Online shopping is probably the best excuse to use credit cards for cashback offers. Millenials of India love shopping online and spend a fortune on it. So, isn’t it a fair deal to use a money-back credit card when you shop online? This would save you a ton of money and earn you other exciting benefits as well.
Credit Cards, in general, provide you with reward points or cash back every time you use them. However, reward points involve an extra step and that is redeeming or exchanging the points. This could be tedious for many and so, cashback cards seem like a better option.
There are a bunch of cashback credit cards available in the market. But, do you know which of those are perfect for shopping online? If not, then this article will provide you with a list of the best credit cards for cashback in India 2020. So, let’s dive straight into it.
List of Top 11 Cashback Credit Cards for Online Shopping in India 2020-21
| Sl. No. | Cashback Credit Card | Joining Fee | Annual Fee | Interest Rate (APR) per annum | Ideal for |
| 1. | Citibank Cashback Credit Card | INR 500 | INR 500 | 37.20% to 42% | People who prefer cashback on all of their spendings. |
| 2. | ICICI Bank Platinum Chip Credit Card | INR 500 | INR 500 | 29.88% | People who want a credit card with a low annual fee and low APR. |
| 3. | HSBC Cashback Credit Card | Nil | INR 750 | 39.6% | Cashbacks on both online and offline purchases |
| 4. | SBI SimplyCLICK Card | INR 499 | INR 499 | 40.2% | People who want a low fee card with benefits |
| 5. | HDFC MoneyBack Card | INR 500 | INR 500 | 40.8% | Decent amount of cash back, rewards, and other benefits |
| 6 | IndusInd Iconia Amex Card | INR 3,500 | Nil | 46% | Weekend expenses (that earn 2% cashback) |
| 7. | Flipkart Axis Bank Credit Card | INR 500 | INR 500 | 49.36% | Regular Flipkart customers |
| 8. | Amazon Pay ICICI Bank Credit Card | Nil | Nil | 42% to 45.6% | Amazon Prime Customers, Earning cash back on shopping at Amazon |
| 9. | HDFC Millennia Credit Card | INR 1000 | INR 1000 | 43.2% | People who wish to use the credit card across several categories. |
| 10. | IndusInd Bank Pinnacle Credit Card | INR 12,999 | INR 12,999 | 46% | Cashbacks across all categories |
| 11. | Paytm First Credit Card | INR 500 | INR 500 | 37.20% to 40.80% | Cashbacks, dining discount, and other benefits |
1. Citibank Cashback Credit Card
- Joining Fee: INR 500
- Annual Fee: INR 500
- Interest Rate: 37.20% to 42%
Citibank Cashback Card is one of the best cashback credit cards you could get in India. The reason being that you won’t find many cards that offer a cashback of 5% for such a low annual fee.
Key Features and Benefits
- 5% cashback on movie ticket purchases
- 5% cashback on online bill payments
- 5% cashback on telephone bill payments
- 15% discount on dining at partner restaurants
- 5% cashback on all other transactions
Eligibility
- Minimum Entry Age: 18 years
- Income criteria: At least INR 25,000 per month
- Applicant should be an Indian resident or an NRI
- A good credit score is needed
2. ICICI Bank Platinum Chip Credit Card
- Joining fee: INR 500
- Annual fee: INR 500
- Interest Rate: 29.88%
ICICI Bank Platinum Chip Credit Card provides you with rewards every time you shop with your card. Moreover, you get attractive offers and discounts across a wide range of categories such as travel, retail, and more.
Key Features and Benefits
- 2 Payback points per INR 100 spent
- 1% fuel surcharge waiver
- Joining fee will be waived if you spend INR 20,000 with your card within 60 days of card issuance
- You can also have the annual fee waived off on spending INR 50,000
- 5% fuel surcharge
Eligibility
- Age bracket: 21 to 65 years
- Should have a decent credit history
- Income criteria: Minimum income should be INR 3 lakhs p.a.
