Update 11/2/24: Tech is now showing up for November. Hat tip to Eternal Blue
PayPal has launched a new debit card where cardholders can choose one category to earn 5% cash back on, up to a limit of $1,000 per month in spend. Currently it seems that the card is invite only mode and you can check your PayPal account to see if you’re eligible Available to everybody now. Some things to note:
- There is no annual fee
- You have to select your category each month, otherwise you won’t earn 5%
- Categories you can choose are here:
- Grocery
- Dining
- Gas
- Clothing
- Health/beauty
- Full terms here
After much pestering for weeks, my brother finally opened his PayPal debit card today.
However, now after opening, he has no mention whatsoever anywhere on/in his account regarding the 5% cashback. He can’t choose a 5% category or anything. It’s almost like he opened the card but seemingly will not be getting 5%.
Has anybody encountered this? I can’t find any mention anywhere online of a similar issue.
I think you have to activate the 5% category on the PayPal app, not the PayPal website.
Yep he’s in the iPhone app.
There is just literally no mention anywhere in his app anywhere regarding the 5% debit rewards. It’s maddening.
Of course now he’s irritated because this is the second thing I’ve pestered him into that doesn’t work properly for him lol.
What was the 1st?
Chime. Everything that worked to trigger the bonus just a week prior didn’t work for him.
And voila now he seems to be the only person in the world who opened a PayPal debit card with 5% bonus option.
I think that you forgot to include the word “no” there. 😉
Ahh yep.
It should be under “Your card” field and then and then within that page, you can select the 5% cash back category.
Does BJ’s count as groceries?
try it and find out. do a small purchase.
Saw on Reddit that it does.
How is this thing funded? With your PayPal cash balance?
Yes
DP:
(1) Chose “grocery” for May category.
(2) Purchased postage stamps (100/$72.75) at Costco
(3) Bonus posted 364 points.
I knew Costco purchases with “grocery” as the category earned bonus points. Just wasn’t sure postage stamps would earn them. HTH!
nice 🙂 yup — it would go by the MCC for the store, not the item bought, which I don’t believe is information they get. Thus people getting creative with products to purchase, in particular at grocery stores
Similar to
hwufeh (or one of the three), my debit card also appears to be – I’m assuming? – blocked at grocery stores, or at least the one with MO available in my area. As of yesterday it showed a “Not Authorized” error twice at customer service, and the same error soon after for a $3.99 PIN-based purchase at the same store. The $3.99 went through when it was run as credit though.
I haven’t used the card very much: once in January for a $995 grocery MO, once in December at Best Buy, once for crypto, no activity otherwise. I guess a ~$1000 PIN-based transaction at a grocery store is distinctive enough.
Nevermind—just did a small PIN purchase today then $300.xx MO, which went through. Maybe it was just the amount that triggered a temporary block?
It looks like Health & Beauty is no longer an available category, at least for me. It was the category I had selected last month, so I wonder if they swap the available options each month.
Categories for April 2025 are Apparel, Fuel, Groceries, Restaurants, Rideshare and Public Transit.
How useful is that category? Does it work to pay Copay at doctor’s office etc.?
Haven’t been able to redeem 5000 points I earned back from buying MO at a grocery store. Am I blocked/locked/caught or its truly tech glitch?
I am also not able to redeem 1000 points that I earned with “Pay in 4” offer. I get “ something went wrong” error. I have reported this to their support team. Lets see.
I was just able to redeem them now. Try again.
You are right, it worked for me too. Thanks.
I didn’t even remember that it used to not be available to everyone. I’m pretty sure that it’s been available to everyone for months but
William Charles never updated the article.
BTW, did you find out about this post from my comment here: #2029424 ? If so, I would recommend that you sign up just like I did to Mark!
Updated
Don’t you want to put a link in the post?
Sure, added
Are there definitions for cashback besides the listed 5% categories?
Eg, unlimited 1% blanket rewards for everything?
AFAIK, it doesn’t give any CB for purchases that don’t fall into the 5% category that you choose. You also don’t receive any additional CB if/when you reach the $50 maximum per month.
Thanks for the reply. I must be confusing this product with the paypal mastercard credit card? I was under the impression the debit card earned 3% on paypal purchase..
Does the gas category only work for gas stations and not like paying a gas bill (propane)?
Yes I would assume only road fuel from a service station. Natural gas and/or propane bill would most likely be classified as utilities if that was a category.