PayPal has quietly adjusted its cashback rewards, removing Walmart.com and discount stores from its 5% grocery cashback category. This change affects purchases made at Target.com and other retailers classified under MCC 5310, which previously qualified for the cashback benefit.
The update means that online purchases at Walmart and Target no longer earn 5% cashback, despite being widely used for grocery shopping. However, in-store Walmart purchases still appear to qualify, as they use a different merchant category code (MCC) that remains eligible.
Wholesale clubs, including Sam’s Club and BJ’s, are still eligible under MCC 5300, but many expect this benefit to be reduced soon. PayPal has a history of scaling back popular rewards programs, and this latest move suggests further restrictions could be on the horizon.
Consumers who relied on PayPal’s cashback for grocery purchases will need to adjust their spending habits. Many shoppers used the PayPal debit card to maximize savings on essentials, but with these exclusions, alternative cashback programs may offer better returns.
Sources:
https://www.mymoneyblog.com/cash-back-credit-cards-rotating-categories.html