For a long time, using PayPal and your American Express credit card was a hack to pay shops that did not accept Amex. With their partnership, you can use your Membership Rewards points to pay instead of cash.
Available at thousands of online stores where PayPal is accepted, the partnership aims to give cardholders another way to use their rewards points and make paying more convenient.
Since their sign up bonuses change regularly, it might be worth having a look at the latest Amex credit card offers.
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Key takeaways
- Membership Rewards points can now be used at thousands of merchants that accept PayPal, giving members more options to redeem their points.
- Using Membership Rewards with PayPal is simple and easy. Link an eligible American Express card with your PayPal account and select it at checkout.
- Only primary card members can spend their points through PayPal, while additional card members and users of other co-brand products are not eligible.
- Points can cover all or part of a purchase, with a minimum of 1,000 points or $5 required per transaction.
How it works
To start using Membership Rewards Pay with Points, cardholders must have an American Express credit card that earns Membership Rewards points. They must then link it to their PayPal account. Here's a step-by-step guide through the simple process.
- Log in to your PayPal account and go to your "Wallet".
- Click "Link a Card" and enter the details of your eligible American Express card.
- Click "Link Card".
Once the card is linked, cardholders will see their available points balance and can use points for eligible purchases when checking out with PayPal.
Is PayPal a good way to use Membership Reward points?
The value of Membership Rewards points varies based on how cardholders choose to use them.
Cardholders can use as few as 1,000 points per transaction, meaning any payment of $5 or more is an opportunity to spend Membership Rewards points. Cardholders can also pay for the entire PayPal transaction using their points or use points to cover part of a purchase, using dollars for the rest.
It's also worth noting that cardholders can use Membership Rewards Pay with Points to donate to a good cause through the PayPal Giving Fund. To do so, select the number of points to redeem, and a donation is made in the corresponding amount.
While it is convenient, it comes down to how many points you have and how you value them.
- You might prefer to pay with points for small transactions if you are points-rich.
- If you don't have a redemption goal, paying with points can save you money.
- If you don't earn many points and are saving up for an aspirational redemption, using them to pay may not provide such good value.
So, in short, it depends.
Additional benefits
Though you may not enjoy as much value in spending your Membership Rewards on PayPal, your options are endless because millions of online stores accept PayPal payments.
PayPal also offers buyers extra benefits above what cardholders would usually receive. These include;
- Free shipping for returns of merchandise bought online.
- Purchase protection for goods received damaged or not as advertised.
Pros and cons
Every rewards system has pros and cons, and the PayPal Members Rewards system is no different.
Pros
- More opportunities to use rewards points. Use Membership Rewards points instead of cash to shop at thousands of online stores that accept PayPal.
- Convenient and flexible. Treat points like cash, so you can checkout quickly and easily.
- Redeem points for a good cause. Cardholders can use their Membership Rewards Pay with Points to donate to a good cause through the PayPal Giving Fund.
Cons
- Exclusive to American Express Membership Rewards cardholders. Membership Rewards Pay with Points is only available for cardholders with an eligible American Express card and a PayPal account.
- Limited availability. Cardholders may not see the option to use Pay with Rewards every time they check out online with a merchant, and it is not currently available for sending money, recurring payments, and in-store transactions.
- Limited value: You get considerably less value than redeeming the points for travel, particularly long-haul in Business or First Class.
FAQs
What American Express cards are eligible for Membership Rewards Pay with Points?
Membership Rewards Pay with Points is only available for cards that earn Membership Rewards points. It does not work with other American Express cards, such as those linked with Qantas or Velocity.
Can additional cardholders spend points through PayPal?
No, only Primary Card Members can spend points through PayPal.
