What is a cashback credit card and how does it work?

A cashback credit card returns a small percentage of your spending as cash or statement credit. Many cards pay higher rates in certain categories such as groceries, fuel, dining or utilities, and a lower base rate on everything else.

Are there monthly caps or minimum spend requirements?

Yes. Many UAE cards cap earnings per category (often around AED 200–300) and set a total monthly cap of roughly AED 1,000. Some cards also require a minimum monthly spend to unlock rewards.

Why does merchant category coding (MCC) matter for cashback?

Your cashback depends on how a merchant is coded. For example, if a supermarket terminal is coded as general retail instead of grocery, you may not receive the higher grocery rate. Always review statements and raise a query if something looks off.

Which UAE cashback cards currently stand out?

Cards that offer 4–6% in key categories with a total monthly cap around AED 1,000 tend to be the sweet spot. Examples discussed include ADCB 365, ADIB Visa Cashback, DIB Consumer Cashback Platinum, SIB Cashback Titanium, Emirates Islamic Switch Cashback (Lifestyle), and HSBC Live+—each with specific caps, category rates and fee rules.

What is the Wio Plus 0.5% ‘bill-pay’ hack and how do I use it safely?

If you hold Wio Credit and at least a Wio Plus account, you can pay another card’s bill using Wio Credit to earn 0.5% cashback, then immediately repay the Wio balance from your own funds to avoid interest. Cashback for this is capped at a small percentage of your Wio credit limit, so treat it as a modest monthly top-up.

Should I use cashback cards for foreign transactions?

Usually no. Most UAE cashback cards add a 2–3% FX fee, which can wipe out the reward. Unless you confirm a low or zero FX fee, use a dedicated travel/FX-friendly card instead.

What are the golden rules to get real value from cashback cards?

Pay your balance in full every month, avoid cash withdrawals, track category caps and changes, review card T&Cs regularly, and make sure your actual spending patterns fit the card’s categories.

💳 Best cashback credit cards UAE - 2025 edition

Q: Do cashback cards charge annual fees?

Annual fees range from free to about AED 400, and are sometimes waived if you meet specific spending thresholds. Check that your expected cashback comfortably outweighs any fee.

Kacper Duda
Nov 5
6 min read

Updated: Nov 11

Editor's note: Last major update - November 2025.

Cashback cards are the rare case where the bank really does give something back. Used well, they can quietly shave hundreds of dirhams off your monthly expenses. Used badly, they do the opposite.

With several UAE banks still offering 5–10% cashback on common expenses like groceries, fuel and dining, it’s one of the easiest ways to make your money stretch further. Read on to find out:

How cashback cards actually work
Our top UAE cashback card picks + a clever Wio trick to boost your cashback
In the news: UAE cracks down on financial misconduct with up to AED 1 billion fines

How cashback cards work

Cashback credit cards return a small percentage of your spending as cash or statement credit. Most offer higher rates in specific categories like dining, fuel, groceries or utilities, and a lower base rate on everything else.

There’s usually a cap. Many banks limit how much you can earn per category (around AED 200–300) and a total cap of roughly AED 1,000 per month. Some also require a minimum monthly spend to unlock the rewards.

Annual fees can range from free to around AED 400, often waived if you meet spending thresholds. Check that your expected cashback comfortably outweighs any fee.

One final detail: how a merchant is coded matters. If your supermarket’s payment terminal is tagged as “retail” instead of “grocery,” you might not get full cashback. Always check your statement and raise a query if needed.

Our picks: best UAE cashback cards

We’ve compared the leading cards in the UAE for their category coverage, earning caps, and fee value. These stand out in November 2025 for giving meaningful cashback with clear rules and easy redemption.

Credit Card	Cashback	Any catches
ADCB 365	6% on dining (incl. online orders), 5% on groceries, 3% on utilities, telecoms, fuel and Salik. 1% on everything else.	- Monthly max cashback AED 1,000. - To be eligible for cashback you need to spend AED 5,000 every month. - Annual fee of AED 383.25 applicable from 2nd year onwards.
ADIB Visa Cashback	4% on groceries, fuel, education, dining and utility payments	- Max total monthly cashback AED 1,000. - Max cashback on groceries (AED 300), fuel (300), education (300), dining (200) and utilities (100) - AED 103.95 annual fee applies - Only Apple and Samsung wallet support (no Google)
DIB Consumer Cashback Platinum	4% on groceries, fuel, education, telecoms and utility payments	- Max total monthly cashback AED 1,000. - To be eligible for cashback, min. monthly spend of AED 4,000 required. - Max cashback on groceries (AED 400), automobile servicing (400), fuel (150), education (400), telecoms (150), utilities (150), Salik and Nol (50) - AED 261.45 annual fee applies - Only Apple and Samsung wallet support (no Google)
SIB Cashback Titanium	10% on online and Apple Pay/Samsung Wallet transactions (excluding utilities, telecoms, groceries, education). 1% on domestic retail spend. 0.5% utilities, telecoms, groceries, education.	- Monthly total 10% cashback cap at AED 300, no cap on lower cashback tiers. - 199 AED fee for 2nd year onwards unless you spend AED 10,000 in prior year. - Only Apple and Samsung wallet support (no Google)
Emirates Islamic Switch Cashback Card (Lifestyle)	8% on fuel, 4% on groceries, dining, education, 0.5% on telecom, utilities, real estate & govt. spends, 1% on all other	- Max monthly cashback on fuel (100), groceries (200), dining (200), education (200) - To be eligible for cashback, min. monthly spend of AED 2,500 required - Annual fee of 313.95 waived in year 1. From year 2 onwards spend AED 30,000 in prior year to waive the fee.
HSBC Live+ Credit Card	6% on dining, 5% on fuel, 2% on groceries and entertainment, 0.5% on everything else	- Max monthly cashback on dining (200), fuel (200), groceries (200), and entertainment (200). - To be eligible for cashback, min. monthly spend of AED 3,000 required - Annual fee of AED 313.95 waived in year 1. From year 2 onwards spend AED 12,000 in prior year to waive the fee.

