The PayPal Debit Card pays 5% back on up to $1,000 of spend a month in one category you choose, earned as PayPal Rewards points. PayPal's terms put the most you can earn at up to $50 a month. The catch is that nothing starts until you pick a category in the PayPal app, and you have to pick again every calendar month. This is a debit card linked to your PayPal balance, not a credit card.
Here's how the pick works, which categories PayPal lists, and what doesn't count, so you can decide whether the PayPal Debit Card 5% category is worth that monthly routine.
How the Monthly Pick Works
You select a 5% category in the PayPal app each calendar month, and only one category can be selected per month. Earning in that category begins on the date you select it and covers that month only. Purchases you made before you selected a category don't earn points.
When the month ends, so does the 5%, unless you select a category for the next month. The card page says you can enroll in the same category every month or switch it up as your spending changes.
The 5% applies to up to $1,000 of category spend per month.
Which PayPal Debit Card 5% Categories You Can Pick
PayPal's rewards terms list Fuel (including EV charging stations), Groceries, Restaurants and Apparel. They also say PayPal may offer other temporary or seasonal categories from time to time.
The FAQ on the card page lists Groceries, Restaurants, Fuel, Apparel, and Rideshare & Public Transit, and adds that categories are subject to change. The two pages list different categories, so check the list inside the PayPal app before you plan a month around Rideshare & Public Transit.
What Counts and What Doesn't
Eligible purchases are U.S. dollar purchases made in store or online, including in PayPal checkout, with the card in your selected category and finalized by the merchant during the month. The terms list what isn't eligible:
- Category purchases the merchant hasn't finalized by the end of the calendar month.
- Gift card or prepaid card purchases or reloading.
- Any purchase, or part of a purchase, that involves a payment method other than the card.
- In-store cash withdrawals or cash back.
- Purchases tied to merchant codes outside your selected category.
- Purchases that are canceled, reversed, refunded or returned.
That fifth line matters more than it looks. PayPal sorts purchases using the Merchant Category Codes (MCCs) assigned to a merchant based on what it primarily sells, and says it isn't responsible for how those codes are assigned. If a purchase feels like it belongs in your category but the merchant's code doesn't, it won't earn. The terms also say PayPal alone determines whether a transaction qualifies.
Redeeming Points and Getting the Card
Your points appear in the Account Overview section of your PayPal account, where the terms say you can redeem them for cash and other redemption options. The card page adds that you can spend points like cash at PayPal checkout, and that in-app offers from brands can earn more points.
To apply, the card page says you need an active personal PayPal account in good standing, a confirmed U.S. street address, your date of birth and your Social Security number. It also says you must have only one PayPal account associated with your SSN. The same page lists no monthly fee, no minimum balance and no credit check, and a 2.5% fee on foreign transactions. The rewards terms add that you must be 18 or older and a U.S. resident.
The card is linked to your PayPal balance, and the card page says you can add money to it free from your bank account or debit card, or set up auto reload. If you're weighing other rewards debit cards, we've covered the United MileagePlus Debit Card and the Southwest and Wyndham debit cards.
What to Do Each Month
Pick the category where you'll put the most spend on this card, and select it before you make those purchases, since purchases made before you select don't earn. Gift card purchases don't earn in any category, so don't count on them.
If you already have the card, open the PayPal app and select this month's category now. If you don't, read PayPal's rewards terms first and apply only if one of the listed categories matches where you already spend.
