Did PayPal just kill the 5% cashback on their debit card?

I received this email yesterday (likely because I had the honey browser extension installed at one point). Does this change mean the “5% back” on the debit card will only be redeemable for gift cards after Aug 1st?

“Notice:

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 your points for gift cards on the Honey website.”

devhnh It seems Payal engage customer to use their checkout button on retail sites. Its fine inmo since there still lot everyday shopping retail accept paypal such as Target, Walmart, or travel airlines ....or buy amazon gift card. Apr 7 1 like

loner_but_a_stoner The PayPal debit card was such a pain to use because they didn’t offer a credit line and auto pay Apr 3

WestHistorians It's a debit card, why would it offer a credit line and why would it need auto pay? Apr 3 13 likes

Whoisyungtino 😭😭😭 Apr 3 1 like

NotoriousCFR You...know what a debit card is, right..? Apr 4 7 likes