Best Cashback Credit Cards in India for Online & Offline shopping [August, 2024]

Cashback credit cards can help you save money on your daily purchases. With the right card, you can earn cashback on categories like grocery, dining, fuel, travel, online shopping, and more. Choosing the card that gives you maximum cashback on your frequent spending categories allows you to earn rewards passively.

In this comprehensive guide, we will discuss the best credit cards for cashback rewards in India for 2023. Whether you are looking for a simple flat-rate cashback card or a card with bonus categories, you will find one that matches your spending pattern.

Factors to Consider When Choosing a Cashback Credit Card

Here are some key factors to consider when picking the best cashback credit card for your spending habits:

• Your frequent spending categories – Choose a card that offers maximum rewards on the categories where you spend the most every month. Focus on categories like groceries, gas, dining, travel, entertainment, online shopping, insurance payments, utility bills, etc.
• Online vs offline spending – Some cards offer higher rewards for online purchases while others reward offline spending. Pick one aligned with your spending patterns.
• Flat-rate vs tiered/bonus category rewards – Flat-rate cards offer uniform cashback on all purchases. Tiered cards give higher rewards for select categories. Evaluate your preferences.
• Annual fees – Most cashback cards don’t charge annual fees. Avoid cards with high annual fees unless the earnings justify the costs.
• Foreign transaction fees – If you transact internationally, pick a card with no foreign transaction fees to avoid markups on international purchases.
• Welcome bonuses – Some cards offer lucrative sign-up bonuses in the form of cashback rewards upon meeting the minimum spend requirement within a specified period after getting the card.
• Reward redemption process – Understand the redemption process for your cashback earnings, minimum redemption requirements, and flexibility of redemptions.
• Additional benefits – Check for other benefits like travel insurance, concierge services, airport lounge access, discounts, that come with premium cards. These can add value.

The Best Cashback Credit Cards in India

Now that you know how to pick the right cashback card, let’s look at the top cashback credit cards in India this year:

1. Amazon Pay ICICI Bank Credit Card

Pros:

• Highest Amazon cashback card in India
• Also rewards other daily spending
• No annual fee, no minimum spend for rewards

Cons:

• Cashback only as Amazon Pay balance
• Limited benefits apart from cashback

Verdict: This Amazon Pay ICICI Credit Card is ideal for Amazon shoppers who also spend on food, fuel, and bills monthly. Gives guaranteed 5% cashback with no cap on Amazon, plus 2% on utilities and 1% on other spends.

2. Flipkart Axis Bank Credit Card

Pros:

• Highest Flipkart cashback
• Also rewards other online/offline spending
• Lifetime free card option available

Cons:

• Capped at Rs 500 per month on non-Flipkart purchases
• SuperCoins have limited redemption options

Verdict: Great for loyal Flipkart shoppers who frequently shop across categories. Gives 5% guaranteed Flipkart cashback and Flipkart SuperCoin earnings on other spends.

3. SBI SimplyCLICK Credit Card

Pros:

• Lucrative rewards on all online purchases
• No cap on earnings
• Low annual fee

Cons:

• No offline rewards
• Rewards only as SBI Reward Points

Verdict: One of the best cards for heavy online shopping and spends across ecommerce sites and apps. Gives 10X rewards on all online purchases with no upper limit.

4. IndusInd Bank Iconia Credit Card

Pros:

• Good rewards on frequent spending categories
• Balance transfer and EMI facility available

Cons:

• Cashback capped at Rs. 1,500 per month
• Limited reward partners

Verdict: Great cashback on dining, groceries and fuel if you can maximize the monthly cap. Also gets 2.5% on utility bills.

5. AU Small Finance Bank Visa Signature Credit Card

Pros:

• Lucrative cashback on online transactions
• Unlimited cashback earnings

Cons:

• Limited acceptance as a newer card
• Fewer additional benefits

Verdict: One of the most rewarding cards for online shopping with no caps on cashback. Also gives 2.5% cashback on all offline transactions.

