Debit and credit cards with cashback - how to choose

In a post about where to keep money, I mentioned aboutcashbacks. In fact, I would like to touch upon the topic of cashback cards in more detail, because this is also relevant for travel. For example, when choosing a card for overseas, you need to consider not only the various commissions (example of commissions), but also cashback. Due to it, it is possible to overlap, and the commission, and the unfavorable domestic rate of the Russian bank. You can also have not one, but several cards for different categories, because increased cashback (for example, 5%) is not given for everything, but given for something specific, for example, for fuel.

True, recently become relevantDollar and euro cards, and they usually do not shine with cashbacks. I know that from December 20, 2014 Tinkoff currency cards will be with cashback 1%. This makes me happy.

The content of the article


What is cashback

The essence of cashback is that for card transactionsA certain percentage is charged, most often it is 1%. Obviously, in order to be profitable, you need to use the card everywhere. In large Russian / European cities, this will not be a problem, considering that it’s not very convenient to carry cash in your wallet, you need to constantly think about it not to end and then look for an ATM in the store to withdraw money. In Thailand, unfortunately, you can only pay in supermarkets (Tesco, BigSi, etc.), with rent a car from network distributors, yes in rare stores in shopping centers.

Cashback example

You say 1% is not enough? In fact, cashback 1% is comparable to a deposit of 10% per annum, or a money-box with 10% for the balance, although the difference seems to be as much as a percentage 10 times :) Thus, cashback from 2% (and sometimes it is 3% or 5-10% in selected categories) is more profitable than a deposit.

Here you have a specific example, I spend 30,000 rubles ina month on the map, where cashback is 3%, which gives me 1000 rubles per month (or 12000 rubles per year). If I had used instead a piggy bank card with 10%, but without a cashback, I would have received from the same 30,000 rubles just 250 rubles per month (or 3,000 rubles per year). And I didn’t take it into account here that in the second case the amount decreases on the card, and with it the profit also decreases.

How to choose a cashback card

Conditional formula

On the right cards there are, and interest on the balance,and cashback. To estimate the total profitability of the card, I derived a conditional formula, where the credit card (QC), debit card (DC), cashback (KB), the percentage of the balance (P).

KK = DK + KB1% = DK + P10%
KK + КБ1% = ДК + КБ2% = ДК + КБ1% + П10%
KK + КБ2% = ДК + КБ3% = ДК + КБ2% + П10%
KK + КБ3% = ДК + КБ4% = ДК + КБ3% + П10%

The formula is not accurate, it only serves toto estimate the profitability of the conditions. It is easier to do this if you are in Russia all the time. But if you travel a lot, you need to understand that when paying (or withdrawing at an ATM) various commissions play a role. That is, it is necessary in the aggregate to watch everything (map selection for overseas). When I chose, I made myself a sign, where I entered at once, and the percentage of commissions, and cashbacks of different cards.

Some cashback cards

Cashback happens, like a debit card, andcredit. There are also cards sharpened for cashback for certain categories. For example, the debit Tinkoff Black is given a cashback of 1% for all operations and 5% for categories that change quarterly (for example, fuel, pharmacies, transportation). Tinkoff Platinum credit card gives 1% for all operations and 30% for special offers. Siab gives 1-5% depending on the categories and the selected fare. The Promsvyazbank All Inclusive card gives 5% of the initially selected category, for example, products.

There are other options, such as chargingCashback is not money, but points, miles, or on a mobile phone. My travel credit card Tinkoff AllAirlines gives 2% for all operations, 5% ticket and 10% for hotel / car, but miles. Cards Petrocommerce Mobile Bonus and UralSib Phone Card give 3% on a mobile phone. Corn charges 1-1.5% points, which can be spent only in certain places, for example, at the refueling station of TNK or in the Perekrestok supermarket.

Generally, do a dozen cards under eacha specific category is not needed, you will forget to memorize which one to use for what. But you have to find your own variant. Someone, for example, travels abroad for 3 weeks by car and makes a card specifically for this trip to pay for fuel with a cashback of 5%. Here we must also look at the cost of annual maintenance, because if the card is worth the money, and you don’t use it very much, then there may be no profit.

Cashback is not always charged

There is such a thing as MCC code. Each transaction on the card is marked with it, depending on the settings of the terminal in the outlet. And you can get there if you are counting on cashback, paying with a special card, which is beneficial only in this case, and the terminal has assigned an incorrect transaction code. I had it a couple of times, then you look in the Internet bank, and the operation for the desired category was not counted. In this regard, I like the policy of Tinkoff, they can write in support and they consider each case individually.

There are also operations for which cashback is not originally provided, such as the replenishment of electronic wallets or payment of utility bills. Well, of course, cashback is not charged on cash withdrawals.

P.S. At the expense of my cashback card, I receive an average cashback of 1,000–2,000 rubles per month. Not bad, considering that I don’t do anything for it.

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