How to Maximize the Chase Freedom's 5% PayPal December 2025 Bonus

7 Smart Ways to Maximize Your December PayPal Bonus

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1. Start Strong on Cyber Monday

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December 1st is Cyber Monday, one of the biggest online shopping days of the year. This timing is perfect for maximizing your PayPal bonus right from day one. Plan your major holiday purchases to take advantage of both Cyber Monday deals and the 5% cash back.

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2. Shop at Major Retailers That Accept PayPal

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Thousands of online retailers accept PayPal checkout, including:

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• Walmart
• Target
• Best Buy
• Home Depot
• eBay
• Etsy
• Wayfair
• Nordstrom
• Kohl's

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Many of these retailers run December promotions, letting you stack savings with your 5% cash back. Plus, you'll earn Kudos Boost at 15,000+ eligible stores on top of these rewards.

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3. Use PayPal Key for Maximum Flexibility

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PayPal Key generates a virtual Mastercard number linked to your PayPal account. You can use this number at any merchant that accepts Mastercard, even if they don't directly accept PayPal, and still earn the 5% bonus.

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To set up PayPal Key:

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• Log into your PayPal account
• Navigate to PayPal Key in your wallet
• Generate your virtual card number
• Use it at checkout like any credit card

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4. Finish Your Holiday Gift Shopping

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With only 31 days to maximize this category, December is your window. Whether you're shopping for electronics, home goods, clothing, or experiences, using PayPal checkout helps you earn 5% back on holiday spending.

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5. Pay Bills Through PayPal

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Some utility companies, insurance providers, and subscription services accept PayPal. Check if your regular monthly bills or semi-annual payments (like car insurance) can be paid through PayPal to maximize the bonus on necessary expenses.

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6. Buy Gift Cards Through PayPal

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PayPal's Digital Gifts store sells gift cards for hundreds of retailers. While you might not earn the 5% at the retailer itself, you'll earn it on the gift card purchase—essentially pre-paying for future purchases at a 5% discount.

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7. Let Kudos Automatically Optimize Every Purchase

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The Kudos browser extension - available for desktop and mobile - takes the guesswork out of maximizing your Chase Freedom bonus. Here's how Kudos helps you never miss the 5% PayPal category:

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Automatic Card Recommendations at Checkout‍

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Use Kudos's automatic card recommendations at every checkout

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‍When you're shopping online in December, Kudos analyzes the merchant and available payment methods in real-time. If PayPal is available, Kudos will automatically recommend your Chase Freedom card and prompt you to use PayPal checkout to earn the 5% bonus. You'll see exactly how much you'll earn before completing your purchase.

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Smart Transaction Tracking

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‍Kudos tracks all your credit card purchases and monitors your progress toward the $1,500 quarterly spending cap. You'll get notifications as you approach the limit, so you can plan your remaining December purchases strategically and avoid leaving rewards on the table.

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Multi-Card Optimization

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‍If you have multiple Chase Freedom cards (like many cardholders do), Kudos helps you maximize both by tracking spending across each card separately. This means you could potentially earn 5% back on up to $3,000 in PayPal purchases in December if you have both a Freedom Flex and Freedom Unlimited.

Track Your Progress

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With a $1,500 spending cap across all Q4 categories, it's important to monitor how much you've spent. You can check your progress:

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• In the Chase mobile app under "Bonus Categories"
• On Chase.com in your account dashboard
• Through the Kudos extension, which tracks your spending in real-time
• By reviewing recent transactions coded as "PayPal"

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Once you hit $1,500 in combined Q4 bonus category spending, you'll drop back to the standard 1% rate for additional purchases.

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Other Q4 2025 Bonus Categories

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Don't forget Chase Freedom is also offering 5% back on:

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• Chase Travel℠ (October 1 - December 31)
• Department Stores (October 1 - December 31)
• Old Navy (October 1 - December 31)

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Make sure you're maximizing all categories to get the full $75 quarterly bonus.

What Happens After December 31st?

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The PayPal bonus category expires on December 31, 2025. Chase will announce new Q1 2026 bonus categories in mid-December. Make sure to activate those categories when they're announced to continue earning 5% bonuses, and let Kudos remind you when it's time.

The Bottom Line

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Starting December 1, 2025, Chase Freedom's 5% PayPal bonus gives you 31 days to maximize rewards on your December spending. With Cyber Monday kicking off the month, holiday shopping in full swing, and year-end purchases to make, this is your opportunity to earn serious cash back on purchases you're already making.

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Quick action checklist:

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✓ Activate the Q4 bonus categories by December 14, 2025

✓ Set up PayPal Key for maximum flexibility

✓ Install the Kudos browser extension to never miss the 5% bonus

✓ Plan your Cyber Monday purchases to use PayPal checkout

✓ Let Kudos track your spending toward the $1,500 cap

✓ Use Kudos's automatic card recommendations at every checkout

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Don't let this valuable December-only bonus slip away—get ready to start maximizing your PayPal purchases tomorrow.