I'm thinking of getting a Chase credit card. Chase's Ultimate Rewards boasts 2x points on travel/dining, with 1x points on all other purchases.

I make most of my purchases using PayPal, so am wondering whether if I purchase my flight tickets via PayPal (linked to Chase credit card), then Chase's system will recognize that the transaction was a travel spend? Or will it lump all PayPal transactions into the 1x category, regardless of the category that the end merchant falls into?

Has anyone had any experience with this?

  • 4
    Suggestion: call Chase and ask them.
    – Flux
    Nov 9, 2020 at 1:28
  • Useful tidbit: Chase's free "Freedom" card (not the same as Freedom Unlimited) usually has a quarter where you earn 5 pts/$ on PayPal (although there's a cap there which "most of my purchases through PayPal" may easily exceed). The Chase "Freedom" product which is a Visa recently got phased out in favor of "Freedom Flex" and it's too early to know whether it will have bonus earn on PayPal also.
    – Ben Voigt
    Dec 9, 2020 at 20:11

1 Answer 1


Yes, Chase classifies transactions from PayPal and other payment intermediaries according to the industry of the end merchant.

  • 3
    Do you have a citation for that?
    – RonJohn
    Dec 9, 2020 at 19:03
  • This has been my observation as well, not sure if there is any way to prove it outside of personal experience though.
    – Craig W
    Oct 6, 2021 at 0:48

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