How I Maximized the Chase Freedom 5% Cash-Back Bonus Categories for Holiday Gifts

As you tick your way through gift lists this holiday season, selecting the right credit card for your purchase can present a challenge. Which card offers the most cash-back? Which card has purchase protection or extended warranty coverage? And which LEGO set did my nephew want for Christmas, again?

Whether you’re shopping at the mall or online this December, the Chase Freedom Flex^® and Chase Freedom^® card have bonus categories perfect for the holidays, making either card a top choice for select purchases. I’ll detail what makes these categories ideal for your holiday shopping and review how I maximized a category to score 7% cash-back on one of the biggest items on my kid’s wish list.

Freedom 5% Cash-Back Bonus Categories for Q4 2025

The Q4 5% cash-back bonus categories for the Freedom Flex card and Freedom card (no longer available for new applicants but available as a downgrade from other Chase cards) are:

• Chase Travel
• Department stores
• Old Navy
• PayPal purchases (December only)

The categories are valid on up to $1,500 in combined purchases made through December 31, 2025. All other purchases, and any purchases in these combined categories beyond the $1,500 limit, earn 1% cash-back. The categories must be activated by December 14, 2025.

Let’s focus on the 3 categories that are most advantageous for holiday shopping so that you can maximize your 5% cash-back.

Department Stores

If you’re hitting the mall this holiday season (Have you seen these mall parking lots?! Who isn’t at the mall right now?), you can maximize the 5% cash-back department store category at retailers such as Belk, Dillard’s, JCPenney, Kohl’s, Macy’s, and Nordstrom. If you prefer not to brave in-person shopping, online orders at these retailers also qualify. Don’t forget to request a gift receipt!

Supercenters like Target and Walmart, discount stores like Marshalls, Ross, and T.J.Maxx, and specialty stores that sell primarily 1 line of products (such as shoe stores or clothing stores) are excluded from this category.

Old Navy

For a limited time, you can take advantage of 5% cash-back at Old Navy or OldNavy.com with up to 50% off deals for the family, from cozy socks and stocking stuffers to matching PJs and activewear.

Old Navy also offers free returns and exchanges within 30 days of the in-store purchase or delivery date, so be sure to get a gift receipt. With a gift receipt, the recipient will receive their refund via a gift card instead of a refund to the original payment method.

Purchases at other Gap brands (Athleta, Banana Republic, and Gap) are not eligible.

PayPal

Whether you’re shopping online for yourself or buying gift cards for loved ones, you’ll likely come across PayPal as a payment option, making it an easy way to take advantage of the 5% cash-back bonus.

Most popular websites accept PayPal for payment, including fashion brands typically excluded from the department stores category, such as Express, Hollister, Under Armour, Victoria’s Secret, and Zara. Other websites like eBay, Etsy, Groupon, iTunes, and Netflix also accept PayPal. If you’re booking travel, Airbnb, American Airlines, JetBlue, and United all accept PayPal (I’ve even split an airline ticket payment with PayPal to hit 2 welcome offers!).

It’s important to note that Amazon does not accept PayPal, and person-to-person transactions are not eligible for the bonus.

How I Earned 7% Cash-Back on a Big Holiday Purchase

Thanks to the generosity of his grandparents and great-grandparents, my son had saved money from his birthday and various holidays over several months. He finally made a decision on how he wanted to spend it: a new Nintendo Switch 2 Console.

As a points and miles expert, I’m not just going to let my son walk into a store with a handful of cash. I researched the best stacking opportunity with Cashbackmonitor.com and opted to shop through RetailMeNot for 2% cash-back at Target.

Once I was ready to check out, I noticed that I could use the Pay with PayPal feature. This instantly alerted me that I’d be able to earn 5% cash-back with my Freedom card.

Once I selected PayPal for payment, I had an option to click PayPal or Pay Later. Pay Later breaks up your transaction into 4 payments or several months. This option may incur variable interest rates, so I recommend paying in full whenever possible.

After selecting PayPal, I was transferred to the PayPal website to verify my payment. If you have several credit cards on file with PayPal, it’s crucial to select your Freedom card to take advantage of the limited-time bonus category.

After paying, I was taken back to the Target website for order confirmation. Using PayPal was extremely easy, and I was able to verify on the Chase website that my purchase correctly coded as a PayPal payment.

Final Thoughts

Holiday shopping can be stressful, but maximizing the 5% cash-back categories on the Freedom Flex card and Freedom card doesn’t have to be. Making purchases at department stores and Old Navy or through PayPal by December 31 can put a few dollars back in your pocket. Ensure that you activate the offer on your card by December 14 and use it on any eligible purchase.