 2025 00:23

I have only gotten him into things I’ve already personally done. That’s what’s so aggravating about the failures.

Regarding his PayPal app – there really truly literally is NO area on his iPhone app or browser to set the 5% category. I even looked myself.

If he logs in to his account on MY PayPal app on my Android, suddenly the 5% stuff is there for him.

So he has to activate the 5% category on my phone and then it does actually credit him going forward that month, but there is truly without a doubt no area on his phone for it. His iPhone is up to date, app on newest version, etc. It’s very peculiar.

Gadget 🕵️‍♂️ Bank Bonus Geek 🔗
July 7, 2025 13:42

If he’s able to set the category on your phone using your app and his credentials, then it has to be a phone specific or app install issue.

He should reinstall the app on his phone. I’d uninstall, reboot the phone completely, and install it again. James

James
James (@guest_2093723)
July 7, 2025 13:55

Yeah, we tried that. 🙂 Still no 5% mention anywhere whatsoever on his app with fresh install/reboot/anything.

Jack
Jack (@guest_2068171)
May 27, 2025 15:38

Does BJ’s count as groceries?

Eric
Eric (@guest_2070698)
June 1, 2025 15:51

try it and find out. do a small purchase.

Bill
Bill (@guest_2077245)
June 13, 2025 09:30

Saw on Reddit that it does.

mangorunner 🔗
mangorunner 🔗 (@guest_2056114)
May 6, 2025 19:28

How is this thing funded? With your PayPal cash balance?

snailrock
snailrock (@guest_2056124)
May 6, 2025 19:43

Yes

crowderdd52
crowderdd52 (@guest_2055185)
May 5, 2025 14:05

DP:
(1) Chose “grocery” for May category.
(2) Purchased postage stamps (100/$72.75) at Costco
(3) Bonus posted 364 points.
I knew Costco purchases with “grocery” as the category earned bonus points. Just wasn’t sure postage stamps would earn them. HTH!

snailrock
snailrock (@guest_2055196)
May 5, 2025 14:20

nice 🙂 yup — it would go by the MCC for the store, not the item bought, which I don’t believe is information they get. Thus people getting creative with products to purchase, in particular at grocery stores

snailrock
snailrock (@guest_2052878)
May 1, 2025 18:08

Similar to hwufeh (or one of the three), my debit card also appears to be – I’m assuming? – blocked at grocery stores, or at least the one with MO available in my area. As of yesterday it showed a “Not Authorized” error twice at customer service, and the same error soon after for a $3.99 PIN-based purchase at the same store. The $3.99 went through when it was run as credit though.

I haven’t used the card very much: once in January for a $995 grocery MO, once in December at Best Buy, once for crypto, no activity otherwise. I guess a ~$1000 PIN-based transaction at a grocery store is distinctive enough.

snailrock
snailrock (@guest_2055951)
May 6, 2025 14:49

Nevermind—just did a small PIN purchase today then $300.xx MO, which went through. Maybe it was just the amount that triggered a temporary block?

Larrabeedrill
Larrabeedrill (@guest_2041866)
April 10, 2025 12:06

It looks like Health & Beauty is no longer an available category, at least for me. It was the category I had selected last month, so I wonder if they swap the available options each month.

Categories for April 2025 are Apparel, Fuel, Groceries, Restaurants, Rideshare and Public Transit.

Philip
Philip (@guest_2046270)
April 18, 2025 18:39

How useful is that category? Does it work to pay Copay at doctor’s office etc.?

JP
JP (@guest_2041800)
April 10, 2025 11:25

Haven’t been able to redeem 5000 points I earned back from buying MO at a grocery store. Am I blocked/locked/caught or its truly tech glitch?

bigbonusbeast 🔗
bigbonusbeast 🔗 (@guest_2042159)
April 10, 2025 16:33
  JP

I am also not able to redeem 1000 points that I earned with “Pay in 4” offer. I get “ something went wrong” error. I have reported this to their support team. Lets see.

JP
JP (@guest_2042230)
April 10, 2025 17:56

I was just able to redeem them now. Try again.

bigbonusbeast 🔗
bigbonusbeast 🔗 (@guest_2042335)
April 10, 2025 20:51
  JP

You are right, it worked for me too. Thanks.

mangorunner 🔗
mangorunner 🔗 (@guest_2029452)
March 23, 2025 13:13

 William Charles, it appears that you don’t have to be invited. Go to this page, “What is the PayPal Debit Card and how do I get one?” and then click on Get a PayPal Debit Card now.

Eric 🔗
Eric 🔗 (@guest_2029476)
March 23, 2025 14:11

mangorunner 🔗,

I didn’t even remember that it used to not be available to everyone. I’m pretty sure that it’s been available to everyone for months but  William Charles never updated the article.

BTW, did you find out about this post from my comment here: #2029424 ? If so, I would recommend that you sign up just like I did to Mark!

mangorunner 🔗
mangorunner 🔗 (@guest_2029572)
March 23, 2025 19:41

Don’t you want to put a link in the post?