Rappra / Guides

Is a 2% Cashback Card Always Better Than 1.5%?

Not necessarily. Cashback is the visible number; FX loss is the hidden one. A card with 2% back and a 2.5% FX markup loses to a card with 1.5% back and a 0.5% markup. Picking cards by cashback rate alone means reading only half the ledger.

The two cashback modes

• Fixed amount: a set amount in the billed currency, deducted from the bill — simple and direct
• Percentage: a percentage of the actual charge — the more you spend the more you earn, but the FX gap scales up too

The two modes cannot be compared by their numbers directly. They must be converted to one common metric: net result = FX loss − cashback.

Compare in three steps

1. For the same purchase, note each card’s actual billed amount
2. Enter them on the Rappra home page, setting each card’s cashback to amount or percent mode as appropriate
3. Look at the “net result (after cashback)” column — the smallest (or negative, meaning you profit) wins

A typical example

Say an overseas purchase equals 1000 yuan: card A gives 2% back but adds a 2.5% FX markup (net −0.5%); card B gives 1% back with only a 0.3% markup (net +0.7%, you profit). Cashback alone says A; net result says B — which is why you compare net results, not cashback rates.

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