Credit Card Cashback: For those who want an easy way to earn rewards, cashback credit cards are the best option. With cashback cards, a percentage of the amount spent is refunded directly to the cardholder without a partner merchant or complicated redemption procedure.
Credit Card Cashback: The number of credit card users in India has grown exponentially in just a few years. Many people have taken credit cards for the rewards, discounts and other benefits offered by banks. Reward programs are an attractive feature especially in credit cards.
But they cost more to acquire and the redemption process is also difficult. For those looking for an easy way to earn rewards, cashback credit cards are the best option. With cashback cards, a percentage of the amount spent is refunded directly to the cardholder without a partner merchant or complicated redemption procedure.
Cashback credit cards work on a straight forward rewards system. Cardholders receive a percentage of the amount they spend as cashback. This amount ranges from 1-10% depending on the spending category of the card. Unlike other rewards programs, cashback is credited directly to the cardholder’s bank account or digital wallet. Complex reduction processes are not required. According to a LiveMint report, let’s find out which two credit cards offer similar benefits.
Simplicity, Accessibility
Cashback credit cards are the best option for new credit card users. Also suitable for those who prefer a no-frills reward system. Cardholders need not search for partner merchants. No need to calculate the best redemption rates across different platforms. Rewards in cashback credit cards are transparent and easy to understand, making it easy to know how much will be refunded on the amount spent.
Reward Rates, Spend Categories
Cashback rates on these cards may vary based on spending categories. While most cards do not offer cashback on rent and fuel expenses, leading online merchants like Amazon, Flipkart, Zomato, Swiggy often offer a cashback percentage of 2-5%. Co-branded cards may offer cashback rates of 7.5-10%, but have a maximum spending limit.
Top Cashback Credit Cards
Two cashback credit cards stand out as the best options in the market right now. They are ICICI Amazon Pay Credit Card, SBI Cashback Credit Card. These cards offer higher reward rates and offer more spending categories.
ICICI Amazon Pay Credit Card
This co-branded card offers more rewards when used on the Amazon India platform. Prime members can get 5% cashback on purchases made on Amazon, including fights and hotel bookings through the site. Non-Prime members will get 3% cashback on the same transactions. Additionally, cardholders can avail 2% cashback on regular spends like utility bill payments, Swiggy, Uber, Amazon Pay payments, mobile recharge, insurance payments. 1% cashback on other spending outside Amazon India. Rewards earned through this card will be credited to the Amazon Pay balance.
SBI Cashback Credit Card
This card is the best alternative for those who prefer high cashback rates across all online shopping platforms. It offers 5% cashback on online shopping. But it excludes common expenses like rent, insurance payments, utility bills, train tickets. The card has a monthly cap of Rs 5,000 cashback. This will give you an idea of how much to spend.
Fees
While cashback credit cards offer attractive rewards, there are a few factors to consider before taking one. Getting SBI Cashback Card is very difficult because SBI Card prefers to approve applications of other cards. ICICI Amazon Pay Card pays higher rewards for purchases made on co-branded partner platforms.
But transactions on other e-commerce platforms may not offer the same benefits. ICICI Card Lifetime Free Card. Joining and annual fee of Rs.1,180 on SBI cashback card. If you spend more than Rs.2 lakh, the annual fee will be waived. But both cards have joining and annual fees. Hence it is better to choose a card with low fees.
