Cashback Credit Card

Free money! Now that we’ve got your attention, learn how to get the most out of cashback credit cards.

Cashback offers and promotions are an enticing proposition for rewards chasers. Who doesn’t like a free lunch? Cashback credit cards can work a couple of different ways: Either get a percentage of your total spend as cash back at the end of the month, get a one off cashback payment when you enter into a special promotion, like a balance transfer, or convert your rewards points to cash. Just remember to pay your credit card balance otherwise you’ll be unnecessarily giving ‘cash back’ to your credit card provider. Here’s how to make a cashback credit card work for you.

To find out more about cash back offers and the type of consumers they suit, read on for the guide below:

Things you need to know about Cashback Credit Cards

  • This type of credit card provides cash back value according to how much money you spend on your card on eligible purchases
  • Cashback credit cards typically have higher interest rates, annual fees and are not ideal for users who carry a balance forward
  • Check the rewards earning rates, earning tiers depending on your type of transaction and cap on how many points you can earn
  • Find a card that matches your spending habits and lifestyle and the types of rewards available for redemption

Compare Credit Cards with Cashback

Rates last updated August 28th, 2015
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
Woolworths Money Everyday Platinum Credit Card
0% p.a. for 14 months on balance transfers and earn up to 3.00 rewards points per $1 spent with $0 annual fee and receive a $100 Gift Card, offer ends 31 August 2015.
19.99% p.a. 0% p.a. for 14 months $0 p.a. annual fee for the first year ($49 p.a. thereafter) 21.99% p.a. Go to site More info
Virgin No Annual Fee Credit Card
$100 cashback and a no annual fee card with balance transfer offer. Spend criteria applies for cashback offer.
18.99% p.a. 0.9% p.a. for 15 months $0 p.a. 20.99% p.a. Go to site More info

Compare Credit Cards with Rewards Program that allow you to redeem points for Cashback

Rates last updated August 28th, 2015
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Points per $ spent
Citi Rewards Credit Card - Signature
Receive 60,000 bonus Rewards Points on your first spend. A range of complimentary insurances.
20.99% p.a. 0% p.a. for 6 months with 1% balance transfer fee $299 p.a. VISA/MC: 1.5 AMEX: 0 Go to site More info
Woolworths Money Everyday Platinum Credit Card
0% p.a. for 14 months on balance transfers and earn up to 3.00 rewards points per $1 spent with $0 annual fee and receive a $100 Gift Card, offer ends 31 August 2015.
19.99% p.a. 0% p.a. for 14 months $0 p.a. annual fee for the first year ($49 p.a. thereafter) VISA/MC: 1 AMEX: 0 Go to site More info
HSBC Platinum Credit Card
Earn rewards points plus a balance transfer offer. Access to Platinum benefits including a personal concierge service and VISA Platinum reward program.
19.99% p.a. 0% p.a. for 8 months $0 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
Bankwest More Gold MasterCard
Earn 15,000 bonus More Rewards points. Earn 1.50 rewards points for every $1 spent.
19.99% p.a. 2.99% p.a. for 9 months $120 p.a. VISA/MC: 1.5 AMEX: 0 Go to site More info
HSBC Platinum Qantas Credit Card
Receive 40,000 Bonus Qantas Points, complimentary insurance plus a 0% p.a. balance transfer offer for 6 months.
19.99% p.a. 0% p.a. for 6 months $199 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
Citi Rewards Credit Card - Platinum Card
Consolidate your debt with a low balance transfer of 0% p.a. for 24 months and a long purchase rate offer plus a host of platinum privileges. Earn up to Citibank Reward points for every $1 spend.
20.99% p.a. 0% p.a. for 24 months with 2.5% balance transfer fee $199 p.a. VISA/MC: 1.25 AMEX: 0 Go to site More info
Citi Rewards Credit Card - Classic Card
Enjoy a 0% p.a. on balance transfers for 18 months and up to 55 interest-free days on purchases.
20.99% p.a. 0% p.a. for 18 months $89 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
Bankwest More MasterCard
Earn 8,000 bonus More Rewards points. Plus earn 1.50 points for every dollar you spend.
19.99% p.a. 2.99% p.a. for 9 months $70 p.a. VISA/MC: 1.5 AMEX: 0 Go to site More info
Bankwest More Platinum Mastercard
Enjoy all the extra special benefits including complimentary overseas travel insurance and emergency travel assistance 24/7 with no foreign transaction fees.
19.99% p.a. 2.99% p.a. for 9 months $130 p.a. VISA/MC: 2 AMEX: 0 Go to site More info
Citi Prestige Card
Enjoy a balance transfer offer with 0% p.a. for 6 months and up to 70,000 bonus points.
20.74% p.a. 0% p.a. for 6 months $700 p.a. 2 Go to site More info
ANZ Rewards Platinum
Pay no annual fee for the first year, receive 50,000 Reward Points, and earn up 3.00 for every dollar spent on purchases.
18.79% p.a. $0 p.a. annual fee for the first year ($149 p.a. thereafter) VISA/MC: 1.5 AMEX: 3 Go to site More info

