All About The Best Cash-Back Credit Cards In The UAE

Learn About The Key Features And More

Cash-back credit cards can be particularly appealing to consumers in the UAE because they offer a straightforward way to save money on daily expenses. Moreover, consumers can enjoy the excitement of flexibility in redeeming and using their earnings, making them even more appealing.

Driven by significant market size, a high growth rate, and the adoption of digital payment methods, cash-back credit cards in the UAE are expected to grow at a CAGR of more than 8% from 2022 to 2026.

To maximise the value of a cash-back credit card, UAE-based consumers should align their spending habits with a card that offers the highest cash-back rate on their most frequent expenses.

However, while choosing the best cash-back credit card in the UAE is not a walk in the park, with the right approach and information, consumers can reap the maximum benefits and boost their spending.

To assist UAE residents in making informed decisions, we delve into the key features, eligibility criteria, redemption processes, and security measures associated with cash-back credit cards available in the Arabian Gulf nation.

Cash-Back Rates And Structures

Cash-back credit cards in the UAE offer a range of features designed to appeal to consumer preferences and spending habits.

These features include varying cash-back rates and structures, introductory offers, and supplementary benefits like travel insurance and airport lounge access.

Examples of leading cash-back credit cards in the UAE market include the ADCB TouchPoints Platinum Credit Card, Emirates NBD Cashback Credit Card, and RAKBank World Credit Card.

Cash-back rates and structures vary among credit cards. Some offer flat rates across all purchases, while others provide tiered rewards based on spending categories or thresholds.

For instance, the ADCB TouchPoints Platinum Credit Card offers up to 2.5% cash back on all spending, with higher rates for specific categories such as dining and groceries.

On the other hand, the Emirates NBD Cashback Credit Card features tiered cash-back rates of up to 6% on supermarket and fuel purchases, making it an attractive option for consumers with significant expenditures in these areas.

Eligibility criteria for cash-back credit cards typically include a minimum income requirement, UAE residency status, and age restrictions.

For example, RAKBank World Credit Card applicants must have a minimum monthly income of AED25,000 and be UAE residents aged 21 years or older.

It is common for most cash-back credit cards in the UAE to entice new cardholders with introductory offers and sign-up bonuses. These may include higher rates for an initial period, bonus cash back on meeting minimum spending requirements, or waivers on the annual fee.

For instance, the Emirates NBD Cashback Credit Card offers a sign-up bonus of AED300 cash back upon spending AED3,000 within the first 60 days of card issuance.

Redemption Process

The redemption process for cash-back rewards earned through credit card spending varies by issuer in the UAE.

Cardholders must understand this process, as it can significantly impact the benefits they receive from their cash-back credit cards. The process typically involves automatic or manual redemption through online portals, mobile apps, or customer service channels.

Some cards, like the ADCB TouchPoints Platinum Credit Card, offer automatic redemption, while others, such as the Emirates NBD Cashback Credit Card, require cardholders to redeem rewards manually.

Cardholders can maximise the benefits of their cash-back credit cards by familiarising themselves with the redemption process.

Cash-back credit cards in the UAE also allow cardholders to tailor their rewards preferences based on their spending habits. This handy feature empowers consumers to choose spending categories that earn higher cash back, aligning rewards with their lifestyle and expenditure patterns.

A good example is the ADCB TouchPoints Platinum Credit Card, which offers customisable rewards preferences that allow cardholders to earn higher cash back on categories including dining and utility payments.

Security Measures

The best cash-back credit cards in the UAE strictly adhere to stringent security measures to safeguard consumers against fraud, particularly online transactions.

These measures include multi-factor authentication, real-time transaction monitoring, purchase protection, and liability protection against unauthorised transactions.

Additionally, advanced encryption technologies and secure payment gateways are employed to secure cardholder data during online transactions, ensuring peace of mind for consumers.

Potential Pitfalls

UAE-based consumers must be aware of potential pitfalls to maximise the benefits of cash-back credit cards. These include overspending to chase rewards, overlooking terms and conditions, carrying a balance, missing payments, and neglecting to track rewards.

By understanding these potential pitfalls and exercising prudence, consumers can avoid these mistakes and reap the most of their cash-back credit cards.

Cash-back credit cards can be valuable for earning cash back on everyday expenses. By carefully selecting a card that matches spending habits and offers the highest cash-back rates, consumers in the UAE can maximise their rewards and save money on purchases.

Featured image: Align spending with a credit card with the highest cash-back rate on the most frequent expenses. Credit: Blake Wisz

Last Updated on 8 months by Dan Ngiam