Groceries, fuel, and transit are expenses you can’t avoid — but what if you could turn those daily costs into savings? That’s exactly what cashback credit cards are designed for. By offering a percentage of your spending back as cash, these cards help you reduce the cost of essentials while also teaching you to manage money wisely.
In this guide, we’ll explain how cashback cards work, highlight categories like groceries, fuel, and transport, and give you practical strategies to maximize your savings without falling into debt.
How do cashback credit cards work?
A cashback credit card rewards you by returning a percentage of your purchases as cash or statement credit.
- Flat-rate cashback: Same percentage on every purchase (e.g., 1.5% on all spending).
- Category-based cashback: Higher rewards on specific categories (e.g., 5% on groceries, 3% on fuel).
- Tiered cashback: Different rates depending on how much you spend each month.
The key is to pick a card that matches your lifestyle spending habits.
Why focus on groceries, fuel, and transit?
These are everyday essentials that take up a large part of monthly budgets — especially for young adults managing school, work, and household expenses.
- Groceries: Regular weekly purchases add up quickly. Cashback here provides steady savings.
- Fuel: Frequent drivers benefit from reduced commuting costs.
- Transit: Students and professionals using metro, buses, or ride-hailing apps can save on daily travel.
Since you’re already spending in these categories, maximizing cashback here means guaranteed savings without extra effort.
Best ways to maximize cashback on groceries
- Choose a card with high grocery rewards
Some cards offer up to 5% cashback on supermarket purchases. - Stick to eligible stores
Banks sometimes limit cashback to partner supermarkets. - Track monthly caps
Many cards set cashback limits (e.g., maximum AED 200 cashback per month). - Use during promotions
Look out for extra cashback offers around Ramadan, Black Friday, or holiday seasons.
Best ways to maximize cashback on fuel
- Pick a card with fuel partnerships
In the UAE, some cards offer up to 10% cashback at ENOC, ADNOC, or EPPCO stations. - Set autopay for fuel transactions
This ensures you never miss payments and lose rewards. - Watch for caps
Fuel cashback is often limited to a number of liters or transactions per month. - Combine with loyalty apps
Use both your bank’s cashback and fuel station loyalty programs for double benefits.
Best ways to maximize cashback on transit
- Cards linked with transport authorities
Some banks partner with RTA in Dubai or offer rewards on metro/bus recharges. - Ride-hailing apps
Cashback may apply for Uber, Careem, or Bolt rides. - Public transport reloads
Cards that give cashback on NOL card top-ups or subscription passes add real value. - Student commuters
Look for no-fee cashback cards that allow smaller daily purchases to still earn rewards.
Tips to use cashback cards Wisely
- Always pay in full: Interest charges cancel out cashback benefits.
- Know your card’s terms: Caps, eligible merchants, and promo periods matter.
- Don’t overspend just for cashback: Spending AED 1,000 to earn AED 50 cashback isn’t worth it if you didn’t need the purchase
- Track rewards: Use your bank’s app to monitor how much cashback you’ve earned.
Example: monthly savings breakdown
Let’s say you earn AED 6,000/month and spend:
- AED 1,500 on groceries (5% cashback = AED 75)
- AED 600 on fuel (3% cashback = AED 18)
- AED 400 on transit/ride-hailing (5% cashback = AED 20)
Total cashback = AED 113/month = AED 1,356/year
That’s over one month’s worth of grocery shopping covered — just by using the right card.
Flat cashback vs category cashback: which is better?
- Flat cashback cards are great for people who don’t want to track categories or caps.
- Category-based cards give higher rewards but require you to pay attention to where you’re spending.
Tip: If you can, use two cards — a category-based one for essentials (groceries, fuel, transit) and a flat-rate one for everything else.
Common mistakes to avoid
- Applying for too many cards at once (hurts your credit score).
- Ignoring annual fees that eat into your cashback.
- Forgetting to check if “groceries” includes hypermarkets or only partner stores.
- Carrying balances that lead to high interest payments.
The bottom line
Cashback credit cards are one of the easiest ways to save money on everyday essentials like groceries, fuel, and transit. The key is to:
- Pick a card that matches your spending patterns.
- Use it consistently in eligible categories.
- Pay your balance in full each month.
Done right, cashback rewards can add up to hundreds or even thousands in savings each year, without changing your lifestyle.