Question about PayPal Key

[Beast26]

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.

[Trikoret]

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. 

[simplynoir]

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@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. 

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

[Anonymous]

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

[Beast26]

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.  

[Credit12Fico]

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@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.  

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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.  

[Beast26]

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.