The sweet spot for most people is a 4-6% cashback card with an AED 1,000 total cap. Anything above that usually comes with restrictions, so pick the one that fits your lifestyle rather than chasing the headline rate.

The Wio Plus hack: add 0.5% on top

Normally, paying one credit card with another is a bad idea. But Wio Credit flips the rulebook. It gives 0.5% cashback when you use it to pay off other cards - safely, as long as you clear the Wio balance right away.

Here’s how it works:

When your main credit card bill is due, pay it using your Wio Credit card.
The transaction earns cashback at a 0.5% rate (you need to have a Wio Plus account at a minimum).
Immediately repay the Wio balance from your own funds to avoid any interest.

Cashback for this trick is capped at a small percentage of your Wio credit limit, but it’s an easy way to squeeze a little extra value every month without changing how you spend.

Golden rules for using cashback cards

Cashback is only a gain if you play it right. Keep these habits front of mind:

Always pay your balance in full each month. Interest charges wipe out every reward you earn (and more!).
Never use your credit card for cash withdrawals. Fees and instant interest make it one of the most expensive moves you can make.
Avoid using these cards abroad unless you’ve confirmed the FX fee. Most UAE cashback cards charge around 2–3%, cancelling the benefit.
Keep an eye on category caps and earning rates. They do change, and so do your spending habits. Make sure you continue to reap the benefits.
Review T&Cs regularly. Banks tweak rates more often than you’d expect.

Used smartly, cashback cards turn your everyday spending into steady rewards - no gimmicks, no tricks, just a little extra money flowing back your way.

Golden rules for using credit cards

Cashback cards can be a great way to earn rewards but only if you use them wisely. Before you apply for any credit card, make sure you're confident in following these golden rules:

Pay your balance in full every month. Missing payments or carrying a balance wipes out any cashback gains with interest charges.
Never withdraw cash from an ATM using your credit card. It triggers hefty fees and interest from day one.
Avoid using your card for spending abroad unless you're clear on the FX fees. (Hint: none of the cards in this list are great for foreign transactions.)
Read the fine print. Understand the annual fee, spending requirements, and how to actually unlock the benefits.
Don’t treat it like free money. If you don’t already have the cash in your account, don’t put it on your credit card.

Used correctly, a cashback card is just a smarter way to pay — not a shortcut to spending beyond your means.

IN THE NEWS - UAE cracks down on financial misconduct with up to AED 1 billion fines

The UAE Central Bank now has sharper teeth. Under new rules announced this week, it can fine banks and financial institutions up to AED 1 billion for serious breaches: from mismanagement to misleading customers. It can also act faster to protect consumers, freezing activities or issuing warnings before problems spiral.

For everyday customers, that’s good news. It means stronger safeguards around how your money is handled, and a clearer path to accountability if something goes wrong. Whether it’s unfair fees, poor complaint handling, or risky lending, regulators now have more power to step in.

In short, the message is simple: play fair, or pay dearly. Read more in the Khaleej Times article.

FAQ

What is a cashback credit card?

A cashback card rewards you with a percentage of your spending as cash or statement credit. Higher rates often apply to specific categories like groceries, dining or fuel.

Are there earning limits?

Yes. Most cards cap how much cashback you can earn each month, and some require a minimum spend to unlock rewards.

Do cashback cards charge annual fees?

Some do. Check that your expected cashback comfortably exceeds any fee, and whether the fee is waived if you meet spending thresholds.

Why does merchant category coding matter?

Your cashback depends on how the transaction is classified. For example, a supermarket coded as general retail might not give you the higher grocery cashback rate.

Which UAE cashback cards are currently strong picks?

The sweet spot is usually 4–6% cashback with a monthly cap around AED 1,000. Examples include ADCB 365, ADIB Visa Cashback, DIB Consumer Cashback, SIB Cashback Titanium, Emirates Islamic Switch Cashback (Lifestyle) and HSBC Live+.

How does the Wio 0.5% credit payback trick work?

Use Wio Credit to pay another card’s bill, earn 0.5% cashback, then immediately repay the Wio balance to avoid interest.

Should I use cashback cards abroad?

Usually not. Most charge a 2–3% FX fee, which wipes out the reward. Use a travel-friendly card instead.

Disclaimer: Please bear in mind that this email does not constitute financial advice. Any choices you make you are solely responsible for. We always aim to provide highest quality, independent views but do your own research to ensure you’re comfortable with any changes you make to your personal finances.