As indicated by its name (cashback), a cashback credit card allows you to get a certain percentage of cash back in your account as a “reward” each time you buy a service or product. It helps you save a significant amount on each transaction, provided you clear your monthly balance and do not exceed your allowed spending limit.
Offering a cashback/reward/repayment/reimbursement/compensation is a marketing strategy that companies adopt to encourage customers to shop via their card and get some amount back on every purchase or every month.
How Does It Differ from a Credit Card?
A cashback credit card differs from a conventional credit card based on the percentage of reward it gives you on every specific transaction. While a regular credit card may offer the borrowed amount for monthly purchases at a certain interest rate, a cashback credit card provides a percentage of cash back on eligible purchases. Customers usually prefer cashback credit cards to earn certain cash rewards that can help them reduce their monthly credit card balance.
Types of CashBack Credit Cards
Several banks in Pakistan have introduced various cashback credit cards under various categories like silver, gold, platinum, titanium, etc. Each of them varies in its annual charges and interest rates, offering numerous discounts to customers on their purchases. Let’s look at some examples to have a clearer idea.
HBL Fuel Saver Green Credit Card
Features: Via this cashback credit card, you can save Rs 3,600 every month by spending Rs 10,000, thus relieving the burden of fuel expenses. Additionally, you can pay only 5% of outstanding dues by the due date, enjoying financial convenience.
Benefits: This card is ideal for persons with low monthly fuel consumption. It offers a competitive 2% BTF rate, zero liability for fraudulent charges, and the convenience of providing up to 6 supplementary cards for family members.
Discount: 3% cashback reward on fuel cost.
Interest Rates: 3.25% monthly and 39% annual interest.
Annual Fee: 3000 PKR.
HBL Fuel Saver Gold Credit Card
Features: HBL Fuel Saver Gold Credit Card saves you Rs 6,000 monthly on total spending of Rs 10,000. Thus, it significantly reduces your fuel cost burden. It also facilitates you to pay merely 5% of outstanding dues by the arrival of the due date.
Benefits: This card is suitable for individuals with lesser fuel consumption. It offers zero liability for fraudulent charges and a 2% BTF rate, allowing you six supplementary cards for your family.
Discount: 5% cashback reward on fuel cost.
Interest Rates: 3.25% monthly and 39% annual interest.
Annual Fee: 6000 PKR.
HBL Green Credit Card
Features: HBL Green Credit Card offers you innumerable amazing discounts on various items and gives you the convenience of using the VISA payment network and 5% payable outstanding dues by the arrival of the due date.
Benefits: With this card, you earn one reward point for spending Rs. 25, zero loss liability for fraudulent charges, and insurance coverage for uncertain life events. Moreover, you can avail six supplementary cards for your family.
Discount: 10- 50% discount offers on dining & health facilities and other retail outlets.
Interest Rates: 3.25% monthly and 39% annual interest.
Annual Fee: 3000 PKR.
HBL Gold Credit Card
Features: Amazing discounts, the convenience of the VISA payment network, and you can only pay 5% of outstanding charges till the due date.
Benefits: This gold credit card offers you life insurance in addition to helping you save one reward point every time for spending 24 rupees. Supplementary cards for six family members and zero loss liability for fraudulent charges are additional perks you can enjoy through this card.
Discount: 10-50 per cent off on various food and shopping items, restaurants, and health facilities.
Interest Rates: 3.25% monthly and 39% annual interest.
Annual Fee: 6000 PKR.
HBL Platinum Credit Card
Features: This card offers free access to airport lounges, numerous discounts on a wide range of products and services, prioritises security, provides legal and medical referral services, and allows for convenient payments through the VISA payment network.
Benefits: With this card, you can enjoy a 10% discount on cosmetics and grocery items and earn one reward point for every Rs 25 spent. Additionally, foreign currency spendings earn you five times more rewards in case of using the card.
Discount: 10-50 per cent discount on shopping items, foods, and health care facilities.
Interest Rates: 3.25% monthly and 39% annual interest.
Annual Fee: 10,000 PKR.
Standard Chartered Mastercard Easy Card
Features: This card is accepted globally, provides a convenient 0% instalment plan facility, and features low markup rates and service charges, making it a favourable choice for international use with cost-saving advantages.
Benefits: With this Mastercard, you enjoy zero withdrawal fees for cash advances up to 90% and get a travel cover of up to 1 million. Also, you get five supplementary cards for your family.
Discount: Up to 50 % amazing discounts within and beyond Pakistan.
Interest Rates: 3% monthly and 36% annual interest.
Annual Fee: 3000 PKR.
Standard Chartered Mastercard Cashback Card
Features: By spending Rs 10,000, you can save Rs 500 every month, enabling you to manage your finances better. Additionally, this card provides personalised services worldwide and allows for convenient payments through the Mastercard payment network.
Benefits: With this card, you can enjoy a 5% cash back on purchases at electronics, supermarkets, and fuel stations. Additionally, you have a cash withdrawal limit of up to 30%, access to e-statement and SMS alert services, and the option for your family members to enjoy five supplementary cards.
Discount: Up to 50% discounts for dining and other leisure facilities.
Interest Rates: 3.5% monthly and 42% annual interest.
