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"Redeem for Cashback" option removed from PayPal Rewards
Effective August 1, 2026, PayPal removed the ability to redeem PayPal Rewards points for cash back to a PayPal balance, bank account, or debit card. Points remain usable for other redemption options at checkout. The change applies to the PayPal Rewards program; the PayPal Cashback Mastercard's card cash back is a separate system — though redemption problems on that card surfaced within days of this change.
What to do: If you hold PayPal Rewards points and wanted cash, use remaining redemption options deliberately — and see our coverage of the related card redemption problems.
Source· verified Aug 7, 2026
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