Best Cashback Credit Cards in Malaysia 2025

If you're already spending RM2,000 or more on your credit card every month, some of that money could be coming back to you as cashback. The question is whether you're using the right card to maximise those savings, or whether you're leaving money on the table.

Cashback credit cards are straightforward in concept: spend money, get a percentage back. But the details matter. Spend RM150 on weekend petrol with the right card and you could save RM12. Make that same purchase on a weekday, or with the wrong card, and you might save nothing at all. Over a year, these differences add up to hundreds of Ringgit.

This guide breaks down how cashback cards actually work in Malaysia, which cards give the best returns for different spending patterns, and what you need to watch out for to avoid forfeiting your rebates.

How Cashback Credit Cards Work

Cashback cards return a small percentage of what you spend back into your account. Most cards in Malaysia offer between 1% and 15% cashback, depending on the spending category and whether you meet certain conditions.

Three key features determine how much you'll actually save:

Cashback Rate

This is the percentage you get back on eligible spending. The UOB ONE Card gives 10% cashback on weekend dining, which means a RM150 dinner on Saturday returns RM15 to your account. That same dinner on Wednesday? You'd only get RM1.50.

Monthly Cashback Cap

There's almost always a limit on how much cashback you can earn each month. Even if you spend RM3,000 on petrol at 12% cashback (which would theoretically be RM360), you'll only get whatever the monthly cap allows, often around RM50 for petrol categories.

This cap is why it's worth doing the maths on your actual spending. If you only spend RM400 on groceries per month and the card caps at RM15, an 8% rate gives you RM15 back anyway. Chasing a 10% rate with an RM3,000 minimum spend requirement would actually cost you money.

Minimum Spending Requirements

Most cashback cards only unlock their best rates when you hit certain thresholds. These requirements vary widely:

Minimum monthly spend: You might need to charge RM1,500, RM2,500, or even RM5,000 to your card each month to qualify for the highest cashback tier.

Weekend-only cashback: Some cards give 8% cashback but only on Saturday and Sunday. If you fill up your tank on Friday night, you get the base rate of 1% instead.

Specific merchants only: The HSBC Amanah MPower Platinum Credit Card-i gives 8% on groceries, but only at Giant, Lotus's, AEON BiG and Mydin. Your usual trip to Village Grocer won't qualify.

Here's how a tiered cashback structure works in practice:

If you spend RM2,900 in a month, you're stuck in the 3% tier. Spend just RM100 more and you jump to 5%, which could mean an extra RM10 to RM20 in rebates, depending on your spending mix.

Do note that "statement balance" here means your total spending across all categories, not just the ones that earn higher cashback. Your RM800 on groceries, RM600 on petrol, RM400 on utilities, and RM1,200 on everything else combines to RM3,000 total.

Calculating Your Actual Cashback

If numbers are not your forte, here are some visual illustrations of how the cashback is calculated:

What Spending Qualifies for Cashback

Banks use Merchant Category Codes (MCC) to determine which transactions fall into which cashback category. When you swipe your card at a petrol station, the terminal sends an MCC that tells the bank "this is a fuel purchase." If that MCC matches the bank's list for petrol cashback, you get the higher rate.

This matters because not every grocery purchase happens at a store classified as a grocery outlet. If you buy milk and bread at a 7-Eleven, the transaction might be coded as a convenience store rather than groceries, and you'd only get the base cashback rate.

Common Cashback Categories in Malaysia

• Petrol (Petronas, Shell, BHP, Caltex)
• Groceries (AEON, Giant, Lotus's, Jaya Grocer, Village Grocer)
• Dining (restaurants, cafés, food courts)
• Online shopping (Shopee, Lazada, merchant websites)
• Utilities (TNB, Air Selangor, Astro)
• E-wallets (Touch 'n Go, Boost, GrabPay)

Transactions That Don't Qualify

• Balance transfers
• Cash advances
• Easy Payment Plan (EPP) instalments
• Annual fees, late payment charges, interest charges
• Government payments (LHDN, JPJ, immigration fees)
• Insurance premiums (some exceptions exist)
• Charity or donation payments

If you arrange to pay your income tax through your credit card, don't expect cashback on that RM8,000 payment.

