Cashback SBI Card Review: Earn Cashback without Merchant Restrictions

Lately, cashback has risen as one of the most sought-after credit card categories. As a result, leading credit card issuers have launched cards in the cashback segment- some in collaboration with popular brands while others offering general cashback across all merchants and all spend categories. SBI Card has also launched a new card in this segment- The Cashback SBI Card. Suited to the needs of online shoppers, this card gives generous cashback on all online transactions with no merchant restrictions.

If you are thinking of applying for Cashback SBI Card and are wondering whether it would be the right fit for you, read the detailed review below.

Cashback without Merchant Restrictions

The Cashback SBI Card offers 5% cashback across all online transactions, irrespective of the merchant or platform you shop at. But why is this promoted as a great feature? Let us understand.

Most cashback credit cards in the market are either co-branded or offer extra earnings only on select categories. Let’s take Axis Ace for example. You get 5% cashback on bill payment and recharges; 4% on Swiggy, Zomato and Ola and all the other transactions will earn flat cashback of 2%.

On the other hand, Cashback SBI Card gives 5% cashback across all online transactions regardless of whether you spend on dining with Zomato, Swiggy or any other online platform, shopping at any online platform, booking cabs, flights, hotels, the list is endless. Practically any online spend that you make will give you 5% cashback. No other card in the market is offering such a high rate of cashback across such a wide range of transactions.

While the base rate of cashback stands low at 1%, users who spend online will be earning 5% which is quite a generous rate. However, you should note that fuel spends and utility bill payments do not qualify for the 5% cashback. Moreover, the maximum cashback earning in a month is Rs. 10,000 after which you will start earning 1% on all transactions. This is also quite reasonable.

Value-back Comparison: Cashback SBI Card Vs. Axis Ace

The table below shows a comparison of value-back that Axis Ace would offer for a given set of transactions compared with that offered by Cashback SBI Card on the same set of transactions.

Axis Ace is one of the best cashback cards in the market but the extra earnings are restricted to certain merchants. Even if you spend online, there is no extra benefit for general online spends. On the other hand, Cashback SBI Card offers 5% cashback on all online transactions except fuel and 1% on utility bills. The total cashback earned would be higher for Cashback SBI Card as even the brands/merchants that are not covered by Axis Ace will earn 5% cashback.

Also Read: Best Cashback Credit Cards in India

Annual Fee and Waiver Condition

The Cashback SBI Card charges an annual fee of Rs. 999 which is higher than other popular cashback cards. However, under the introductory offer, SBI Card is charging no joining fee which means the card is absolutely free for the first year. From second year onwards, you can get the annual fee reversed by spending Rs. 2 Lakh or more in the preceding year.

To help you get a perspective, here is a table showing the annual fee charged by other cashback credit cards.

Other Benefits

Apart from cashback, this SBI Credit Card comes with the following benefits:

• 4 complimentary domestic airport lounge visits in a year (1 per quarter)
• 1% fuel surcharge waiver across all petrol pumps in India, applicable to transactions from Rs. 500 to Rs. 3,000 (Maximum waiver of Rs. 100 in a billing cycle)

Should you get this card?

Cashback SBI Card is best suited for those who prefer online shopping for everything- whether it is apparel, footwear, accessories, travel, food, groceries, entertainment or any other need. The maximum cashback limit (for the accelerated earning category) is Rs. 10,000 in a billing cycle, which means online transactions up to Rs. 2 Lakh per month will be eligible for the extra earnings. After you reach this monthly limit, 1% cashback will be given on all transactions.

You should get this card if the answer to most of these questions is YES for you:

• Do you put most of your expenses on credit cards?
• Do you mostly shop online?
• Can you spend Rs. 2 Lakh in a year to get the annual fee waived off?
• Are you willing to pay Rs. 999 as the annual fee if you cannot reach the spend threshold for waiver?
• Do you already have or are planning to get another card for utility bill payments and fuel expenses?

Final Thoughts

Cashback SBI Card is a challenger for other popular cashback cards in the market such as Axis Ace and Flipkart Axis Card. Though offering great value-back, most of these cards have merchant/brand restriction which is the main reason why cardholders cannot make the most of the benefits. Cashback SBI Card takes away this drawback by offering 5% cashback on all online transactions irrespective of the merchant or brand that you choose.

The card does not offer any cashback on fuel and utility bills get only 1% cashback. If you are looking to earn cashback on these two categories, you can consider getting a fuel credit card or a card that rewards utility bill payments. Otherwise, for cashback, this credit card will provide maximum value.