PayPal Extras Mastercard Review and Things to Consider before Choosing

Did you know PayPal Cash Back Mastercard includes 2% cash-backing for all transactions and not-so-difficult redeeming rewards? PayPal Extras Mastercard is one of two purely credit-friendly credit card options for PayPal customers and is much less versatile. Anyway, see the full review!

Overview of PayPal Extras Mastercard

The PayPal Extras Mastercard could be the better option if you eat and spend a lot of time on your trip.

The PayPal Extras Mastercard is meant 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 users.

You can secure higher earnings and redemption rates on restaurants, gas, PayPal, eBay, and all other purchases with other credit cards.

This card doesn’t even offer any ancillary benefits that make it worth the while. Extreme PayPal fans feel better served with the PayPal Cashback Mastercard which offers 2% cash back and no annual fee.

PayPal Extras Mastercard 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. The 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.

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

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.
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.
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.
Lots of Redemption Options. You can redeem your accumulated points for pretty much anything: cash, gift cards, merchandise, and 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.
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.
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.

How to Maximize Your Rewards

If you choose to use this card, you can maximize your bonuses by putting all of your restaurant and fuel purchases on it.

All other purchases can get better rewards value with another higher percentage flat-rate cash-back credit card that pays more than 1%, such as the Citi Double Cash card which offers 1% cash back on all purchases and another 1% cash back when you pay your bill.

When you accumulate 6,000 points, your best bet is a possible cash point for $50 in PayPal Cash, at a value of 0.83 cents per point.

However, check your travel voucher options, starting at 15,000 points, to confirm you can receive a higher value per point before you cash out.

Cardholder Experience

Synchrony Bank, which issues the Paypal Extras Mastercard, rated tenth out of 11 national card issuers in the J.D. Power 2022 U.S. Credit Card Satisfaction Study. Synchrony received a score below the average score.

Customer service is available round the clock by calling the number on the back of your card or 866-657-5788. Live chat is public every day from 9:00 a.m. to 9:30 p.m. EST when you’re logged in to your PayPal Mastercard account.

Security Features

This card provides Mastercard ID Theft Protection 24 hours a day, 365 days a year at no charge if you feel you are a victim of identity theft.

Coverage incorporates an online monitoring dashboard, monthly risk alert and newsletter, identity monitoring, resolution services, lost wallet assistance, single bureau credit monitoring from TransUnion, financial account takeover protection, and URL or domain monitoring.

You also have access to Mastercard Global Service, which delivers 24-hour assistance with lost and stolen card reporting, emergency card replacement, and emergency cash advances.

You can receive a temporary card as soon as the next day in the United States or two business days almost everywhere outside of the United States.

The PayPal Extras Mastercard’s Fees

The fees PayPal’s card demands are standard for a rewards credit card. It does charge a 3% foreign transaction fee and the variable purchase APRs offered are a bit high compared to the average for all credit cards.

Final Verdict

Unless you absolutely must have the PayPal Extras Mastercard, you would possibly be better served by a cash-back credit card like the Citi Double Cash, which offers 1% cash back on purchases and 1% cash back when you pay for those purchases.

The PayPal Extras Mastercard’s reward earning rates combined with its reward redemption rates don’t add up to a strong value for users. The card is also no longer present.

For restaurant and gas purchases, you can earn higher cash back or rewards rates with several other credit cards that treat those as extra rewards categories.

If you still want a PayPal credit card, you may want to consider the PayPal Cashback Mastercard, which offers 2% cash back on all purchases.

PayPal Extras Mastercard Review and Things to Consider Before Choosing