Love shopping online, ordering in? How to save with the right credit cards

With more people choosing to shop online over retail stores, the demand for online shopping credit cards is also on the rise. The Diwali period, from October 29 to November 11, registered a 49 per cent jump in online sales along with a 35 per cent rise in traffic, while the conversion rates also went up by 22 per cent. Conversion rate is the ratio of customers who check a product and the customers who actually purchase it.

From gadgets to groceries, people are purchasing everything online and they certainly want to be rewarded for these expenses.   Credit Cards offer exclusive discounts or reward points for specific online retailers and restaurants, amplifying your savings. It helps in reducing costs when you are shopping, eating out or buying something on a regular basis.

 

Several leading banks and NBFCs are offering credit cards with exclusive benefits on online shopping and ordering in through Swiggy and Zomato. While some cards offer additional benefits with co-branded platforms, others offer generous rewards on all kinds of online shopping.

To help you choose the best credit card, Paisabazaar and Bankbaaar have curated a list of best online shopping credit cards in India.

Top credit cards for online shopping, as per Paisabazaar:

You can earn 5% cashback on all online spends and 1% cashback on other spends with the Cashback
SBI
card. One of the features that make this credit card different is that it comes with no merchant restriction, which means that this can be a great addition to your wallet if you frequently make online purchases that are not limited to select brands.

Amazon Pay ICICI Card is certainly one of the best online shopping credit cards in India with no annual fee because Amazon is one of the most popular platforms and deals in wide-ranging items The cashback rate on Amazon Card, however, stands low at 1% as compared to Flipkart Axis Bank Credit Card.  If you’re planning to get this card, you should also buy Amazon Prime membership as Prime members get 2% higher cashback on Amazon purchases. 

Axis Bank ACE Credit Card offers the highest cashback of 2% across all transactions along with up to 5% cashback on bill payments, DTH, and mobile recharges via Google Pay and 4% on Swiggy, Zomato & Ola. The card is available at an annual fee of Rs. 499 and is ideal for people looking for simple benefits and high cashback rates.

“Selecting the right cashback credit card can fetch substantial savings by providing value back on expenses, along with additional perks like complimentary memberships or free vouchers. To maximize these benefits, individuals should choose a card that aligns with their spending habits. For example, those who frequently shop online may benefit more from a cashback credit card with exclusive benefits related to online shopping," said Rohit Chhibber, Head of Credit Cards at Paisabazaar. 

Another one on the list is the Myntra Kotak credit card if you are a brand loyalist. The annual fee is Rs 500, which is waived off on annual spends of Rs 2 lakh. 

1. Benefits include: 5% cashback on spends at partner merchants, including Swiggy, Swiggy Instamart, PVR, Cleartrip and Urban Company
2. Unlimited 1.25% cashback on spends at other categories
3. Instant discount of 7.5% on each transaction at Myntra along with Complimentary Myntra Insider Membership. You also get Myntra voucher worth Rs. 500 as welcome benefit
4. 2 complimentary PVR tickets worth Rs 250 each on quarterly spends of Rs. 50,000 and  1 complimentary domestic lounge access per quarter

"Individuals loyal to a specific brand should consider a co-branded credit card, offered in collaboration with popular brands like Amazon, Flipkart, or Myntra for accelerated earnings. Therefore, it is important to compare the overall value back offered on different cards. Choose one that aligns with your spending preferences and offers greater value back as per your requirements," added Chhibber.

While Amazon Pay ICICI Credit Card offers 5% cashback on all purchases on Amazon to Prime customers, Flipkart Axis Bank Credit Card gives 5% cashback on Flipkart along with 4% cashback at select partners such as MakeMyTrip, Goibibo and Uber. 

Adhil Shetty, CEO, Bankbazaar.com, believes that you must look beyond rewards and consider additional benefits such as airport lounge access, or concierge services while purchasing your card.  While not directly related to shopping or dining, these perks can add substantial value. Bankbazaar believes that the following are ideal cards not just for shopping but additional benefits too: 

HDFC Regalia Gold Credit Card

"Get a gift voucher worth ₹2,500 as a welcome benefit

4 Reward Points on every ₹150 retail spends

5X Reward Points on every ₹150 retail spends at Myntra, Nykaa, Marks & Spencers and Reliance Digital

12 complimentary airport lounge access at domestic and international terminals in India

₹5,000 worth flight vouchers on ₹5 lakh annual spends

Enjoy up to 20% savings on your restaurant bill payments via Swiggy Dineout

Accidental air death cover of up to ₹1 crore"

HDFC Millenia Credit Card

5% CashBack on spends across top ecommerce brands including Amazon, BookMyShow, Myntra and Swiggy, to name a few

Welcome benefit of 1000 Cash Points upon realisation of joining fee

A maximum of 20% discount on dining at partner restaurants via Swiggy Dineout

8 complimentary domestic airport lounge access

50-days interest-free period

1% fuel surcharge waiver at fuel stations across India

SBI Card ELITE
 

Get 5X Reward Points on Dining, Departmental stores and Grocery Spends.

Earn 2 Reward Points per Rs. 100 on all other spends, except fuel. 

Free Movie Tickets worth Rs. 6,000 every year. Transaction valid for at least 2 tickets per booking per month. Maximum discount is Rs. 250/ticket for 2 tickets only. Convenience Fee would be chargeable.

Enjoy complimentary Trident Privilege Red Tier membership.   

Get exclusive 1,000 Welcome Points on registration.

Enjoy 1,500 Bonus Points on your first stay & additional Rs. 1,000 hotel credit on extended night stay. 

Axis Bank My Zone Credit Card
 

Free SonyLiv Premium subscription for 1-year worth Rs 999

Monthly 2 times - Flat 120 off at Swiggy 

Up to Rs 1000 off on Ajio (minimum spends of Rs 2999)

Get 100% discount on the second movie ticket at Paytm Movies

Enjoy 1 complimentary access to select airport lounges within India per calendar quarter. 

As you may have noticed, some of these credit cards provide specific offers for specific online websites. Such rewards are too specific and make sense only for those who are loyal to the said platform. If you are not sure about your preference for a particular platform, avoid looking for credit cards that offer specific benefits; instead, try understanding the ways to make the most of your credit card advantages. Even if you do get a co-branded card, get one that offers all-around advantages ( like the ones mentioned above) that you can use for your various online expenses.