PayPal Debit Card - 5% Cash Back (New)
Hello 2025! I apologize for the slowdown in posts, but I try to limit my posts to things that are worthwhile to read (and not redundant). I just recently got a notification for this new product by PayPal and couldn't wait to share it.
PayPal has added a new cash back feature to their debit card. Yes, a debit card. You might think it would be underwhelming, but it's actually one of the most generous 5% cash back offers I've seen, even when compared to some credit cards (e.g. Citi Custom Cash).
PayPal is offering 5% cash back in categories you choose every month, up to $1000 per month. This means you can earn up to $50 in cash back each month, or $150 per quarter if you max out the spending limit each month, which is quite competitive compared to other cash back cards. For example, rotational category cards like Chase Freedom Flex gives 5% cash back on up to $2,500 spend per quarter which amounts to $125 (and this is a credit card).
Here is the notification I received in the PayPal mobile app:
PayPal Debit Card Cash Back Categories
The categories are generous and pretty practical. It includes:
- Clothing
- Healthy & beauty
- Gas
- Grocery
- Restaurants
All of these are very common day to day purchases.
How To Sign Up
You can get it here. You need a PayPal Balance account to get it.
Final Thoughts
As always, when something is seemingly too good to be true, don't bank on it lasting. The good news is that usually these great offers last awhile before they get "nerfed" to something less competitive. So it's a good chance to take advantage of it especially if you are already a PayPal user. The main drawback of the debit card is likely you'll need the balance to support the transaction in your PayPal account. This is something I'll need to test out in the next week or so so stay tuned!