What Is A Cashback In Credit Card & How Cashback Works?

What is a Cashback Credit Card?

Cashback Credit Cards have become quite famous due to their simplicity of usage. A Cashback Credit card gives the rewards in terms of CashPoints which can be converted into real cash. A cashback credit card gives a certain amount of your purchase’s money back on each transaction. The percentage amount given back varies among different categories as per the card’s policy.

Cash-back benefits are real money that may be applied to a credit card payment, received as a cheque, or deposited into a bank account.

How does Cashback Credit Cards work?

To completely understand how Cashback Credit Cards work, go through the following points given below:

  1. CashPoints: The Rewards earned on a Cashback Credit Card are known as CashPoints. These cash points can be earned in different categories like travels, lifestyle expenses, Entertainment, etc.
  2. Accelerated Points: Many times, a cashback credit card provides accelerated Cash Points on certain categories, For Example, the Paytm SBI SELECT Credit Card gives accelerated benefits on transactions done via Paytm. So, a co-branded card, or any other form of collaboration can qualify your card for accelerated benefits of cashpoints. 
  3. Redemption: You can only redeem your cash points after reaching a certain threshold. Once that minimum limit is reached then the benefits earned on cashback credit cards can be redeemed in various ways, you can either get the amount transferred into your bank account or you can adjust it in your credit card bill, you can also use your points to convert into air miles and save your money on next ticket, etc. 
  4. Types: The cashback Credit Cards are of three major types as discussed below, the workings of all these cards are different from each other:
    a)     Flat Rate Cashback Credit Card: This is the easiest type of Cashback Credit Card. With a  Flat-rate card, the cashback in credit card earned in this category is the same across all categories.
    b)     Tiered Cashback Credit card: Several cashback rates are available with the Tiered Cash Back Credit Card. On certain transactions, there is a regular cashback rate, and they also provide "Accelerated Rewards" on specific categories. Accelerated rewards cards are simply cash points or miles earned in addition to the base reward rate.
    c)     Rotating Cashback Credit Card: Rotating Cashback credit cards offer high incentives for designated categories. Those super-high incentives are earned in specified spending categories, such as supermarkets or petrol stations, and those categories vary every three months.

What are some of the top Cashback Credit Cards available?

Some of the top cashback Credit Cards available for you to choose from are mentioned down below:

  1. Axis Bank ACE Credit Card
  2. Paytm SBI SELECT Credit Card
  3. Citibank Cashback Credit Card
  4. HSBC Cashback Credit Card
  5. Standard Chartered Super Value Titanium Credit Card

Comments

Post a Comment

Popular posts from this blog

ICICI BANK EMERALDE CREDIT CARD VS SAPPHIRO CREDIT CARD

Image
  ICICI offers many credit cards and each one of them have its own unique benefits, the top two credit cards are ICICI BANK EMERALDE CREDIT CARD and ICICI BANK SAPPHIRO CREDIT CARD. ICICI Bank Emerald credit card is one of the top super-premium credit cards in India, this credit card is a high-end lifestyle card that is ideal for people with high net worth who want to take advantage of lavish features on their card. Whereas the ICICI Bank Sapphiro Credit Card is a high-end credit card that is available in Mastercard and Visa network forms, with this premium credit card, you may take advantage of a wide range of lifestyle benefits in areas like eating, travel, and entertainment. ICICI BANK EMERALDE CREDIT CARD: ICICI Bank Emerald Credit Card is one of the top super-premium credit cards in India, it brims with several advantages. This high-end lifestyle card is ideal for people with high net worth who want to take advantage of great features. One of the premium advantages of this...
Read more

Axis Bank Neo Credit Card Vs Ace Credit Card

Image
Axis Bank is a leading bank that offers a wide range of credit cards. In this article, we have compared Axis Bank Neo credit card and Axis Bank Ace credit card. Both credit cards are ideal for first-time credit card users. You need to first analyze your needs and spending habits so that you can choose the card that compliments them. Having the right credit card helps you maximize its benefits. Without any further ado, hereunder is the comparison between these two credit cards on the basis of their fees, features, and benefits. Keep reading to kick start your research. Axis Bank Neo Credit Card This one is an entry-level credit card that lets you earn 1 Edge points on every Rs. 200 spent. The Axis Bank Neo credit card offers you welcome benefits, shopping benefits, and movie and dining benefits. Here are the key features and benefits of this credit card. Joining Fee: Rs. 250 plus applicable taxes Renewal Fee: Rs. 250 plus applicable taxes Spend-Based Waiver: N/A Features and Benef...
Read more

Does Canceling Credit Cards Affect Your Credit Score?

Image
There might be several reasons to close your credit card account, be it annual fees or unmanageable debt. But should you consider closing your card account if it hurts your credit score just by closing the account itself? Canceling credit cards might not be a good option at times. There are ways in which an individual can consider not closing his/her credit card account to avoid a dip in their credit score . From here, the question arises of how closing a credit card account will affect your credit score. So let’s get started.  Credit Utilization Ratio Closing a credit card account will drop your total available credit and will have an immediate effect on your Credit Score. Since your card limit is no longer able to lend a hand in your Credit available to credit availed ratio, your total utilization rate will increase. Credit History if your Credit account’s age is more than regular, it will have an impact too. Better your credit payment history, the more you are considered for a c...
Read more