Update 8/13/2024:

This is now only 1.5% cash back for other non-PayPal purchases, so this thread isn't applicable anymore. I now use Capital One Venture X as my 2% flat card, though it has a $395 AF that pays for itself in annual travel credit.

Just wanted to make a post about a card I feel is overlooked with great potential.

The PayPal Cashback Mastercard is a no-fee Mastercard that earns 2% on all purchases, and 3% on purchases made through PayPal.

I have this card and it is an excellent card for earning 2-3% on purchases that don't generally fall under bonus categories if your intention is cashback redemption; a great "catch-all" card.

This is not considering balance transfer/interest/APR rates as carrying a credit card balance is never recommended. Always pay off your credit cards in full and on-time. This comparison also assumes the full statement balance is paid every month, on-time and doesn't take into account the difficulty/likelihood of card approval (though this varies by card/issuing bank).

Pros:

Unlimited 2% cashback on everything Now only 1.5%

Unlimited 3% cashback when using PayPal

Cashback redeemable at any time, no matter the amount

Cashback available in roughly 1 day

Cashback can be manually transferred to PayPal balance immediately. Then, in 1-3 days, the PayPal balance can be transferred to your bank account electronically for free.

Cons:

No bonus offer (there was a $200 bonus for spending $1000 in 3 months as a limited-time offer)

3% foreign transaction fee

MasterCard is not accepted at Costco

Not yet available on Apple Pay

Samsung Pay and Google Pay both compatible

Potential cons/non-factors:

Issued by Synchrony Bank (not a fan of them, although in reality maybe it really doesn't matter)

Must have free PayPal account. In reality, maintaining a PayPal account has been extremely easy in my experience.

The amount of places I've realized that accept PayPal for the 3% cashback rate since getting this card is pretty amazing. It seems like most places online accept it, and then the occasional in-person place (Valero gas stations, CVS, etc.) Even Walmart accepts it if you purchase your order online and pickup as opposed to using it in-store. 22% of all online transactions in the U.S. are made through PayPal.

When comparing this card against the other available 2% cards, I don't see much reason to pick another one:

These are the only advantages/disadvantages that I see worth mentioning

1) Wells Fargo Active Cash Card

Advantages vs PayPal card:

• This card earns a $200 bonus after spending $1,000 in the first 3 months.

• Up to $600 of cell phone protection

Disadvantages vs PayPal card:

• Cannot earn more than 2%; no 3% option where PayPal is accepted.

• Cannot redeem cashback electronically into checking account unless you bank with Wells Fargo, must be taken as statement credit or paper check. However, statement credit is an option which wouldn't make this a major con.

If the PayPal card's $200 sign-up limited time bonus ever returns I don't really see any reason to choose this over it. Otherwise, this is the one of the only cards on this list I could potentially justify over it at this time depending on how much PayPal-eligible spending you do.

2) Citi Double Cash

Advantages vs PayPal card:

• ThankYou points can potentially be redeemed for over $0.01/each for specific foreign airlines (+JetBlue) and specific hotels by exchanging ThankYou points for those airline/hotel points.

Disadvantages vs PayPal card:

• Cannot earn more than 2%*; no 3% option where PayPal is accepted.

• Many redemption options must be made in larger denominations, such as $25, $50 or $100 at a time.

^{*on its own; combined with the Citi Rewards+ Card, an effective 2.22% can be earned up to 100,000/points per year. Credit to} u/JigglyJello1

3) Alliant Cashback Visa Signature Credit Card

Advantages vs PayPal card:

• First $10,000 per billing cycle gets 2.5% cashback, including where PayPal card can only earn 2%

• No foreign transaction fee

Disadvantages vs PayPal card:

• Cannot earn more than 2.5%; no 3% option where PayPal is accepted.

• Must create checking account at Alliant while maintaining average daily balance of $1,000 or more and making one monthly deposit into account. The checking account only earns 0.25% APY, a poor rate compared to many other checking accounts that offer over 3.00%+ APY including on larger balances.

• Rewards are capped; 1.5% cashback after spending $10,000, versus PayPal card's unlimited 2/3%, though this won't matter for most spenders.

The hassle of jumping through all the hoops to earn 2.5% as well as the potential interest lost by being required to keep money in a 0.25% APY checking against vs those that can earn over 3.0% APY does not seem to make this card worth it to me. The 0.25% APY very well could more than negate the extra 0.5% this earns over other 2% cards depending on your typical checking account balance.

