Capital One Now Lets You Use Credit Card Reward Points to Buy Stuff With PayPal
In 2020, travel is out and shopping online is in — and credit card issuers are moving quickly to adapt their products to this new reality. The latest is Capital One, which just announced a new partnership with PayPal.
Capital One and PayPal Rewards
Capital One is integrating several of its credit cards with the PayPal Pay with Rewards program, which will allow you to redeem rewards whenever you make a purchase from millions of online stores. Eligible cards include the Venture, Quicksilver, Savor and SavorOne, as well as Capital One Spark business credit cards.
To use this new feature, all you have to do is link your eligible Capital One credit card to your PayPal wallet and enroll, starting on October 20. If this is the first time you're linking your Capital One card to your PayPal wallet, then you'll also be able to enroll in PayPal Pay with Rewards at the same time.
Then, every time you check out with PayPal, you'll have the option of using your cash back or Capital One Miles to pay for purchases, including those from major retailers such as Target, Apple and The Home Depot.
Should you use this option?
In the case of cash back cards like Quicksilver or Savor, there's little reason not to use this option. A lot of people like the feeling of using their cash back rewards for a particular purchase, rather than to offset their entire statement balance.
When it comes to redeeming miles from the Venture or a Spark business card, the PayPal option offers a little less value than to using your miles for travel rewards: 125 miles are worth $1 in redemption value when checking out with PayPal vs one cent per mile redeemed towards travel purchases. So while you won't receive quite as much value as you would for travel statement credits, this option can make more sense if you're not traveling much these days.
But if you are considering transferring your Capital One Miles to airline miles, it can sometimes be possible for skilled award travel enthusiasts to receive more value for expensive tickets. For the rest of us, not to mention those who aren't traveling anytime soon, redeeming Capital One Miles for PayPal purchases can be more attractive.
Top Capital One cards eligible for PayPal with Rewards
Capital One Venture Rewards Credit Card. Venture Rewards is their flagship card, which currently offers 100,000 bonus miles after spending $20,000 within 12 months of account opening, or you can still earn 50,000 miles after spending $3,000 on purchases within three months. You earn 2x miles on all purchases, and receive up to $100 application fee credit for Global Entry or TSA PreCheck. There's a $95 annual fee for this card.
Capital One Quicksilver Cash Rewards Credit Card. When you want to earn cash back without paying an annual fee, the Quicksilver card to consider. It offers new applicants a $200 cash bonus after spending $500 in purchases within three months of account opening. You also earn unlimited 1.5% cash back on all purchases, with no list of rotating bonus categories to keep track of.
Capital One SavorOne Cash Rewards Credit Card. This card is ideal for those who want to earn bonus cash back on dining, entertainment and popular streaming services. You'll earn 8% cash back on tickets at Vivid Seats and 1% cash back on all other purchases. Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening and pay no annual fee.
Other recent enhancements
Earlier this year, Capital One launched a limited-time partnership with Uber Eats, giving Savor, SavorOne, Venture and VentureOne cardholders 5% or 5x back through January 31, 2021. Capital One has also provided Savor and SavorOne cardholders the opportunity to earn enhanced cash back on streaming services, while Venture and VentureOne cardholders can redeem their miles on food delivery and streaming services through the end of the year. Most recently, Capital One increased the introductory bonus on multiple cards including Quicksilver and SavorOne (now both $200) and Venture (a limited-time record-high 100K miles).
You might not be traveling much this year, but you still have the opportunity to earn valuable rewards, even for cards that were once marketed mostly to travelers. By understanding the value of these new offers, you can find the right card for you needs.
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