Personal Finance Term
Cashback
A credit card reward where a percentage of your spend is returned as cash, credited to your statement. Distinct from reward points which must be redeemed for goods or flights.
Malaysian cashback credit cards typically offer 1%–15% depending on category and the card. Most have monthly caps (RM30–RM100) that limit how much you can earn regardless of spend. Effective cashback rate = cap ÷ spend required to hit cap — a 5% card with RM50 cap means the rate falls to 2.5% once you spend RM2,000 in that category.
Cashback is generally more valuable than reward points for most consumers because it reduces your bill directly with no redemption friction. The exception: frequent flyers who can redeem points for premium cabin flights at outsized value.