• Rewards Credit Card Vs Cashback Credit Cards - The Difference

    Credit cards in the Philippines has become a convenient and preferred choice as a mode of payment while shopping, be it online, local or international. Gone are the days when people would have a certain amount of ready cash in order to be able to make a big ticket purchase. That big buy needed days of saving and planning and resulted in a dent in your pocket. With credit cards, you may not feel the strain at all. Added benefits of using a credit card include easy payment of utility bills such as Meralco, phone bills and others at once. Some credit cards also give you the power of selecting your own payment date, making it simpler for you to remember the date.

    With the rising competition between credit card companies, it is a herculean task to keep cardholders content with their credit cards. While some banks choose to offer attractive discounts, exclusive deals on partner merchants, rewards points on shopping and dining, while some banks offer cash rebate or cash back.

    Reward Credit Card

    Credit cards that entitle you to win rewards points every time you swipe your card are referred to as Reward Credit Cards. Credit card companies have tie-ups with a certain group of merchants where you can earn points. Every time there is a purchase using your card, you accumulate points based on the amount of the purchase. Once you accumulate a certain number of points, you are allowed to redeem them for products or services including freebies, gift certificates. There are some credit cards that are designed to suit women’s needs and hence have partnered merchants such as boutiques, salons, beauty and cosmetic clinics. In this manner, reward credit cards are based on cardholders’ choices.

    Making the Best Use of Reward Credit Card

    • Make the right choice when it comes to choosing the reward credit card as there are hundreds in the market with various offers and deals. Select the card that matches your lifestyle and needs. This will help you earn a lot of points every time you use it.
    • Aimless accumulation of points may not prove beneficial to you at the end. The whole point of the card is to redeem the points for various products and services and utilize them at the right time.
    • Sometimes the annual fees of a credit card may seem huge, however it may hold a huge advantage in the form of rewards point.

    Cashback Credit Card

    One of the most common and attractive form of incentive is the cash rebate program or cashback offer to cardholders. In this offer, cardholders receive a part of their gross expenditure. This program benefits cardholders who prefer using credit cards for all or most of their purchases. The cashback amount varies from every purchase. It depends on the net purchase made and the cashback rate. In general, banks offer a cashback rate ranging between 0.2% and 2% for all basic purchases. However, specialized rebate rate on purchases including grocery, gas, and pharmacy at partner merchants can reach up to 10% of the net purchase. Rebate points can be redeemed in a number of ways such as making a call to the bank and asking to transfer it to the payables, logging online and transferring rebates to your account or automatic transfer.

    Few Drawbacks of Cashback Credit Card

    • Cashback redemption sometimes happen only with manual request via phone call to the bank. This may not always work in your favour as calling every now and then will make the cardholders lose interest.
    • Some banks require you to have a certain denomination accumulated as points in order to redeem them. This sometimes become difficult to keep track.
    • Sometimes banks have conditions that erase rebates from your account unless they reach a certain amount. In some other cases, the rewards points expire on a specific date and if not redeemed on or before that day, results in nullification of your rebates.

    Difference between Cashback Credit Card and Reward Credit Card

    To understand the difference between cashback credit card and reward credit card can be very confusing. Before applying for either, you must do a thorough research about each of its features. Although both credit cards have perks for cardholders, there is a difference in the way the incentive benefits are provided.

    Reward credit cards come with non-monetary perks, while cashback credit cards offer monetary incentives. Reward credit card entitles you reward points which can be redeemed for freebies and services and Cashback credit card gives users a percentage of the total spending which is either credited to your savings account or given through check.

    Top Banks Offering Cashback Credit Card


    Credit cards offered by BDO in Philippines offer interest rate as low as 3% and from 10 to 21% cashback. The BDO Forever 21 MasterCard and the LaosAutoGroup MasterCard come with rebates when shopping at Forever 21 and during the 3-day sale at SM’s.


    RCBC credit cards offers attractive cashback deals on its HBC RCBC Bankard, Fully Booked RCBC Bankard and Landmark Anson’s RCBC MasterCards. You can win rebates ranging from 0.50%, 1%, 5% to 10% on your RCBC card when you shop at HBC, Fully Booked, Bibliarch, Sketch Books stores, Landmark Department Store, Landmark Supermarket and Ansons.


    Citibank offers Mercury Drug Citi Card, Cash Back Card and Shell Citi Card with cash rebates of up to 10% at partner hospitals, Mercury drugstores, Meralco, supermarket, SLEX and NLEX Expressway toll road outstores.

    Top Banks Offering Reward Credit Card

    Standard Chartered

    Reward credit cards from Standard Chartered entitle cardholders to earn 1 point for every P10 spent using the cards. Standard Chartered’s Priority Banking Visa Infinite Card, the Gold Visa, Gold MasterCard, the Classic Visa and the Platinum Cash Rewards Card allows you to redeem the earned points at Rustan’s. Landmark, National Bookstore, Sodexho Premium Pass, Starbucks and Ayala Cinema.


    HSBC’s Red MasterCard can help cardholders earn x4 bonus points, while HSBC Advance Visa credit cardholders can earn x3 bonus points when shopping at all designate Philippine-based merchants. HSBC Premier MasterCard and Platinum Visa Credit Card offers up to x4 rewards points that can be earned overseas or while shopping online.

    Security Bank

    With the Security Bank MasterCard World and MasterCard Platinum, you can earn 1 point every time you spend P20 and redeem them for exciting freebies.

    Making the Right Choice

    Both Reward and Cashback Credit cards are full of advantages and incentives, however cardholders should be aware of the terms and conditions offered by the banks. Making the choice between the two depends on the needs and habits of a cardholder. If you prefer to have monetary benefit, you should opt for cashback credit cards and if you prefer using reward points in the form of freebies or free services.

    As it can get very confusing to choose which card is best suited to your requirements, you can look up at websites online that help you compare by providing you a list of all types of cards with features and benefits. One such website is BankBazaar.ph, where you can compare all cards on a single platform, helping you get a clearer picture and apply for the right card.

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