Cashback Credit Card vs Rewards

Cashback Credit Card vs Rewards


  • Explore the difference between the Cashback Credit Card and Rewards.
  • Compare the advantages of both Cashback and reward points.
  • Decide which option would be a better option for you.

Millions of individuals in India use credit cards just to enjoy the credit limit but some use them to earn cashback and reward points. You might have seen that many credit cards have offers like earning 1 reward point on a certain amount of transaction and some have a certain percentage of cashback. But do you know the difference between the Cashback Credit Card vs Rewards? If no, then you are at the right place because we are going to compare both these advantages you enjoy on a credit card. The cashback is directly reflected in your account whereas the rewards are collected in the form of points that you can redeem later. So, let’s compare both these advantages of credit cards.

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Comparison of Cashback Credit Card and Rewards

In the table given below, you can spot the major differences between these two advantages and see which feature of the card can be beneficial for you.

Basis of DifferenceCashback Credit CardRewards
MeaningThe credit card has a majority of benefits as cashback on the various transactions is known as the cashback credit card. It is the amount of refund an individual gets into his account after making a certain transaction.Rewards are the offers on the credit card that is collected in the form of points. They accrue on every transaction you make from your credit card but there is a minimum transaction criterion to earn reward points.
AccrualSometimes the cashback is immediately reflected into the account of the individual and sometimes it takes 90 days to get reflected.The reward points are credited immediately to the account of the individual as soon as the transaction occurs.
RedemptionThere is no redemption of the cashbacks because they are credited to your account directly.You will have to redeem the reward points on the shopping website of the respective bank and buy goods from various categories.
OfferThe cashback credit cards have offers of cashback and they are of a certain percentage.The rewards occur when the individual does a certain amount of transaction and there is no percentage for the rewards.
ExampleEarn 20% cashback on a minimum transaction of ₹5000.Multiply your Rewards 5 Times on spending every ₹100 on dining.
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How Cashback Credit Card and Rewards Works?

Suppose your cashback credit card has a cashback offer of 20% on electronics with a minimum transaction of ₹25000 and you have bought an electronic product worth ₹50000. Then you will get a cashback of 20% that is ₹10000. You will pay ₹50000 at the time of making the transaction and the cashback will be credited to your account after 90 days. The number of days might differ according to the offers.

On the other hand, if any of your credit cards has an offer to earn 2 reward points on every ₹100 on electronic purchases and you have bought an electronic product of ₹50000 then you are entitled to earn 1000 rewards. Later on, you can redeem these rewards to buy any product from the official reward point redemption website of your respective credit card.


Now, you have seen all the major differences between cashback credit cards and rewards and it will easy for you to decide which benefit would be better for you. You can enjoy both the benefits on the credit card because most credit cards have both these benefits.

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