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Minimum spend and cashback caps, explained

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The short answer

Minimum spend is the amount you must spend in a month before a card pays cashback. A cap is the most cashback you can earn in a category or in total. Both are in the card's terms, and both can change what a purchase is worth. The example below is made up and is not a real card.

Quick facts

Minimum spend
The monthly spend needed before cashback is paid; for example AED 2,500 on the Emirates Islamic Switch card (source: Emirates Islamic Switch Cashback terms)
Cap
The most cashback a category or card pays in a month; for example AED 200 on Switch's 4% categories (source: Emirates Islamic Switch Cashback terms)
Where to find them
The card's terms and conditions (source: Emirates Islamic Switch Cashback card)

What minimum spend means

Many cashback cards pay nothing unless you spend a set amount in a period. The Emirates Islamic Switch Cashback Credit Card terms say the bank pays cashback for a minimum billed amount of AED 2,500 per calendar month. The FAB Cashback Credit Card page says AED 3,000 in the previous month is needed. The Mashreq Cashback Credit Card page says it has no minimum spend.

Read the wording carefully. Is it the calendar month or the statement period? Is it this month's spend or last month's? Does it count all spending, or only eligible spending? Those differences change when you reach the target.

What a cap means

A cap limits the cashback, not the spend. If a category pays 4% with a monthly cap of AED 200, you can still spend more, but after you have earned AED 200 the card stops paying 4% on that category for the month. Some cards also have a cap on total cashback. The FAB Cashback page, for example, lists an overall monthly cap of up to AED 1,000.

A worked example

This is a made-up card, only for showing the maths. It is not a real product. Suppose Example Card pays 4% on supermarkets with a cap of AED 200 a month, 1% on everything else, and needs AED 2,500 spent in the month to pay any cashback.

In a month you spend AED 1,800 at a supermarket, AED 400 on petrol and AED 500 on dining. That is AED 2,700 in total, so you pass the AED 2,500 minimum. Cashback: 4% of AED 1,800 is AED 72, plus 1% of AED 900 is AED 9. Total AED 81.

Now suppose you spent only AED 2,300 in total because you used another card for a dinner. You are AED 200 short, so Example Card pays AED 0 for the month, even though the same shopping would have paid AED 81 if you had reached the target.

Now the cap. If you spend AED 6,000 at supermarkets, 4% would be AED 240, but the cap is AED 200, so you earn AED 200. The cap is reached at AED 5,000 of grocery spend, so the last AED 1,000 earns no 4% at all. A second card with its own grocery rate could pay more on that part.

Why the right card at the right shop matters

Different cards pay differently by category. The Switch card pays 8% on domestic fuel up to AED 100 a month on its Lifestyle plan, but 0.5% on telecom, utilities, real estate and government spends. Mashreq's page lists 5% on dining and 0.15% on government payments, utilities, education, charity, fuel, rental and telecom. FAB's lists 5% on fashion, dining and groceries.

So a card that is good at the supermarket may be poor for utilities, and a card that is capped for dining may be worth switching away from late in the month. Using one card for everything can mean you hit one card's cap early and leave another card's cashback unused.

Practical habits

  • Write down each card's minimum spend, caps and excluded spends, from the bank's current terms.
  • Check your progress partway through the month. If you are close to a minimum, put planned purchases on that card.
  • Stop using a card for a category once the cap is reached.
  • Remember refunds. Mashreq's page lists reversed transactions as not earning cashback, so check what your card does.
  • Pay in full. Profit or interest on unpaid balances can be more than the cashback.

How Fawz helps

Fawz is not released yet, and people join a waiting list. When it is out, it tracks your minimum monthly spend and caps, so you can see how far you are from the higher cashback rate on each card.

It suggests which of your cards to use at the till, and can plan big purchases across your cards. Fawz never stores card numbers or bank logins and never reads SMS.

Join the waiting list

Questions people ask

What is minimum spend on a credit card?

The amount you must spend in a period before the card pays cashback or rewards. It is set by the bank in the card terms.

What is a cashback cap?

The most cashback a category or card pays in a month. Spending beyond it does not earn more at that rate.

Do I lose all cashback if I miss the minimum spend?

On cards that require a minimum, yes for that period. The Switch card terms say cashback is for a minimum billed amount of AED 2,500 per calendar month. Check your card's terms.

Does the minimum spend include every purchase?

Not always. Some cards count only eligible spends and exclude things like cash advances or balance transfers. Check the terms.

Are there cards with no minimum spend?

Yes. Mashreq's page says its Cashback Credit Card has no minimum spend requirement. Check the bank's current terms.

Is the example card in this guide real?

No. Example Card is made up to show the maths.

Sources

  1. Emirates Islamic Switch Cashback termsemiratesislamic.ae
  2. Emirates Islamic Switch Cashback cardemiratesislamic.ae
  3. FAB Cashback Credit Cardbankfab.com
  4. Mashreq Cashback Credit Cardmashreq.com

Last checked . Terms change, so check the current terms before you rely on an offer.

Fawz is not affiliated with the companies named here. Names and trademarks belong to their owners.