The Federal Bank Paisabazaar Paisaback Credit Card offers 7.5% cashback on eligible online and offline grocery transactions, including spends at retailers such as Reliance Fresh, DMart, Star Bazaar and Nature’s Basket, as well as quick-commerce platforms including Blinkit, Zepto, Swiggy Instamart and BigBasket, according to the companies.
The card was launched at the Global Fintech Festival in Mumbai on September 10.
Beyond grocery spending, the card offers 1% cashback on eligible point-of-sale and e-commerce transactions. It also provides 0.5% cashback on eligible UPI transactions above ₹2,000, although grocery, fuel and travel transactions are excluded from this benefit.
Cashback capped at ₹1,000 a month
While the card advertises 7.5% cashback on eligible grocery spending, the overall cashback benefit is capped at ₹1,000 per month across eligible transactions.
This means a cardholder cannot earn more than ₹1,000 in cashback in a billing month, irrespective of the total eligible spending. At the advertised 7.5% rate, the monthly cap would be reached with about ₹13,333 of eligible spending, assuming the entire amount qualifies for the higher grocery cashback rate.
Cashback is credited as Cash Points, which remain valid for one year, according to the companies.
₹500 fee, waived at ₹1.5 lakh annual spending
The card carries a joining and annual fee of ₹500. The annual fee is waived if the cardholder spends at least ₹1.5 lakh in a year.
For a consumer considering the card primarily for cashback, the annual spending threshold is an important factor. The fee waiver depends on meeting the specified spending level, while the cashback itself remains subject to the ₹1,000 monthly cap and the card’s eligibility conditions.
The card also offers a fuel surcharge waiver of up to ₹100 per billing cycle.
What cardholders should check
The headline 7.5% cashback rate applies only to eligible grocery transactions. Consumers should therefore check the detailed terms and conditions to understand which merchant transactions qualify, particularly for online grocery and quick-commerce purchases.
The effective benefit will also depend on how much a cardholder spends in eligible categories each month and whether the monthly cashback cap is reached. For consumers with relatively low grocery spending, the headline rate may translate into a smaller absolute saving.
For example, ₹5,000 of eligible grocery spending at 7.5% would generate ₹375 in cashback, subject to the card’s terms. A ₹10,000 eligible grocery bill would generate ₹750. Once eligible cashback reaches ₹1,000 in a month, additional eligible spending would not generate further cashback under the stated monthly cap.
The card is available on the RuPay network, allowing eligible UPI transactions through the credit-card-linked UPI ecosystem, subject to the stated exclusions and transaction conditions.