6. ICICI Bank Rubyx Credit Card

Pros:

• High welcome and renewal gift vouchers
• Free Amazon Prime for 1 year
• Good for occasional Amazon shoppers

Cons:

• Very high annual fee
• Fuel surcharge waiver only on minimum spends
• No ongoing cashback rewards

Verdict: Makes sense only if you can maximize the Amazon vouchers and Prime free trial and avoid paying the renewal fees. Else better cashback cards are available.

7. Standard Chartered Cashback Credit Card

Pros

• High department store cashback
• Quarterly cashback bonuses

Cons

• Cashback capped at Rs. 750 per month
• Limited dining and grocery partners

Verdict: Good for frequent department store shoppers who want bonus quarterly cashback.

8. IDFC FIRST Bank Cashback Card

Pros:

• High cashback on utility bills
• Differentiated weekend rewards

Cons:

• 1% weekday cashback rate is lower
• Limited merchants

Verdict: Decent cashback on utilities and good rewards if you frequently shop on weekends.

9. HSBC Cashback Credit Card

Pros:

• Simple flat-rate cashback on all offline transactions
• No need to track categories
• No cap on cashback earnings

Cons:

• No online cashback
• Limited additional benefits

Verdict: One of the best cards for offline shopping and utility bill payments. Gives guaranteed and unlimited 1.5% cashback on every offline transaction with minimal annual fee.

10. RBL Bank Millennia Credit Card

Pros:

• Good cashback rates on key categories
• Lifetime free card available

Cons:

• Cashback capped at Rs. 500 per month
• Limited reward partners

Verdict: Decent card for regular fuel fills and occasional dining and entertainment with some basic cashback earnings.

11. HSBC Visa Platinum Credit Card

Pros:

• Highest cashback rates on groceries and fuel
• Air Miles on international transactions

Cons:

• Grocery and fuel cashback capped at Rs. 250 per month
• Only on Visa network groceries and gas stations

Verdict: Good for maximizing grocery and fuel spends up to the monthly limit. International usage earns Air Miles.

12. Citi Rewards Credit Card

Pros:

• Differentiated rewards for weekend spends
• Redeem points for statement credit

Cons:

• No flat cashback earn rate
• Higher redemption rates on weekends

Verdict: Decent rewards by day of week, good for planning weekend spending to maximize earnings.

Comparison of Best Cashback Credit Cards

How Cashback Credit Cards Work

Cashback credit cards offer a percentage of your spending back to you as cashback rewards. The cashback is credited to your account as a statement credit or reward points.

Most cashback cards offer between 1-5% cashback on purchases. The more you spend on the card, the more cashback you earn. Some cards offer a flat cashback rate on all purchases, while others offer bonus cashback rates on select spending categories.

For example, a card may offer 2% cashback on dining and entertainment, and 1% on other purchases. Cashback rewards can be redeemed as statement credits to offset your credit card bill or as gift cards or vouchers from reward catalogs.

Benefits of Cashback Credit Cards

Here are some of the benefits of using a cashback credit card for your spending:

• Earn rewards on everyday purchases – Cashback cards allow you to earn rewards on necessities like groceries, fuel, bills, and more. This makes it easy to accumulate rewards passively.
• Get statement credits – Most cashback rewards can be redeemed as statement credits to lower your credit card bill. This helps reduce your effective spending on purchases.
• Bonus category rewards – Cards with bonus categories give higher rewards rates of up to 10% on spending in those categories. This maximizes your savings.
• Promotional offers – Many cards offer periodic promotional cashback offers on brands, online portals, or payment methods. This further boosts your rewards earnings.
• No annual fee – Most cashback cards in India do not have an annual fee, making earnings rewards lucrative.
• Enhanced security and convenience – Credit cards come with protections against fraudulent transactions and improved dispute resolution processes. They also offer conveniences like instant discounts, no-cost EMI, lounge access, and more.

Minimum Spend and Annual Fee?

