What unlimited cashback actually means (and why most credit cards aren't)

Key takeaways

• Unlimited cashback sounds straightforward, but most cards in Singapore apply "unlimited" to the base rate (0.2% to 0.3%), while higher bonus rates come with caps, high minimum spend requirements, and category restrictions.
• Truly unlimited cashback means no cap on any spending category, a low minimum spend threshold, and fewer merchant exclusions that disqualify everyday transactions.
• Most Singaporeans earn less cashback than they expect because of conditions buried in the fine print.
• The best cashback cards earn at elevated rates on your biggest everyday platforms, at a strong flat rate on everything else, and have no caps anywhere.
• The right question to ask: Will this card reward how I actually spend?

Unlimited cashback. Three words that make every money-savvy Singaporean perk up. Fair enough, the idea of earning cashback on every single thing you spend on, with no ceiling in sight, is genuinely appealing.

The thing is, "unlimited" means different things on different cards. And knowing the difference is what separates cardholders who maximise their rewards from those who wonder why their cashback looks a lot like loose change at month end.

Now, here's a fun exercise. Pull up your last credit card statement and look at your total spending for the month. Then, look at your total cashback earned. If the gap feels wider than it should, read on.

How cashback credit cards actually structure your rewards

Most banks structure cashback in two tiers.

Base cashback, typically 0.2% to 0.3%, applies to all spending with no cap. This is the tier that's genuinely unlimited. On $1,500 monthly spending, 0.3% earns you $4.50. That's one bubble tea, and probably just a regular-sized cup. The simplest cashback credit card in Singapore earns a meaningful rate consistently across all categories, not just the ones that happen to hit a bonus tier.

Bonus cashback, ranging from 3% to 10%, is the tier that moves the needle. It applies to specific categories and comes with monthly caps, minimum spend thresholds, and merchant category conditions.

Knowing which tier your spending falls into tells you a lot about what your card is actually earning you.

Three things that affect how much cashback you actually earn

1. Cashback caps
   Many cards in Singapore cap how much cashback you can earn per category per month. A card offering 6% on dining might cap dining cashback at $20. Once you've spent around $333 on food that month, additional dining spend drops to the base rate. Bummer, right?
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   That said, the cap itself isn't a dealbreaker. Just something worth factoring in, especially if your spending in a particular category is consistently high.
2. High minimum spend requirement
   Many cards require a minimum monthly spend to unlock bonus cashback rates. Hit the threshold and you're earning at the advertised rate. Miss it and you drop to base cashback across the board.
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   Cards with a lower minimum spend give you more flexibility, especially in months when your spending is lighter. If your income or expenses vary month to month, this is one of the first things worth checking before choosing a card.
3. Category exclusions
   Every transaction you make gets assigned a Merchant Category Code (MCC) by the card network. This code determines how the transaction is classified: dining, groceries, transport, or online shopping. Your cashback rate follows from that.
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   Some transaction types are excluded from bonus cashback entirely. Common exclusions include phone bills, internet and streaming subscriptions, among many others. Yikes, that's already quite a chunk from your regular monthly spending.
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   If several of your recurring payments fall into excluded categories, your effective cashback rate on total spending will be lower than the headline rate suggests. Worth checking a card's exclusion list before you apply.

What a truly unlimited cashback credit card looks like

If a card is going to call itself unlimited, here's what that should mean. Consider it a checklist.

• Does your credit card have unlimited cashback?
  Most cards stop rewarding you once you hit a monthly cashback ceiling. Truly unlimited means there's no cutoff point. Spend $500 on dining or $5,000, your cashback rate stays exactly the same all the way through.
• Does your credit card offer an unlimited number of transactions?
  Some cards set a minimum transaction amount or limit how many purchases qualify for cashback in a month. Truly unlimited means every tap counts, whether it's a $6 iced latte or a $50 grocery run.
• Does your credit card reward unlimited everyday spending?
  One flat rate on everything else. Everything that doesn't fall under a bonus platform should still earn meaningful cashback consistently on every other transaction.
• Unlimited qualifying spend with fewer exclusions
  The more transaction types that count toward cashback, the higher your effective return across total spending. A card that excludes phone bills and streaming subscriptions is quietly reducing your cashback on spending you can't avoid.
  
  A card that clears all four requirements delivers the highest cashback with no cap in Singapore, earning at the full rate with no hidden conditions quietly eating into your rewards.

The question worth asking before you pick your next cashback credit card

Most people pick a cashback credit card by zeroing in on the highest advertised rate. 10% on dining alone? Sign me up. After caps, minimum spend, and category exclusions though, the effective return on total monthly spending can look quite different from the headline. Ouch.

Try this quick check. Look at your last three months of statements. Add up your total spending, then add up your total cashback earned. Divide the second number by the first. That's your real cashback rate. Eye-opening, isn't it?

If that number surprises you (and for most people, it will), it might be worth rethinking what "unlimited" means to you. A card with elevated rates on your biggest spending categories, a strong flat rate on everything else, no caps, and a low minimum spend could put far more money back in your pocket every month.

At GXS Bank, we think the best cashback card is the one that works hardest for you without asking you to work for it. That's why every GXS card comes with truly unlimited cashback with unlimited number of transactions.

Ready to find out if your "unlimited" credit card is actually earning its keep? One quick calculation, and you'll know.

FAQ

1. What does unlimited cashback actually mean?
   Truly unlimited cashback means there's no cap on how much you can earn in any category, a low minimum monthly spend threshold, and minimal merchant exclusions that disqualify everyday transactions. Most cards in Singapore apply "unlimited" to the base rate (0.2% to 0.3%), while higher bonus rates come with monthly earning caps per category.
2. Why do cashback cards have caps and conditions?
   Every time you tap your card, the merchant pays a small processing fee to the bank. That's what funds your cashback. Monthly caps and category conditions allow banks to offer higher headline rates on specific spending types while managing total cashback payouts. Understanding these conditions gives you a clearer picture of what a card will actually earn on your spending.
3. What is a Merchant Category Code (MCC) and why does it matter?
   An MCC is a four-digit code assigned to every merchant by the card network. It determines how your transaction is classified: dining, groceries, transport, or online shopping. Your cashback rate follows from that classification. A GrabFood order might be coded as "online services" rather than "dining," which affects the cashback rate it earns.
4. What is the highest unlimited cashback credit card with no cap in Singapore?
   The highest unlimited cashback credit card with no cap earns at an elevated rate on your biggest everyday spending platforms and a strong flat rate on everything else, with no monthly earning ceiling on either tier. When there is no cap, your cashback keeps growing at the full rate regardless of how much you spend that month. Look for cards that offer no earning ceiling across both their elevated and flat-rate tiers for the most consistent returns on total spending.
5. What is the easiest cashback credit card for everyday spending in Singapore?
   The easiest cashback credit card for everyday spending earns consistently across all your regular categories with no monthly cap and no categories to track. Look for cards that earn unlimited cashback on every spend, across most spending categories, with a low minimum spend requirement. The fewer conditions attached to the card, the more reliably it earns on your actual monthly spending.