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

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Frequent Contributor

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

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.

 

=====================================

 

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




Message 1 of 409
408 REPLIES 408
Regular Contributor

Re: Earn 3% on everything using one card

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%?
Kind of have everything I want now, creditwise. Undeliberately gardening until I have some spending to do and find a 100,000 Amex Platinum offer lol

Started my credit journey August 2016, after abstaining from credit for years after some poor financial choices in high school. Started with scores in the 580s. Current scores 11/6/18 - EQ: 754 TU: 757 EX: 743

From oldest to newest: DuPage CU Visa Platinum, SL 500 now 3750, Cap1 Platinum SL 300 PC'd to QS now 1600, Alliant Credit Union Share Secured Loan $500, Amex BCE SL 5000 now 600, Neiman Marcus SL 700 now 10000, Target RedCard SL 400 now 2900, Amex ED SL 10000 now 500 (combined with Cash Magnet), Chase AARP SL 800 now 3300, Chase Amazon Prime SL 1000 now 10000, Honda Lease, Discover it SL 1000 now 7000, Synchrony PayPal 2% CB SL 3000 now 10000, Barclays Uber Visa SL 800 now 2100, Citi ThankYou Preferred SL 3300 now 5300, Chase Ritz-Carlton SL 10000 now 1500 (moved to other cards to get annual fee refund), Comenity Total Rewards Visa SL 2000 now 3250, US Bank Cash+ SL 500 recon'd to 10000, US Bank Reserve LOC 1000, Union Bank Rewards Visa SL 5000 now 5000, Amex Cash Magnet SL 9900 now 20000, Cap1 Venture SL 10000 now 10000, Discover it 3000 SL now 4000, Amex SPG Luxury 3100 SL now 3100, Amex Amazon Business Prime 10000 SL now 10000, Amex Gold NPSL, US Bank Premier LOC 5000, US Bank Visa Platinum 5400 SL currently reconning

Combined revolving CL $135,300

Goal: Spring 2019 800+ club, $50,000 combined Amex limit
Message 2 of 409
Frequent Contributor

Re: Earn 3% on everything using one card

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

 

I used plastiq, coinbase, regular purchaes.




Message 3 of 409
Established Contributor

Re: Earn 3% on everything using one card

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.
Chase UR: Amex MR:Citi TY:
Cash back:Travel:
Debit: + DCU savings acct for 5.12% APY for $1k
Message 4 of 409
Valued Contributor

Re: Earn 3% on everything using one card


@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.


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. 



Beginning Journey April 2017 – FICO 8

Current Scores May 2018 – FICO 8

Started this credit game with $8400 TCL in 04/17 now I'm at $150K+.
Message 5 of 409
Regular Contributor

Re: Earn 3% on everything using one card


@4theLoveofPointsThis would be pretty cool as I already have both.  I guess that also means I can try it out myself too. Lol. 

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.

Fidelity Rewards - bills | NFCU Flagship - travel | FNBO Travelite - travel | Capital One Savor - dining | Discover IT - rotating categories

Message 6 of 409
Valued Contributor

Re: Earn 3% on everything using one card


@Jetboywrote:

@4theLoveofPointsThis would be pretty cool as I already have both.  I guess that also means I can try it out myself too. Lol. 

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.


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



Beginning Journey April 2017 – FICO 8

Current Scores May 2018 – FICO 8

Started this credit game with $8400 TCL in 04/17 now I'm at $150K+.
Message 7 of 409
Valued Contributor

Re: Earn 3% on everything using one card

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

Message 8 of 409
Established Contributor

Re: Earn 3% on everything using one card

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.
Message 9 of 409
Established Contributor

Re: Earn 3% on everything using one card

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?
Chase UR: Amex MR:Citi TY:
Cash back:Travel:
Debit: + DCU savings acct for 5.12% APY for $1k
Message 10 of 409