4) Apple Card

Advantages vs PayPal card:

• Nicer app for iPhone users

• No foreign transaction fee

Disadvantages vs PayPal card:

• Significantly fewer places where card can earn 3% vs PayPal card

• Apple Pay must be used to earn 2% instead of earning 2% on any purchase

• Only 1% cashback where Apply Pay isn't accepted.

Really, I don't even consider this a true 2% cashback card since it only earns 1% where Apply Pay isn't accepted. Also, in nearly every situation this card earns 3%, the PayPal card would also earn 3%. I am not a fan of this card.

5) Synchrony Premier World Mastercard

Advantages vs PayPal card:

• None

Disadvantages vs PayPal card:

• Cannot earn more than 2%; no 3% option where PayPal is accepted.

• Cashback redemption must be in the form of statement credit; however, this isn't really a major con.

• Cashback can take up to two billing periods before being available.

6) Bread Cashback American Express

Advantages vs PayPal card:

• No foreign transaction fee

• Merchant discounts via AmEx offers available

• Purchase protection if item gets stolen or damaged

• Up to 20% off or free appetizer at participating restaurants

Disadvantages vs PayPal card:

• Cannot earn more than 2%; no 3% option where PayPal is accepted.

In my opinion, while this card does have a few advantages, the ability to get 3% where PayPal is accepted is worth much more to me than the advantages listed for this card.

7) SoFi Credit Card

Advantages vs PayPal card:

• 3 points per $1 spent in the first year bonus, up to $200 bonus. However, to be eligible, you must fund (all 3) invest + checking + savings accounts while setting up direct deposit with SoFi.

• No foreign transaction fee.

• Cell phone insurance

Disadvantages vs PayPal card:

• Outside of 1st year bonus, cannot earn more than 2%; no 3% option where PayPal is accepted.

• Must create 3 separate SoFi accounts and set up direct deposit with SoFi. This is a major con unless you have already established banking with SoFi.

• 3% first year bonus limited to $12,000

• Points only worth $0.01/each if deposited into SoFi Invest account or to pay off a SoFi loan

The requirement to create three SoFi accounts, fund them all, and use them for direct deposit is way too much hassle to make this card worth it in my opinion. However, the savings account is currently offered with an unlimited 4.0% APY, which might make this card worth it if you are chasing the bonus only if you are actively seeking a new bank. However, in general, I would not recommend this for anybody who isn't already doing business with SoFi.

8) Fidelity Rewards Visa Signature Card

Advantages vs PayPal card:

• Rewards deposited directly into Fidelity account, which can be configured to automatically invest cashback. This can also help prevent wasteful spending with the cashback.

Disadvantages vs PayPal card:

• Cannot earn more than 2%*; no 3% option where PayPal is accepted.

• Cannot spend rewards as they are earned without selling investments first.

I thought about this card since I use Fidelity for investing but ultimately did not get it since I can remain disciplined about investing. This might be a great card for those with Fidelity accounts that feel they struggle to stay disciplined with investing. Otherwise, this really doesn't beat the PayPal card in any other significant way.

^{*See comment by} u/BinLadensCousin ^{on how card can potentially earn up to 3% for those with large sums of money invested by Fidelity wealth managers.}

9) Evergreen by FNBO

Advantages vs PayPal card:

• Sign-up bonus of 20,000 FNBO Rewards points, worth $200 in value and redeemable for cash after spending $1,000 in the first 3 months.

Disadvantages vs PayPal card:

• Cannot earn more than 2%; no 3% option where PayPal is accepted.

• Cashback not available instantly like with the PayPal card.

This is a card similar to the Wells Fargo Active Cash, and for cash redemption, this is definitely better than the Citi Double Cash card. However, this still doesn't carry the value of the PayPal card.

In conclusion, I am not typically a fan of jumping through hoops or using specialized payment methods in order to earn higher rewards unless doing so is really easy. In the case of using PayPal to earn 3%, it really is super easy.

Curious what you guys think about this post and if you have any differing opinions about what the best 2% cashback personal credit card is -- for me, it's hard to justify anything that doesn't have a decent sign up bonus at a minimum. I think this card is routinely and unfairly left out of lists of best credit cards.

I was not paid to write this, this is solely my opinion.