Federal Bank Paisaback Credit Card: 7.5% Grocery Cashback Review
What Is the Federal Paisabazaar Paisaback Credit Card?
The Federal Paisabazaar Paisaback Co-Branded Credit Card is issued by Federal Bank in partnership with Paisabazaar. The bank positions it as an everyday-spending card covering grocery, retail, e-commerce and eligible UPI transactions.
Unlike a conventional points card, the headline benefit is expressed as Cash Points. Federal Bank states that 1 Cash Point = ₹1, and the Cash Points are credited to the customer's Paisabazaar app wallet for redemption.
Key Features
| Feature | Current information |
|---|---|
| Grocery rewards | 7.5% Cash Points |
| POS & e-commerce | 1% Cash Points |
| Eligible UPI transactions | 0.5% Cash Points above ₹2,000 |
| Cash Point value | 1 Cash Point = ₹1 |
| Annual-fee waiver | Annual spend of ₹1.5 lakh |
| Fuel surcharge waiver | Up to ₹100 per billing cycle |
| Issuer | Federal Bank |
| Partner | Paisabazaar |
Why 7.5% Grocery Cashback Gets Attention
Grocery spending is a recurring household expense, which makes a high category-specific reward rate potentially valuable. At the advertised rate, ₹5,000 of eligible grocery spending would generate 375 Cash Points, equivalent to ₹375 at the stated 1:1 value.
| Eligible grocery spend | 7.5% Cash Points |
|---|---|
| ₹2,000 | ₹150 |
| ₹5,000 | ₹375 |
| ₹10,000 | ₹750 |
| ₹15,000 | ₹1,125 |
These are simple calculations using the advertised 7.5% rate. Actual earning depends on the transaction qualifying under the issuer's applicable merchant-category and reward terms.
Rewards Beyond Grocery
| Spend type | Advertised Cash Point rate | What to remember |
|---|---|---|
| Grocery | 7.5% | Core proposition; eligibility depends on applicable terms/MCC. |
| POS & e-commerce | 1% | Useful fallback rate outside the headline grocery category. |
| Eligible UPI above ₹2,000 | 0.5% | Only eligible UPI transactions qualify. |
How the Cash Points Work
Federal Bank states that Cash Points are credited to the customer's Paisabazaar app wallet and can be redeemed there. The bank also states that 1 Cash Point equals ₹1.
This makes the headline percentage relatively easy to understand compared with reward currencies where point values vary by redemption option. However, users should still check the latest redemption validity and applicable conditions before accumulating a large balance.
Is the Card Lifetime Free?
Do not classify the card as lifetime free merely because the annual fee can be waived. Federal Bank's current product page states an annual-fee waiver on annual spends of ₹1.5 lakh, while current comparison listings show a joining fee. The applicable fee should therefore be verified in the latest Key Fact Statement before application.
Eligibility
Federal Bank currently lists the following basic eligibility information:
- Salaried applicants: 21 to 65 years.
- Self-employed applicants: 25 to 65 years.
- Resident Indian citizen.
- The card is currently not available to existing Federal Bank customers, according to the issuer's product page.
- Other criteria may apply under the bank's credit-card onboarding policy.
Grocery Cashback vs General Cashback
The right comparison is not simply the highest headline percentage. A grocery-focused card can outperform a general cashback card if grocery spending is substantial and consistently classified as eligible.
| Usage pattern | Paisaback suitability |
|---|---|
| Large recurring grocery spend | Strong fit |
| Mostly online shopping outside grocery | Moderate; 1% advertised rate |
| Heavy eligible UPI spend above ₹2,000 | Potentially useful, but rate is 0.5% |
| Travel-focused spending | Not the card's core proposition |
| Need for premium lounge access | Look at dedicated travel cards instead |
Pros & Things to Consider
Pros
- High advertised 7.5% Cash Point rate on grocery spending.
- 1 Cash Point is stated to equal ₹1.
- 1% Cash Points on POS and e-commerce transactions.
- 0.5% Cash Points on eligible UPI transactions above ₹2,000.
- Annual-fee waiver available at ₹1.5 lakh annual spend.
- In-app card controls and repayment through the Paisabazaar app.
Things to consider
- The strongest reward rate is concentrated in grocery spending.
- UPI reward rate is materially lower than the grocery rate.
- Eligibility currently excludes existing Federal Bank customers.
- Fee and reward conditions should be checked against the latest KFS and MITC.
- Cash Points are managed through the Paisabazaar app wallet rather than a conventional bank reward catalogue.
Who Is This Card For?
- Households with regular grocery spending: the primary target audience.
- Users comfortable with Paisabazaar's app ecosystem: relevant because Cash Points are credited to the app wallet.
- Users who want a RuPay/UPI-capable option: useful where eligible UPI transactions qualify.
- Applicants who can reach the fee-waiver threshold: the ₹1.5 lakh annual spend condition should be considered in the total value calculation.
Who May Want to Look Elsewhere?
If your largest expenses are travel, dining, fuel, utilities or premium lifestyle spending rather than groceries, a category-specific grocery card may not maximise your overall return. Likewise, if you are already a Federal Bank customer, the issuer currently says this card is not available to existing Federal Bank customers.
Frequently Asked Questions
What is the grocery cashback rate on the Federal Paisaback Credit Card?
Federal Bank currently advertises 7.5% Cash Points on grocery spending.
How much is one Cash Point worth?
Federal Bank states that 1 Cash Point equals ₹1.
Does Paisaback give rewards on UPI?
Yes. The issuer advertises 0.5% Cash Points on eligible UPI transactions above ₹2,000.
What is the annual-fee waiver condition?
Federal Bank currently lists an annual-fee waiver on annual spends of ₹1.5 lakh.
Can existing Federal Bank customers apply?
Federal Bank's current product page states that the card is currently not available for existing Federal Bank customers.
Where are Cash Points credited?
Federal Bank states that Cash Points are credited to the customer's Paisabazaar app wallet.
Our Assessment
This article was checked against Federal Bank's current Paisabazaar Paisaback product page. Fee information should be cross-checked against the latest Key Fact Statement and Most Important Terms & Conditions before application. Reward rates, merchant-category definitions, exclusions and fee-waiver rules can change.
Related: Cashback Credit Cards | UPI / RuPay Credit Cards | Grocery Credit Cards | LTF Credit Cards
Last verified: 4 October 2026Issuer: Federal Bank / Paisabazaar