Details
Written by: RJ
PayPal is making a change to PayPal Rewards redemptions. This primarily impacts the 5x PayPal debit card:
Amendments to the PayPal Rewards Program Agreement
Effective: August 1, 2026
Please note that certain features of the PayPal Rewards Program are being updated as follows:
- The option to redeem PayPal Rewards Points for cash back into your PayPal balance account or directly into a linked bank account or linked debit card will be discontinued.
- The option to redeem PayPal Rewards Points for cash back deposited into a PayPal Savings account will also be discontinued.
If you would like to redeem your PayPal Rewards Points using either option listed above, you must do so before 11:59 PM Pacific Standard Time on August 1, 2026. Alternatively, you may explore other available options to redeem your Rewards Points, for example, by redeeming at checkout.
Please also note that on or after June 29, 2026, participation in and receipt of future program benefits may require your enrollment or opt-in through the PayPal app, website, or during checkout (for example, by taking a specific action or checking a box).
Thoughts
This is annoying at best. If the rewards are easy to redeem on any PayPal transaction, then so be it. If not, this could be the start of the end.
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Editorial Note:
Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.