Posted by Chuck on June 8, 2017
Credit Card Review

Published on June 8th, 2017 | by Chuck

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Review of Paypal Cashback Mastercard 2% Everywhere Card

[Update 8/30/17: Card has now launched publicly.]

Card Basics

Direct Application Link (Terms)

  • Paypal Cashback Mastercard earns 2% rewards on all purchases
  • No annual fee

Card comes with standard basic Mastercard benefits.

 

Card  Rewards

Earn 2% cash back on all purchases with no categories and no limits. As soon as your statement closes, the cash back is available to be transferred to your Paypal account. Once transferred, it’s like any Paypal balance which can be transferred over to your bank or transferred back to pay the Paypal credit card bill (a roundabout statement credit).

There is no minimum redemption threshold. Even $.01 will become available for transfer upon statement close.

Signup Bonus

No signup bonus is currently being offered for this card. [The other 3/2/1 version of the Paypal Extras card does not have a signup bonus when applying through Paypal, but does have a $30 bonus when applying through eBay.]

Pricing Details

Fees

  • No annual fee
  • No foreign transaction fees! (starting October 31, 2017)
  • 3% cash advance fee, minimum of $5
  • Up to $38 late payment fee

APR

When you open your account, based on your creditworthiness and other factors, an APR rate of either 16.99%, 24.99%, or 27.99% will be established. After that, your APR will vary with the market based on the Prime Rate.

The cash advance APR is 27.99% which will also vary with the market based on the Prime Rate.

Application Information

You apply for and manage your Paypal Mastercard entirely through your Paypal login and thus you need a Paypal account to apply. The card itself is issued by Synchrony and customer service is run by them as well.

Synchrony almost always pulls the Transunion credit report. From data points on Creditboards it seems that most people who have credit scores above 630 are approved. There are some who were approved with less and a couple who were denied with more. Generally, Synchrony cards are from the easier ones to get approved for.

The credit line offered on Paypal Mastercards varies greatly from as little as a few hundred dollars to as much as $10,000 or more. From memory, they do give you automatic credit limit increases early on after you’re in good standing for a few months.

The card comes with an instantly issued card number with a temporary $250 credit line for online use until the actual card comes.

A reader notes that they are not allowing product-changes from the old 3/2/1 Paypal Extras Mastercard to the new Paypal Cashback Mastercard.

Our Verdict

Definitely interesting to see another 2% card in the game. The other two options for straight 2% cash back are the Citi Double CashElan Fidelity card, Capital One Spark business card, and Blispay. You also now have the Alliant card offering 3% first year then 2.5% onwards and let’s not forget the blue business plus (more options can be found here).

This card is slightly better than other 2% cash back cards since there’s no minimum redemption as the other cards have ($50 for Fidelity and $25 for Double Cash). Another big advantage is that they’ve removed the foreign transaction fee which makes this an excellent no-fee card for international travel.

There’s a slight disadvantage that if your Paypal account ever gets frozen it might be  tough to redeem rewards, though I think (but I’m not positive) that this isn’t an issue any longer, and the system allows you to cash out your balances on frozen accounts. Some people are scared away from anything to do with Paypal, but truthfully the card runs entirely by Synchrony, and it would function like any other Synchrony card.

Let us know your thoughts on the new card in the comments.



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Peter
Peter

Blispay is straight 2% back as well, plus 0% financing on purchases $199 or more.

Vince
Vince

I think Double Cash is still better because of how easy it is to get a price protection claim done through their citipricerewind.com site. The no minimum on rewards redemption is nice though.

David Salyer
David Salyer

Yea but with Blispay visa credit you get cash credited to your statement monthly plus you can use it at Costco warehouse

CtownBin
CtownBin

If the backup funding thing will work… oh my…

Kevin
Kevin

Meh. 2 percent cards are great in theory but I find that between obtaining new cards, keeping cards active, using my category cards, etc a baseline 2 percent card gets little use. No minimum redemption is nice but it just doesn’t represent much gain for me

Jack
Jack

Capital One Spark gives 2% with no minimum redemption, no AF first year, $500 signup bonus, and can be churned.

Jeremy
Jeremy

Capital One isn’t a favorite because they pull all 3 credit bureaus. I haven’t heard of this changing lately.

Jack
Jack

Sure, but you can freeze the bureau that’s most pulled in your area, then it’s only two. Considering in some areas Chase and Citi pull two bureaus as well, it can be a good option.

Liaostep
Liaostep

Freezing a bureau removes all pre approval offers though

lingua
lingua

But how long would that matter really? Interested in doing this to get the Spark soon…

Mser
Mser

Red herring argument. Vast majority of people have inquiries bunched on one credit report (usually Experian). Having another on TU and Equifax is meaningless for most people.

Cap1 Spark is a great card. They waive AF if you put decent spend on the card. Sadly, they recently cracked down on MSing and most everyone is being closed.

MSer
MSer

Most people typically get most pulls from one bureau and rarely have problems with pulls from the other two. So having 3 pulls is effectively meaningless. Spark cards are good and are vastly underpromoted in the blogosphere.

David Salyer
David Salyer

Sorry but the Alliant Credit Union cash signature credit card it gives you unlimited 3% cash back on everything for the first year 2.5% cash back on everything thereafter, $59 annual fee is waived for first year, no foreign transaction fees anyone can join

Jeremy
Jeremy

No one is taking about Chase Freedom Unlimited which is worth more if you have a CSR.

JASON
JASON

1.5%

Jeremy
Jeremy

1.5x UR. Paired with a CSR that’s a minimum of 2.25%

Anonymous
Anonymous

That requires you to get two cards instead of just one, and it’s limited to travel purchaes.

