Although it’s simple to set up and it’s tempting to redeem your rewards at checkout, there are some things you should know to decide if it’s a good redemption choice for you. Learn more about how Pay with Rewards works, which cards are compatible, and the pros and cons.
What Is PayPal’s Pay With Rewards Program?
PayPal’s Pay with Rewards lets customers checking out with PayPal apply rewards from their linked credit cards. This gives shoppers an additional option for redeeming their points, and makes it convenient to do so right on the PayPal checkout screen. To set up this feature, add an eligible credit card as a payment method in PayPal, then link your rewards account. When you’re checking out, just select that card for the transaction, and you’ll automatically have the option to use some or all of your points, miles, or cash back to pay for the purchase.
Which Credit Cards Work With PayPal Pay With Rewards?
PayPal’s Pay with Rewards works with many of the most popular credit card rewards programs including the following:
Pros Explained
It’s simple to use: Some shoppers may appreciate that real-time convenience of instantly redeeming points for a purchase, rather than, say, redeeming rewards for a gift card that may take a few weeks to arrive. You’ll get PayPal’s consumer benefits: Part of the appeal of using PayPal to buy items online is its purchase protection. If an item arrives damaged, part of your order is missing, or you receive an item that looks nothing like what was advertised, PayPal will refund what you spent on the merchandise and shipping. In addition, PayPal also has a free return shipping policy. For items you purchase with PayPal, you can either create a free return-shipping label via the platform, or you can request a refund for what you pay to ship a return (up to $30 each on 12 eligible purchases a year). It’s a safe way to shop online: PayPal is generally considered a safe way to shop since it puts a layer of protection between your credit card (or bank account) and the sale.
Cons Explained
Redemption values vary: When using PayPal’s Pay with Rewards, you may not always get the best bang for your reward buck. For instance, American Express Membership Rewards points are only worth 0.7 cents through PayPal, whereas you can get 1 cent per point if you redeem for gift cards. Chase Ultimate Rewards are also worth just 0.8 cents on PayPal purchases, whereas you can get much higher value when redeeming for travel. Citi and Discover are safer bets, with both offering 1 cent per point.
The Bottom Line
Ultimately, deciding if this program is a good way to use your rewards comes down to which cards you have, and your personal situation. If you can get a decent redemption value, then using PayPal’s Pay with Rewards can be a convenient and safe way to use rewards while you’re shopping online. Plus, you’ll score PayPal’s consumer-friendly protections. If you’re more of a miles chaser, however, you can find more valuable ways to cash in your rewards. The travel redemption options you have with American Express, Chase, and Citi give your points more value than what PayPal offers. PayPal’s Pay with Rewards is hard to resist when it’s right there for you to click and save at checkout. Just consider whether it’s the best use of your points before you take advantage.
