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With travel comes to a halt since year 2020 due to the outbreak of Covid-19, we could see a major switch on strategies of utilising credit cards.
Instead of piling up the points for flight redemptions, people are more focusing on cash back on everyday spendings - groceries, utilities and online spendings (stay home, stay safe).
With this trend, RHB bank had introduced a new credit card under its portfolio in Q1 of 2021. A co-branded cash back credit card - RHB Shell Visa Credit Card.
Don't be confused with the name, RHB Shell Visa Credit Card is actually more than just a fuel credit card. It offers more than expected.
Benefits - Multiple Cash Back Categories
The Cash Back categories included Petrol (Shell), Grocery, Online Spending, E-Wallet Top Up, Utilities and Other Spending.
The highlight of this card is "Top Up E-Wallet", which other credit card issuers would not approve on it.
E-Wallet includes: Grabpay, Touch’nGo eWallet, Boost, BigPay, Lazada Wallet,Wechat Pay and Shopee Pay.
Sorry, Maybank.
Source: Maybank
This has made reaching the minimum spend much easier. As you could use the money being top up in the future, without having pressure to spend the money just to reach the minimum cash back.
Remember the rule of credit card: To spend as you would normally spend. Never buy what you do not need, especially intended to just hit the minimum spend.
In IPI, we had covered few tips and tricks on hitting minimum spend, without getting any hassle.
"Online Spending", which includes Grabfood and Foodpanda is another great category added by RHB bank. It has provided more opportunities for consumers to cover their everyday spending.
Downside
Minimum Spend
The downside this card has would be having "minimum spend" in order to receive cash back, which is 800 MYR. In other word, if your month expense put on this card is less than 800 MYR, no cash back would be received.
Limitations on Each Category
It is understandable that the issuer offers multiple attractive category for consumers to "win" in the cash back game.
With the card being advertised with up to 12% cash back. It is actually not the case.
The cash back actually split into 3 main sections: - Petrol: Capped at 50 MYR
- Attractive Category (Grocery, Online Spend, Top Up E-Wallet and Utilities): Capped at 50 MYR
- Other Spending: No Limit
To do the reverse engineer of getting the maximum cash back, here is how the expenses put on the card shall look like:
- Petrol: 417 MYR (To achieve 12% cash back, with 50 MYR cash back)
- Attractive Category: 1,000 MYR (To achieve 5% cash back, with 50 MYR cash back)
- Other Spending: 1,083 MYR (To meet minimum spend of 2,500 MYR, to maximise the cash back percentages. 2.16 MYR cash back received)
With 2,500 MYR spent in each month, cash back received would be 102.16 MYR. In percentage, it is actually max out at 4%.
Bottom Line
Should I Apply?
There is another important factor that was not pointed out yet - Annual Fee.
From the website (as on 25th April 2021), it will be 0 MYR annual fee on the first year and 195 MYR for the subsequent years.
However, it could be waived by having minimum of 24 swipes per year.
Yes, 24 swipes in 365 days.
In another word, it could easily be a no annual fee credit card.
The question of "Should I apply?" is easily to be answered.
An easy YES. Don't leave any free money on the table.
Just make another quick calculation, for relatively lower expense:
- Petrol: 300 MYR (5% cash back = 15 MYR)
- Attractive Category: 300 MYR (1% cash back = 3 MYR)
- Other Spending: 200 MYR (0.2% cash back = 0.04 MYR)
With 800 MYR made on this card, 18 MYR could be saved with 2.25% cash back earned.
18 MYR for 800 MYR spent? Seems very less.
But, if we are using cash or debit card, it is 18 MYR loss.
As mentioned earlier, do not let free money left on the table.
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