Benq
Benq

“Just hope for the best” Lol. No thanks. Can’t stand that this is a thing at BoA for some cards also. Just don’t give me the card that I applied for if I don’t meet whatever criteria you have.

John
John

Synchrony recently denied me for a banana republic credit card because of too many inquiries. Had two recent transunion inquiries. Fico score is over 800.

Mser
Mser

Beware. Paypal as a business is beyond shitty. And this offer where they can tempt you with 2% and then can arbitrarily give a no cb, no rewards card just proves how shitty their business practices are. I wouldnt touch this offer with a 10′ pole

D Wells
D Wells

agreed, can’t stand paypal…it’s an ultra paranoid company… it comes at your expense often times…watch out when working with PP.
DDW

Abey
Abey

Citi Double Cash has an advantage that there is a Bank you walk into and pay your credit card.
I know a lot of people that dont use Cards like Amex and Barclaycard because there is no bank to walk into with cash.
Just the other day in my weekly clip
(on a whats app group in a different language)
I explained why Citi Double Cash is the best credit card to certain people.
Basically its the only card from a big bank that gives 2% cash back and has no annual fee and you will be surprised how many people dont wanna bother with points and miles and annual fees, All they want is one or two credit cards with cash back and no extra worries.

Abey
Abey

A few weeks ago i met a friend and he thanked me so much for recomending him months ago the Citi Double Cash. He says he can’t believe he reached $100 cash back just by using his card to pay his regualr bills. He was super excited. And he even asked me quiteley if im sure its 100% legal, 😉
(Before he used an old Amex with no rewards and an annual fee).

Mser
Mser

Amex card was surely more lucrative thanks to the sync offers. Clueless is as clueless does…

Dave P
Dave P

Citi only has branches in 14 states, so this aspect doesn’t apply to the majority of us.

JASON
JASON

Double cash is my favorite CC

ProudPgher
ProudPgher

I just received a Macy’s American Express card & I walk in with cash at any Macy’s store I want & pay on it!

Trevor
Trevor

Old post but for anyone reading this now: Citi doesn’t allow credit card payments in branch as of June 2018.

Mimi
Mimi

I have the 3/2/1 PPEMC right now and I’m not too thrilled if it will be PCd to this 2% card because it’s tied to Paypal. Paypal compliance is notorious for being unreasonable and it’s like walking on eggshells just to use this card tied to PPBDC. Synchrony customer service sucks, all those times I’ve inquired about the bonus offers they’re sending, NONE of the reps knew what I was talking about {rolleyes}. For these reasons, I’d keep the 3/2/1 card I have now, once I’ve collected $400 CB in two months, it goes to the sock drawer.

Vic
Vic

I think the most important question I think is whether there’s a maximum cash back per card year.

For the current 3/2/1, the maximum points one can earn per card year is only 50,000, which is maxed out so easily..

Eric
Eric

I called synchrony and they said they have never heard of a 2% for all purchases card. Warned me that it was a scam.
Hmmmm, has anyone actually gotten this card? I checked around and could not find it.
Synchrony also asked if the ad addressed the individual, as somehow not using the persons name indicated a scam as well.

Mimi
Mimi

I’m not surprised at all because back in December they sent out the emails for 5x points if you activate for travel, shopping and another category I can’t remember now. But there was no mention of qualified merchants so I called Synchrony to ask if a specific merchant I’m going to shop at will qualify. The rep put me on hold for fifteen minutes(!) and thereafter, said I can shop whereever I want and will get UP TO 2200 pts. I calculated how much I will put spend on my PPEMC and will see in March if 2200 pts posts. Rep said it’ll take 2 billing cycles with the first one in Jan when purchase was made.

Last week I got another offer of up to 6X bonus, max of 2200 pts which has to be activated by Feb 11, I just activated it and will know later how they compute this. I am not inclined to call them and waste my time since most, if not all reps, do NOT know their current offers.

This is the first year I’m doing their bonus offers, I’ll know later if bonus pts are part of the 50000 pts cap since I just rake in $400 every year earned in 2 to 3 months then kept goes to sock drawer until January the following year. I consider it as “recurring sign up bonus” without any HP. lol

Zack
Zack

Hey does your 3/2/1 work with the ppbdc used in credit mode?

Jake
Jake

I got the card. I don’t use it except for paying Netflix every month, preferring my Quicksilver, despite 1.5% cashback. The reasons for this are multiple, none of which would have been deal breakers on their own.

When I got the paypal card, they gave me a paltry limit of $700 (for comparison, my Quicksilver has a limit of $5300). Not a big deal, as I pay off all my credit regularly, anyways. I figured I could just use the card as normal, and pay it off more frequently (I only use the cards to get cash back, not to spend more than I have in my bank account).

Well, that won’t work, either. When paying via bank draft, small payments are processed within a day or two, but large payments pull the money in about a day, but then won’t credit your account for about 10 business days. Capital One, on the other hand, pulls the money and credits your account within 24 hours. Combining the low limit with the long wait times for them to credit your account means that I literally can’t use the card. So it just sits in my bank, giving me 14 cents per month as I pay for a streaming service, and nothing else.

Mimi
Mimi

My statement is about to close and was hovering around the Giftcards. I found out that $25 WalMart gc is “on sale” for 2500 pts which makes it a better value than redeeming $50 cash for $6000 pts. The sale expires 3/31/17 so I will redeem my 20K pts for $200 worth of WMgcs rather than get $150 with 2K pts remaining. Amazon GC is also on sale $25 GC for 2500 pts and other store GCs for Albertson, Jewel-Osco, Acme are also on sale.

Zack
Zack

Dang is this card ever coming out??

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