Join Early Retirement Today
Reply
 
Thread Tools Display Modes
PayPal offering 2% Cash Back Mastercard. What's the catch?
Old 06-26-2017, 08:06 AM   #1
Recycles dryer sheets
Felix Mulier's Avatar
 
Join Date: Feb 2013
Posts: 99
PayPal offering 2% Cash Back Mastercard. What's the catch?

I just received an offer from PayPal for a 2% cash back Mastercard (T&C document here: https://www.onlinecreditcenter2.com/...ntCashback.pdf)

We have only ever used one credit card and pay off its balance every month. Never paid interest or fees of any kind. Adding a second card is a big deal. But, I've been considering using a "cash back" card to help with the cost of healthcare premiums (2% is 2% right?) - got the idea from a post here somewhere.

What "gotchas" do I need to look out for/be aware of?

As always, advice from this forum greatly appreciated! Thanks in advance.
__________________
I generally avoid temptation unless I can't resist it.

Felix

Felix Mulier is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-26-2017, 08:19 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 7,281
Quote:
Originally Posted by Felix Mulier View Post
I just received an offer from PayPal for a 2% cash back Mastercard (T&C document here: https://www.onlinecreditcenter2.com/...ntCashback.pdf)

We have only ever used one credit card and pay off its balance every month. Never paid interest or fees of any kind. Adding a second card is a big deal. But, I've been considering using a "cash back" card to help with the cost of healthcare premiums (2% is 2% right?) - got the idea from a post here somewhere.

What "gotchas" do I need to look out for/be aware of?

As always, advice from this forum greatly appreciated! Thanks in advance.
Check to be sure your health care providers/insurance company accept Mastercard. Every now and again I've planned to use a card for a specific bill only to find it isn't accepted.
calmloki is offline   Reply With Quote
Old 06-26-2017, 09:02 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Red Rock Country
Posts: 1,915
Fidelity also offers a 2% cash back VISA card. One catch is you need a Fidelity account to which the cash back gets deposited. Another catch could be a limit on the annual amount of cash back earned although I don't believe this applies to the Fidelity VISA.
Ian S is offline   Reply With Quote
Old 06-26-2017, 09:05 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 3,877
If there's a fraudulent charge on your card but the card company doesn't believe you, and you decline to pay it they'll instead take the money from your Paypal (or Fidelity, or whatever) account.
GrayHare is offline   Reply With Quote
Old 06-26-2017, 09:07 AM   #5
Recycles dryer sheets
tuckeverlasting's Avatar
 
Join Date: Apr 2011
Location: The Emerald City
Posts: 124
Hi Felix, Rewards credit cards are a great idea and there are many available. 2 of the most popular are the Chase Freedom and the Discover It card. I have the US Bank Cash Plus Signature, which has both 2% and 5% back categories (you choose several from a variety of choices like groceries, etc.), plus pays 1% back on everything else not in the 2 or 5% categories.

I plan to get another rewards credit card presently. I also have 2 rewards credit union checking accounts. Check around, it all adds up!
tuckeverlasting is offline   Reply With Quote
Old 06-26-2017, 10:30 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Mar 2017
Location: New York City
Posts: 2,838
Quote:
Originally Posted by GrayHare View Post
If there's a fraudulent charge on your card but the card company doesn't believe you, and you decline to pay it they'll instead take the money from your Paypal (or Fidelity, or whatever) account.
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
Blue Collar Guy is offline   Reply With Quote
Old 06-26-2017, 11:06 AM   #7
Moderator
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 10,656
Quote:
Originally Posted by GrayHare View Post
If there's a fraudulent charge on your card but the card company doesn't believe you, and you decline to pay it they'll instead take the money from your Paypal (or Fidelity, or whatever) account.
I didn't know they had the ability to pull out of your bonus cash account. I guess you'd need to read the fine print to find out how much they could pull, and if they can pull if you simply miss a payment.

To me, it wouldn't make a difference because I wouldn't pick a fight with my credit card company at the level of not paying for something...you just need to pay the credit card bill and call the customer service people and make your case.