Islamic Credit Cards and Prohibited MCCs

If you're using a Shariah-compliant credit card, certain merchant categories are automatically excluded:

Transactions at these merchants won't process on Islamic cards, so cashback isn't a consideration.

Best Cashback Credit Cards by Spending Category

Your best card depends entirely on where you spend the most money. If you drive 500km per week for work, a petrol-focused card makes sense. If you're feeding a family of five, grocery cashback becomes more valuable.Check out which persona relates most to you!

Common Mistakes That Cost You Cashback

Cashback cards only work if you use them correctly. Miss a payment, fall RM50 short of the minimum spend, or swipe on the wrong day, and you could lose your entire month's rebate.

Paying Late or Paying Only the Minimum

Most banks require you to pay your statement balance in full by the due date to qualify for cashback. Pay late, pay only the minimum, or miss the payment entirely, and the bank forfeits your rebate.

Here's what happens: You earned RM50 cashback in November, but you only paid the minimum RM50 on your RM2,000 December statement. Not only do you lose the RM50 cashback, you're now paying 15% to 18% per annum in finance charges on the outstanding RM1,950, hence about RM30 per month until you clear the balance. That RM50 you thought you'd saved is now costing you money.

If you're not paying in full every month, cashback cards don't make financial sense. The interest charges will always exceed your rebates.

Missing the Minimum Spend by RM50

Spend RM2,450 when your card requires RM2,500, and you drop into a lower tier or lose the cashback entirely. If you spent RM300 on petrol expecting 12% back (RM36), you'll get 0.2% (RM0.60) instead, all because you fell RM50 short.

You can avoid this by tracking spending throughout the month. Sitting at RM2,300 on the 25th? Prepay a bill or do next week's grocery shop early. But don't buy things you don't need just to hit a threshold. Spending RM100 to unlock RM30 in extra cashback means you're down RM70.

Weekend-Only Cashback Doesn't Match Your Schedule

Cards offering 8% or 10% cashback on weekends sound great until you realise you fill up your tank every Thursday for your upcountry work trips. That's 1% instead of 8% which is RM75 per year, instead of RM600.

Weekend restrictions work if you already do most of your spending on Saturdays and Sundays. Parents who shop for groceries after Saturday morning futsal, families who dine out on Sunday evenings—these people benefit. For everyone else, it's an artificial hurdle. If you need petrol on Wednesday, you need petrol on Wednesday.

Chasing Tiers Leads to Overspending

At RM2,400 for the month and the next tier starts at RM2,500? It's tempting to spend RM100 more to unlock higher cashback on everything you've already charged.

This works if you're buying something you need anyway like prepaying next month's groceries, filling up the tank early, buying a gift in advance. Jumping from 3% to 5% might give you an extra RM30, so spending RM100 on necessities makes sense.

But buying things you don't need to hit a threshold defeats the purpose of cashback. You're spending money to save money, and the maths doesn't work in your favour.

Who Qualifies for Cashback

Both principal and supplementary cardholders earn cashback, but the bank aggregates all spending and all cashback under the principal cardholder's account. If your spouse (supplementary cardholder) spends RM500 on groceries and you spend RM500, the bank sees RM1,000 total grocery spending by one account.

This matters for:

• Minimum spend thresholds: Two cardholders spending RM1,250 each hit the RM2,500 threshold
• Monthly caps: Two cardholders both buying petrol share the same RM50 petrol cap

Supplementary cards help you hit minimums faster, but they don't double your cashback caps.

Frequently Asked Questions (FAQs) 

Let's look at the most common questions asked regarding cashback credit card in Malaysia:

1. When does weekend cashback actually start and end?

Weekend cashback typically runs from 12:01 AM Saturday to 11:59 PM Sunday. A purchase at 11:45 PM Friday earns weekday rates, but the same purchase at 12:15 AM Saturday earns weekend rates. The exact timing may vary between banks: some use midnight (00:00), others use 00:01, so check your card's terms and conditions.

