Introduction
Here's your easiest path to maxing out the Chase Freedom bonus this quarter: PayPal just went live as a December-only 5% category. From now through December 31, you can earn 5% cash back (or 5 Ultimate Rewards points per dollar if you have a Sapphire card) on up to $1,500 in PayPal purchases. That's $75 in rewards for doing your regular holiday shopping.
Activation deadline: December 14, 2025
The best part? You're probably already shopping at stores that accept PayPal checkout. Target, Home Depot, Starbucks reload, even paying your utility bills—they all work.
Deal Details
What you get: 5% cash back on PayPal purchases (up to $1,500 in combined Q4 spending)
Who qualifies: Chase Freedom and Chase Freedom Flex cardholders
How long it lasts: December 1-31, 2025
Activation required: Yes, by December 14 at chasebonus.com
Important: This combines with the Q4 $1,500 spending cap across all bonus categories (Chase Travel, Department Stores, Old Navy, and PayPal). If you already maxed out on other categories, you won't earn the PayPal bonus.
How to Take Advantage
- Activate the Q4 categories at chasebonus.com before December 14
- Link your Chase Freedom card to your PayPal account
- Choose PayPal at checkout when shopping online
- Track your spending to maximize the $1,500 cap
Where You Can Use PayPal
Here's what counts for the 5% bonus:
Online retailers: Target, Best Buy, Home Depot, Nordstrom, Gap, Old Navy (double-dips with the Old Navy Q4 category), eBay
Everyday bills: Many utility companies, insurance providers, and subscription services accept PayPal
Gift card purchases: PayPal's Digital Gifts store sells gift cards for hundreds of retailers at 5% back
Charitable donations: PayPal Giving Fund donations count toward the bonus
Tax payments: Pay federal estimated taxes through Pay1040 or ACI Payments via PayPal (1.85-2.89% fee, but you still net positive with the 5% back)
Person-to-person transfers: Chase says these "may not be eligible," but past experience shows they sometimes work. Just remember you'll pay PayPal's P2P fee.
Why This Deal Matters
PayPal appears as a Chase Freedom bonus category almost every December, but it never gets old. Unlike merchant-specific categories that require you to change your shopping habits, PayPal works almost everywhere. You're essentially getting 5% back on holiday shopping you were already planning to do.
The math gets even better if you pair the Chase Freedom Flex with the Chase Sapphire Preferred or Chase Sapphire Reserve. Your 5% "cash back" becomes 5 Ultimate Rewards points per dollar, which you can transfer to airline and hotel partners. At TPG's current valuations, those points are worth about 2 cents each—turning your 5% back into 10% back on travel.
Real example: Spend $1,500 on PayPal purchases in December. With a Sapphire card in your wallet, you'll earn 7,500 points worth $150+ when transferred to partners. That's a better return than almost any other credit card on the market right now.
Strategy Tips
Max it out fast: December flies by. With only 31 days, plan to hit the $1,500 cap early so you don't miss out.
Stack with other offers: If you're buying from Old Navy, you can use PayPal checkout and potentially double-dip (though Chase typically awards only the higher bonus).
Prepay bills: Many utilities, insurance companies, and subscription services accept PayPal. Prepaying a few months ahead helps you max the category on necessary expenses.
Consider tax payments: If you have quarterly estimated taxes due, Pay1040 charges a 1.85% fee but you net 3.15% back (5% earned minus 1.85% fee). That's free money on money you already owe.
Mobile payments: Some readers report success using PayPal QR codes in restaurants with the Freedom Flex, potentially earning 7% total (5% PayPal + 2% dining category). Worth testing if you're already at a participating restaurant.
Conclusion
The December PayPal bonus makes holiday shopping actually rewarding. Whether you're knocking out your gift list, prepaying bills, or just doing your regular online shopping, you're leaving money on the table if you're not routing purchases through PayPal this month. With 18 days left until the activation deadline, set a reminder now so you don't miss the easiest $75 you'll earn all quarter.
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