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Cashback credit cards reward you every time you use them by giving you a percentage of your spending back in the form of cash rewards. How this works is that when you pay for an eligible purchase, you earn a predetermined percentage of the amount as a cashback. 

 

Let’s assume that your credit card offers 1% cashback on all online purchases. So, if you spend ₹10,000 on an online purchase, you will receive a cashback of ₹100. 

 

The cashback may be offered as a statement credit or a direct credit to your linked bank account. The nature and percentage of cashback offered vary for every card. The cashback may also be different across categories of purchases. 

 

So, ensure that you read the terms and conditions before applying for a money back credit card. To maximise your rewards, it is best to choose a card whose rewards align with the spends and purchases you regularly make.

How Does Cashback Work

When making a purchase, you end up using your credit card to pay for the entire purchase amount. The merchant (or the seller) pays a fee, also known as the interchange fee, to your credit card issuer. This fee is paid to facilitate the transaction. 

 

A portion of the purchase amount you spent is what you typically earn as cashback. This amount gets credited to your statement at the end of your billing cycle. Sometimes, it may take a little longer to reflect in your account.

Some of the Top Cashback Credit Cards in India

This segment is packed with numerous options. Take a look at some of those you can currently apply for, in India.

1. Axis Bank ACE Credit Card

If you are looking for one of the best cashback credit cards that offer attractive cashback on utility bill payments and food orders, then the Axis Bank ACE Credit Card is the right choice for you. With an annual fee of just ₹499, you can get a plethora of benefits:

  • 5% cashback on bill payments and recharges on Google Pay

  • 4% cashback on booking rides on Ola and ordering food on Swiggy and Zomato

  • 2% cashback on all other spends

2. Flipkart Axis Bank Credit Card

The Flipkart Axis Bank Credit Card is a co-branded card designed to offer cashback on all purchases at Flipkart. With an annual fee of ₹500, it is one of the best cashback credit cards available in the market. With this card, you can unlock the following benefits: 

  • 5% cashback on shopping on Flipkart 

  • 4% cashback at preferred merchant outlets

  • 1.5% cashback on spends across all other categories

3. Cashback SBI Card

SBI's Cashback Credit Card is a good option for those looking to earn rewards and save money on their daily transactions. What sets this card apart is that it does not have any restrictions on merchants, so you can earn cashback on any website you spend on. This is a rare feature as most cashback credit cards limit the eligible platforms. Here are some of its key benefits:

  • 5% cashback for online transactions

  • 1% cashback for offline transactions

  • Renewal fee waived for spending ₹2 Lakhs in a year

4. HSBC Cashback Credit Card

The VISA Paywave technology incorporated into this globally accepted credit card allows you to make contactless payments and earn unlimited cashback on every transaction. It offers a balance transfer option, a contactless payment feature, and annual fee reversal. 

 

The HSBC Cashback Credit Card can help you save money and manage your finances more effectively. Some of its key features include:

  • 10% cashback on dining, grocery, and food delivery spends 

  • 1.5% cashback for select online spends 

  • Joining fee of ₹999

  • Annual membership fees of ₹999 (reversed if total annual spend exceeds ₹1 Lakh)
Read More

Other Cashback Credit Cards

Apart from the cashback credit cards mentioned earlier, there are some credit cards that may not offer immediate cashback benefits. Instead, they allow the redemption of reward points for cash. Here are some of these:

Credit Card

Annual Fee

Reward points to cash conversion rate

HDFC Bank Titanium Edge Card

NA

100 reward points for ₹10 

IndusInd Bank Platinum Aura Edge Credit Card

No Annual Fees

1 reward point for ₹0.5

HDFC Freedom Credit Card

₹500

1 reward point for ₹0.15

IndusInd Bank Platinum Card

No Annual Fees

1 reward point for ₹0.40

HDFC Bank Platinum Edge Card

NA

100 reward points for ₹10 

IndusInd Bank Legend Credit Card

No Annual Fees

1 reward point for ₹0.50

Disclaimer: The charges may vary at the discretion of the card issuer.

