How to redeem PayPal Cash Rewards?

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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.

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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 ExpressThe Platinum Card from American Express
Amex EveryDay Credit Card Business Green Rewards Card from American Express
The Amex EveryDay Preferred Credit Card from American ExpressAmerican Express Business Gold Card
American Express Green CardThe Business Platinum Card from American Express
American Express Gold CardBlue Business Plus Credit Card from American Express
Capital One
Capital One Venture Rewards Credit CardCapital One Spark Cash for Business
Capital One VentureOne Rewards Credit CardCapital One Spark Cash Select Excellent Credit
Capital One Savor Cash Rewards Credit CardCapital One Spark Classic for Business
Capital One SavorOne Cash Rewards Credit CardCapital One Spark Miles for Business
Capital One Quicksilver Cash Rewards Credit CardCapital One Spark Miles Select for Business
Capital One QuicksilverOne® Cash Rewards Credit CardJourney Student Rewards from Capital One
Chase FreedomChase Sapphire Reserve
Chase Freedom FlexInk Business Preferred Credit Card
Chase Freedom UnlimitedInk Business Cash Credit Card
Chase Sapphire Preferred CardInk Business Unlimited Credit Card
Citi Rewards+ CardCiti Prestige Card
Citi Premier Card 
Discover it Cash BackDiscover it Chrome
Discover it MilesDiscover More
ScoreCard Rewards 
ScoreRewards Credit Card 
U.S. Bank 
U.S. Bank Altitude Go Visa Signature CardU.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.

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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:

ProgramRedemption Rate
American Express Membership Rewards0.7 cent
Capital One Miles0.8 cent
Chase Ultimate Rewards0.8 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.

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  • 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


  • 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.