topic Re: Question about PayPal Key in Credit Cards

Question about PayPal Key

Beast26 — Sat, 14 Nov 2020 13:47:12 GMT

Can I pay my rent online and get 5% back using PayPal key with chase freedom flex? They allow me to pay with credit card but I'm not completely sure how and what PayPal key can do. Since I hear it works anywhere MasterCard is accepted it should work.

Re: Question about PayPal Key

Trikoret — Sat, 14 Nov 2020 16:16:43 GMT

I'd assume it'll work. I used the PayPal Key to pay my health insurance since they don't accept PayPal. I got my 5% with Chase. The charge posted as a PayPal charge.

Re: Question about PayPal Key

simplynoir — Sat, 14 Nov 2020 16:20:28 GMT

@Trikoret wrote:
I'd assume it'll work. I used the PayPal Key to pay my health insurance since they don't accept PayPal. I got my 5% with Chase. The charge posted as a PayPal charge.

This. There are a few processors/merchants that decline PayPal key charges but for the most part it will work

Re: Question about PayPal Key

Anonymous — Sun, 15 Nov 2020 15:22:01 GMT

Yes, you can use it to pay your rent. However, I would discourage that (at least for my situation). The reasoning is 2-fold.

1.) Chase 5% cash back categories are capped at $1500 spend per quarter, meaning $75 cash back total. After that its 1% cash back.

2.) Paying rent with a credit card often occurs an additional fee. For me, I believe it's a 3% fee. Meaning I would only profit a net 2% cash back.

So for me, I am using my $1500 5% cap for Walmart and also generic online purchases, as I would only get 2% back on those transactions normally (my 2% card).

Also, pro tip: it seems as though Chase doubles up on cash back if you order from a restaurant with paypal key. It rings up 1% cash back for the purchase, 4% cash back for PayPal, and 2% cash back from a restaurant purchase. That actually amounts to 7% total cash back

Re: Question about PayPal Key

Beast26 — Mon, 16 Nov 2020 00:19:38 GMT

The only reason I'm paying my rent with it is so I can max out the $1500 in one month and a half. I just got the card and it will be here within 5 days so I don't have the full 3 months to spend the $1500.

Re: Question about PayPal Key

Credit12Fico — Mon, 16 Nov 2020 01:43:43 GMT

@Beast26 wrote:
The only reason I'm paying my rent with it is so I can max out the $1500 in one month and a half. I just got the card and it will be here within 5 days so I don't have the full 3 months to spend the $1500.

Do you pay a 3% card processing fee? If you do, I urge you to reconsider the math. If you don't, then disregard and paying it is the quickest way to max it.

If you pay a 3% card processing fee, you will only net 2% cashback. 2% cashback on $1500 spend is $30. For comparison, it would only take you $600 of regular spending at 5% via PPK to earn $30.

Re: Question about PayPal Key

Beast26 — Mon, 16 Nov 2020 10:30:31 GMT

I already did the math my rent is less than $700 which will cover the rest of what I can't reach in organic spend in that time frame.