Most cashback credit cards in India do not have a minimum spend requirement to earn rewards, except for some premium travel cards. The rewards kick in from the first rupee spent on the card in valid categories.

Many cards also waive off the joining/annual fees upon a certain minimum spend within an initial period. Lifetime free cards are also available from several issuers. Evaluate fee structures and choose cards that fit your budget.

Summing Up

This covers our detailed analysis of the most rewarding cashback credit cards in India this year. We have suggested cards covering different categories, spending patterns, fees, and benefits.

Focus on picking the card that aligns with your top spending categories and monthly budgets. Use tools like credit card EMI and rewards redemption to lower effective cash spends. Manage your credit utilization wisely and pay bills on time to build a strong credit score.

So start enjoying automated savings on your daily expenses with the right cashback credit card today!

FAQs

What is a cashback credit card?

A cashback credit card gives you a percentage of your spending back in the form of cash rewards or statement credits. The cashback you earn can be used to offset your credit card bill or redeemed for other rewards.

How is cashback earned on credit cards?

You earn cashback as a percentage on your credit card purchases. The cashback rate depends on the category – some common categories are dining, groceries, fuel, travel, online shopping, etc. Most cards offer 1-5% cashback on purchases.

Are there any charges for cashback credit cards?

Most cashback credit cards in India do not charge any annual or joining fees. Some premium cards may have annual fees that are usually waived on meeting an annual spending requirement.

Is there any minimum spend required to earn cashback?

No, most cards in India offer cashback rewards from the first rupee spent using the card. There is no minimum spend threshold. However, welcome bonuses may have a minimum spend requirement.

How can I redeem my cashback earnings?

Cashback rewards can be redeemed as statement credits to reduce your credit card outstanding. Many cards also allow redeeming rewards for online vouchers, gift cards, merchandise from reward catalogs.

Is there a limit on how much cashback I can earn?

Some cards cap monthly cashback earnings, while others offer unlimited cashback. Cards with bonus category rewards usually have monthly caps. Go for cards with no caps if you spend heavily.

Can cashback be earned on EMI transactions?

Most credit cards do not offer cashback rewards on EMI transactions and balance transfers. However, a few cards may provide cashback on select EMIs so check terms and conditions.

Which is better – cashback card or rewards card?

Cashback cards are better if you want direct discounts in the form of cash savings. Rewards cards are better if you want flexibility to redeem for flights, hotels, gifts etc. Pick based on your preferences.

Q. Is 5% cash back on credit card good?

Getting 5% cashback on a credit card is very lucrative. Most cashback credit cards offer 1-2% cashback on regular spends. A card with 5% cashback on specific categories like online shopping or grocery is among the best available. With a 5% cashback rate, you can earn higher rewards from your frequent spending categories. Always compare and pick a card that gives maximum cashback on where you spend the most.

Q. Who gives the best cashback?

Some of the credit cards offering the best cashback rates in India include the Amazon Pay ICICI Card (5% cashback on Amazon), Flipkart Axis Card (5% Flipkart cashback), HSBC Cashback Card (1.5% unlimited offline cashback), and AU Small Finance Bank Card (5% online shopping). Many cards also offer 10% cashback in limited periods on specific brands or payments. Choose a card aligned with your top spending categories.

Q. Which back credit card is good?

The best cashback credit card depends on your spending patterns. Good options for online shopping cashback include SBI SimplyCLICK, AU Small Finance Bank Card. For offline spends and bills, the HSBC Cashback Card is a good pick. Flipkart and Amazon cards are great if you frequently shop on those platforms. Also consider fuel and grocery cashback cards like ICICI HPCL Card and HSBC Visa Platinum if those are big expenses.

Q. Which is best cash back or rewards?

Cashback credit cards are the best if you want direct monetary savings in the form of statement credits or account credits to offset your future card expenses. Rewards credit cards are better if you value redeeming points for flights, hotels, and more redemption flexibility. Cashback cards offer guaranteed savings while rewards have variable redemption rates. Assess your preferences and spending categories.