HSBC Cashback Credit Card
HSBC Cashback is an underrated everyday card that delivers 1.5% flat cashback on all transactions with no category restrictions and an easily-waived ₹499 annual fee. The simplicity is the product: no tracking partners, no rotating categories, no minimum category spend — just 1.5% on everything up to ₹66,666/month before the ₹1,000/month cap binds.
By Ashutosh · Updated June 2026
Most cardholders' primary card earns high rates on specific categories — dining, Amazon, travel — but earns 1% or less on the remaining spend. HSBC Cashback is purpose-built to be the perfect secondary card for everything your primary card under-rewards. Consider a typical month: your primary card earns 5% on Amazon, 10% on Swiggy, but only 1% on electricity, insurance, apparel, and offline stores. HSBC Cashback earns 1.5% on all of those at-1% categories, adding 0.5% improvement across the board. At ₹30,000/month of such spends, that is an extra ₹150/month or ₹1,800/year from a card that costs ₹499 (and can be waived). This is the unsexy, highly effective strategy of plugging the reward gap on non-partner spend.
Cardholders with a strong primary card who want to maximize earning on the non-accelerated spend categories where their primary card earns only 1% or less.
You want a single all-purpose card with high earning rates and lounge access — HSBC Cashback has neither international lounge visits nor a high rate on specific categories, and the ₹1,000/month cap limits it for high spenders.
1.5% flat cashback on everything (cap ₹500/mo) · Auto-credited · ₹500 welcome cashback
PROS
- Simple flat 1.5% on everything
- Low fee with easy waiver
- Auto-credited cashback
CONS
- ₹500/mo cap is restrictive
- After cap, no cashback earned
- No lounge access
- Catch-All Non-Partner Spend: Any transaction where your primary card earns 1% or less — offline retail, utility-adjacent services, non-partner food platforms, subscription services — earns 1.5% on HSBC Cashback instead. At ₹20,000/month of such spends, the improvement is ₹100/month or ₹1,200/year from a effectively free card.
- Utility and Recurring Bill Payments: Electricity, gas, water, broadband, and DTH payments often earn at base rates (1% or less) on most primary cards. HSBC Cashback earns 1.5% on these without distinction. At ₹8,000/month in utility bills, you earn ₹120/month or ₹1,440/year versus ₹80/month at 1% elsewhere.
- Offline and Unaffiliated Merchant Purchases: Local stores, unbranded retailers, chemists, and service payments where no partner deal applies earn 1.5% flat on HSBC Cashback. This covers the long tail of everyday spending that partner-heavy cards ignore.
- Spend Below ₹66,666/Month Total: The ₹1,000/month cashback cap only becomes binding at ₹66,666/month of spend on this card. For most users, the cap is not a constraint — you will exhaust the cap only if you route exceptionally high monthly volumes through this single card, which is unlikely given that primary and specialty cards already capture partner-category spend.
- Fee-Free Backup Card Strategy: At ₹499 with a reasonable spend waiver, HSBC Cashback is effectively a free card for most working professionals. Holding it as an always-earning backup ensures that emergency or opportunistic purchases where you use the most convenient card still earn 1.5% rather than zero or 0.5% on a low-reward card.
HSBC Live+ earns 10% on dining, Swiggy, Zomato, and grocery versus Cashback's 1.5%. For anyone spending ₹5,000 or more monthly on dining and food delivery, Live+'s 10% is in a different league despite the ₹1,500 higher fee.
Amazon Pay ICICI gives 5% on Amazon for Prime members at zero fee. HSBC Cashback earns 1.5% — a 3.5 percentage point gap. Always use Amazon Pay ICICI for Amazon purchases.
HSBC Cashback caps at ₹1,000/month cashback. High spenders who want uncapped 1.5% flat earning should consider IDFC FIRST Power Plus at ₹2,999/year, which offers the same 1.5% rate with no monthly cap. For ₹70,000 to ₹1,00,000/month total spend, Power Plus's uncapped rate is meaningfully better despite the higher fee.
HSBC Cashback has no lounge access at all. For ₹999 more than Cashback's ₹499 fee, IDFC FIRST Ashva gives 8 domestic lounges, zero forex, and 1% rewards — better suited for anyone who travels even occasionally.
Amazon Pay ICICI owns Amazon at 5%, HSBC Cashback captures everything else at 1.5%. Two-card total fee: ₹499/year (Amazon Pay ICICI is free). This is the simplest and most effective low-fee combination for maximizing return on all everyday spend.
Live+ takes dining, grocery, and food delivery at 10%. HSBC Cashback catches all remaining non-partner spend at 1.5%. Both are HSBC cards, simplifying statement management on a single banking relationship. Combined fee of ₹2,498/year for near-comprehensive earning coverage.
View HSBC Live+ Credit Card →Scapia (free) handles international purchases with zero forex and domestic lounge access. HSBC Cashback covers all domestic non-partner spend at 1.5% including utilities and insurance that Scapia excludes post-February 2026. These cards complement each other precisely on the categories each one misses.
View Scapia Credit Card →What is the fee waiver threshold for HSBC Cashback?
HSBC Cashback's annual fee of ₹499 is waived if you spend a minimum amount in the preceding year — the threshold is typically ₹1.5 lakh to ₹2 lakh annually, which works out to ₹12,500 to ₹16,667 per month. For most working professionals using this as an active backup card, hitting the spend threshold is straightforward, making the card effectively free in practice.
Is the 1.5% cashback credited as statement credit or reward points?
HSBC Cashback is credited as direct cashback to your statement — it reduces your outstanding balance and appears as a credit line item. There is no points redemption interface, no minimum redemption threshold, and no expiry on accrued cashback. This simplicity is intentional and is the card's core design philosophy.
Does the ₹1,000/month cap apply to total cashback or total spend?
The ₹1,000/month cap applies to the total cashback earned, not total spend. At 1.5%, the cap binds at ₹66,667/month of spend on this card. Most users will not hit this ceiling because their primary card already captures partner-category spend, leaving HSBC Cashback for the remainder. If you are routing all spend through HSBC Cashback as a primary card and spending above ₹66,667/month, consider IDFC FIRST Power Plus for its uncapped 1.5% rate.
Are there any categories excluded from the 1.5% cashback on HSBC Cashback?
Standard exclusions typically include fuel (where surcharge waiver applies separately), cash withdrawals, and EMI transactions. Some government payment portals may also be excluded. HSBC's exclusion list is relatively short compared to more complex rewards cards — the card is designed for simplicity. Check the current Most Important Terms and Conditions document on HSBC India's website for the complete and up-to-date exclusion list.
How does HSBC Cashback compare to Axis ACE at ₹499 fee?
Axis ACE (₹499/year) earns 2% flat on everything and 5% on bill payments via Google Pay. At first glance Axis ACE's 2% beats HSBC Cashback's 1.5%. However, Axis ACE has a ₹500/month cashback cap, which binds at ₹25,000/month spend — significantly lower than HSBC Cashback's ₹1,000/month cap binding at ₹66,667/month. For spenders routing ₹25,000 to ₹66,667/month through a flat cashback card, HSBC Cashback's higher cap is more valuable than Axis ACE's higher rate.