Cashback Credit Card Guide Team Team

Last updated 16 October, 2023

What is a cashback credit card?

A cashback credit card is a type of card that rewards you with a percentage of your spending back as cash. The cashback rate can vary depending on the card and the type of purchases you make. some cards may offer a higher cashback rate on groceries or gas, while others may offer a flat cashback rate on all purchases. 

How does cashback work?

Each cashback credit card has an accompanying per cent rate (e.g. 5% cashback on groceries). This is the amount you earn back whenever you charge something to your card for a certain spend Take for instance the Standard Chartered Smart Credit Card. It offers 6% cashback on selected digital lifestyle spend This means that if you spend RM100 per month on digital lifestyle subscriptions such as Netflix, Spotify and Kindle, you will earn RM6 in cashback.

When you use a cashback credit card, you earn cashback on every purchase The cashback is typically credited to your account at the end of your billing cycle. You can then redeem your cashback for a check, bank transfer or even on your credit statement.

What to consider when applying for cashback credit card?

When choosing a cashback credit card, there are a few things you should consider:

  • Cashback tier
Some credit cards will offer cashback in several tiers according to your spending patterns. For example, the RHB Shell Visa Credit Card offers 12% cashback on fuel at Shell stations, 5% cashback on groceries and online spending, and 2% cashback on all other purchases.

Related: The Best Petrol Credit Cards For Malaysians

  • Minimum monthly spend
Some cashback credit cards will only give you cashback once you hit the minimum monthly spending amount stipulated. For example, the UOB One Card requires a minimum monthly spend of RM500 to earn cashback.

  • Maximum cap
Most banks set a maximum cap for some of their cashback categories. For example, the AEON Gold Visa Card offers up to 8% cashback on groceries up to a maximum of RM100 per month. To determine the best cashback credit card for you, you’ll need to analyze your average monthly expenditure based on your income. Be aware of the cashback cap and calculate how much you need to spend each month to reach the cap. Then, consider if this is an amount you would typically spend in a month to help you decide if you can make the most of the cashback credit card.

  • Exclusions

This is another point worth considering when you’re choosing the right cashback credit card. Some cashback cards are tied to spend with specific partnering merchants, for example, the AEON Gold Visa offers cashback when you spend on groceries from all AEON stores.

Cashback credit card can also be limited by the days you swipe the card. For example, the UOB One card gives 2% cashback on petrol and cinema during weekdays, but 5% during the weekend. Similarly, the Maybank Islamic MasterCard Ikhwan Card-i gives 5% cashback on petrol and groceries, but only on Fridays and Saturdays. So determine whether you are a heavy weekday spender or a heavier weekend shopper.

Make sure the stores and brands that you frequently spend at are part of the cashback terms and conditions and not on the exclusion list.

Some cashback credit cards have an annual fee, while others do not. If you choose a card with an annual fee, make sure that the cashback rewards you earn offset the cost of the fee.

Always remember to read the terms and conditions of any card.

How to calculate how much cashback you’ll receive 

To figure out the actual percentage of cashback you can earn with every RM1 spent, you can use the weighted average percentage calculation:

Weighted average percentage = the sum of (spending % x cashback rate %)

For example, let's say you have the following spending habits with the Standard Chartered Smart Credit Card:

Merchant Category

Spending (%)

Cashback Rate (%)

Cashback Earned (%)

Netflix & Spotify








Steam (online digital video game platform) 




Other retail spend




Weighted average percentage


This means that you can expect to earn an average of 2.1% cashback for every RM1 spent using the Standard Chartered Smart Credit Card.

Cashback earnings = weighted average percentage cashback x total spending

For example, let's say your weighted average percentage cashback is 2.1% and your total spending in a month is RM10,000. Your cashback earnings would be:

Cashback earnings = 2.1% x RM10,000 = RM210

This means that you would earn RM210 in cashback for spending RM10,000 using your credit card.

You can use the weighted average percentage calculation to compare different cashback credit cards and choose the one that will give you the most cashback for your spending habits.

What are the pros and cons of a cashback credit card?


  • You can save money

Provided you use it right, you can enjoy saving money by using a cashback credit card. A cashback credit card is also better than points or miles, which limit your redemption, Cashback is also the most popular category in Malaysia.