Compare Debit Cards with Cashback on Purchases

Rates last updated August 28th, 2015
$
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Interest Rate p.a. Fee Free Deposit p.m. Details
ING DIRECT Orange Everyday Account
A transaction account with no monthly fees, plus a range of bonus features to take advantage of.
Array Visa $0 0.00% $1,000 No monthly fees, and you can use any ATM in Australia for free when you deposit $1,000 each month e.g your salary. Open More

Compare Credit Cards with gift cards or vouchers as part of their rewards program

Rates last updated August 28th, 2015
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Points per $ spent
HSBC Platinum Credit Card
Earn rewards points plus a balance transfer offer. Access to Platinum benefits including a personal concierge service and VISA Platinum reward program.
19.99% p.a. 0% p.a. for 8 months $0 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
Bank of Melbourne Amplify Classic - Amplify Rewards
Earn Amplify points on purchases to redeem for gift cards, appliances, events and experiences, travel through Amplify Travel and much more.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $79 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
BankSA Amplify Classic
The BankSA Amplify is a brand new rewards credit card from which allows you to earn more Qantas Points.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $79 p.a. 1 Go to site More info
American Express Platinum Edge Credit Card
Receive 10,000 Membership Rewards Bonus Points as well as up to 3.00 points on every dollar spent, while enjoying a low interest rate of 0.99% p.a. on balance transfers for 6 months and a complimentary domestic return flight every year. Offer ends on 30 September 2015.
20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $195 p.a. VISA/MC: 0 AMEX: 1 Go to site More info
BankSA Amplify Signature - Amplify Qantas
Enjoy generous introductory purchase and balance transfer rate plus lucrative rewards.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $279 p.a. VISA/MC: 0.75 AMEX: 0 Go to site More info
Woolworths Money Everyday Platinum Credit Card
0% p.a. for 14 months on balance transfers and earn up to 3.00 rewards points per $1 spent with $0 annual fee and receive a $100 Gift Card, offer ends 31 August 2015.
19.99% p.a. 0% p.a. for 14 months $0 p.a. annual fee for the first year ($49 p.a. thereafter) VISA/MC: 1 AMEX: 0 Go to site More info
Bank of Melbourne Amplify Signature
Take advantage of travel benefits plus a low introductory interest rate offer on purchases and balance transfers.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $279 p.a. VISA/MC: 1.5 AMEX: 0 Go to site More info
St.George Amplify Classic
A low interest rate on balance transfers of 0% p.a. for 16 months.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $79 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
St.George Amplify Platinum
This card features a balance transfer rate, a low annual fee, plus a low introductory purchase rate offer.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $99 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
HSBC Platinum Qantas Credit Card
Receive 40,000 Bonus Qantas Points, complimentary insurance plus a 0% p.a. balance transfer offer for 6 months.
19.99% p.a. 0% p.a. for 6 months $199 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
BankSA Amplify Platinum
Enjoy a generous earn rate, plus the ability to tailor your rewards with your choice of rewards programs.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $99 p.a. 1 Go to site More info
St.George Amplify Signature
Low interest rate offer on purchases. Also get a low 0% p.a. for 16 months on balance transfers.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $279 p.a. VISA/MC: 1.5 AMEX: 0 Go to site More info
Bank of Melbourne Amplify Platinum
Take advantage of low introductory purchase rate offer and 24/7 concierge service, all for a low annual fee.
0% p.a. for 3 months (reverts to 19.49% p.a.) 0% p.a. for 16 months $99 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
ANZ Platinum Credit Card
A low interest rate offer on balance transfers with a $0 annual fee for the first year.
19.74% p.a. 0% p.a. for 16 months with 2% balance transfer fee $0 p.a. annual fee for the first year ($87 p.a. thereafter) VISA/MC: 0 AMEX: 0 Go to site More info
Woolworths Money Qantas Platinum Credit Card
Earn 1.00 Qantas Frequent Flyer point per $1 spend plus earn extra points if you spend through Everyday Rewards partners such as Woolworths.
20.49% p.a. 0% p.a. for 14 months $99 p.a. annual fee for the first year ($139 p.a. thereafter) VISA/MC: 1 AMEX: 0 Go to site More info
ANZ Rewards Credit Card
Pay no annual fee for the first year, get 25,000 bonus Reward Points and earn 2.00 points per dollar spent.
18.79% p.a. $0 p.a. annual fee for the first year ($89 p.a. thereafter) VISA/MC: 1.5 AMEX: 2 Go to site More info
ANZ Rewards Platinum
Pay no annual fee for the first year, receive 50,000 Reward Points, and earn up 3.00 for every dollar spent on purchases.
18.79% p.a. $0 p.a. annual fee for the first year ($149 p.a. thereafter) VISA/MC: 1.5 AMEX: 3 Go to site More info
Citi Rewards Credit Card - Platinum Card
Consolidate your debt with a low balance transfer of 0% p.a. for 24 months and a long purchase rate offer plus a host of platinum privileges. Earn up to Citibank Reward points for every $1 spend.
20.99% p.a. 0% p.a. for 24 months with 2.5% balance transfer fee $199 p.a. VISA/MC: 1.25 AMEX: 0 Go to site More info
NAB flybuys Rewards Card
Receive up to 10,000 bonus flybuys points for eligible purchases. Plus a low offer on balance transfers. Apply by 11 October 2015.
19.99% p.a. 0% p.a. for 15 months $95 p.a. VISA/MC: 1 AMEX: 0 Go to site More info
American Express Platinum Card
Receive 100,000 Membership Rewards Bonus Points and earn up to 3.00 points per dollar spent. Gain access to travel insurance, 700 VIP airport lounges and transfer points to any of 9 leading airline rewards programs.
$1,200 p.a. VISA/MC: 0 AMEX: 1 Go to site More info

