PayPal Extras MasterCard for Ebay and PayPal Purchases
PayPal offers 2 types of cards, a debit card which uses your current PayPal balance and a credit card which has a certain credit limit. The PayPal debit card earns unlimited 1% cash back on all purchases (excluding PIN and cash advance transactions), while the PayPal credit card earns points for purchases. You earn 3x points at gas stations and restaurants, 2x points on Ebay/PayPal purchases, and 1x points on all other purchases.
I have been selling on Ebay for 8+ years and I started out with the PayPal Debit Card. Back then, PayPal gave you 1.5% on all purchases (excluding PIN and cash advance transactions) and the PayPal Money Market Fund was around 8%. After the 2008-2009 financial crisis, the money market fund tanked, went down to less than 1%, then down below .1% and eventually PayPal ended the program. They also lowered the cash back rate on the debit card from 1.5% to 1.0%. I’m still grandfathered in at the 1.5% rate.
The last time I used the PayPal debit card was back in August 2012, but up until that point, I had earned $576.78 in cash back.
After August 2012, I switched over to the PayPal Extras MasterCard issued by GE Capital as my primary PayPal card. As you can see, the credit card integrates directly into your PayPal account and the bill can be easily paid for with your PayPal balance, bank transfer, or Bluebird bill pay.
Like I said at the top of the post, this card earns 2x points per dollar on all Ebay and PayPal purchases. I sell stuff on Ebay and print shipping labels through PayPal and the charge goes on my PayPal Extras MasterCard.
The one drawback of the card is that it calculates the points based on each transactions. For example, if I needed to print 100 shipping labels for $2.99, the total paid would be $299. If I earned 2x points on all purchases calculated at the end of the billing cycle, I would have earned 2 x 299 = 598 points. Unfortunately, PayPal calculates the points after every purchase and rounds down the number of points earned for each purchase. So I would have earned $2 x 2 pts x 100 charges = 400 points. Hopefully that makes sense.
Anyways, here is how you redeem your PayPal points for cash back or gift cards.
Normally, 6,000 PayPal points is equal to $50 statement credit.
I sometimes get $50 Amazon gift cards instead of statement credit at the same price.
When I was browsing for my reward, they had a special on Ebay gift cards. 2,500 PayPal Points for a $25 Ebay Gift Card. That is a great deal and I always use Ebay Gift Cards.
I decided to order the Ebay Gift Cards.
The order goes through and there is always free shipping.
Here is the confirmation email for my redemption.
if you have any questions, please leave a comment below.