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.
- Set up a PayPal account and then add your credit card to your PayPal wallet.
- When you're shopping online, click on PayPal as the payment option, enter your login details and choose the card you want to use.
- 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