What is a Cashback Credit Card and How to Redeem it in the UAE?
Cashback card is the most sought-after plastic money in the UAE. A cashback card is a reward program where the card members receive a percentage of their spending back. With every swipe, tap or dip of your cashback card, you will be earning rewards for it.
The cashback card is a lucrative venture. You can use the reward to pay the bill of your swipe card too or redeem it the way you want.
How do Cashback Credit Cards Work?
When you tap, dip or swipe your credit card, you will be rewarded with a percentage of your spending. The cashback percentage can differ from bank to bank. Also, the type of cashback card you own will matter too.
The percentage of cashback can differ depending on the purchase you made. Some of the most rewarding cashback categories in the UAE are supermarkets, utility bills, education, and transport.
Most swipe cards in the UAE offer 1% of the purchase in cashback. However, there are some banks in the UAE that offer 5% of the purchase too.
Cashback swipe cards often have a monthly cap. However, there are some cards in the UAE that offer unlimited cashback.
Every cashback charge card in the UAE comes with terms and conditions attached to it. If you want to take full advantage of the cashback rewards, you should read the terms carefully. Keeping complete knowledge will help you earn more rewards too.
Type of Cashback Charge Cards in the UAE
When opting for a cashback card, it is important to know about the type of card you are applying for. Just like there is various type of reward cards in the UAE, there are different types of cashback card too.
The cashback card involves three different categories- rotating category, flat-rate, and bonus category.
- Rotating Category: The rotating card follows a unique concept. Here, the categories for earning the cashback change every few months. The categories are not fixed. Also, the percentage of cashback is quite high too.
- However, there is a disadvantage to this type of plastic money. Although it is true that the cashback percentage is high, you can’t earn it unless you spend it. Keeping track of the ever-changing category can get confusing ad exhausting. So, to earn the maximum benefits with this type of card, you will have to be alert.
- Flat-rate: The most important factor of the flat-rate card is that you know the percentage you will earn in cashback. The cashback percentage of the flat-rate card is fixed (as the name states). Each time you swipe your card, you will have a good idea of how much you will be earning cashback.
- While the disadvantage of this category is that there are conditions on where you will earn the cashback. Also, the earning percentage is much lower compared to the rotating category. Some card members might feel restricted with the choices.
- Bonus category: With the bonus category, you will have to swipe the card at specific points to earn the cashback. For example, you will have to use the card at a specific store or cinemas to earn the cashback. The financial institutions usually offer cashback on the retails they have partnered up with.
To earn cashback with the flight ticket, you will have to book at the specific airline mentioned by the bank.
How to Redeem Cashback?
When it comes to redeeming the cashback, there are three ways through which you can do it. Let’s discuss the three ways in detail.
- Direct or Cheque Deposit: You can get the cashback amount deposited in your Savings or Checking account if you want. Or you can get the cheque delivered to you in the mail. All you have to do it login to the bank’s website and select the option you want. You can also get in touch with the customer support team of the particular bank and ask for the same.
- Statement Credit: The statement credit has to be one of the best ways of redeeming the cashback reward. With the statement credit, you can lower the bill of your plastic money without any complexity involved. You use the cashback card to pay off your annual fee too. The choice is up to you.
- For example, you have saved AED 100 in cashback and you owe the bank AED 750. In this case, you can use the cashback reward of AED 100 to lower your bill of AED 750. Hence, you will have to pay the remaining amount, which is AED 650.
- Gift Cards: Some banks in the UAE also offer the option of redeeming your cashback rewards in the form of gift cards. However, these gift cards might have an expiration date attached to it. So, look into the terms carefully and use it before it expires.
Best Cashback Credit Cards in the UAE
As we have explained what are cashback charge cards and how to redeem it. Let’s look at some of the best cashback credit cards in the UAE. These are given below:
- ADIB Cashback Visa Platinum Card: The card members are offered 1 % of their spends in cashback. This card has a monthly interest rate of 2.99% for salary transfer customers. Meanwhile, non-salary transfer customers have a monthly interest rate of 3.09%.
The annual fee of the ADIB cashback visa platinum card is AED 1000.
- Standard Chartered Platinum Card: The Standard Chartered Platinum card offers various cashback offers based on the purchase. For a purchase made in the supermarket will get the customer up to 10% in cashback. Also, payments for the utility bills and school fees made with the platinum card offers up to 10% cashback.
The platinum card has an annual fee of AED 525 with a monthly interest rate of 3.45%. This card, however, is free for the first year.
- CBD Super Saver Card: The CBD Visa Signature Super Saver Card offers two different types of cashback. With the first type, the customers can earn up to 10% cashback on the supermarket, utility bills, school fees, and transport. On spending AED 3000, it has a monthly cap of AED 200 on cashback on individual categories.
With the second type, on every AED 2 spent, the customers can earn up to 1% in cashback. This offer has no cap. Also, this offer is available for swiping your card on any purchase outside of the above 4 categories.
The annual fee of this charge card is AED 800. This charge card is also free for the first year. The retail interest on this card is 3.45% per month. Additionally, customers of the CBD private banking can this card with a monthly retail interest of 1.5%.
- RAKBANK Titanium Credit Card: With the RAKBANK titanium card, you will earn cashback up to 5% on dining and supermarkets. Also, you will be getting cashback up to 50% on cinemas around the world. The monthly cashback limit on dining and supermarket is AED 150 and AED 70 in cinemas.
Additionally, if your earned cashback exceeds the monthly limit, you will earn cashback based on the standard cashback. Here, if you have spent between AED 1 to 14999, you will earn 1% of the spend in cashback. On spending above 15000 and above, you will be earning 2% of the spend in cashback. The RAKBANK titanium credit card is free for life.
- Maj Al Futtaim (najm) One Cashback Credit Card: The Najm one cashback credit card is one of its kind. The cashback increases with every transaction made. The customers will receive up to 10% cashback on school fees, utilities, dining, fuel, travel, online shopping, international spends, etc. Card members can earn up to AED 500 per month in cashback.
The Najm One charge card has an annual fee of AED 313.95. The monthly interest can be anywhere between 3.25% - 3.99% depending on the record of the first 3 months.
Over to you
Balance is the most important factor when choosing a cashback credit card. You should take note of your lifestyle. Your spending and lifestyle matter a lot. How you spend and how you want to earn, matters too.
Also, you should calculate the annual fees and retail rates too. If the annual fee is higher than what you earn, the card is not worth it. You should forgo that card.
There is no doubt that a cashback card is worth it if you can learn how to manage it. You should always pay the monthly bill in full and avoid paying just the minimum. You should also try not to skip any payment or be late. Not only will that result in late fees, but it will also affect your credit score too.