Best Credit Cards for Online Shopping in Singapore (2024)

Is there really anyone who dislikes cashback, air miles, or rewards points? Simultaneously earning these perks while online shopping essentially lets you to “save while you spend”. With the right online shopping credit card, you can rack up rewards on every transaction and make the most of every dollar spent.

Banks often partner up with merchants to offer exclusive credit card discounts on select products and services. Depending on your credit card’s bank, you’ll enjoy online shopping perks and discounts across various categories. Whether it’s a specific merchant or an e-commerce platform, choosing the right online shopping credit card scores you great deals and elevates your shopping experience overall.

READ MORE: Best Bank Offers in Singapore

With monthly credit card statements, you can easily track your expenses and monitor your spending habits diligently. In turn, this can help you create a more informed budget.

Credit cards are widely accepted on international shopping websites, making cross-border purchases easier to perform. However, be mindful that some sites might have restrictions based on your card provider (Visa, Mastercard, or AMEX).

Credit cards typically offer better fraud protection than debit cards. They offer true zero-liability protection against unauthorised transactions, making them the safer choice for online shopping.

Choosing the right credit card for online shopping starts with understanding your shopping habits and preferences. Do you primarily buy clothes, beauty products, electronic gadgets, home appliances, or others? If so, pick a card that offers bonus cashback, miles, or rewards points on your preferred shopping category.

For a more varied or broader shopping mix, opt for a generic credit card that earns bonus rebates or rewards on online transactions as a whole.

Credit card rebates generally come in 3 types: cashback, air miles, and rewards points. Evaluate which benefit suits your spending habits best.

For earning back cash while you spend, go for a cashback credit card. Or if you like the idea of online purchasing earning miles towards your next flight, opt for a miles credit card. Lastly, if future rewards or perks appeal to you, then a rewards credit card is your best bet.

READ MORE: Cashback vs. Miles Credit Card: Which One Should We Go For in Singapore?

Cashback credit cards often have a minimum monthly spend requirement in order to qualify for bonus cashback, miles, or rewards points. Spending thresholds vary across cards, ranging between S$500 to S$2,000. To find the card that best caters to you, assess your average monthly spending to determine which credit card’s spend requirement you can realistically attain.

In contrast, miles and rewards credit cards typically don’t have a minimum spend requirement to qualify for bonus rebate rates.

Most credit cards in Singapore, including online shopping credit cards, have an annual fee of S$196.20 (including GST). Additionally, many also offer a complimentary first-year annual fee waiver – either automatically or in exchange for forfeiting a sign-up gift or reward.

Credit cards typically offer low foreign transaction fees ranging between 3.25% to 3.5%. This fee comprises charges from both the issuing bank (2.25% to 2.5%) and the card association like Visa or Mastercard (1%).

But what happens if you’re online shopping on an overseas website and are being prompted to pay in your local currency (e.g. SGD) instead of the merchant’s currency? You may be charged Dynamic Currency Conversion (DCC) fees.

DCC fees can include a markup of 3% to 8% on top of the transaction amount, making it costlier than standard foreign transaction fees. To avoid unnecessary extra costs, opt for the merchant’s currency and let your card issuer handle the conversion instead.

Many credit cards offer welcome bonuses in the form of cashback, miles, or rewards points if you hit a certain eligible spend within the first few months of card approval date. If your online shopping meets the eligibility criteria, leverage your purchases to meet this spend amount.

To maximise your cashback, miles, or rewards points on online shopping, make purchases with eligible merchants within your card’s bonus categories. Merchant eligibility is determined by its merchant category code (MCC).

Additionally, some credit cards have narrower bonus categories, while others offer broader options.

For example, the UOB One Card provides up to 10% cashback on Shopee and DFI Retail Group merchants like Guardian, 7-Eleven, and Cold Storage when the minimum spend is met. Meanwhile, the Citi Rewards Card is more general, offering 10X Citi ThankYou Points (4 mpd) on eligible online transactions.

Buying through a shopping portal, whether your card’s bank or a third-party site, enables you to stack rebates and rewards. By pairing your credit card with the portal and following its instructions, you stand to earn the platform’s rewards on top of your card’s rebate. For instance, ShopBack partners with many online retailers, offering as high as 35% cashback on sites like Shopee*.

*Cash rebate rate is accurate as 19 Nov 2024.

Don’t be shy; take advantage of seasonal promotions and flash sales. Banks often partner with online retailers during major shopping events (like 11.11 or Black Friday) to reward extra cashback, bonus miles, or points on online purchases.