Top Shopping Credit Cards in India 2023

Shopping credit cards have revolutionised the way we approach our everyday purchases, transforming routine shopping into an opportunity for rewards, savings, and enhanced experiences. Designed with the avid shopper in mind, these specialised credit cards offer a range of benefits that go beyond traditional credit card offerings. From earning rewards points to enjoying cashback on every swipe, shopping credit cards have reshaped the landscape of personal finance. 

In this guide, we’ll delve into the world of shopping credit cards, exploring their features, advantages, and how they can elevate your shopping escapades to new heights. Whether you’re an online enthusiast or a local store aficionado, understanding the ins and outs of these cards can empower you to make informed financial decisions while enjoying the perks of being a savvy shopper.

Top 8 Shopping Credit Cards in India

1. Cashback SBI Card

• Card Cashback: 5% cashback on online spending without any merchant restriction and 1% cashback on offline spending.
• Hassle-free: Card cashback will be auto-credited to your SBI Card account within two working days of your next statement generation.
• Spend-Based Reversal: Reversal of renewal fee on annual spends of Rs.2 Lakh.
• Fuel Surcharge Waiver: 1% fuel surcharge waiver across all petrol pumps in India.

2. Flipkart Axis Bank Credit Card

• Up to 5% unlimited Flipkart Cashback
• 3% unlimited fuel surcharge waiver
• 1% unlimited cashback on other spends
• No annual fee for the first year
• Reward points can be redeemed for Flipkart gift vouchers

3. Amazon Pay ICICI Credit Card

• Up to 5% Amazon Pay cashback
• 2% cashback on all other spends
• 10% unlimited cashback on Amazon.in and Amazon Pay
• No annual fee for the first year
• Reward points can be redeemed for Amazon gift vouchers

4. HSBC Cashback Credit Card

• Up to 5% cashback on fuel
• 2% cashback on supermarkets and dining
• 1% cashback on all other spends
• No annual fee for the first year
• Reward points can be redeemed for travel, electronics, and more

5. HDFC Millenia Credit Card

• Up to 4.25% reward points on all spends
• 100% reward points redemption
• Complimentary airport lounge access
• Annual fee waiver for life
• Reward points can be redeemed for airfare, hotels, and more

6. Axis Bank ACE Credit Card

• Earn 5% cashback when making bill payments, DTH and mobile recharges using Google Pay. 
• Get 4% cashback on expenses with Swiggy, Zomato, and Ola. 
• Receive 2% cashback on all remaining expenditures.

7. SBI SimplyCLICK Credit Card

• Receive an Amazon.in gift card valued at Rs.500* upon paying the Annual Fee of Rs.499 plus applicable taxes. 
• Gain 10X Reward Points for online purchases from exclusive partners: Apollo24X7, BookMyShow, Cleartrip, Eazydiner, and Netmeds. 
• Earn 5X Reward Points on all other online transactions.
• Obtain an e-voucher worth Rs.2,000 for annual online expenditures of Rs.1 Lakh, as well as another e-voucher of the same value for annual online expenses of Rs.2 Lakhs. 
• Enjoy a 1% fuel surcharge waiver for each transaction ranging from Rs.500 to Rs.3,000 (excluding GST and other applicable charges). 
• If you spend Rs.1,00,000, the annual fee of Rs.499 for your SimplyCLICK SBI card will be waived in the subsequent year.

8. HDFC MoneyBack Credit Card

• Accrue 2 Reward Points for each Rs. 150 spent (excluding fuel transactions, wallet loads/prepaid card loads, and voucher purchases). 
• Garner 4 Reward Points (2X) for every Rs. 150 spent online*. 
• Receive a Rs. 500 gift voucher each quarter for expenditures of Rs. 50,000, allowing you to accumulate up to Rs. 2,000 worth of gift vouchers in a year. 