What are cash back credit cards?

There are many different types of credit card rewards. Some credit card providers reward you with frequent flyer points, some offer points in a specific rewards program, like Woolworths Everyday Rewards or Commonwealth Bank points, and some just give you cash as an incentive for spending on your credit card.

A cashback credit card does what the name suggests: you get cash back when you spend on the credit card. Some provider also give you cashback when you take up a special promotional offer, like a balance transfer.

How do cash back cards work?

There are three ways you can earn cashback on your credit card purchases.

  • Cashback via a credit card rewards program. You’ll need to manually redeem your points for cashback with this option.
  • Instant cashback when you make an eligible credit card purchase. For example, say you make a credit card purchase of $1000 and there is a 2% cashback promotion, the credit card provider gives you $20 back.
  • Cashback when you take up a promotional offer. Some products have a special promotion, like a balance transfer offer, you get cashback or a cash equivalent gift when you take up the deal.

For instant cashback and cashback via rewards, cashback is only given when you make an eligible credit card purchase. Transactions like cash advances are ineligible for cashback rewards. Check the credit card’s terms and conditions for a full list of transactions ineligible to earn rewards.


How can I compare cashback credit cards?

Compare cashback credit cards by the size of the return. On face value, the card that offers more will look the most appealing. But there are other factors to consider too.

  • Think about how much you plan to spend on the card.
  • Can you pay off the entire balance at the end of the month. Cashback means very little if you’re accruing interest on your purchases.
  • What’s the product’s annual fee. You have to spend more on a card with a high annual fee before the value of the rewards is greater than the cost to own the product.
  • Also remember to compare the cashback offer against other credit card rewards options. Perhaps converting points to gift vouchers will give you a better return.

There’s more than a bit to think about before you enter into the world of cashback and credit card rewards. Do your due diligence and compare cashback credit cards so they don’t end up costing more than they’re worth.


