Maximising rewards: The ultimate guide to online shopping credit cards

Posted on Thursday, February 1st, 2024 | By IndusInd Bank

In today’s digital age, more and more people are shopping online. From booking flight tickets and paying bills to ordering groceries and buying electronics, online purchases have become a big part of our lives. While e-commerce offers unparalleled convenience, it also means parting with your hard-earned money. That’s where rewards credit cards come into play. The right online shopping credit card can help you earn rewards with every purchase and get the most value from your spending. Here is the ultimate guide to picking the best credit card for maximising online shopping rewards.

Choosing the Right Card

When it comes to selecting the best credit card for online shopping, the most important factor is the earning rate. Look for cards that offer high rewards in the form of cashback, points, or miles for online purchases. Many credit cards offer 2%-5% back on all online transactions. You should also check the categories that are eligible – most cover purchases from major e-tailers, food delivery platforms, and bill payments but may exclude certain items or websites.

Apart from the earning rate, consider joining bonuses or welcome offers. Some cards provide joining bonuses in rewards points or cashback when you spend a minimum amount within three months. This is an easy way to maximise your rewards right from the start. Check card limits and annual fees as well –online spend-heavy cards often have higher limits for convenience.

Maximising Online Shopping Rewards

Once you have the best credit card for online purchases, focus on maximising your earnings with smart usage. Use the card for as many online transactions as possible – whether it’s monthly budgeting apps, smartphone recharges, rent payments, or clothing purchases. Set the card as the default payment option on all your regular online shopping sites and apps for recurrent bills. You should also look out for category bonuses as some cards offer 10%-15% extra cashback on purchases from select popular e-tailers or food tech platforms.

Redeeming rewards is another important factor. Many cards let you redeem earned rewards in the form of cashback or gift vouchers. The best card for points also has partner redemption options where you can convert points into flight miles, hotel stays, or shopping vouchers for higher value. Always aim to redeem your rewards as and when you accumulate decent amounts rather than waiting indefinitely.

Managing Fees

Most online shopping-focused credit cards are free for the first year to attract customers. However, many cards charge an annual fee of ₹500 to ₹1,500 from the second year onwards. Some may waive the fee if you spend a minimum amount annually. Read terms and conditions carefully to avoid paying unnecessary charges. Also, pay bills on time to avoid late payment penalties which can eat into your earnings. Set autopay reminders if managing payments manually.  

Best Cards for Online Purchases

IndusInd Bank’s EazyDiner card is one of the best cards for maximising credit card rewards. You can enjoy instant discounts on shopping, entertainment, dining, and more with your EazyDiner card. In addition to enjoying benefits on online purchases, you can also make the most of your offline purchases with this card. For every ₹100 you spend on shopping, entertainment, and dining, you earn up to 10 reward points. The best part is that you can easily apply for the card online in three simple steps. The application process is 100% paperless and you can get an instant approval. So, click on the ‘credit card apply online’ option and get your EazyDiner card today!

Conclusion

With responsible usage, the right online shopping credit card can help supercharge your rewards-earning potential. Look beyond joining offers to long-term value and flexibility of redemption options. Always pay bills on time to avoid any fees. Compare multiple cards to find the best fit based on your spending habits and primary online transaction categories. Disciplined usage of rewards cards is a hassle-free way to earn freebies and discounts with every digital purchase.

Apply Now.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.