Annual Fee: 3000 PKR.
Standard Chartered Mastercard Titanium Card
Features: With super saving offers, you can get cash back of Rs 500 monthly for spending 10,000 PKR, which assists you in managing your budget in a better way. Also, you can avail of the opportunity of the Mastercard payment network, enabling you to pay in a hassle-free manner.
Benefits: This card offers a 5% cash back on purchases at electronics, supermarkets, and fuel stations, and you can enjoy concierge services and access to CIP lounges. Moreover, your family members can benefit from five supplementary cards, making it a convenient and rewarding choice for you.
Discount: Bumper discounts of up to 50% on a wide range of services and products.
Interest Rates: 42% monthly interest.
Annual Fee: 6000 PKR.
Standard Chartered VISA Platinum Card
Features: Offering exclusive services, this card provides a complementary lifestyle and a range of high-end benefits. Via this card, you can earn reward points for all types of card usage and receive assistance for advanced flight, hotel, and dining reservations. Additionally, it operates on the widely accepted VISA payment network.
Benefits: This card provides personalised customer services, a travel desk, and visa assistance for your convenience. Furthermore, you earn five reward points for every PKR 200 spent and gain comprehensive Global VISA Platinum Concierge privileges. Importantly, the card offers zero loss liability in case of fraudulent charges.
Discount: Up to 50% off on retail, dining, and health services.
Interest Rates: 42% monthly.
Annual Fee: 7000 PKR
Alfalah Ultra Cashback Credit Card
Features: Offering a variety of cashback benefits, including air tickets, hotels, clothing, and fuel purchases, it provides the convenience of easy instalments for credit repayment and allows you to avail of a loan of up to 80% of the available credit limit. Moreover, the card operates on the widely accepted VISA payment network.
Benefits: This card offers a 7% cashback on selected spending categories and a cash withdrawal limit of up to 50%. With the UTRA Cash Back feature, you can enjoy an annual fee waiver for the first year. Moreover, you can avail six supplementary cards for your family, making this card a great choice.
Discount: Up to 20% discount on certain dining and lifestyle items.
Interest Rates: 3.33 % monthly and 40% annual interest.
Annual Fee: 4000 PKR
Alfalah VISA Classic Credit Card
Features: This card is accepted worldwide and offers the convenience of an easy monthly instalment plan for transactions of Rs 3,000 or above. You can pay only 5% of the amount due by the due date. The card operates with low transfer rates, zero annual charges and VISA payment network.
Benefits: This card earns you 100 rewards on activation and provides zero loss liability for fraudulent charges. With every Rs 50 spent, you earn 0.25 orbit rewards. Along with this, availing of this card facilitates you with six supplementary cards for your family; hence, this card offers remarkable financial savings.
Discount: Up to 20% off on dining and other lifestyle items.
Interest Rates: 3.33 % monthly and 40% annual interest.
Annual Fee: Nil
Alfalah VISA Gold Credit Card
Features: This card is accepted worldwide and offers an easy monthly instalment plan for transactions of Rs 3,000 or above. You can submit only 5% of the amount due by the due date, providing financial convenience. The card features low transfer rates and zero annual charges, ensuring cost-effective usage. It operates on the widely accepted VISA payment network, allowing for convenient transactions globally.
Benefits: Upon activation, you can earn 100 bonus rewards, and with every Rs 50 spent, you earn 0.25 orbit rewards, accumulating benefits as you use the card. Additionally, the card ensures zero loss liability for fraudulent charges and allows your family members to enjoy six supplementary cards. Moreover, you can access CIP Lounges, enhancing your travel experience via this card.
Discount: 20% off on eating out and shopping daily life products.
Interest Rates: 3.30 % monthly and 40% annual interest.
Annual Fee: Nil.
Alfalah Titanium Mastercard
Features: With amazing offers, this card earns you double rewards for international spending. It provides an easy monthly instalment plan for transactions of Rs 3,000 or above, allowing for convenient payment management. Using this card, you only have to pay 5% by the due date.
Low transfer rates, zero annual charges and VISA payment network are additional perks you can enjoy.
Benefits: On activation, this card earns you 250 bonus rewards and 0.50 orbit rewards additional with every Rs 50 spent. The card ensures zero loss liability for fraudulent charges and six supplementary cards for your family, extending the advantages of the card to them. Moreover, the card operates on the AMEX network, offering a competitive 2% BTF (Balance Transfer Facility) rate.
Discount: Up to 25% discount on food and daily life items.
Interest Rates: 3.30 % monthly and 40% annual interest.
Annual Fee: Nil.
It is pertinent to consider that apart from these cashback credit cards, other banks like UBL, Allied, MCB, etc. also offer silver, gold, titanium, and platinum cashback cards. Each differs from the rest in its features, benefits, and interest rates, along with annual charges.
Customers can choose a specific card based on their preference and ease. For instance, if you’re habitual to travelling, you should opt for a cashback credit card that offers reward points on travelling. Likewise, if you have to purchase multiple daily life items, you can buy yourself a credit card offering coupons on shopping items.
In brief, despite having some annual charges, a cashback credit card appears to be an economical option that saves you a significant amount on your monthly spending.
