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PayPal has long been used as a platform for money transfers — but it’s also a common payment method for purchases made online. With a PayPal account, you can pay for purchases with participating retailers using the balance in your account, or with another payment method like a credit card.
When you connect a credit card to your account and use that card for purchases, you get the convenience of paying with PayPal plus any benefits you get from using a credit card. For example, paying with plastic can help you secure consumer protections like purchase protection against damage or theft, extended warranties on eligible items, return protection, and zero fraud liability.
You also get to earn rewards on purchases made through PayPal with a credit card, which can be especially fruitful if you use a credit card that gives you bonus points on PayPal purchases.
If you plan to use PayPal for your holiday shopping or you simply want to make the most of purchases made through this platform, here are three cards worth considering.
We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.
Compare the best credit cards for PayPal
Chase Freedom Flex
Why the Chase Freedom Flex is worth it: The Chase Freedom Flex℠ offers 5% cash back (5x Chase Ultimate Rewards points) on up to $1,500 spent in quarterly bonus categories when you activate (then 1%). You’ll also earn:
5% back on travel purchases through Chase3% back on drugstore and dining purchases1% back on everything else
The quarterly bonus categories this card offers include PayPal and Walmart purchases between October 1 and December 31, 2022. You must enroll your card by December 14, 2022, for your purchases to be bonused.
You can redeem rewards from either card for cash back, statement credits, gift cards, travel, merchandise, and more. And if you also have the Ink Business Preferred® Credit Card, Chase Sapphire Reserve®, or Chase Sapphire Preferred® Card, you can pool your points and access more redemption options like transferring points to Chase’s airline and hotel partners or getting bonus value when you redeem through the Chase travel portal or Pay Yourself Back.
This card has a Chase Freedom Flex℠ annual fee.
Welcome bonus: This card offers Chase Freedom Flex℠.
Review: Chase Freedom Flex review
Amex Blue Cash Everyday
The no-annual-fee Blue Cash Everyday® Card from American Express is already an excellent card for online shopping, because it earns 3% cash back on U.S. online retail purchases on up to $6,000 spent per year (then 1% back). It also earns 3% cash back at U.S. supermarkets on up to $6,000 spent per year (then 1% back), 3% cash back at U.S. gas stations on up to $6,000 spent per year (then 1% back), and 1% cash back on all other eligible purchases.
What makes it special for PayPal right now is its new limited-time welcome bonus offer. You can earn a Blue Cash Everyday® Card from American Express (cash back is received in the form of Reward Dollars that can be redeemed as statement credits). That’s a terrific rate of return on up to $750 in PayPal spending, and perfect timing for the holiday season.
Welcome bonus offer: Blue Cash Everyday® Card from American Express
Review: Amex Blue Cash Everyday review
PayPal Cashback Mastercard
Why the PayPal Cashback card is worth it: The PayPal Cashback Mastercard® has become one of the all-around best cash-back credit cards, as long as you funnel as many purchases as possible through PayPal.
Here are the card’s ongoing return rates: PayPal Cashback Mastercard®.
The card incurs a PayPal Cashback Mastercard® annual fee.
Welcome bonus: This card offers PayPal Cashback Mastercard®.
Review: PayPal Cashback Mastercard review
Best credit cards for PayPal purchases frequently asked questions (FAQ)
Are PayPal credit cards the best cards for online shopping?
The rewards credit cards featured above offer bonus points on PayPal purchases, but there are plenty of other credit cards that can help you boost your rewards haul when you shop online. This includes credit cards that reward you handsomely when you shop at Amazon, for example, as well as travel rewards credit cards that let you earn points and miles for all kinds of purchases you make.
With some research, you should be able to find a card that offers the most rewards for all your spending throughout the year. In addition to rewards rates, make sure to compare cards based on their benefits and features, sign-up bonuses, and the fees they charge.
Does PayPal count as a mobile wallet?
Some credit cards bonus purchases that are made through a mobile wallet. While you can use PayPal to pay via your phone at brick-and-mortar stores, it’s unlikely you’ll earn trigger a bonus category with a card with a mobile wallet bonus category, such as the U.S. Bank Altitude® Reserve Visa Infinite® Card.
Does PayPal regularly appear as a credit card rotating bonus category?
It’s not a guarantee that PayPal will continue to be a bonus category on cards like the Chase Freedom Flex℠ and Discover it® Cash Back. However, it has made an appearance on these cards for years. In fact, PayPal was a bonus category at the exact same time in 2021.
Are PayPal credit cards the best cards to use with PayPal?
PayPal credit cards can certainly be rewarding. The PayPal Cashback Mastercard® will give you 3%. But none offer up to 5% back on purchases except for those cards with rotating bonus categories such as the Chase Freedom Flex℠. However, once you’ve maxed out the bonus category (or you’re spending in a month during which PayPal is not a bonus category), the PayPal Cashback Mastercard® becomes your best option.