No More Foreign Transaction Fees on PayPal’s Cashback Mastercard

EXCLUSIVE- In the spirit of credit cards aiming to woo users with rewards and benefits, PayPal got rid of foreign transaction fees on its Cashback Mastercard.

Bank Innovation has learned that starting this week, PayPal Cashback Mastercard users will no longer be charged the original foreign transaction fee of 3% the transaction amount.

In a statement emailed to Bank Innovation, PayPal Spokesman Josh Criscoe said “We wanted to extend the simplicity of the PayPal Cashback Mastercard. Removing the foreign transaction fee makes it easy for cardholders to use their card anywhere in the world Mastercard is accepted without having to pay an additional fee, providing an even more rewarding experience.”

PayPal launched the card in the U.S. back in August 2017. The card is issued by Stamford, Conn. based Synchrony Bank.

Like the plethora of new cards saturating the market, PayPal’s card boasts of a set of benefits for users, including no annual fees, 2% cash back on all purchases, no redemption minimums or limits on how to use rewards, no expiration on cash rewards, and no restrictions on purchase types.

Additionally, the card includes all Mastercard benefits like extended purchase protection, warranty coverage and identity theft resolution assistance.

The card, once the applicant is approved, downloads as a digital version to the user’s wallet immediately. Customers will also receive a physical card.

In its recently released third quarter results, San Jose-based PayPal noted its transactions grew by 26% to 1.9 billion and its revenue grew 21% to $3.2 billion compared to the same quarter last year.

PayPal, which trades on Nasdaq under the symbol PYPL, has a market capitalization of $87.09 Billion.