PayPal has announced a policy update and the big change is that it will no longer be possible to redeem PayPal rewards for cash back. This policy will go into effect on August 1, 2026. Relevant terms are as follows:
Amendments to the PayPal Rewards Program Agreement
Effective: August 1, 2026
Please note that certain features of the PayPal Rewards Program are being updated as follows:
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- The option to redeem PayPal Rewards Points for cash back into your PayPal balance account or directly into a linked bank account or linked debit card will be discontinued.
- The option to redeem PayPal Rewards Points for cash back deposited into a PayPal Savings account will also be discontinued.
If you would like to redeem your PayPal Rewards Points using either option listed above, you must do so before 11:59 PM Pacific Standard Time on August 1, 2026. Alternatively, you may explore other available options to redeem your Rewards Points, for example, by redeeming at checkout.
Please also note that on or after June 29, 2026, participation in and receipt of future program benefits may require your enrollment or opt-in through the PayPal app, website, or during checkout (for example, by taking a specific action or checking a box).
The hits keep coming in 2026. Redemption options will become:
- Charity donation
- Giftcards via Honey extension
- Paypal checkout (only valid on some purchases)
Hat tip to yaboiur4
