How to redeem PayPal cash rewards? For credit card rewards enthusiasts, redemption flexibility is often a top priority. PayPal’s Pay With Rewards program offers cardholders the ability to use their cashback, points, or miles towards online purchases, giving them an alternative to travel, merchandise, and other common rewards redemption options.
While this program makes it even easier to use your rewards, it may not be the best way to redeem them.
What is PayPal’s Pay With Rewards program?
The PayPal Pay With Rewards program allows eligible credit cardholders to link one or more of their credit cards to their PayPal accounts and use their cashback points or miles to pay for online purchases there instead of paying out of pocket.
Depending on which credit card you have, the value of your rewards when using the program may vary.
If you can get a good redemption rate and are short on cash or don’t want to use the rewards for something else like travel, this can be a great way to save some money.
How does paying with rewards work?
If you have an eligible credit card, first link your card to your PayPal account. Then you can use your money back, points or miles when you shop at online stores that accept PayPal.
PayPal gives you the option to pay the full amount or just a portion with rewards. You can also take advantage of PayPal’s benefits, including shipping costs on eligible returns and buyer protection on select purchases.
The PayPal program includes the following rewards programs:
| American Express | |
| Blue from American Express | The Platinum Card from American Express |
| Amex EveryDay Credit Card | Business Green Rewards Card from American Express |
| The Amex EveryDay Preferred Credit Card from American Express | American Express Business Gold Card |
| American Express Green Card | The Business Platinum Card from American Express |
| American Express Gold Card | Blue Business Plus Credit Card from American Express |
| Capital One | |
| Capital One Venture Rewards Credit Card | Capital One Spark Cash for Business |
| Capital One VentureOne Rewards Credit Card | Capital One Spark Cash Select Excellent Credit |
| Capital One Savor Cash Rewards Credit Card | Capital One Spark Classic for Business |
| Capital One SavorOne Cash Rewards Credit Card | Capital One Spark Miles for Business |
| Capital One Quicksilver Cash Rewards Credit Card | Capital One Spark Miles Select for Business |
| Capital One QuicksilverOne® Cash Rewards Credit Card | Journey Student Rewards from Capital One |
| Chase | |
| Chase Freedom | Chase Sapphire Reserve |
| Chase Freedom Flex | Ink Business Preferred Credit Card |
| Chase Freedom Unlimited | Ink Business Cash Credit Card |
| Chase Sapphire Preferred Card | Ink Business Unlimited Credit Card |
| Citi | |
| Citi Rewards+ Card | Citi Prestige Card |
| Citi Premier Card |
| Discover | |
| Discover it Cash Back | Discover it Chrome |
| Discover it Miles | Discover More |
| ScoreCard Rewards | |
| ScoreRewards Credit Card |
| U.S. Bank | |
| U.S. Bank Altitude Go Visa Signature Card | U.S. Bank FlexPerks Gold American Express Card |
| U.S. Bank Altitude Reserve Visa Infinite Card |
Which cards work best with Pay with Rewards?
While the PayPal Pay With Rewards program gives you a lot of flexibility when shopping online, some rewards programs offer more value than others.
More specifically, if you have a Capital One cashback credit card, you will receive the same price as an instant cashback redemption. Additionally, Discover and Citi credit cards typically get you 1 cent per point or mile in value. We consider 1 cent per point to be the lowest value for a good redemption value. Anything else is a poor return.
Which cards are not allowed to be used?
Other rewards programs available in the PayPal program give you discounted value when you use your points or miles with PayPal. Here’s what you can expect in each case:
| Program | Redemption Rate |
| American Express Membership Rewards | 0.7 cent |
| Capital One Miles | 0.8 cent |
| Chase Ultimate Rewards | 0.8 cent |
With each of the credit cards shown above in these programs, you can get more value by using your rewards for other purposes. So it’s better to save your points or miles than use them to pay for online purchases through PayPal.
How to redeem PayPal cash rewards?
How to redeem PayPal cash rewards? You can redeem your PayPal credit card points online by logging into your account. Click on PayPal Mastercard and you will be redirected to the Synchrony Bank website. From there, click on “Awards and Offers” and select your preferred redemption category.
Your PayPal Rewards points can be exchanged for:
- Gift cards
- Fan shop
- Money back
- Future travel vouchers
Pros and cons of paying with rewards
Depending on what credit card you have, there are both pros and cons to using PayPal’s Pay With Rewards program.
Advantages
- Access to benefits PayPal offers to consumers who use it as a payment method
- This prevents you from giving your credit card information to the merchant
- Protection by PayPal’s payment security system
- A solid redemption rate with some credit cards
Disadvantages
- Some cards offer more value than other redemption options
- You will not receive rewards for purchase because you do not pay with your credit card
Before you commit to Pay with Rewards, review your other redemption options to see if you’re maximizing your rewards by using them or by leaving value on the table. Also, consider some of the other pros and cons to determine if the program is worth it for you.
