What is a Cashback Credit Card? – Explained Simply

was ist eine Cashback Kreditkarte?

What is a cashback credit card? And how does it differ from other cards? In this article, we’ll go into detail and explain everything you need to know about cashback credit cards.

What is Cashback?

Cashback refers to a type of bonus program where you get back a certain percentage of the money you spend on purchases. This amount is either credited to your credit card account or otherwise paid to you. Cashback can serve as an incentive to use your credit card for everyday spending.

how do cashback cards work?

How it Works ⚙

A cashback credit card works like any other credit card, with the added benefit of the cashback program. Each time you use the card for qualifying purchases, you receive a percentage back on the amount spent.

The percentage varies depending on the card and can range from 0.1% to 5%. In Switzerland, however, such a high cashback is not common; here, you’ll see around 1% at most.

Types of Cashback Credit Cards

There are different types of cashback credit cards that offer different cashback rates and terms.

  1. Flat-rate cashback credit cards: These cards offer a fixed percentage on all purchases, regardless of product category or vendor. This is the best type of cashback, as you invariably get something back when you use the card.
  2. Category-specific cashback credit cards: This is where you get higher cashback rates for certain categories of purchases, such as groceries, gas, or travel, and a lower percentage for other purchases. Some cards also have cashback that depends on the merchant. For example, at Manor 1%, but at Coop 0.2%.

Why Cashback Credit Card? – Example

Suppose you have a cashback credit card with a flat rate of 1%. If you spend CHF 1’000 in a month, you will get CHF 10 back. However, if your card is category-specific and offers 1% for grocery purchases and 0.1% for other purchases, and if you spend CHF 500 on groceries and CHF 500 on other purchases, you get a total of CHF 5.50 back. That sounds like pretty little at first, but by the end of the year, it can add up to a good chunk of change.

saving with cashback

In my opinion, cashback credit cards are one of the simplest ways to save money in your everyday life without any hassle. For more on whether cashback is worth it, check out our article “Are Cashback Cards Worth It?“.


  • Possibility of getting money back
  • Incentive for conscious and planned shopping if you have a category-specific card.
  • Psychologically a better feeling about spending money.


  • Potential temptation to spend more
  • Cashback often only for certain categories or up to a certain limit

The Best Offer in Switzerland

The best cashback credit card in Switzerland, in my opinion, is the Swisscard Cashback Cards Duo. Here, you get a high flat-rate cashback of 1%, even though the credit card duo is free.

There are other attractive offers as well, but since Swisscard is a Swiss company and can, therefore, react much better in case of problems, it is an excellent option.

Conclusion 🎓

Cashback credit cards offer a simple and effective way to save money in everyday life. While they are not yet as widespread in Switzerland, they are gaining in popularity. The percentages offered can vary, but even a 1% cashback can add up to a pretty sum over the course of the year.

The benefits are clear: You get an incentive to make conscious, planned purchases and feel psychologically better about spending money. Still, you should be aware of potential pitfalls, such as the temptation to spend more to get more cash back. It’s also important to be aware of the specific terms and limits of the cashback program.

Last but not least, your choice of cashback credit card should be well considered. In Switzerland, for example, the Swisscard Cashback Cards Duo offers a high flat-rate cashback of 1%. And that’s with no annual fees, making it my recommended option.

All in all, cashback credit cards are a useful financial tool to consider if you’re looking for ways to use your money more efficiently.

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