3. HSBC Cashback Credit Card
- Joining fee: Nil
- Annual fee: INR 750
- Interest Rate: 39.6%
HSBC Cashback Credit Card is great for earning cash back on online shopping. The best part about this card is that you can use it to shop at various online platforms. It is not limited to a single site.
Key Features and Benefit
- 5% cashback on all online spending
- 1% cashback on offline expenses
- Cashback on instant EMI
- No maximum cashback capping
- 15% off on dining at more than 1000 restaurants across major cities.
Eligibility
- Entry age: 18 to 70 years
- Income requirement: At least INR 4 lakhs per annum
- Applicant should be a salaried individual
- Should be an Indian Citizen
4. SBI SimplyCLICK Credit Card
- Joining Fee: INR 499
- Annual Fee: INR 499
- APR: 40.2% p.a.
SBI SimplyCLICK Credit Card is the best choice for all the regular online shoppers who want a cashback card with a low annual fee. It will reward you with special deals and cashback on several online shopping websites like Amazon, Flipkart, and so on.
Key Features and Benefits
- 10X reward points on shopping at Amazon, BookMyTrip, Ola, Lenskart, Flipkart, etc.
- 5x reward points when you shop from other online sites
- A welcome gift voucher from Amazon worth INR 500
- An expenditure of INR 1 lakh in a year will get rid of the annual fee
- 5% fuel surcharge waiver when you spend INR 500 or more
Eligibility Criteria
- Entry Age: 18 to 60 years
- Income Criteria: At least INR 20,000 per month
5. HDFC Moneyback Card
- Joining Fee: INR 500
- Annual Fee: INR 500
- Interest Rate: 40.8%
HDFC Moneyback Credit Card provides its cardholders with numerous cashback deals and massive reward points. As the name suggests, it is the ultimate money-back credit card for cashback offers.
Key Features and Benefits
- Cashback of INR 250 on spending INR 1000 within 45 days of card issuance
- Rewards Redemption Rate: 100 points = INR 40
- 4 points per INR 150 spent on online expenses
- 2 points per INR 150 on other expenses
- 5% fuel surcharge waived off on all sorts of fuel spending
Eligibility
- For salaried individuals, the entry age is 21 to 60 years and monthly income should be more than INR 25,000
- For self-employed individuals, the entry age is 21 to 65 years and annual income should be more than INR 6 lakhs per annum
- Applicant should be an Indian national
- Credit history of the applicant should be decent.
6. IndusInd Iconia American Express
- Joining Fee: INR 3,500
- Annual Fee: Nil
- Interest Rate: 46%
IndusInd Iconia Amex Card is one of the best credit cards for cashback with exclusive benefits. The cardholders receive a whopping 1.5% cashback on all of their expenses on weekdays and 2% cashback on weekend expenditures.
Key Features and Benefits
- 5% cashback on weekdays’ spending
- 2% cashback on weekend spending
- Free golf games
- 20% discount at all properties of Lemon Tree Hotel
- 2 visits per quarter to the Amex airport lounges
- Travel insurance
Eligibility
Not Available
7. Flipkart Axis Bank Credit Card
- Joining Fee: INR 500
- Annual Income: INR 500
- Interest Rate: 49.36%
Flipkart Axis Bank Credit Card is one of the most ideal cards for online shopping in India. It is co-branded with Flipkart and offers exciting cashback offers on some of the most popular shopping websites in India.
Key Features and Benefits
- 5% cashback on online shopping platforms like Flipkart, Myntra, 2GUD, etc.
