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Cashback Credit Card vs Miles

Cashback Credit Card vs Miles

Highlights

  • Spot the difference between the Cashback Credit Card and Miles.
  • See how Cashback and miles are different from each other.
  • Know how the Cashback Cards or Miles work when you make any transaction.

There are a lot of credit cards in India for different income groups of individuals. People with a stable income can afford credit cards and enjoy various offers on them. If we talk about offers then there are discount offers, cashback offers, reward point offers, Miles offers, and many other offers available on a credit card. But are you aware of the differences between these offers? If no, then here you can see the major differences between the Cashback Credit Cards vs Miles offer that is available on a card. See how the cashback is different from the miles that you earn on a credit card. The only common thing between these offers is they occur only when you make a certain transaction. So, let’s compare cashback and miles.

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Comparison of Cashback Credit Card and Miles

In the table given below, you must compare these two benefits and understand how they work. With these benefits will help you to cut off your expenses.

Basis of DifferenceCashback Credit CardMiles
MeaningThe cashback credit cards have the majority of offers as the cashback offers. A refund of a certain percentage is initiated as soon as you make a transaction. But the category on which the transaction has been made must have a cashback offer.Miles are a type of reward that is usually available on travel credit cards. You earn them by making various transactions through those cards and redeem them while making flight bookings. The miles are also redeemable under the program of the credit card through which they are earned.
AccrualThere are two types of cashbacks available on the cashback credit card. The first type of cashback is directly reflected into the account immediately and some cashback takes 90 days or more to get reflected into the individual’s account.You will earn the miles on your travel card as soon as you make the transaction. There are credited to the rewards account and you can redeem them while making travel bookings.
RedemptionThe cashback is non-redeemable because they are credited to your account bank account directly.The miles are redeemable on the shopping website of the respective program and you can even use them to make flight bookings.
OfferThe percentage of the cashback is fixed and it only occurs when you fulfill the minimum transaction criteria of the offer.The miles are also fixed but there is no percentage. They are earned when you fulfill the minimum transaction criteria and in the form of numbers.
ExampleGet a cashback of 10% on a minimum transaction of ₹2000.Earn 5 Miles on spending every ₹100 at flight and hotel bookings.
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How to Cashback Credit Card and Miles Works?

Suppose your credit card has a cashback offer of 10% on flight bookings with a minimum booking of ₹5000 and you book a flight of ₹10000 then you will get a cashback of 10% that is ₹1000. You will have to pay ₹10000 at the time of booking and the cashback will be credited immediately or sometimes after 90 days to your account. There is no fixed number of days because it depends on the offer prevailing on your cashback credit card.

If your credit card has an offer to earn 5 miles on every ₹100 on flight bookings and you have booked a flight of ₹10000 then you are entitled to earn 500 miles. You can redeem these miles on the official website of the reward program of your respective credit card.

Conclusion

Now you know the major differences between the Cashback Credit Card vs Miles and how they work. So, it will be easy for you to enjoy both the benefits on your credit card. Usually, the Miles are available on the credit cards used for traveling and they are only redeemable under the respective reward program.

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