Earn 3% on everything using one card -Dead !-

[patoot10]

As of March 2019 this trick is dead as Paypal started phasing it out in batches. It was a good run and I am proud of presenting such a solution to a great community that helped me build my credit like a pro from the get go.

Hello,

If you have paypal cashback card that means you earn 2% on everything.

Paypal offers a debit card for PayPal business accounts that is funded by your paypal balance so let's say you have PayPal business debit card and you have $50 paypal balance then you can use your PayPal business debit card to make purchases up to $50. To get a PayPal business debit card you just request it and you receive it in the mail. This is how the cards looks with a really cool chip.

This card earns 1% cashback and if your paypal balance is zero you can link this card to a backup funding method so you can still use it and earn 1% cashback. Backup options are bank accounts and debit cards. You can also link it to credit cards offered by paypal as a backup option. If you link it to paypal cashback card you will earn 2% from the credit card and 1% from the debit card so 3% cashback in total.

Couple of things to consider:

- You only earn 1% cash back on purchases that don't require pin code (buy online giftcards then use them at THAT store).

- You must earn at least $1/month for cash back to post to paypal account i.e. spend at least $100 on the card per calendar month.

- You need to keep paypal balance at zero before making any transaction that way the whole amount goes through the 2% credit card.

- YOU CAN USE THIS CARD AT PLACES THAT DON'T ACCEPT CREDIT CARDS AND STILL EARN 2% CASHBACK (DMV, some gas stations, small stores).

I hope you find this useful.

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RECENT UPDATE

In a desperate attempt to promote their new PayPal personal debit card, PayPal made the business product exclusive for PayPal business accounts. Some users who got this card on their personal PayPal accounts have received an email that their business debit card will be shutdown by September. If you are currently using this 3% setup on a personal PayPal account I highly recommend upgrading your PayPal account to a business account. Also people reported that they can't apply for the PayPal 2% cashback credit card if they have a PayPal business account, they had to downgrade to PayPal personal account to be eligible to apply for the 2% credit card. If you are trying to get into this setup I recommend applying for the credit card then upgrading your account to business and applying for the debit card.

Thanks

[toadsworth]

anybody have any input on this? Wouldn’t it not get the 2% in the same way that a cash advance doesn’t get the 2%?

[patoot10]

I already used this this method and earned cash back on the credit card.

I used plastiq, coinbase, regular purchaes.

[Anonymous]

Hm! Intriguing, young skywalker. How long have you been doing this? You sure they're not gonna slam you with some bs fees? Cash advance does seem a likely culprit.

So you're paying with the debit card, automatic 1% as long as you spend $100 in the month, and the credit card is the "back up", effectively primary, funding source, and in that process it earns 2% back.

What's great about this vs the Kasasa cash back checking is those accts are capped at a few hundred $ in spend to get the CB each month, and you have to do like 10 or 12 qualifying transactions each month. This has no caps or such hoops.

If this pans out and sticks around I may have to get in on it after I finish my app queue of 7 more cards lol.

[Anonymous]

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@patoot10wrote:

Hello,

If you have paypal cashback card that means you earn 2% on everything.

Paypal also offers debit cards that are funded by your paypal balance so let's say you have paypal debit card and you have $50 paypal balance then you can use your paypal debit card to make purchases up to $50. Debit cards come in two versions (personal and business) however you don't need to own a business to get the business version. To get a paypal debit card you just request it and you receive it in the mail.

The card I am talking about in the topic subject is Paypal Business debit card.

This card earns 1% cashback and if your paypal balance is zero you can link this card to a backup funding method so you can still use it and earn 1% cashback. Backup options are bank accounts and debit cards. However you can also link it to credit cards offered by paypal. If you link it to paypal cashback card you will earn 2% from the credit card and 1% from the debit card so 3% cashback in total.

A couple of things to consider:

- You only earn 1% cash back on purchases that don't require pin code (buy online giftcards then use them at that store).

- You must earn at least $1/month for cash back to post to paypal account i.e spend at least $100 on the card per calendar month.

- You need to keep paypal balance at zero before making any transaction that way the whole amount goes through the 2% credit card.

- You can use this card at places that don't accept credit cards and still earn 2% cashback (DMV, some gas stations, small stores).

I hope you find this useful.

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I’ve read about this strategy elsewhere before but I haven’t seen any follow up post indicating it actually works.  Have you been able to confirm 3% overall cashback and that PayPal doesn’t shut it down on one of the cards?  

This would be pretty cool as I already have both.  I guess that also means I can try it out myself too. Lol. 

[Jetboy]

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@AnonymousThis would be pretty cool as I already have both.  I guess that also means I can try it out myself too. Lol. 

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Please do. There are no data points that says this works. It looks like it would work on paper but actual use may be another story.

[Anonymous]

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@Jetboywrote:

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@AnonymousThis would be pretty cool as I already have both.  I guess that also means I can try it out myself too. Lol. 

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Please do. There are no data points that says this works. It looks like it would work on paper but actual use may be another story.

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I’ll give it a go and report back when I know. 

[woodyman100]

I suppose you could still get 3 percent with a couple of extra steps.

earn the 2% and transfer it to your PayPal balance on the statement date.

Then use the debit to spend the PayPal balance this earning 1% on those purchases.

admittedly it would stretch out over many months if there wasn’t massive spend.

Even then it would be a 2 month process at a minimum

[601flyguy]

I can confirm that it works. It doesn't matter if the funds come from paypal balance or backup funding, all signature purchases receive 1% cash back. As far as the credit card, there will be no cash advance fees. The charges will show up like any other paypal purchase.

For reference, i used my paypal debit card with discover as backup funding. I used to pay my ebay fees with paypal card essentially earning 3% back on the fees. I highly suggest this to ebay sellers.

[Anonymous]

Hm say, am I missing something, or is there any reason why you can't do this trick with any rewards earning credit card as the funding source for the PayPal debit card? Eg if I have a freedom unlimited in place of the PayPal MasterCard, would I effectively get 1.5x ur points (with CSP transfer) per dollar spent plus 1% cash back on the PayPal debit card?

Moreover, can you change funding sources instantaneously, such that you could effectively use the PayPal debit card to earn an extra 1% back when you use any of your credit cards? Obviously this may be too much of a hassle for small transactions or whatever, but in principle could you just swap CCs as the funding source on the fly and effectively get an extra 1% back on all of your credit cards?