How Do Cashback Credit Cards Work? (Singapore Guide)

Cashback credit cards are one of the easiest ways to make your money work a little harder for you. In simple terms, they give you back a percentage of what you spend, usually as a statement rebate, which reduces your credit card bill. So whether you’re buying kopi, groceries, or booking a weekend staycation, you could be earning something back on every dollar spent.

But here’s the catch—not all cashback cards work the same way. Some cards offer a flat rate across all purchases, while others reward you more when you spend on specific categories like dining or online shopping. And some require you to hit a minimum monthly spend to qualify for the cashback. Understanding how these reward structures work can help you avoid missed savings or surprise exclusions.

It’s also worth noting that not every purchase will earn you cashback. Common exclusions in Singapore include payments for insurance, education fees, government services (like LTA or IRAS), and utilities. So if you were hoping to use your credit card for everything under the sun, it’s good to know where the boundaries are.

For savvy Singaporeans who pay off their balances in full each month, cashback credit cards are a smart way to stretch your budget and earn a little reward from your everyday spending. But to really maximise your returns, you’ll want to pick the right card for your spending style.

» MORE: Best cashback credit cards of 2025

At the core, cashback credit cards return a portion of your spending back to you—typically between 0.3% to 8% in Singapore, depending on the card and spending category. While this might sound simple, understanding the different reward structures is key to maximising your returns. Some cards offer a flat cashback rate, while others reward you more in specific categories or based on your selected lifestyle preferences.

There are four common types of cashback structures in Singapore, and each comes with its own pros and cons. Choosing the right one depends on how and where you spend. For instance, if you’re someone who prefers simplicity, a flat-rate card might be better. But if you spend a lot on food, petrol, or online shopping, a category-based card might get you more bang for your buck.

It’s also important to know what purchases won’t earn cashback. Most cards in Singapore exclude spending on insurance premiums, utility bills, education fees, hospital charges, lottery ticket purchases (TOTO and 4D), certain government transactions, and cash-like transactions like buying foreign currency, money orders, or cryptocurrency. These exclusions vary by bank, so always check the terms and conditions.

A flat rate on all purchases

Flat-rate cards give the same percentage of cashback no matter where or what you spend on. These cards are ideal for Singaporeans with consistent monthly expenses across diverse categories.

One popular option is the Standard Chartered Unlimited Cashback Card, which offers flat-rate cashback with no minimum spend. However, it’s important to note that not all merchants are eligible. Insurance payments, education-related transactions, and government services are typically excluded.

Flat-rate cards are best for those who want simplicity without worrying about whether their hawker centre lunch or Amazon order qualifies for higher rewards.

» MORE: Credit cards that earn 2% cashback or more on purchases

Elevated rewards in common everyday categories

These cards offer higher cashback rates for specific categories like dining, groceries, online shopping, and petrol—perfect for Singaporean lifestyles.

For example, the UOB EVOL Card gives you up to 8% cashback on online and mobile contactless payments. That means you can earn more by just tapping your phone or watch at the MRT gantry or when grabbing lunch.

Similarly, the Citi Cash Back Card offers up to 8% cashback on groceries, dining, and petrol—but only if you meet a minimum spend of S$800 per month. It’s worth checking these thresholds, because if you don’t hit them, your cashback could drop significantly.

Note that category-based cards often come with monthly caps (like up to S$60 cashback a month), so track your spending and don’t assume you’ll get 8% on every dollar indefinitely.

Some cards allow you to choose your preferred cashback categories, providing flexibility to Singaporeans with personalised lifestyles.

The OCBC FRANK Credit Card is one such example. You can earn up to 6% cashback on categories like fast food, entertainment, and transport. It’s a favourite among students and young working adults who spend more on Spotify subscriptions, McDelivery, and Grab rides than groceries or petrol.

This type of card is ideal if your spending doesn’t fit the “family man” template of groceries and Shell petrol. Just remember that cashback still usually comes with caps and minimum monthly spending requirements, even for customised categories.

In Singapore, cashback is usually automatically offset against your monthly bill. It’s a subtle way of saving, less flashy than receiving cash in your hands, but still very useful.

Common redemption methods include:

• Auto credit to your statement (e.g., Citi Cash Back)

• Manual redemption via mobile apps like OCBC Digital or UOB Mighty

• Some banks require you to accumulate a minimum cashback (e.g., S$10) before you can redeem

Watch out for expiry dates on cashback points (DBS Points, for example, may expire), cashback tiers, and exclusions. Just because you earned cashback doesn’t mean it’ll be automatically credited if you don’t meet all the card conditions.

What's next?

• Credit cards that offer the best welcome bonuses

• How to earn rewards for paying your income tax

• How to choose a credit card