Best Cashback Credit Cards in Malaysia

Tired of your money just going away? Want to turn everyday spending into valuable rewards?  You’re in the right place! Here’s a list of the best cashback credit cards in Malaysia for 2024. It’s for everyone, whether you’ve had a card before or it’s your first time. Find the best card to get more cashback and save more money. Let’s make your money do more for you!

Top Cashback Credit Cards for Each Category of Goods & Services

Category 1: Petrol

The broad highways of Malaysia demand a card that powers your travel and your savings, from bustling cities to picturesque kampungs.

Category 2: Groceries

Imagine earning some ringgit back for every purchase as you travel through the aisles, picking up some rendang spices, fresh fish, and, of course, your favourite teh tarik packets. Let’s take a look at which cards will add an extra “ka-ching!” to your supermarket shopping.

Category 3: Dining

The mouthwatering aroma of grilled satay, the enticement of a fresh roti canai, and the cozy warmth of a bowl of laksa. Malaysian cuisine is delicious, and every bite might cost you less money if you have the appropriate card.

Category 4: Shopping

These cards offer a bright spot to your shopping clouds by giving you the joy of scoring the ideal baju raya online or discovering the newest handbag at a mall.

Category 5: Utilities

Here’s how you can lessen the pain when the monthly bills come in, whether they are for the Wi-Fi that keeps us connected or the cool air conditioner that fights the Malaysian heat.

What Is A Cashback Credit Card?

In the huge financial world, a cashback credit card is like a rewarding friend. This card gives you a portion of your expenditure back each time you make a purchase. Imagine eating a lunch at your preferred restaurant in Kuala Lumpur and getting a few ringgits in return. Unlike earning points or flying miles, it involves actual, observable savings.

The importance of these cards for Malaysians simply cannot be emphasized. Every ringgit saved counts in a booming economy with active markets and developing e-commerce platforms. Locals are becoming more aware that the best credit card is about more than simply rewards as competition for the best cashback credit card in Malaysia heats up. It is an expression of one’s way of life, spending patterns, and financial objectives.

Finding the best cashback credit card in Malaysia involves balancing one’s expenses, such as those for groceries, gas, or online shopping, with the card’s advantages. It is, essentially, a tactical tool that enables Malaysians to optimize their financial potential, one purchase at a time.

How Does Cashback Credit Card Work?

Credit card users that have cash back rewards programs receive a portion of their spending as a reimbursement. Every time you use the card for an eligible transaction, you’ll accrue cash back rewards at the predetermined card-set %. For instance, you would receive RM2 in cashback benefits if you spent RM100 on a card that offered 2% cashback.

Understanding the precise terms and conditions of each card is essential. In Malaysia, cashback cards may offer a variety of advantages, frequently customized to meet each person’s particular spending preferences. Some credit cards concentrate on particular spending areas, such as restaurants, entertainment, petrol, and groceries, and they provide larger payback percentages for those purchases.

1. Cashback rate

An essential element of cashback credit cards is the cashback rate. It designates the portion of each purchase that cardholders get back in the form of an incentive or rebate. This percentage might differ significantly amongst credit cards, and the rate frequently affects how appealing a card is overall in terms of the cashback it offers.

The cashback rate is frequently given top priority by Malaysian consumers looking for the best cashback credit card. For instance, a credit card with a 5% cashback rate effectively reimburses 5% of all eligible transactions made with the card. Therefore, a cardholder would get RM5 back for every RM100 they spent.

2. Maximum cashback amount (monthly cap)

The maximum reward amount is a critical component of cashback credit cards that frequently dictates their general attractiveness. This refers to the maximum or limit on the total amount of cashback a cardholder can earn over the course of an agreed-upon timeframe, usually a month or a year.

For instance, a card offering 10% cashback could appear attractive, but if the maximum cashback is only capped at RM20 per month, a customer will hit this limit after only spending RM200. A person who spends RM1,000 or more per month would benefit more from a different card with a 5% cashback rate but a larger maximum cashback limit of RM50.

It’s important to keep in mind that these limits may change depending on the type of spending. For instance, a card might provide a monthly maximum return of RM50 for dining and RM30 for petrol. Temporary increases in the maximum cashback amount may also result from special promotions or alliances with particular merchants.

3. Minimum spend for the cashback benefits

The “minimum spend” requirement is crucial in deciding how cardholders earn rewards when it comes to cashback credit cards. This is the minimum sum a cardholder must spend within a predetermined time period, typically monthly, in order to be eligible for the cashback benefits.

Let’s think about a fictitious situation in order to provide a clearer perspective. Consider the following two credit cards with cashback offers that are available in Malaysia:

• Card A offers a 5% cash back rate with no minimum spend required.
• Card B offers a higher 10% cashback rate but requires a minimum spend of RM1,000 per month to qualify.