- 4% cashback when you shop with the preferred merchants
- 5% cashback on other expenses
- 1% fuel surcharge waiver up to a maximum of INR 500
- Sign-up bonus of INR 3,000
Eligibility
- Applicant should be an Indian resident or an NRI
- Entry age: 18 to 70 years
8. Amazon Pay ICICI Bank Credit Card
- Joining fee: Nil
- Annual fee: Nil
- Interest Rate: 42% to 45.6%
Amazon Pay ICICI Bank Credit Card is a joint venture by Amazon and ICICI Bank. It remains free for your entire lifetime. Moreover, it offers a massive cashback of 5% to its customers. Let us take a better look at its features and benefits:
Key Features and Benefits
- 5% cashback for Prime Customers on Amazon
- 3% cashback for non-prime customers
- 2% cashback on spending at 100+ partner merchants of Amazon pay
- 1% cashback on all other expenses
- 15% discount on dining at partner restaurants
Eligibility
- Entry Age: 18 to 60 years
- Detailed eligibility criteria can be known by sending an application request
9. HDFC Millennia Credit Card
- Joining Fee: INR 1,000
- Annual Fee: INR 1,000
- Interest Rate: 43.20% p.a.
HDFC Millennia Credit Card is the perfect card for the millennials in India. Not only does the cardholder receive cashback on online shopping but also on all other categories
Key Features and Benefits
- 5% cashback on online shopping websites like Amazon and Flipkart
- 5% cashback on flight tickets and hotel bookings on transactions via PayZapp and SmartBuy.
- 5% cashback on all other online expenditure.
- 1% cashback on offline transactions
- 8 free domestic lounge visits every year
Eligibility
- For salaried individuals, the entry age is 21 to 60 years and monthly income should be more than INR 25,000
- For self-employed individuals, the entry age is 21 to 65 years and annual income should be more than INR 6 lakhs per annum
10. IndusInd Bank Pinnacle Credit Card
- Joining Fee: INR 12,999
- Annual Fee: INR 12,999
- Interest Rate: 46%
IndusInd Bank Pinnacle Credit Card is apt for your online shopping needs with its myriad of benefits. Not only does it reward you with cashback on online shopping but also with cashback across several other categories.
Key Features and Benefits
- 5% cashback on online shopping platforms
- 5% cashback on flight tickets
- 1% cashback on other transactions
- 7% cashback on utility bill payments, health insurance policy premium, and so on.
Eligibility
- Minimum income: INR 25,000 per month
11. Paytm First Credit Card
- Joining fee: INR 500
- Annual fee: INR 500
- Interest Rate: 37.20% to 40.80%
Paytm First Credit Card is a joint venture between Paytm and CitiBank. This card provides some of the best cashback offers on all your transactions. Let’s find out more about its exciting benefits:
Key Features and Benefits
- 1% cashback on all transactions
- INR 1,000 cash back if you spend INR 5,000 within the first 30 days of card issuance
- 20% discount on dining at partner restaurants
- Complimentary 1-year membership of Paytm First
- Buy one to get one extra movie ticket free every Friday via Paytm movies
Eligibility
- No such eligibility criteria
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Tips While Choosing a Best Cashback Credit Card for Shopping
Purchasing a credit card for cashback offers is no piece of cake! You need to scrutinize everything about the card properly so that you don’t repent later. To help you with the same, given below are some of the tips you need to follow while choosing a cashback credit card for online shopping:
1. Annual Fee
The annual fee is the amount charged from you by the bank for using the cashback card. Some cashback credit cards offer an annual fee that can be as low as INR 500. You wouldn’t believe this but some even offer cashback cards at zero annual fees. On the other hand, certain cards have a higher fee.
So, you need to make sure that the annual fee is worth the benefits you receive on the card. The annual fee should at least be less than the total cashback offers on your credit card.
2. Cashback Rate
You can’t miss checking this point while purchasing a money-back credit card, else the purpose of the card would be ruined. The highest cashback rate offered by credit cards in the current market is around 5%. A decent looking cashback rate is from 1% to 2%.
You need to make sure that the cashback rate is in line with the annual fee you pay and other benefits you enjoy on the card. Needless to say, compare the cashback rate offered by different credit cards and then decide.
