Pick the right cashback card

Track your spending

Every card offers different cashback reward structures for categories such as groceries, schools, utility payments, fuel, parking, restaurants and golf. Take note of your spending patterns and refer to your older statements to get an idea of the offer that suits you best.

Not all programmes offer the same returns. Some cards offer a fixed rate for cashback, while others have differing rates for certain categories.

Know the rate of return

Annual fee

Pick a card with an annual fee only if the cashback rewards in the year are largely above the annual charges. Otherwise, look for products without any yearly payments to maximise your benefits.

Compare payouts

Before you choose an offer, find out the exact terms and conditions of the rebate, i.e., when you will get the money, what the maximum amount will be, how much money is given in different categories, and which segments have no cashback.

He adds, “A consumer must know exactly where they spend in order to take a decision of whether they should be using a particular bank’s card or not. Moreover, some have cashback limit, for example, of Dh500 or Dh1,000. This means no matter how much a cardholder spends on the card, the maximum they get is Dh1,000. Many customers forget or don’t know about this [clause] and keep spending on their card.”

— As told to Hina Navin/Special to GN Focus