How Does PayPal Pay With Rewards Work?

Using your card rewards by connecting in this method has benefits and downsides

For credit card rewards lovers, flexibility for redemption is generally a top goal. PayPal’s Pay With Rewards program allows cardholders the possibility to spend their cash back, points, or miles to purchase online, offering them an alternative to travel, products, and other usual rewards redemption choices. 

But although this program makes it even simpler to spend your rewards, it may not be the ideal method to redeem them. 

What Is PayPal’s Pay With Rewards Program?

The PayPal Pay With Rewards program enables qualifying credit card members to connect one or more of their credit cards to their PayPal accounts and utilize their cash-back points or miles to pay for online purchases there instead of paying out of pocket.

Depending on whatever credit card you have, the value of your points while utilizing the program might vary. 


If you can obtain a reasonable redemption rate and you’re low on cash, or you don’t intend to use the points for anything else, such as vacation, it may be a nice way to save some money.

How Does Pay With Rewards Work?

If you have an acceptable credit card, you’ll start by attaching your card to your PayPal account. Then you may utilize your cash back, points, or miles when you buy at online retailers that accept PayPal. PayPal. "Pay With Rewards."

PayPal allows you the opportunity to pay the entire amount, or only a fraction, with benefits. You’ll also be able to enjoy PayPal perks, like refunds for postage on qualified returns and purchase protection on certain transactions.

The PayPal program comprises the following rewards programs:

American Express  
Blue from American Express The Platinum Card from American Express
Amex EveryDay Credit Card  Business Green Rewards Card from American Express
The Amex EveryDay Preferred Credit Card from American Express American Express Business Gold Card
American Express Green Card The Business Platinum Card from American Express
American Express Gold Card Blue Business Plus Credit Card from American Express

Capital One
Capital One Venture Rewards Credit Card Capital One Spark Cash for Business
Capital One VentureOne Rewards Credit Card Capital One Spark Cash Select Excellent Credit
Capital One Savor Cash Rewards Credit Card Capital One Spark Classic for Business
Capital One SavorOne Cash Rewards Credit Card Capital One Spark Miles for Business
Capital One Quicksilver Cash Rewards Credit Card Capital One Spark Miles Select for Business
Capital One QuicksilverOne® Cash Rewards Credit Card Journey Student Rewards from Capital One

Chase Freedom Chase Sapphire Reserve
Chase Freedom Flex Ink Business Preferred Credit Card
Chase Freedom Unlimited Ink Business Cash Credit Card
Chase Sapphire Preferred Card Ink Business Unlimited Credit Card

Citi Rewards+ Card Citi Prestige Card
Citi Premier Card  

Discover it Cash Back Discover it Chrome
Discover it Miles Discover More

ScoreCard Rewards  
ScoreRewards Credit Card  

U.S. Bank  
U.S. Bank Altitude Go Visa Signature Card U.S. Bank FlexPerks Gold American Express Card
U.S. Bank Altitude Reserve Visa Infinite Card  

Which Cards Work Best With Pay With Rewards?

While the PayPal Pay With Rewards program allows you a lot of choice for online purchasing, certain rewards programs offer more value than others. 

More precisely, if you have a Capital One cash-back credit card, you’ll earn the same rate as if you were to redeem for pure cash back. Also, Discover and Citi credit cards normally pay you 1 cent per point or mile in value. We regard 1 cent per point to be the floor of reasonable redemption value. Anything less is a bad return. 

Which Cards Shouldn’t Be Used?

With other rewards programs offered in the PayPal program, you’ll receive a lower value if you spend your points or miles with PayPal. Here’s what you should anticipate to receive with each one:

Program Redemption Rate
American Express Membership Rewards 0.7 cent
Capital One Miles 0.8 cent
Chase Ultimate Rewards 0.8 cent

With each of the credit cards in these programs described above, you may gain extra value if you spend your points for other reasons. As such, you’re better off keeping your points or miles instead of utilizing them to pay for online purchases using PayPal. 

Pros and Cons of Pay With Rewards

Depending on whatever credit card you use, there are both advantages and cons to utilizing PayPal’s Pay With Rewards program.


  • Access to benefits PayPal gives to users that use it as a payment method
  • Lets you avoid revealing your credit card information with the store
  • Protection using PayPal’s payment security system
  • A decent redemption rate with certain credit cards


  • Some cards give extra value on other redemption alternatives
  • You won’t receive points on a transaction since you’re not paying with your credit card

Before you decide to utilize Pay With benefits, evaluate your other redemption choices to determine whether you’re maximizing your benefits by utilizing it or leaving value on the table. Also, examine some of the other advantages and drawbacks to evaluate if the program is worth it for you.