Card A would be more advantageous for someone who just spends RM500 per month because they would get RM25 in cashback with no spending requirements. However, because they didn’t spend the required RM1,000 with Card B, the same person would not receive any cashback.

However, for someone who spends RM1,500 each month, Card B emerges as the better choice, giving them RM150 in cashback as opposed to Card A’s RM75.

This illustration highlights the significance of the minimum spend requirement. Due to variations in their monthly expenses, the best cashback credit card in Malaysia for one person might not be the best for another.

4. Tiered cashback

The “tiered cashback” structure stands out as a dynamic way to reward cardholders depending on their spending habits in the huge field of credit card advantages. Understanding the complexities of tiered cash back can have a big impact on a person’s decision and help them maximize their benefits if they are looking for the best cashback credit card in Malaysia.

Consider the following hypothetical Malaysian tiered cashback credit card as an example:

• Dining and Groceries: 5% cashback for spending up to RM2,000 and 2% afterward.
• Petrol: 8% cashback for spending up to RM1,000 and 3% thereafter.
• Other Purchases: 1% cashback regardless of the amount spent.

This card would be perfect for someone who frequently eats out or has a big family and spends a lot of money on groceries. The petrol cashback rate, though, might be more important to someone with a lengthy daily commute, making this card equally enticing.

Moreover, a spending threshold tier system is used by several of the best cashback credit cards in Malaysia. For illustration:

• Spend up to RM1,000 monthly and receive 2% cashback.
• Spend between RM1,001 and RM3,000 to earn 5% cashback.
• Any spending beyond RM3,001 in a month garners a 7% cashback.

With this tiered system, cardholders are encouraged to spend more in order to advance and receive higher percentages of cashback.

Alignment with Spending Habits: Consider your monthly expenses before choosing a card. If you regularly spend more than RM2,500 per month, you’ll naturally favor a credit card that offers incentives for higher spending. On the other hand, if your monthly spending averages roughly RM1,000, a card with respectable cashback at this tier might be more advantageous.

Maximizing Returns: Understanding the tiered structure can help people who fluctuate between income tiers plan their purchases. Consolidating your expenses on one card may be worthwhile if you’re on the verge of moving into a higher cashback tier and want to earn better benefits.

Getting to Know the Rules and Limits of Cashback Credit Card

It’s crucial to look deeper and consider the finer points when looking for the best cashback credit card in Malaysia. The majority of cards entice customers with alluring cash back percentages, which might vary greatly. While others may tout figures as high as 10%, some may make guarantees as low as 0.2%.

Many cards specify specific areas where these percentages apply, such as dining, entertainment, or gasoline, making it essential for potential users to match their typical spending patterns with these categories to maximize returns. But there are still more complexities. The cashback maximum or limit is an important but frequently disregarded component. If the potential earnings are constrained by a limited monthly or annual cap, an alluring percentage can quickly lose its appeal.

Cashback available on specific days of the week only

In order to draw and keep clients in Malaysia’s cutthroat credit card industry, several issuers are continually rethinking their reward programs. Offering higher cashback rates on particular days of the week is one such tactic used by some of the best cashback credit card issuers in Malaysia. This strategy is intended to affect consumer spending patterns by enticing cardholders to use their cards to make sizable purchases on certain specific days in order to optimize their cashback rewards.

A card might, for instance, provide a greater payback rate on weekends to encourage more retail and leisure expenditure when people are more likely to go shopping. In contrast, certain cards might encourage spending on weekdays, presumably aimed at businesspeople who go out to eat or shop after work.

Cashback only to certain outlets

Malaysia’s credit card rewards market is highly competitive. Many of the best Malaysian cashback credit card issuers have teamed up with particular retailers to offer exclusive cashback deals in an effort to distinguish themselves. This strategy benefits both the bank and the retailer because it not only advertises the credit card but also increases customer traffic to these affiliated businesses.

For the client, this implies that even while their card may provide an alluring cashback rate, this benefit might only be applicable to purchases made at particular retailers, eateries, or service providers. When used at a specific chain of supermarkets or brand of gas station, for instance, a credit card might give a larger percentage of cashback. For consumers who frequently shop at these establishments, these customized rewards can be very helpful, allowing them to maximize their savings greatly.

How to Choose a Cashback Credit Card?

Here is the scenario to let you understand how to choose a cashback credit card:

Meet Kuala Lumpur-based young professional Fazura. Her coworkers have been talking a lot lately about the advantages of cashback credit cards. She is intrigued and believes it is time to purchase one for herself. However, the decision is not easy due to the abundance of products on the Malaysian market. How can I choose the best cashback credit card in Malaysia for my needs? she wonders.

1. Analyze Your Spending Habits

Fazura started by reviewing her monthly outlays. She found that internet shopping and food accounted for a sizable amount of her spending. She therefore required a card with high cashback rates in these areas.