2. When will my cashback appear on my statement?

Cashback appears one statement cycle after you earn it. If you spend RM2,800 in September and earn RM50 cashback, your October statement (generated around 1st October) shows the September spending, and your November statement shows the RM50 credit.

Do note that transactions are counted by posted date, not transaction date. If you swipe on 28th September but the merchant processes it on 2nd October, that purchase counts toward October's cashback.

3. Why didn't I get cashback this month?

Common reasons: You didn't meet the minimum monthly spend, you paid late or paid only the minimum amount, your purchases were in excluded categories (EPP, balance transfers, government payments), you shopped at non-participating merchants, the cashback hasn't posted yet (it appears one cycle later), or you already hit the monthly cap earlier in the month. Check your statement for a breakdown, or call the bank if you're certain you met all requirements.

4. Can I combine cashback with Easy Payment Plan (EPP)?

No. EPP transactions don't qualify for cashback on virtually all Malaysian credit cards. A RM5,000 laptop paid in full might earn you RM50 to RM100 cashback depending on your card. The same laptop converted to 12-month EPP instalments earns RM0, even though you're charging it to your card. If cashback matters to you, pay in full. If you need EPP for budgeting, accept that you're trading cashback for payment flexibility.

5. Does spending by supplementary cardholders count toward minimum spend?

Yes. All spending by supplementary cardholders is aggregated with the principal cardholder for minimum spend thresholds. If you spend RM1,500 and your spouse spends RM1,200, the bank sees RM2,700 total. However, cashback caps are also shared. If your card caps dining cashback at RM15 monthly and you've both been eating out, that RM15 gets split across all dining spending by all cardholders—once it's hit, neither of you earns more that month.

6. What happens if I pay late or pay only the minimum?

Pay late or pay only the minimum, and you forfeit that month's rebate. Worse, you'll pay 15% to 18% per annum in finance charges on the outstanding balance. Most banks require full payment by the due date to qualify for cashback. If you earned RM50 in cashback but only paid the minimum on a RM2,000 statement, you lose the RM50 and pay about RM30 monthly in interest charges. Cashback cards only make financial sense if you pay in full every month.

7. Do I earn cashback on government payments or insurance premiums?

Generally, no. Income tax payments (LHDN), road tax (JPJ), immigration fees, and most insurance premiums are excluded from cashback on nearly all cards. Some banks make exceptions for insurance premiums if the insurer is a partner, but don't assume this. Check your card's terms or test with a small payment first.

8. Can I use multiple cashback cards to maximise savings?

Yes, but it adds complexity. You could use one card for petrol (12% cashback), another for groceries (8% cashback), and a third for everything else (5% uncapped). This strategy can earn you RM100+ monthly if you spend RM3,000 or more. The trade-off is tracking multiple statements, due dates, and minimum spend requirements. If managing three cards feels like a part-time job, stick with one versatile card.

9. Are there cards with uncapped cashback?

A few cards offer uncapped cashback, but they typically require higher minimum spending and offer moderate rates. The Alliance Bank Visa Signature gives uncapped 5% cashback if you spend at least RM2,001 monthly. Cards with no minimum spend usually offer very low rates (0.2% to 1%) or come with restrictions like weekend-only cashback. There's no card offering 10% uncapped with no minimum spend, banks would lose money.

10. What happens if I return a purchase I earned cashback on?

The bank deducts the cashback from your next statement. If you bought a RM500 jacket in September (earning RM25 cashback) and return it in November, your December statement shows a -RM25 adjustment. If the return drops your monthly spending below the minimum threshold, you could lose cashback on other purchases from that month as well. This is why it's worth waiting until cashback posts before returning high-value items.

Apply for cashback credit cards online!

Do you know that you can sign up for cashback credit cards online with RinggitPlus? We can even help you decide which cashback credit card is suitable for you based on your income with our credit card recommendation service.

While you're at it, keep an eye out for our weekly sign-up offers and stand a chance to bring home attractive gifts as well!