Credit cards are lines of credit lending institutions that extend to qualified cardholders, allowing the latter to spend borrowed money and pay it back in installments.

However, unlike traditional credit facilities like bank home loans, credit cards include rewards like cashback to incentivize potential cardholders.

Nonetheless, cardholders only receive the rewards if they use funds from the card for authorized credit categories, including online shopping.

Therefore, an online shopping credit card is a credit facility that allows Malaysian online shoppers to earn rewards while they shop locally or overseas. An online shopping credit card offers the highest rewards and privileges for online shopping.

However, the best credit card online shopping typically features lower rewards for other shopping categories, including dining, in-store shopping, fuel, groceries, entertainment, and utilities.

A card optimized for online shopping has various benefits for the cardholder. One of the primary benefits of online shopping is convenience, but the delivery fees e-commerce platforms charge can be hefty.

However, certain rewards on online shopping cards can help you recoup delivery fees. For example, the Public Bank Visa Signature is among the cashback credit cards with a 3% cashback rate. 

As a cardholder, you automatically receive the cashback amount credited to your card statement once you hit the minimum monthly spend for contactless transactions.

Besides cashback, online shopping credit cards offer reward points when you shop online or transfer funds to your e-wallet. You can redeem the points for more goods available online. 

For example, the CIMB e-credit card offers 12X pints for all contactless transactions and 3X reward points on food delivery. Additionally, you can use the rewards points to pay for goods and services among participating merchants worldwide.

Third, some cashback credit cards offer exclusive access to participating outlets and facilities, including the Plaza Premium Lounge. Therefore, having an online shopping card will save you money on your monthly expenditure, among other benefits.

• Every principal cardholder must be at least 21, while a supplementary cardholder must be 18.
• A principal holder applying for online shopping cash back credit cards must earn at least RM24000 annually.
• Credit card applicants must submit prerequisite application documents, including an identification card and payslips.

1. Card Fees/ annual fee

Most credit cards for online spend have hidden fees, including an annual fee. Lending institutions typically charge a yearly fee to cushion their investment against default risk. However, some lenders waive the annual fee entirely, while others set conditions for the annual fee waiver. 

While a waiver reduces your total monthly spend, credit cards for online spend charging an annual fee offer more rewards, including a higher cashback rate. Therefore, weigh the rewards against the annual fee cost before choosing a credit card for shopping online.

2. Individual Spending Habits

As stated earlier, while cards for online shopping may prioritize online purchases, they feature other spending categories. The rewards vary for different spending categories, with some having higher rewards than others.

Therefore, monitor your spending habits and choose a card with high cash back on your most frequented shopping categories besides online shopping.

3. Minimum Spend

The minimum spend primarily applies to cashback online shopping credit cards because it is a prerequisite to receiving the cashback amount on your statement. A high minimum spend may be higher to achieve or encourage impulse spending to receive the cashback reward.

Therefore, consider a reasonable monthly minimum spend and an equally reasonable monthly cap on cashback before applying for a card.

4. Credit Card Rewards

While cash backs are the most popular rewards for online spend, consider other benefits based on your lifestyle, including redeemable loyalty points and exclusive privileges.

For example, A Maybank card like the Shopee Visa platinum card offers zero cashback but includes up to 5X Shopee coins redeemable at numerous shopping outlets.