3. Co-Branded Cards
If you are a loyal shopper at a specific online eCommerce website, then co-branded cashback cards are just the right deal for you. Suppose you prefer shopping at Flipkart, then you could purchase a cashback credit card co-branded with Flipkart.
Such cards provide elevated cashback rates if you shop from their partnered websites like Flipkart, Amazon, etc. But, one drawback is that you won’t receive the same benefits when you shop with the card at other websites.
4. Sign-Up Bonus
Sign-up bonus or joining bonus is the reward or cashback offered by the money-back card when you buy it. You should compare the sign-up bonuses provided by different cards to judge which one is better. Also, keep in mind that the joining and annual fees are important here as well. A card with a high joining fee should offer a high welcome bonus, otherwise, you would be at loss.
5. Other Benefits
A credit card offers several other benefits as well apart from cashback. These include dining benefits, discounts, free movies, air tickets, and more. The more versatile your card is, the more flexibility you can have while shopping online.
6. Eligibility Criteria
The eligibility criteria for cashback credit cards are equally important to consider. Certain cards require you to have a certain income bar, credit score, or even a fixed deposit worth a given amount. Hence, go through the eligibility requirements properly before finalizing a card because you might not be eligible for it.
Types of Cashback Credit Cards
You will find three basic types of cashback credit cards in the market. Find them explained below:
1. Flat-Rate Cashback Credit Card
Flat-rate cashback cards offer the same cash back rate on everything regardless of what you buy and from where you buy it. These are the simplest to understand and the most monotonous card. It is ideal for people who wish to spend across various categories with their cards.
2. Tiered Cashback Credit Card
Unlike flat-rate cards, the tiered cashback cards have multiple rates of cashback for various kinds of purchases. These also provide accelerated rewards on some specific categories which are generally composed of gas, dining, shopping, entertainment, etc. This means that you will receive a higher cashback rate on certain cards and lower on the rest of your expenses with the card.
3. Bonus Category Cashback Credit Card
The bonus category cash back credit card provides higher rates for some specific categories during certain intervals. Hence, it doesn’t provide a fixed rate on some categories and the rate keeps changing at particular intervals. Other than that, it has a fixed flat rate for expenses on other categories. You have to keep an eye to make the most out of the best cashback offers and deals.
How to Apply for Cashback Credit Cards Online?
The application for credit cards has become pretty straightforward and simple ever since the introduction of online application. We all are quite familiar with the offline method of application of cashback cards. So, let’s discuss the online application procedure of money back credit cards:
Step 1. Visit the website of the bank whose credit card you want to purchase.
Step 2. Go through the list of cashback credit cards they provide and click on the one you prefer. Otherwise, you could also do this via a partner website of the bank.
Step 3. Now, sign up at the website and enter your basic details.
Step 4. Then, you need to check your eligibility for the card. You have to enter some information like your credit score, age, annual income, etc.
Step 5. If you are eligible to apply, then proceed to fill up the online application form.
Step 6. Submit the required documents and the duly filled in application form
Step 7. Once done, you will receive the confirmation mail.
Step 8. An inspection will be initiated and if your information is proved to be legit, then your card will be issued within a couple of days.
Eligibility to Apply for Cashback Credit Cards
Fulfilling all the eligibility criteria given by the card provider is a must to ensure that your credit card application doesn’t get rejected. Different banks could ask for different eligibility requirements but a general set of eligibility criteria include the following:
- The minimum entry age of the applicant should be 18 years
- Minimum income should be in the range of INR 1 lakh to INR 3 lakhs (varies from one bank to another)
- The applicant needs to be a salaried individual or self-employed
- Generally, a good credit score in the range of 750 to 900 is preferred for credit card applications
Document Required to Apply for Cashback Credit Cards
The applicant needs to submit some documents to apply for a credit card. These could also vary from one bank to another. However, we provide you with a list of basic documents that you will require for a cashback credit card application:
- Duly filled-in application form
- Passport-size photo
- Identity Proof: Aadhar card, Voter ID, Passport, PAN card, etc.
