PayPal used to offer 1.5% cashback on the PayPal Debit Card, and those who were grandfathered in after it lowered the rate to 1% got bad news this week. As of July 1st, all users will receive the lower rate.
A PayPal spokesperson explained that the PayPal Debit MasterCard’s standard cash back has been 1% for several years. “A small number of customers continued to receive 1.5% cash back from a program which no longer exists. We continued to honor their original rate for several years and are now consolidating all cardholders to the standard 1% rate.”
Asked about other types of PayPal credit cards or loyalty programs, the spokesperson said the company also offers the PayPal Extras MasterCard, where cardholders receive 2x points for all their PayPal and eBay purchases. More information is available on this page.
In a letter sent to customers, PayPal told longtime users who are seeing their cashback rates decrease, “Only your cashback rebate rate will change. All other terms, conditions and benefits of your card will continue as they are today.”