But I routinely pick fights with people who bill my credit card! That's a prime advantage of using plastic. I can't think of even once where it didn't go my way. If it ever doesn't go my way, and I'm convinced I'm justified, I'll quit using the card. When I do challenge a charge, I pay the entire monthly balance, including the disputed charge. It's just simpler that way, since there's no chance of getting into paying interest on a credit card balance if the timing of credits is unexpected. Sometimes I "loan them a few bucks" by running a credit balance (after I pay the full bill and they credit me for the disputed amount), but small potatoes.
sengsational is offline   Reply With Quote
Old 06-26-2017, 02:45 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Red Rock Country
Posts: 1,915
Quote:
Originally Posted by GrayHare View Post
If there's a fraudulent charge on your card but the card company doesn't believe you, and you decline to pay it they'll instead take the money from your Paypal (or Fidelity, or whatever) account.
I've never had a CC company question fraudulent charges and I've had it happen a number of times. Nowadays, it appears that the CC companies identify fraudulent transactions before I have a chance to.
Ian S is offline   Reply With Quote
Old 06-26-2017, 02:49 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Red Rock Country
Posts: 1,915
Now that I have the Fidelity card with 2% cashback on everything, I just wish I'd had it sooner! Trying to keep track of the "rotating" rewards categories on some of these other cards is just a pain in the neck IMHO.
Ian S is offline   Reply With Quote
Old 06-26-2017, 03:19 PM   #10
Thinks s/he gets paid by the post
euro's Avatar
 
Join Date: Oct 2015
Posts: 2,307
Quote:
Originally Posted by Ian S View Post
I've never had a CC company question fraudulent charges and I've had it happen a number of times. Nowadays, it appears that the CC companies identify fraudulent transactions before I have a chance to.
Agreed - plus, while I must confess that I did not go back to the user agreement to double-check, I VERY SERIOUSLY doubt that Fidelity could, or for that matter would, dip into your non-cc account to recover any funds. Why would they? They can leave the balance on the card and earn interest!

To the OP, about the only thing to make sure is that there is no annual fee (upfront or in year 2).
euro is offline   Reply With Quote
Old 06-26-2017, 04:21 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 3,877
Quote:
Originally Posted by Ian S View Post
I've never had a CC company question fraudulent charges and I've had it happen a number of times. Nowadays, it appears that the CC companies identify fraudulent transactions before I have a chance to.
I had thought that would be the case too but learned the hard way it isn't always true.
GrayHare is offline   Reply With Quote
Old 06-27-2017, 07:50 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Jan 2017
Posts: 2,643
Quote:
Originally Posted by Ian S View Post
Now that I have the Fidelity card with 2% cashback on everything, I just wish I'd had it sooner! Trying to keep track of the "rotating" rewards categories on some of these other cards is just a pain in the neck IMHO.
+1! Likewise, playing games with "points" isn't my thing. Give me the cash. You never know what a "point" is worth, day-to-day.

I use the Citibank Double Cash, 2% back on everything IF you pay your balance in full, which I always do. I also have a PenFed card that has a grandfathered 5% back on gas. I don't think they offer that any more.

There are other 2% back cards (see above.) You might find some that offer 3% on categories like groceries or restaurants, which wouldn't be a bad deal; Just always use that one card for that type of purchase. The rotating cash back thing is more of a gimmick, not worth the effort when there are simpler options.
CaptTom is offline   Reply With Quote
Old 06-29-2017, 08:48 AM   #13
Recycles dryer sheets
Felix Mulier's Avatar
 
Join Date: Feb 2013
Posts: 99
Thanks again folks, for the great advice.

My takeaways are:
1. read the fine print (first I have to find it!) to see if they, for example, can dip into my PalPal account if there's a dispute
2. make sure there are no annual fees
3. make sure the healthcare/insurance providers accept MC
4. cash is better than points!

All good advice. Cheers!
__________________
I generally avoid temptation unless I can't resist it.

Felix

Felix Mulier is offline   Reply With Quote
Old 06-30-2017, 09:29 AM   #14
Recycles dryer sheets
ducky911's Avatar
 
Join Date: May 2010
Posts: 497
I got citi double back card (master card). Than realized that Costco would not take it. Have to keep old card as backup and Costco use.

2% on everything is cool
__________________
You've got to ask yourself one question: Do I feel lucky? Well, do ya, punk?
Retired July '11 investments in very low cost index and mutual funds, balance once a year at best.
ducky911 is offline   Reply With Quote
fidelity cc
Old 07-03-2017, 08:41 AM   #15
Confused about dryer sheets
 
Join Date: Apr 2014
Posts: 9
fidelity cc

I set up notifications for any charge over $20 or any charge without the card present. Helps me monitor for fraud. I haven't had any problems yet.
wappldw is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Karl Marx MasterCard mickeyd FIRE and Money 7 06-18-2012 12:01 PM
Question about a MasterCard danno1 FIRE and Money 7 01-26-2010 01:57 AM
US Airways and MasterCard ripoff RustyShackleford Other topics 6 11-18-2009 06:45 PM
Mastercard's "IPO" Nords FIRE and Money 0 12-25-2005 09:50 AM

» Quick Links

 
All times are GMT -6. The time now is 05:01 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.