Published on June 8th, 2017 | by Chuck101
Review of Paypal Cashback Mastercard 2% Everywhere Card
[Update 8/30/17: Card has now launched publicly.]
- Paypal Cashback Mastercard earns 2% rewards on all purchases
- No annual fee
Card comes with standard basic Mastercard benefits.
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.
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.]
- No annual fee
- No foreign transaction fees! (starting October 31, 2017)
- 3% cash advance fee, minimum of $5
- Up to $38 late payment fee
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.
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.
Definitely interesting to see another 2% card in the game. The other two options for straight 2% cash back are the Citi Double Cash, Elan 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.