Best Online Shopping Credit Cards 2023: Comparison

 

Credit Card	Joining Fees	Suited For	Reward Type
Cashback SBI Card	Rs. 999	Suitable for all brands	Earn 5% cashback on all online purchases
Flipkart Axis Bank Credit Card	Rs. 500 (from 2nd Year)	Ideal for Flipkart and Myntra shoppers	Enjoy 5% cashback on Flipkart & Myntra
Amazon Pay ICICI Credit Card	No joining fee	Designed for Amazon enthusiasts	Get 5% cashback when shopping on Amazon
HSBC Cashback Credit Card	Rs. 750	Perfect for Amazon, BigBasket, Myntra, and Ajio	Earn 1.5% cash back on all online transactions
HDFC Millennia Credit Card	Rs. 1,000	Suited for Amazon, Flipkart, BookMyShow, Swiggy, and more	Get 5% cashback on Amazon, Flipkart, PayZapp & SmartBuy
Axis Bank ACE Credit Card	Rs. 499	Ideal for Swiggy, Zomato & Ola users	Enjoy 5% cashback on bill payments, DTH, and mobile recharges via Google Pay
SBI SimplyCLICK Credit Card	Rs. 499	Great for BookMyShow, Cleartrip, Netmeds, etc.	Earn 10X reward points on online purchases
HDFC MoneyBack+ Credit Card	Rs. 500	Suitable for various online shopping	Gain up to 10X rewards on online shopping

How do shopping credit cards work?

Shopping credit cards work just like any other credit card. They allow you to make purchases and pay for them later. However, shopping credit cards typically offer rewards or benefits that are specific to shopping, such as:

1. Cashback on purchases at certain stores or categories of stores
2. Travel rewards, such as points or miles that can be redeemed for flights, hotels, or other travel expenses
3. Extended warranties on purchases
4. Purchase protection, which covers your purchases against damage or theft

 

To use a shopping credit card, you simply swipe or insert the card at the point of sale when you make a purchase. The merchant will then send the transaction information to your credit card issuer, who will approve or decline the transaction. If the transaction is approved, the amount of the purchase will be added to your credit card balance.

You will then have to make a monthly payment to your credit card issuer. This payment can be made in full or in part. You will still be charged interest on your outstanding balance if you make the minimum payment. However, paying off your balance in full each month will avoid interest charges altogether.

Ways to Use Credit Cards for Online Shopping?

There are a few ways to use a credit card for online shopping. Here are the most common methods:

1. Directly enter your credit card information on the merchant’s website: This is the most common way to use a credit card online. When you checkout on the merchant’s website, you will be asked to enter your credit card number, expiration date, and CVV code.
2. Use a third-party payment processor, such as PayPal or Google Pay: These services allow you to make purchases online without having to enter your credit card information directly on the merchant’s website. Instead, you will create an account with the payment processor and then use your account information to make purchases.
3. Use a virtual credit card: A virtual credit card is a temporary credit card number that is linked to your actual credit card. When you use a virtual credit card online, the merchant will only see the virtual credit card number, not your real credit card number. This can help to protect your privacy and security.

What are Eligibility Criteria & Documents Required for Shopping Credit Cards?

The eligibility criteria and documents required for a shopping credit card in India vary depending on the bank or issuer. However, there are some general requirements that most banks have.

Eligibility Criteria

1. Age: You must be at least 21 years old to apply for a credit card.
2. Income: You must have a steady income to qualify for a credit card. The minimum income requirement varies depending on the bank.
3. Credit score: You must have a good credit score to qualify for a credit card. The minimum credit score requirement also varies depending on the bank. (For example, some banks require a credit score of 750 and above)
4. Citizenship: You must be a citizen or permanent resident of India to apply for a credit card.