How can I make money with a cashback card?

You’re probably wondering how much money you can actually make with a cashback credit card. Consider the following:

  • Total spend. You only get back what you put in. Your total eligible spend will dictate the cashback return, unless there’s a cap.
  • Rewards cap. Does the credit card provider have a cap on the number of rewards points you can earn in a month, or is there a limit on the value of cashback you can get. This information is available in the product’s fine print and on our credit card review and application pages.
  • Ineligible transactions. Also consider the type of purchases you’ll make on your card. Not all transactions are eligible for cashback. Cash advances, paying some bills and paying credit card fees and charges are considered ineligible transactions. Gambling purchases are also ineligible to earn cashback rewards.

The general rule is that Australian cash back customers can earn up to 1.4% cash back, after the annual fee is deducted, as a percentage of purchases according to analysis from Credit Card Finder.


What are the advantages and drawbacks of cashback credit cards?

This may help you decide whether a cashback credit card is the right type of credit card for you.

Pros

    • Money in your pocket. Every time you spend you’re getting something back. Every return in value is a bonus, no matter how small.
    • It’s not just about the cash. Most credit cards with a cashback rewards program also have free goodies on offer like insurance, a concierge service and some even offer complimentary passes to airport lounges too.
    • Don’t like cashback? Some credit cards that offer cashback when you make an eligible purchase also offer other ways to get rewarded. If cashback isn’t your thing, you may be able to accrue rewards points that can be used for gifts, gift cards or flights.

Cons

  • The annual fee. Credit cards with cashback rewards generally charge a higher annual fee than low rate credit cards. Make sure your annual spend is high enough so the value you get back from the rewards is higher than the annual fee.
  • Rates of interest. These cards do offer interest-free days on purchases. But this is only if you pay your balance off in full each month. Rewards credit cards generally have a high purchase rate of interest. If you don’t pay off your balance, this type of credit card will cost you more than a low rate of low fee product.
  • Points cap. Some of these cards have a cap on the number of rewards points you can earn or a cap on the value of cashback you can receive over a period of time.

Choosing the right cashback credit card

How much cash back can I receive?

How much cash back you receive depends mainly on the type of card that you decide to use and whether there is points capping. Your credit card provider will give you all of the details when you sign up for your card.

The general rule is that Australian cash back customers can earn up to 1.4% cash back, after the annual fee is deducted, as a percentage of purchases according to analysis from Credit Card Finder.

How much cashback can you receive back?

What spending can I earn cash back on?

When you use your credit card, you are only eligible to receive cash back on purchases. The amount of points you can earn will depend on the earn rates on your card. Earn rates can be higher for spending overseas and at supermarkets and partner organisations.

What spending can’t I earn cash back on?

You won’t receive cash back on any cash withdrawals, balance transfers, credit card fees and charges, paying your credit card interest or transactions related to gambling.

Compare Cashback Credit Cards


What else should I take into consideration?

    • Balance transfers. Excluding cashback credit cards that offer an incentive for carrying out a balance transfer at the time of application, it’s not a good idea to get a cashback credit card when you want to do a balance transfer. A balance transfer often voids any interest-free days on the credit card, meaning interest is charged right away. Interest charges are sure to negate any rewards value. Go for a balance transfer credit card instead. If you really want the cashback rewards, you can always have two credit cards. One for the balance transfer balance and one for earning cashback. Some balance transfer credit card also don’t charge an annual fee.

learn more about balance transfers

  • Annual spend. Most cashback credit cards charge an annual fee. If the product is a no annual fee cashback credit card then great, any spend on the product is an instant bonus. However, if the card does charge an annual fee, you need to make sure you spend enough on the card so the return value of the rewards is greater than the cost of owning the credit card.
  • Capped cashback. These are one of the biggest deterrents when you are searching for the perfect cash back credit card. These ‘caps’ are limits on how much cash back you can earn on your card. It is also referred to as a ‘capped rewards points’’Not every card has capped cash back, but some of them do. If you are likely to spend enough on the card so that you exceed the cash back cap, it may be worth looking for a card with a higher cap or a card with uncapped cash back.

