What is a cashback credit card?

A cashback credit card gives you a percentage of your purchases back as cash, usually credited directly to your card statement. It’s the simplest form of saving while spending.

How does cashback work on credit cards in India?

When you use a cashback credit card, the bank credits a percentage of your eligible spends back to you—either instantly or at the end of your billing cycle. For example, you might get 5% cashback on dining and 1% on all other spends.

What is the difference between cashback and rewards points?

Cashback offers direct monetary savings credited to your account, while reward points need to be accumulated and redeemed for vouchers, merchandise, or travel. Cashback is simpler and more transparent.

How do I choose the best cashback credit card for me?

Look at your spending habits. If you spend mostly on groceries and dining, pick a card that offers high cashback in those categories. If you shop online often, choose a co-branded card like Flipkart Axis or Amazon ICICI for maximum benefits.

Are there caps on cashback earnings?

Yes, most banks set a monthly or quarterly limit. For example, you might earn 5% cashback but only up to ₹500 or ₹1,000 per month. Always check the card’s terms before applying.

Which transactions usually don’t earn cashback?

Transactions such as fuel, rent payments, wallet reloads, EMI conversions, and government payments are often excluded. Each bank has its own list of exclusions.

What are co-branded cashback cards?

These are cards issued in partnership with specific brands, such as Amazon, Flipkart, or Swiggy. They give you higher cashback on those platforms while offering lower cashback on other spends.

How is cashback credited to my account?

Cashback is typically credited as a statement credit at the end of your billing cycle, reducing your total outstanding balance. Some banks may take a few extra days.

Do cashback credit cards have annual fees?

Many do, but the fee is often waived if you meet a yearly spending threshold. Some cards, like Amazon Pay ICICI, have no annual fee at all.

Is a cashback card better than a rewards card?

If you value simplicity and guaranteed savings, cashback cards are ideal. If you prefer maximizing benefits through air miles or vouchers, a rewards card may offer better value for higher spends.