Instead of rewards redemption based on points accumulated from credit card expenditure, there are cards that give direct cash rebates based on amount spent. The Citibank Dividend card was one of the first (that I know off) to come up with this cash redemption scheme. However, it was not attractive to me because the rebate seemed very low ~0.5% of what you spent + redemption had to be accumulated to a certain sum ($50). This means I must spent $10,000 on the credit card before I can get back the rebate of $50. There’s no way I can hit a credit card expenditure of $10,000 in a year. Subsequently, POSB came up with the POSB Everyday card which promises ‘instant cash rebate with no minimum redeemable amount’. So I applied for the card. The 5% rebate for purchases at Carrefour was also a good deal. However, one question bugs me. They highlighted the various merchants that gave good rebates, eg: Carrefour 5%, SPC Petrol 4%, Watson 2%. But are ALL purchases eligible for cash rebates? After scrutinizing their website writeup, I noted that ‘Purchases at non-participating merchants = 0.3%’. So the answer is Yes. If you purchase at participating merchants, you stand to get higher rebates, while at non-participating merchants, you are guaranteed a 0.3% rebate. The catches:
1) For my UOB card, I can get a $20 voucher for minimum 600points (expenditure of $3000). That is about 0.67% rebate regardless of what merchant. Which means if I am going to buy from a ‘non-participating merchant’ of POSB card, I am better off using UOB card to pay.
2) POSB list supposedly 500 participating merchants, but most dun seem (to me) to be the really popular retailers. For instance, Chin Wah Heng Seafood , Hawaiian Barbeque (Turf City), Camper's Corner , Cenedela , Kindergolf? In trying to be the card for everyone, POSB does not have a focus, and any kuching kurat merchant + goods and services (eg Maternity, Golf, Kids enrichment) that I dun really need are touted. Which means I am more likely to purchase from a ‘non-participating merchant’ which goes back to 1).
3) Participating merchants are the ones that we can redeem the cash rebates. This differs from Citibank’s Dividend card which literally gives you back the cash. The cash rebate by POSB has its restriction because it can only be used at selected merchants. This is about the same as reward point redemption where we choose from a pre-determined selection of vouchers. Due to POSB’s lack of relevant merchants for me, I will end up getting cash rebates mainly for purchases at Carrefour and Watson. The selection is very ‘wide’ indeed.
Conclusion: looks like it’s still back to UOB to earn my dining vouchers.
1) For my UOB card, I can get a $20 voucher for minimum 600points (expenditure of $3000). That is about 0.67% rebate regardless of what merchant. Which means if I am going to buy from a ‘non-participating merchant’ of POSB card, I am better off using UOB card to pay.
2) POSB list supposedly 500 participating merchants, but most dun seem (to me) to be the really popular retailers. For instance, Chin Wah Heng Seafood , Hawaiian Barbeque (Turf City), Camper's Corner , Cenedela , Kindergolf? In trying to be the card for everyone, POSB does not have a focus, and any kuching kurat merchant + goods and services (eg Maternity, Golf, Kids enrichment) that I dun really need are touted. Which means I am more likely to purchase from a ‘non-participating merchant’ which goes back to 1).
3) Participating merchants are the ones that we can redeem the cash rebates. This differs from Citibank’s Dividend card which literally gives you back the cash. The cash rebate by POSB has its restriction because it can only be used at selected merchants. This is about the same as reward point redemption where we choose from a pre-determined selection of vouchers. Due to POSB’s lack of relevant merchants for me, I will end up getting cash rebates mainly for purchases at Carrefour and Watson. The selection is very ‘wide’ indeed.
Conclusion: looks like it’s still back to UOB to earn my dining vouchers.
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