  • Extra cashback on certain spending categories

A cashback credit card can help you enjoy even greater savings as you can get more cashback on certain spending categories. For example: 


Spending Category

Cashback Percentage

Minimum Spend

Standard Chartered Simply Cash Credit Card

Petrol, Online, supermarket, utility bills and top-up e-wallet spend


RM2,500 and above

Capped at RM60

RHB Cash Back Visa Credit Card

Petrol, dining, utilities, grocery, online dining/grocery delivery and other categories


RM2,500 and above

Capped at RM10


Online, groceries, dining and travel


RM500 and above

Capped at RM10

Alliance Bank Visa Signature

Groceries, petrol, and dining


RM3,000 and above


AEON BiG Visa Gold



Up to RM2,000

Capped at RM100

*Each category has a different set of participating merchants. For more information, please visit your credit card provider's website.

A cashback credit card can help you enjoy even greater savings as you can get more cashback on certain spending categories. For example, you can save on petrol, groceries and even when paying bills depending on the cashback credit card. So by making use of a cashback credit card that gives extra cashback on the categories that you spend most on, you can rack up even more cashback returns.

See also: Best Credit Cards to Pay Utilities Bills in Malaysia

  • Enjoy introductory rates and bonus cashback

Sometimes, as an incentive to cardholders, banks may offer introductory 0% interest rates and even bonus cashback for new cashback credit cardholders. Take advantage of it as you can further maximize your savings during this duration. However, do be careful as the introductory offer is usually for a limited time only, take note of the promo duration so you don’t get caught off guard with higher interest or lower cashback returns. 


  • You might spend more

As discussed above, some cashback credit cards require a minimum spend in order for you to be eligible to receive cashback. As such, this may cause you to spend more for that month to receive the cashback amount stipulated by the given card.

Top 3 best cashback credit cards in Malaysia

Here are the best cashback credit cards in Malaysia to help you save even when you’re spending.

Standard Chartered Smart Credit Card


  • 6% cashback on selected digital lifestyle spend capped at RM20 per month
  • 0% Buy Now, Pay Later over 3 months
  • Free travel insurance, extended warranty protection and purchase protection
  • 24/7 customer service.


  • Minimum monthly income: RM3,000
  • Annual Fee: RM120 ( waived for the first year, subsequent years will be waived with minimum spend of RM12,000 per year)

Hong Leong WISE Gold Card


  • 18% Cashback based on selected 2 categories from the list of Mobile, Pharmacies, Groceries, Petrol, Dining, Departmental, Book Stores, Utilities, Entertainment or Travel
  • Flexibility to switch reward categories at any time and enjoy the same 8% cash-back reward on new selections
  • 8% Cashback requires a minimum retail spend of RM500 per month
  • Free travel insurance, extended warranty protection, and purchase protection.
  • 24/7 customer service.


  • Minimum monthly income: RM2,000
  • Annual Fee: RM98

RHB Cash Back Visa Credit Card


  • Up to 10% cashback on online grocery and dining spend (capped at RM20 per month)
  • Up to 5% cashback on restaurant, petrol, groceries and utilities spend (capped at RM10 per month)
  • 0.2% cashback on all other spend, no cap and minimum spend required


  • Minimum monthly income: RM2,000
  • Annual Fee: RM70 ( Annual fee waived for the first year. Waive your annual fees when you make a minimum spend of RM10,000 yearly).

Where to apply for cashback credit card?

Compare and find the best cashback credit card to suit your spending style, HERE. Here are some additional tips for using CompareHero to find the best cashback credit card:

  • Use the filters. CompareHero allows you to filter your search results by category, cashback rate, and other criteria. This can help you narrow down your search and find the cards that are most relevant to you.
  • Compare the offers. CompareHero often has exclusive offers on cashback credit cards. Be sure to check the promotion page before you apply for a card to see if you can win some exciting gifts.

Once you have found a cashback credit card that you are interested in, simply apply for it directly through CompareHero. The application process is simple and straightforward.


The team is comprised of many talented individuals, sharing their knowledge, experiences and research to help others make better financial decisions.


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

Subscribe to our newsletter to stay up-to-date with exclusive money-saving tips & great deals