How to apply and use a cash back credit card

1. Apply for a cash back card. You can apply for a card online by simply clicking the ‘Apply’ button next to the card you want in the above table. To ensure the the application goes smoothly, make sure to have all of the required documents handy. These will usually include your address, income and other personal information. Once you have applied, the provider will respond to confirm your application. If necessary, you may be asked to provide additional information to assist your application. Once you’ve received approval for your credit card, you’ll receive your brand new credit card via post, often a week or so later.

2. Keep your old card open until all direct debit payments are switched over. You do not want to be stuck being penalised for missed payments. The surefire way to combat this is by keeping your old credit card account open for an extra couple of months until you are sure all your direct debits are transferred over to your new card. If you fail to make a minimum payment, you stand to lose money in fees and charges.

3. Spend! It is time to earn cash back! You won’t earn any cashback until you spend on the card. An easy way to do this is by using your card to pay for bills and necessary expenses. Make sure you take note of what is considered an eligible purchase and what won’t earn you cashback.

4. Know when promotional offers end. If you have a card that has a promotional offer, then you will want keep track of when that promotional offer ends. Make a calendar reminder alerting you of the end date as soon as you get the card.

Compare Cashback Credit Cards


Cashback is a nice bonus for spending on your credit card. But don’t let the bonus go to the bank. Make sure you pay off your card in full each month to avoid interest charges and if the card has an annual fee,  spend enough on the card to get out of the red.


Frequently asked questions

How can I find out more about a cashback credit card?

If you have any questions about a cashback credit card that we have not answered on this page, or the product review pages, ask us a question using the form at the bottom of the article and a member of the finder.com.au will be in touch to assist you with your question.

How much cash can I expect to get back when I spend?

While the cashback rate varies from product to product, a general rule of thumb for cashback returns is somewhere between 1 and 2% of the total value of the transaction. This figure can jump up when you look at merchant and retailer bonus cashback rewards schemes.

Can I use cashback to pay the annual fee or my credit card debt?

The good news is yes, you can generally put the cashback rewards to pay the products annual fee or the outstanding balance of a credit card. It’s your cash, you can use it how you want.

Where can I find out more about cashback and rewards points capping?

We include all relevant information about cashback and rewards points capping on our cashback credit card review and application pages. Read our product reviews for all the ins and outs and about to best use a cashback credit card.

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from. ‘Best and ‘Top’ are ratings which are subject to our consideration and is not rated against all Australian credit cards. We recommend you take this information into account when comparing credit cards.

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4 Responses to Cashback Credit Card

  1. Default Gravatar
    Nat | September 30, 2014

    Can i transfer several card balances of under $5 each onto to 1 of these single prepaid woolworths money cards plz?

    • Staff
      Elizabeth | September 30, 2014

      Hi Nat,

      Thanks for your question.

      This will depend on whether all of these cards are yours or not. It might be best to get in contact with Woolworths directly to see if this will be possible with your account.

      Thanks,

      Elizabeth

  2. Default Gravatar
    ann | April 7, 2014

    How do I redeem money for cash back? I paid for my PC on my Westpac credit card.

    • Staff
      Jacob | April 7, 2014

      Hi, Ann.

      I’m not sure I understand the question. Can you please elaborate on what you’re looking for and the product you used to make the purchase. ‘

      Thanks for your question.

Credit Cards Comparison

Rates last updated August 28th, 2015
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
St.George Vertigo Platinum
A platinum card with a low interest rate on balance transfers and purchases with a low annual fee.
0% p.a. for 3 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. 21.49% p.a. Go to site More info
NAB Low Rate Credit Card
Low ongoing interest rate on purchases and balance transfers.
0% p.a. for 12 months (reverts to 13.99% p.a.) 4.99% p.a. for 6 months $59 p.a. 21.74% p.a. Go to site More info
American Express Velocity Escape Card
Enjoy 7,500 bonus Velocity Points when you spend $300 within the first 3 months and up to 2.00 points for every dollar you spend, together with a $0 annual fee. Offer ends on 30 September 2015.
20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $0 p.a. Go to site More info
HSBC Platinum Credit Card
Earn rewards points plus a balance transfer offer. Access to Platinum benefits including a personal concierge service and VISA Platinum reward program.
19.99% p.a. 0% p.a. for 8 months $0 p.a. 21.99% p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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