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How to earn reward points via PayPal

You can add your rewards credit card to a PayPal account and keep earning points while shopping online through PayPal. You can earn points via PayPal's own rewards credit card too.

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What you need to know

  • It's easy to use your rewards credit card within PayPal and earn the same points.
  • If you like using PayPal and take advantage of the platform's features, it's a convenient way to earn points.
  • Not all card rewards programs offer the same points through PayPal.

In addition to earning reward points or frequent flyer points when you link your credit card, a PayPal account gives you a secure place to store your payment details. This way you don't have to enter them every time you buy something online. It also offers encryption for every transaction and reimbursement if items don't show up or are different from the seller's description.

How to add your credit card to PayPal and earn credit card reward points

You can add any valid American Express, Mastercard or Visa credit card to your account by following the steps below.

  1. Set up a PayPal account and then add your credit card to your PayPal wallet.
  2. When you're shopping online, click on PayPal as the payment option, enter your login details and choose the card you want to use.
  3. You can then shop online as you normally would and earn points on your credit card when making eligible purchases.

What purchases will earn credit card reward points through PayPal?

The points you can earn depend on your credit card's reward program. Generally, you'll earn points when you use PayPal to buy clothes, mobile devices, makeup, music or any other retail purchases.

Gambling transactions, foreign currency purchases, gift cards and any other transactions that may be processed as cash advances don't usually earn points.

The terms and conditions for credit card reward schemes vary on "eligible transactions" that earn points, so check with your card provider for more information.

Why not just use my credit card to earn points without PayPal?

You can earn the same amount of points by shopping with your credit card. You won't earn extra points with PayPal.

However, using PayPal has some extra benefits:

  • A PayPal account gives you a secure place to store your payment details rather than entering your card details each time you shop.
  • PayPal offers encryption for every transaction and reimbursement if items don't arrive or are different from the seller's description.
  • You can manage multiple cards or payment methods via your PayPal account.

Are there any downsides to using PayPal with my credit card?

Some shoppers might find it easier just to stick with their credit card for several reasons:

  • Not always a payment option. While PayPal is accepted by a wide range of stores, including eBay, THE ICONIC, Woolworths, Optus and Telstra, there may still be times when you need to type in your credit card details to make a purchase. Find out which online stores accept PayPal.
  • Rewards may differ. PayPal's own website says that "Reward schemes may differ when using PayPal". Before you add your credit card to PayPal, check your card provider's reward scheme to see if there are any points restrictions when using PayPal.
  • Confusing transaction details. When you make a payment through PayPal, your credit card statement may show "PayPal" for the transaction description, rather than the store where you made a purchase. This could make it hard to figure out what every purchase is unless you check your purchase history through PayPal.
  • Foreign currency charges. If you're buying something in a foreign currency, PayPal automatically applies its own foreign currency conversion rates. These might be higher than your card provider's exchange rate. You can switch to your card provider's exchange rate while using PayPal, but you have to remember to do it.
  • Points processing. While your payments will go through straight away with PayPal, it could take a day or so for the transaction and points to show up on your credit card account.
  • Security. Both PayPal and credit cards offer security features to help keep your details safe when you shop online. But if you're using a credit card through PayPal and have security concerns, you may need to contact both PayPal and your card provider to sort them out.

Read more about the different security features of credit cards and PayPal.

PayPal Rewards credit card

PayPal also has its own rewards card that lets you earn points. The PayPal Rewards card offers the following:

  • $0 annual fee.
  • Ability to earn points uncapped, with 1 point for ever $1 on eligible transactions.
  • Bonus points if you spend over a certain amount.

If you do a lot of online shopping, the PayPal card is a good way to earn points. Just check that the business you're buying from is 1 of the 750,000 eligible businesses.

