First I don't work for Paypal- or have any friends  associated with them etc...I'm just an ebayer..

If you have a Paypal credit card ( and if you have an ebay one my suspicion is this applies to that too- so check) you earn points.

You can earn free shipping up to $7

Merchandise credit of $25, or $50.

When you earn enough- you redeeem your points- they will send you a code through your e mail for what you've ordered- ie free ship or merchandise ( I always hold out for merchandise-- but that's me)

the $25 or $50 is for merchandise BEFORE SHIPPING

it's also only for 1 seller.You use up the coupon on 1 transaction.

OK- what does that mean- you buy let's say a VHS tape, or lip gloss for $10- you appply the $25 coupon- they'll take the coupon- but you lose the other $15-the money does carry over to your next transaction with another seller. ( It's not like a gift card from major retailers)

So when possible-- spend as close to dollar amount as you can-- whatever you don't use with the 1 seller is lost.

So again- let's say you buy the VHS tape, or lip gloss for $10- and you have a $25 coupon from paypal-- look at the seller's other items-- what do you like? You've got $15 more to spend-- obviously keep an eye on shipping, and if seller charges handling fees and has mandatory insurance

Paypal coupons are great-- just spend as close to dollar amount as posssible ( if that matters to you) Coupons can only be used once and only with one seller and merchandise coupons DO NOT apply to shipping costs or sales tax ( if applicable).

Also when you order coupon from Paypal (redeem points) it takes 24-48 hours to receive it-- so keep that in mind when shopping/paying. I always alert my seller when I win/buy an item that I will be using a Paypal coupon and that as soon as I get it-- I'll pay-- so that they are not wondering what is up with me.

Happy Bidding and shopping. God Bless