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Credit card rewards with Paypal

Valued Member

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?

Message 1 of 6
5 REPLIES
Valued Contributor

Re: Credit card rewards with Paypal

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.

Message 2 of 6
Regular Contributor

Re: Credit card rewards with Paypal

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

 

 

Message 3 of 6
Super Contributor

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.
Message 4 of 6
Senior Contributor

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
Message 5 of 6
Super Contributor

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.
Message 6 of 6