Difference Between Rewards and Cashback Credit Cards

Rewards credit cards and cashback credit cards sometimes end up being used interchangeably. However, they are actually separate types of credit cards. 

 

To gain a better understanding of the differences between the two, refer to the table below:

Feature

Rewards Credit Cards

Cashback Credit Cards

Type of earnings

Reward points, which accumulate for every purchase

Cashback or a percentage of spending returned as cash

Redeeming earnings

Dedicated website/app, net banking; redeem for travel miles, gift cards, merchandise, statement credits

Cashback automatically credited to statement or deposited in linked bank account

Expiry

Reward points have an expiration date, so they must be used within a set time frame.

Cashback earned does not expire and can be used anytime.

Flexibility

Reward points can only be redeemed for specific categories/products listed on the bank's reward catalogue.

Cashback can be used to purchase anything you want.

Rewards credit cards work best for consistent spenders who value diverse reward options, in specific categories. On the other hand, cashback credit cards work best for users who simply want to earn a cashback on every purchase they make.

Benefits of Cashback Credit Cards

Here are some key advantages of having a cashback card: 

Cashback Rewards

Several cards offer cashbacks on every purchase made using the card. The cashback percentage varies from card to card and can range from 1% to 5%. These rewards can add up quickly. These can be redeeme Read Mored for statement credits, gift cards, purchases you make online. Read Less

Discounts on Specific Categories

Some credit cards provide higher percentages of cashbacks on specific categories such as dining, fuel, or groceries. This can help you save more money on your everyday expenses.

Welcome Bonuses

Some of these may come with welcome bonuses, such as cashback rewards or extra points. You get these for signing up and spending a certain amount within a specified time frame.

No Renewal Fees

Some credit cards waive the renewal fee if you achieve the minimum spending limit within a set time period. Usually, this period is defined by your credit card issuer. This can be great if you want to Read Moreenjoy the benefits of a credit card without paying any additional fees. Read Less

Travel Benefits

There may be some cards that offer travel benefits. With those, you can enjoy free airport lounge access, travel insurance, or discounts on flights and hotels.

EMI Options

In case of some cashback credit cards, you can choose EMI options. These allow you to convert high-value purchases into easy monthly instalments with low interest rates.

Online Shopping Benefits

These may offer exclusive discounts and cashback offers on online purchases from e-commerce websites. This makes them an ideal option for frequent shoppers.

Features and Rewards of Cashback Credit Cards

Credit Card

Features

Cashback Rewards

HDFC Moneyback Credit Card

  • 2 reward points for every ₹150 spent

  • Redeem reward points for cashback or other rewards

Up to 1.5% cashback

Amazon Pay ICICI Bank Credit Card

  • 5% cashback on Amazon Pay, for Prime members

  • 3% cashback on spends on Amazon

  • 1% cashback on all other spends

2% cashback on payments to 100+ partner merchants

Standard Chartered Super Value Titanium Credit Card

  • 5% cashback on fuel, telephone bill payments, and utility bill payments

  • 1 reward point on every ₹150 spent 

  • Redeem reward points for cashback or other rewards

Up to ₹200 cashback per month

SBI SimplyCLICK Credit Card

  • 5X rewards on online spends at partner websites

  • 1 reward point on every ₹100 spent otherwise

  • Redeem reward points for cashback or other rewards

Up to ₹750 cashback per month

 Disclaimer: The charges may vary at the discretion of the card issuer.

Eligibility Criteria and Documents Required

The eligibility and documents needed to apply for a cashback credit card are simple as well as minimal.

1. Eligibility Criteria 

  • Nationality: You must be an Indian citizen

  • Age: Your age must range between 18 and 70 years

  • Employment Status: You must be a salaried or a self-employed individual

  • Other Criteria: You must abide by the bank’s income and credit score criteria

2. Documents Required 

  • Proof of Address: Ration card, Aadhaar card, passport, or Voter’s ID (one copy)

  • Proof of Identity: Aadhaar card, PAN card, passport, or driving licence (one copy) 

 

Note: The eligibility criteria mentioned above, and the list of documents are indicative. Depending on the money back credit card you choose, you may have to fulfil specific eligibility criteria or submit additional documents during the application process.

