Rewards Credit Cards in the Philippines

As the name implies, a rewards credit card offers certain rewards every time you purchase with the card. The more you use a rewards credit card, the higher the value of rewards you can qualify for.

Every time you use your rewards credit card to complete a purchase, you get corresponding reward points on what you purchased. Accumulate enough points and you can redeem exciting rewards like discounts on select stores, gift certificates, free meals, airfare and hotel discounts, and other exciting freebies.

You can earn points by simply using your credit card in partner establishments. Earned rewards points can be used to redeem gift cards, products, and even flights. Keep your eyes peeled for the latest credit card promos and how to redeem rewards points from your credit card provider.

In the Philippines, each reward point on credit cards is typically worth about ₱20 to ₱200. But the actual rewards rate varies per issuing bank and the spending category (e.g., shopping, dining, travel, groceries, online, overseas, etc.). 

For instance, some rewards credit cards offer the same rewards rate across all kinds of purchases, while others allow earning higher or lower points on certain spending categories.

Certain transactions, such as cash advances and casino/gambling, don’t earn rewards points. Payments for credit card fees and charges don’t earn points, too.

Points earned on most rewards credit cards in the Philippines don’t expire, while points on a few cards are valid for up to two or three years.

• Shopping Rewards. This is the most common out of all the credit card rewards out there. The reward you’ll get will be based on the amount of points you’ve accumulated. You can then exchange your points for special items, gift certificates, and free meals on various establishments.

• Cash Rewards. Your credit card rewards can also take the form of cash rebates and credits. For example, you can get an HSBC Gold Visa Cash Back to enjoy lots of rebates. You can get up to 5% rebate on your dining spend, 3% rebate on fuel purchases at Caltex, and 0.5% on all other spend.

• Travel Rewards. Travel rewards are beneficial for cardholders looking to get more out of their travels. Credit cards with this type of reward will get you perks like free trips to any destination, discounts on airfare tickets, and priority check-in and luggage on air ports.

• Lifestyle Rewards. Credit card rewards can also take the form of lifestyle services and items. A good example is the EastWest Platinum Card that rewards cardholders with discounts on select resorts and restaurants in the Philippines.

The rewards points redemption process varies per credit card provider, as banks have their own rules and set a certain number of points for redeeming a particular reward.

Once sufficient points are accumulated, the cardholder can use them in exchange for benefits such as gift certificates, vouchers, cash rebates, air miles, merchandise, annual fee waivers, charity donations, and more.

Cardholders can view their points and choose their desired rewards online through the issuing bank’s website. Redemption can also be done online or through the bank’s customer service hotline.

Typically, only cardholders in good credit standing are allowed to redeem points. Those who max out their credit limit and fail to pay at least their minimum balance aren’t likely to qualify for points redemption. On top of that, instead of receiving rewards, they end up paying interest on the outstanding balance.

Getting a rewards credit card is the right option for you under the following circumstances:

• You’re sure that you can pay your credit card bill in full and on time every month.
• You’re interested in the perks offered by rewards credit cards.
• You know how to use and manage a credit card responsibly.
• You’re disciplined enough to control your spending.

• Points Expiration. Hoarding reward points is great and all, just make sure they don’t expire. You should know the expiry date of your reward points so you can redeem them as soon as possible. Or if you don’t want to go through all that trouble, get yourself a credit card with no-expiry reward points.

• Participating Merchants. Choose a rewards credit card that has an existing partnership with your favorite stores or restaurants. Or if you don’t have a preference, find a card with the most number of participating merchants so you can receive your reward wherever you swipe your card.

• Signing Bonuses or Welcome Gifts. To entice potential cardholders, credit card providers offer welcome gifts or signing bonuses.

• Tiered vs Flat Scheme. A tiered rewards system raises the percentage of your rewards as you use your credit card more often. For example, a rewards card might offer you 2% cash back for every ₱200 spent. Keep spending and you’ll get 3% cash back or higher. Meanwhile, a flat rewards system has a fixed reward, regardless of how often you use your card.