Compare rewards credit cards

1 - 15 of 37
Name Product Bonus points Rewards program Rewards points per $ spent Purchase rate p.a. Annual fee
Citi Premier Qantas Card
80,000
Qantas Frequent Flyer
0.5
0% for 6 months, reverts to 21.49%
$175 for the first year ($350 thereafter)
Get 80,000 bonus Qantas Points when you spend $4,000 in the first 90 days and a 0% purchase rate offer. Plus, a first-year annual fee discount.
Qantas Premier Platinum
80,000
Qantas Frequent Flyer
1
19.99%
$225 for the first year ($299 thereafter)
Earn 80,000 bonus Qantas Points when you spend $3,000 in the first 3 months and save with a reduced first-year annual fee.
Qantas American Express Ultimate Card
100,000
Qantas Frequent Flyer
1.25
20.74%
$450
Up to 100,000 bonus Qantas Points (75k when you spend $3,000 in the first 3 months and 25k in year 2). Plus, a yearly $450 Travel Credit.
Citi Rewards Card - Velocity Points Offer
60,000
Velocity / Citi
1
21.49%
$0 for the first year ($149 thereafter)
Earn 60,000 bonus Velocity Points when you spend $3,000 in the first 90 days. Plus, $0 first-year annual fee.
American Express Qantas Business Rewards Card
180,000
Qantas Business Rewards
1.25
0%
$450
ABN holders w/ $75,000 revenue. Get up to 180,000 bonus Qantas Points when you spend $3,000 in the first 2 months. Plus, a $450 Qantas Flight Voucher.
St.George Amplify Platinum
100,000
Amplify Rewards
1
19.49%
$29 for the first year ($99 thereafter)
Earn 100,000 bonus Amplify Points (worth $450 in gift cards) when you spend $3,000 in the first 90 days. Plus, a first-year annual fee discount and Kayo cashback offer.
Westpac Altitude Platinum Card
110,000
Westpac Altitude Rewards
1
19.99%
$49 for the first year ($150 thereafter)
Get 110,000 bonus Altitude Points (worth $350 cashback) when you spend $3,000 in the first 90 days. Plus, a $49 first-year annual fee discount.
American Express Velocity Platinum Card
100,000
Velocity Frequent Flyer
1.25
20.74%
$375
Earn 100,000 bonus Velocity Points when you spend $3,000 in the first 3 months. Plus, a complimentary return domestic flight per year.
Coles Rewards Mastercard
40,000
Flybuys
2
19.99%
$99
Get 40,000 bonus Flybuys points when you spend $3,000 on eligible purchases in the first 90 days.
Citi Premier Card - Cashback Offer
N/A
Citi Rewards Program
1
21.49%
$150 for the first year ($300 thereafter)
Receive $600 cashback when you spend $2,000 through Apple Pay or Samsung Pay in the first 90 days. Plus, save with a $150 first-year annual fee discount.
American Express Business Explorer Credit Card
100,000
Membership Rewards Gateway
2
3.99% for 6 months, reverts to 19.99%
$149
ABN holders w/ $75,000 revenue. Get 100,000 bonus points when you spend $3,000 in the first 3 months.
American Express Platinum Card
200,000
Membership Rewards Ascent Premium
2.25
0%
$1,450
Up to 200,000 bonus points (150k when you spend $5,000 in the first 3 months and 50k in year 2). Plus, a $450 Travel Credit each year.
Qantas American Express Discovery Card
N/A
Qantas Frequent Flyer
0.75
20.74%
$0
Earn uncapped Qantas Points for every $1 dollar spent, plus an ongoing $0 annual fee.
ANZ Rewards Black Credit Card
80,000
ANZ Rewards Program
2
20.24%
$0 for the first year ($375 thereafter)
Now eligible for Cashrewards Max. Enjoy 80,000 bonus Reward Points (worth $350 in eGift cards) when you spend $2,000 in the first 3 months. Plus, $0 first-year annual fee.
ANZ Rewards Platinum
50,000
ANZ Rewards Program
1.5
20.24%
$0 for the first year ($95 thereafter)
Now offering Cashrewards Max. Get 50,000 bonus Reward Points (worth $220 in eGift cards) when you spend $1,500 on eligible purchases in the first 3 months. Plus, $0 first-year annual fee.
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Compare up to 4 providers

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8 Responses

  1. Default Gravatar
    EbonyJune 14, 2016

    Hello

    Can you still earn points on the money you send to “Family and Friends” using your credit card as the manner of payment through Paypal?

    Thanks.

    • Avatarfinder Customer Care
      MayJune 14, 2016Staff

      Hi Ebony,

      Thanks for your inquiry.

      Generally, credit cards will let you earn points if you use them on eligible purchases and not on cash advances. Please note that credit card companies view fund transfer as a cash advance. This means that when you send money to your family and friends using your credit card through your PayPal account, you won’t be able to earn points from it.

      Cheers,
      May

  2. Default Gravatar
    ashJune 10, 2016

    how can I get into reward program in paypal if I have no credit card and only link with bank account and how can I use that point ?

    • Avatarfinder Customer Care
      DeeJune 10, 2016Staff

      Hi Ash,

      Thanks for your comment.

      With Paypal, you can only earn points when you link your credit card to your Paypal account. PayPal accepts a number of credit cards including Visa, MasterCard, American Express, Diner’s Club and more. However, it is important to note that certain cards like procurement and private label credit cards
      are not compatible with PayPal Merchant Services.

      Cheers,
      Anndy

  3. Default Gravatar
    F.July 21, 2014

    Is there an annual fee to use PayPal???

    • Avatarfinder Customer Care
      ShirleyJuly 22, 2014Staff

      Hi F,

      Thanks for your question.

      At the time of writing there is no annual fee to use Paypal.

      However, certain transactions could incur a fee – such as when buying internationally, a currency conversion fee may apply.

      Cheers,
      Shirley

  4. Default Gravatar
    KarenMarch 11, 2013

    Both my bank account and credit card are already linked to my Paypal account. When I use Paypal it takes the money from my bank account. I have followed your directions but can’t find a way to make Paypal take funds from my credit card rather than bank account. Both cards are listed as primary. How do I change from which source funds are taken?

    • Avatarfinder Customer Care
      MarcMarch 11, 2013Staff

      Hello Karen,
      thanks for the question!

      Sometimes when a bank account and credit card are linked to a Paypal account, Paypal will only use the credit card as a back up. One way of fixing this is to physically change your funding option during payment for an item. After you make a purchase, you’ll receive an invoice through Paypal. On this invoice there’ll be a link that displays your payment method, so click the link that says “more funding options”. This will allow you to select your credit card to pay.

      I hope this helps,
      Marc.

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