How to Choose the Right Card

There are a few factors that you should consider to ensure that you opt for the best cashback credit card in India. Here is a quick look at a few of them. 

  • Your Needs

The benefits offered by a credit card should align with your requirements. For instance, there are cards that offer great rewards for groceries and departmental store purchases. Similarly, there are others that reward you for fuel transactions. You should choose a card whose benefits match what you are going to be using it for.

  • Annual Fees of the Card

Not all cards come with the same annual fee. There are lifetime-free credit cards as well as cards that have an annual fee ranging from ₹499 to ₹1,499 and more. It is important to choose which card’s annual fee you can afford. 

  • Rate of Cashback 

The rate of cashback that you are eligible for varies depending on the card that you choose. The higher the rate, the more the savings. So, when shopping for the best cashback credit card, make sure to get one that offers a high rate. 

  • Accelerated Rewards 

Some of these offer accelerated cashback on certain specific transactions. It is advisable to opt for the ones that offer such bonus rewards since they can help you maximise the cashback that you get to receive.

How to Apply

You can get started right away. Follow these steps:

  1. Click on ‘Apply Now’ on this page

  2. Enter your details and accept the ‘Terms and Conditions’

  3. Validate your mobile number by entering the OTP you’ve received

  4. Fill in the details required for your application

  5. Check the credit card offers available for you

 

Compare the features of all cards, before you apply for the one that suits your needs the best. Once you submit your application, the concerned representative will contact you to process the application further.

Frequently Asked Questions

Which is better- cashback or rewards?

Both the cashback and rewards program follow the same concept, which is to incentivise you to use the credit card. You can come across certain cards that will allow you to convert the reward points into cash. 

 

On the other hand, you can find some reward credit cards that will allow you to convert the same into miles. The latter type of cards can prove to be beneficial if you travel frequently. Therefore, you must select a card based on your needs.

Is a cashback credit card worth it?

A credit card would be valuable if its advantages outweigh the annual fees and interest charges. However, you should always pay your bills on time so that you can realise the benefits instead of losing them on charges or late payment fees.

I already have a rewards credit card. Should I get a cashback credit card too?

You can consider getting yourself one if your rewards card does not cover a particular spending category. Since these come with low or no annual fee, availing one will not burden your pocket.

Will the cashback be credited to the credit card account?

Yes, the received cashback will be credited to your credit card account.

Is it possible to maximise cashback on credit cards?

Yes, it is possible to maximise cashback benefits on a credit card. Make sure you read the terms and conditions thoroughly before buying the card. For instance, some cards may offer high cashback only if you shop at participating merchant outlets. If you do not shop at those outlets, the card will not have any value to you, no matter how big the rewards are.

Which is the best cashback credit card in India?

It is up to you to decide which one is the best cashback card for you. That said, the Axis Bank ACE Credit Card, Cashback SBI Card, and Flipkart Axis Bank Card are some of the top options with valuable benefits.

Do I need a cashback credit card if I already have a rewards credit card?

Rewards credit cards and cashback credit cards provide entirely different benefits. For instance, when you use a rewards credit card to make purchases, you get reward points. Once you have accumulated enough of them, you can choose to redeem the points in favour of discount coupons and e-vouchers. On the other hand, when you use a cashback card, a percentage of your transaction value is credited back to you.

 

So, even if you already have a rewards credit card, you may still choose to apply for this card as well.

Is cashback of 2% enough?

A cashback of 2% may seem small. However, on an annual expenditure of ₹1,00,000, it translates to ₹2,000 saved. Over time, this cashback can add up significantly.

What are the ways to maximise cashback on my credit card?

Many credit cards offer a higher rate of cashback for certain specific transactions. So, to maximise the amount of cashback, make sure to use your credit card to pay for transactions that are eligible for bonus or accelerated rewards.

How do you use a credit card cashback?

Depending on the terms and conditions of your money back credit card, you may receive your credit card cashback as a statement credit or as a bank credit. If you receive it as a statement credit, you can use it to lower the current outstanding balance on your credit card. However, if the cashback is credited to your bank account, you can use it like regular cash.

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