2. Understand the Cashback Cap

She came across a card that offered a tempting 8% reward on shopping. However, upon deeper examination, she discovered that the cashback was restricted to RM50 each month. This meant that after spending RM625 on groceries, she would not receive any additional cashback. Considering her regular grocery expenses, she had to evaluate if this limit was reasonable.

3. Look for Additional Perks

The best credit card in Malaysia for cashback offers more than just cashback. Fazura found that some credit cards provided extra benefits including free access to airport lounges, longer warranties on electronic devices, and special dining offers. These benefits, however incidental, made her decision more worthwhile.

4. Be Aware of Annual Fees

Some credit cards did not charge an annual fee the first year or under certain circumstances, while others did. Fazura had to balance this expense against the potential benefits because she was aware that a large annual fee could cancel out the advantages of cashback.

5. Read the Fine Print

Fazura also took the time to read the terms and conditions. She discovered that certain cards had specific limitations, such as greater cashback rates only on specific days or at particular retailers. For her benefits to be maximized, it was essential to comprehend these subtleties.

Fazura ultimately made the right choice in terms of a credit card, one that exactly fitted her spending habits and allowed her to reap the benefits of cashback without going overboard.

Cashback Tips: Spend Smartly Avoid This: Try This:

The possibility of rewards necessitates wise financial practices. Here is a guide on how to make the most of your tiered cashback credit card, including what to do and what to avoid.

Avoid This:

• Overspending to Reach a Higher Tier: When rising up in tiers results in larger rewards, it is financially irresponsible to spend above your means to do so. If you get into debt, the expenses will outweigh the advantages.
• Spreading Out Your Expenses: A higher cashback tier on any one card may be missed if you use many cards without a defined strategy.
• Not Monitoring Your Spending: If you don’t know what you spend each month, you risk missing out on the chance to move up a cashback tier.

Try This:

• Evaluate Your Average Expenditure: Consider your normal monthly spending before subscribing to a card. The finest cashback credit card in Malaysia for you may be one that coincides with a higher cashback tier of a certain card.
• Strategize Your Spending: Consider consolidating your transactions on that card to earn more cashback if you expect to be in a higher cashback tier by the end of the month.
• Review Cashback Terms Regularly: The terms, such as the tiers and reward rates, may be updated by credit card issuers. To be sure you’re maximizing your benefits, stay informed.
• Set Spending Alerts: Most banks let you create alerts for particular expenditure thresholds. This can be a helpful tool to use to gauge your progress toward a higher tier.

Determining Your Card’s Cashback Amount

The amount of cashback you stand to receive is one of the most important factors to examine while looking at the best cashback credit cards in Malaysia. Here’s how to figure out how much cashback is available on your card:

1. Understand the Basics: Credit cards with cashbacks reimburse you for a portion of your expenses as savings. This implies that if you spend RM100 at a restaurant and have a card that offers 5% cashback, you will get RM5 back.
2. Tiered Rates and Capped Spending: Some cards provide tier rates, which means the payback % may rise in proportion to your monthly spending. For instance, the Standard Chartered Simply Cash credit card offers 0.5% cashback for purchases under RM2,500 but increases to a significant 15% for sums beyond RM2,500, however there is a cashback cap.
3. Specific Categories and Caps: For certain categories, including eating, gas, or groceries, certain cards provide better cashback rates. For instance, the Citi Cash Back has a monthly cap of RM10 and offers 10% return on restaurants, grocery, and petrol.
4. Weekend vs. Weekday Spending: During the weekend, several cards—like Hong Leong Wise—offer higher cashback rates.
5. Understand the Definition of ‘Eligible Spend’: Not all purchases may be eligible for cashback.
6. Impact of Foreign Transactions: Some credit cards, such as the American Express® Cash Back Gold by Maybank, offer various cashback percentages for domestic and international purchases.
7. Regularly Monitor and Evaluate: It’s critical to keep up with changes to your credit card’s terms and conditions because credit card providers might change its advantages, fees, and charges at any time.

Conclusion

The search for the finest cashback credit card in Malaysia has intensified, reflecting the evolving needs of astute Malaysian shoppers. With so many credit card choices, getting the most out of each swipe is the main focus. The finest cashback credit card Malaysia encompasses a rewarding purchasing adventure as cashback incentives have evolved into cardholders’ defining characteristic. With card products that are customized to specific monetary habits, it’s a mutually beneficial partnership. The drive, which combines personal finance and creativity, gets more intense as the year goes on.

If you’re interested on finding other best credit cards, you can visit our Best Credit Card in Malaysia page.

**Disclaimer: This article is only offered for general informational reasons and is not meant to cover all facets of the subjects it addresses. It is not meant to be taken as advice you should rely on. You must seek expert or professional advice before acting or refraining from acting based on the information in this publication. The content in this publication does not represent professional advice from Wise Payments Limited or its affiliates in law, taxes, or other matters. A comparable outcome is not always assured by past performance. We give no assurances that the information in the publication is accurate, full, or up to date, either explicitly or implicitly.

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