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Valued Member
Posts: 50
Registered: ‎06-25-2011
0

Credit card rewards with Paypal

If you pay for something with Paypal, and tell it to use say, Chase Freedom, how do they determine which category the purchase is for 5% reward? What will the transaction show up on the CC bill as?

 

Do you still get the CC benefits such as extended warranty?

Valued Contributor
Posts: 2,512
Registered: ‎11-11-2010
0

Re: Credit card rewards with Paypal

[ Edited ]

You don't earn 5% cashback with PayPal. PayPal acts as a third party in the transaction. PayPal pays the merchant and separately charges money on your credit card account.

 

From Chase perspective you are making a purchase from PayPal, not from a merchant, therefore you do NOT have purchase protection, extended warranty, etc.

 

PayPal codes its transaction as professional service, only Citi Business CC gives bonus points on professional service.

In My Wallet:
Citi Forward (12/2010) | Citi Dividend (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
Regular Contributor
Posts: 207
Registered: ‎02-27-2013
0

Re: Credit card rewards with Paypal

so  you will get only the 1% on certain cc's if you use paypal ?

 

 

Super Contributor
Posts: 6,154
Registered: ‎12-11-2011
0

Re: Credit card rewards with Paypal

Yeah.

It is similar to basically buying a money order, and using your money order to pay for... Gas when you're in the 5% on gas quarter. They don't know what you're buying with that money, to them you just made a purchase.
Senior Contributor
Posts: 6,279
Registered: ‎08-16-2012
0

Re: Credit card rewards with Paypal

The Paypal Mastercard offers 3x points on gas/restaurants...
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Super Contributor
Posts: 6,154
Registered: ‎12-11-2011
0

Re: Credit card rewards with Paypal

That is provided you get the mc and not smart connect
And i think OP is just talking about making a paypal payment (say for an ebay item) and simply using a credit card as a funding source instead of a bank account.
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