Documents Required

Proof of Identity	Passport Aadhaar card Voter ID card Driver’s licence PAN card
Proof of Address	Aadhaar card Utility bills (electricity, water, gas, etc.) Rental agreement Bank statement Voter ID card
Proof of Income	Recent salary slips (for salaried individuals) Income tax return (ITR) documents Bank statements showing regular income deposits Form 16 (for salaried individuals)
Passport-size Photographs	Typically, two to three passport-sized photographs are required.
Application Form	You will need to fill out the credit card application form provided by the bank or financial institution. This can often be done online.
Credit Score	While not a document per se, banks might request your permission to access your credit score as part of the application process.
Additional Documents	Depending on the bank’s policies, you might be asked for additional documents or information to support your application.

What are the benefits of using a shopping credit card?

1. Rewards and Cashback: Shopping credit cards typically reward you with points, miles, or cashback for every purchase you make. These rewards can accumulate over time and be redeemed for various items, including travel, gift cards, merchandise, and statement credits, effectively giving you back a percentage of your spending.
2. Discounts and Deals: Many shopping credit cards come with partnerships and affiliations with retailers, offering exclusive discounts, special deals, or access to limited-time offers. This can result in significant savings when shopping at your favourite stores.
3. Sign-Up Bonuses: Many shopping credit cards entice new cardholders with sign-up bonuses. These bonuses often include extra rewards points, cashback, or statement credits for reaching a certain spending threshold within a specified timeframe after opening the account.
4. Purchase Protection: Shopping credit cards often provide additional protection for your purchases. This can include extended warranties, price protection (refund if the price drops after purchase), and coverage against theft or damage.
5. Travel Benefits: While primarily focused on shopping, some cards offer travel-related perks, such as travel insurance, rental car insurance, and access to airport lounges. These benefits can be especially valuable if you’re a frequent traveller.
6. Building Credit: Consistently using a shopping credit card and making on-time payments can help you build and improve your credit score over time. This can be beneficial for future financial endeavours, such as obtaining loans or other credit products.
7. Convenience: Carrying a shopping credit card allows you to make purchases without needing to have cash on hand. This convenience is particularly useful for online shopping, where credit cards are the preferred payment method.
8. Online Shopping Security: Shopping credit cards often come with advanced security features for online transactions, including virtual card numbers, two-factor authentication, and fraud protection.

Are there any drawbacks to using a shopping credit card?

There are some potential drawbacks to using a shopping credit card. Here are a few of the most common:

1. Overspending: Shopping credit cards can make it easy to overspend, especially if you’re not careful. This is because you’re not physically handing over cash when you make a purchase, so it can be easy to lose track of how much you’re spending.
2. Interest charges: If you don’t pay your credit card balance in full each month, you’ll be charged interest on the outstanding balance. This can add up quickly, so it’s important to make sure you can afford to pay off your balance each month.
3. Hidden fees: Some shopping credit cards have hidden fees, such as annual fees or foreign transaction fees. It’s important to read the terms and conditions carefully before you sign up for a card, so you know what fees you’ll be responsible for.
4. Fraud: There is always the potential for fraud when you use a credit card, online or in-store. If your credit card information is stolen, the thieves could use it to make unauthorised purchases. It’s important to monitor your credit card statements carefully for any unauthorised charges.

How do I choose the best shopping credit card for me?

There are many factors to consider when choosing a shopping credit card, such as your spending habits, your credit score, and your desired rewards. Here are some tips to help you choose the best shopping credit card for you:

1. Consider your spending habits: What types of purchases do you typically make? Do you shop online or in-store? Do you travel frequently? Once you know what types of purchases you make, you can start to narrow down your options.
2. Look at your credit score: Your credit score will determine your eligibility for certain cards and the interest rates you’ll be offered. If you have a good credit score, you’ll have more options available to you.
3. Decide what type of rewards you want: Do you want cashback? Travel rewards? Points that can be redeemed for merchandise? Once you know what type of rewards you want, you can start to compare different cards.
4. Consider the annual fee: Some shopping credit cards have annual fees, while others don’t. If you don’t plan on using your card often, an annual fee may not be worth it.
5. Read the terms and conditions carefully:  Before you sign up for a shopping credit card, be sure to read the terms and conditions carefully. This will help you understand the fees, interest rates, and other terms associated with the card.