- Address Proof: Utility bills, PAN card, Aadhaar Card, Driving License, etc.
- Last few months’ salary slips
- Form no. 16
- Bank Statements of the past few months
- For a self-employed individual, a couple of more documents are needed:
- Income Proof
- Business Proof
- Account Statements
How to Use Cashback Credit Cards for Online Shopping?
Once you have purchased your cashback card, now it’s time to use it wisely. Some of the key things to remember so that you can make the most of your card is keeping an update of all the cash back credit card offers. Because you want to utilize all of them. One method of doing so is purchasing only during the period when the best cashback offers are available.
Another point to remember is to try and earn at least more amount than the annual fee you pay. Otherwise, the purpose of getting a credit card would fail and you would be suffering a ridiculous loss.
Many credit cards offer the option of a fee waiver if you reach a spending milestone. So, you need to try reaching that milestone. Not only will this get rid of the annual fee but also earn you massive cash backs.
Some cashback cards offer accelerated rewards and extra cashback when you shop with their partnered websites. Make sure to utilize this effectively by shopping as much as you can with the card from these partner websites.
Safety Tips You Need to Know While Using Credit Cards
All of us are aware that the online credit card frauds are on the rise. One thing to take away from this fact is that we need to be extremely cautious while using our cards online.
Earning cash back on online shopping could be very satisfying. But the thought of losing a lot of money due to a credit card fraud could be equally dreadful.
Keeping that in mind, here are some tips that will help you stay safe on the internet while using your cashback credit cards.
- Try using a dedicated card for online shopping. This way you could set less credit limit on your shopping credit card and there would be less room for potential unauthorized use.
- Never use your credit card on a public computer or wifi network. The simple reason behind it is that the public networks and computers are fairly easy to tap into. So, anybody can steal information. Moreover, somebody might look over and get to know your moneyback card
- Make purchases at sites that look legitimate and have a reputation. You should always look for site reviews before making an opinion.
- You don’t need to store your cashback card information on any online e-Commerce website. This is good practice because anybody might hack into your account and steal your information.
YOU MAY LIKE TO READ: 11 Best Travel Credit Cards in India Nov 2020: Compare & Apply
FAQs about Cashback Credit Card
Q1. Is cash back better than rewards?
Ans. Cashbacks and rewards, both have the same idea behind them. They are offered as an incentive for using the credit card. The cashback is pretty simple to understand but reward points are not the same. First, you need to accumulate reward points and then you have to redeem them/ exchange them for cash back, offers, discounts, etc.
Q2. Should I get a cashback credit card if I already have a rewards credit card?
If you find that your credit card does not cover a particular category, then you could consider another credit card to cover for some other category. Moreover, several credit cards are available for a low or even zero annual fees. So, there is no harm in buying a credit card that pays cashback in addition to your rewards card.
Q3. Do I need to provide proof of income to apply for a cashback credit card?
Yes, you do need some documents to present as income proof while applying for a credit card. These include your latest salary slips and bank statements. Some cards require you to have a pre-decided income bar and to prove the same the documents are needed.
Q4. Why should I buy a cashback credit card for online shopping?
A money-back credit card is worth it if you are a regular online shopper. Buying it just for show if you don’t plan on using it regularly will be a waste of money. Credit cards that pay cashback usually have a fairly low fee. So, you can easily purchase it and earn cashback every time you shop online.
Q5. How to get higher cashback on a credit card?
You can receive higher cashback on credit cards by simply making the most of its offers. For example, you could use the card for fuel purchase to enjoy fuel surcharge waiver. Stay updated with all the new offers on your card and also hit the milestones to make the most of it.
Bottom line
Buying a credit card for cash back on online shopping can be much more beneficial than you could think of. Most people don’t utilize this opportunity to earn while spending. Don’t be one such person and skim through our list of best cashback credit cards for online shopping and pick one now!
