PayPal Extras Mastercard Review and Things to Consider before Choosing

This is an intensive review about PayPal Extras Mastercard which is one of two purely credit-friendly credit card options for PayPal customers and is much less versatile. (The PayPal Cash Back Mastercard includes 2% cash-backing for all transactions and not so difficult redeeming rewards.)

Nevertheless, the PayPal Extras Mastercard could be the better option if you eat and spend a lot of time on your trip. The full summary of the PayPal Extras Mastercard will be given in this review. This article will give you a complete review of the PayPal Extras Mastercard.

Card details

• Earn 3 points per $1 spent on gas and restaurant purchases
• Earn 2 points per $1 spent on PayPal and eBay purchases
• You can earn 1 point per $1 spent on other Mastercard purchases
• No annual fee
• Shop everywhere Mastercard is accepted – 24 million locations and counting
• Conveniently redeem your Reward Points through PayPal

Rates, fees & offers

• Annual fee – $0
• Rewards rate – 1x-3x
• Bonus offer – None
• Intro APR – N/A
• Ongoing APR – APR: 19.99% – 26.99% Variable APR
• Foreign transaction fee – 3%

Key Takeaways

1. Dining and gas expenses earn the most points back

The $0-annual-fee PayPal Extras Mastercard® earns:

• 3 points per dollar spent on gas and restaurant purchases.
• 2 points per dollar spent on PayPal and eBay purchases.
• 1 point per dollar spent on other purchases.

2. Point value is low

With the PayPal Extras Mastercard®, if you want cash back you’ll have to amass 6,000 points first, which you can then redeem for a $50 PayPal credit.

That works out to a value of only 0.83 cents per point, which is below the industry-standard value of a penny per point for cash back.

Non-cash-back redemption options also require minimum point thresholds:

• You need at least 800 points to start redeeming for gift cards for restaurants, gas, retail and more.
• Collect 3,000 points and you can use them toward merchandise such as household items, electronics and sports equipment.
• At 15,000 points, you can get a travel voucher for plane tickets, hotel stays or car rentals.

Points expire 24 months after they were initially accrued.

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3. Travel redemptions pose particular hurdles

Beyond the required 15,000-point minimum, know that you’ll have to plan far ahead to use points for travel. Flights must be booked at least 21 days in advance, can be redeemed only for coach seats and sometimes require a Saturday night stay.

Stopovers can’t exceed four hours, and you must complete travel within 30 days of the original departure date. Hotel stays and car rentals also require booking 21 days in advance, and they come with blackout dates.

4. You need a PayPal account first

Setting one up is free and relatively easy to do. But if you don’t already have a PayPal account before applying for the PayPal Extras Mastercard®, you’ll be asked to create one first.

5. it’s not the only choice for PayPal loyalists

The PayPal Extras Mastercard® is one of two co-branded credit cards from PayPal and Synchrony. The other is the PayPal Cashback Mastercard®, which has a different rewards structure. It earns flat 2% cash back on everything — no varying point values, no categories to keep track of, and no minimum redemptions to worry about. If you have one of these cards already, you cannot get the other.

Pros

1. No Annual Fee. PayPal Extras Mastercard has no annual fee. That’s great news for frugal cardholders who don’t spend heavily enough to offset a recurring charge. It’s also a nice nod to the annual point-earning cap, which would be an even bigger problem were it offset by an annual fee.
2. 3x Points on Gas and Restaurant Spending. This card earns 3 points per $1 spent at gas stations and restaurants, making it a great tool to save money at restaurants and reduce the cost of road trips. For drivers and diners, that’s a rate that all but the best dining and gas credit cards fail to match.
3. 2x Points for Paying Through PayPal. If you regularly make purchases using your PayPal account, you’ll have no trouble racking up the points in this card’s 2x category. Every purchase made with a PayPal merchant is good for 2 points per $1 spent.
4. Lots of Redemption Options. You can redeem your accumulated points for pretty much anything: cash, gift cards, merchandise, travel. That’s a big improvement over most travel rewards credit cards, which either don’t allow cash redemptions at all or devalue points flagged for that use.
5. Solid Fringe Benefits. For an entry-level credit card, PayPal Extras Mastercard has some solid fringe benefits. If you’re looking for a credit card that covers your rental car insurance costs and extends warranties on big-ticket items longer than the manufacturers might like, you can’t go wrong here.
6. Doesn’t Require Excellent Credit. PayPal Extras Mastercard is available to applicants with average or better credit. Acceptance is never guaranteed, but you’re definitely more likely to qualify for this card with past credit blemishes than for a high-end cash back or travel rewards card that requires a nearly perfect record.

Cons

• Reward Redemption Values Are Poor: The PayPal Extras Mastercard only shares valuations for PayPal Cash and gift cards. It takes 6,000 points to earn $50 in PayPal Cash, a value of 0.83 cents per point, and 800 points for a $5 gift card, a value of 0.625 cents per point. These redemption values are poor, especially combined with the relatively low points earning rates on this card.
• Many Rewards Redemption Options have Restrictions: The card doesn’t publish redemption rates for its travel or merchandise redemption options. Redeeming points for travel can be restrictive. In general, you must book your travel at least 21 days in advance of the travel and you need at least 15,000 points for a travel voucher.
• No One-Time Offer: Many no-annual-fee credit cards offer a bonus to entice potential cardholders to apply. Unfortunately, this card is not one of them.

Earning Rewards

The PayPal Extras Mastercard has three main rewards earning rates. You earn 3 points per dollar on gas and restaurant purchases, 2 points per dollar on PayPal and eBay purchases, and 1 point per dollar on other purchases.

While these reward earning rates seem reasonable for a no-annual-fee credit card, they’re actually below average when you consider the highest redemption value is 0.83 cents per point. That results in roughly a value of 2.5 cents per dollar on gas and restaurant purchases, 1.67 cents per dollar on PayPal and eBay purchases and 0.83 cents per dollar on other purchases.

Other cash back credit cards with no annual fee offer higher cash-back rates in these categories. For PayPal, eBay, and all other purchases, a simple 2% cash-back card would earn you more value per dollar spent.

To make matters worse, reward points expire 24 months after you first accrue them or if you don’t make a purchase with the card for 24 consecutive months. You’ll also lose your points if you fail to make two or more consecutive minimum payments on time or if you close your account. 

This Card is best for

The PayPal Extras Mastercard is for diehard PayPal fans with average to excellent credit. Unfortunately, the rewards earning rates combined with the reward redemption rates result in a very poor value for the vast majority of consumers. 

You can get higher earnings and redemption rates on restaurant, gas, PayPal, eBay, and all other purchases with other credit cards. This card doesn’t even offer any ancillary benefits that make it worthwhile. Extreme PayPal fans would likely be better served with the PayPal Cashback Mastercard that offers 2% cash back and no annual fee.