This quarter my credit card Discover offers 5% cashback for using Paypal. At the end of the year, it matches all the cashback that I earned and thus I will earn a total of 10% cashback for using Papal linked to my Discover card. At the same time, Paypal charges 2.9% plus $0.30 USD for receiving money.

So if I pay myself $1000 using Paypal, Discover gives me 10% back and it will be $100. At the same time, Paypal charges me $29.3 for receiving this money. Thus I will have a net gain of $70.7.

Will it even work? Or is it just another free money loophole?