SBI cashback card: SBI Cards's slightly sneaky way of calculating 5% cashback for online purchases

[Magik]

Are you finding small discrepancies in the amount of cashback credited for online purchases with this card? This may explain it.

I was reading the TnC for the SBI CB card and saw how the 5% cashback for online purchases is calculated.

It is not 5% but 1% + 4%. So two calculations, with rounding down to the nearest rupee down for each calculation before adding them up.

Example from the TnC:

The Card Cashback will be rounded down for each individual transaction. For e.g., for an eligible
online transaction of Rs.1160, the 5% Card Cashback would be calculated as following:
1% Card Cashback = Rs.1160 x 1% = Rs.11 (rounded down from Rs.11.60)
4% Card Cashback = Rs.1160 x 4% = Rs.46 (rounded down from Rs.46.60)
Total Card Cashback for the transaction =1% Card Cashback + 4% Card Cashback = Rs.11+Rs.46=Rs.57

So instead of Rs.58, the cashback will be Rs.57.

Not a big deal but still...

 

[Parvesh Goyal]

Are you finding small discrepancies in the amount of cashback credited for online purchases with this card? This may explain it.

I was reading the TnC for the SBI CB card and saw how the 5% cashback for online purchases is calculated.

It is not 5% but 1% + 4%. So two calculations, with rounding down to the nearest rupee down for each calculation before adding them up.

Example from the TnC:

The Card Cashback will be rounded down for each individual transaction. For e.g., for an eligible
online transaction of Rs.1160, the 5% Card Cashback would be calculated as following:
1% Card Cashback = Rs.1160 x 1% = Rs.11 (rounded down from Rs.11.60)
4% Card Cashback = Rs.1160 x 4% = Rs.46 (rounded down from Rs.46.60)
Total Card Cashback for the transaction =1% Card Cashback + 4% Card Cashback = Rs.11+Rs.46=Rs.57

So instead of Rs.58, the cashback will be Rs.57.

Not a big deal but still...

Not like that actually. SBI CB is calculated on nearest 50 down round off. Suppose if u have spent in between Rs 1151-1199, the nearest 50 down round off is 1150. So u will get cb on 1150 which becomes 57.50 n will get the same cb.

 

[souvikr]

Not like that actually. SBI CB is calculated on nearest 50 down round off. Suppose if u have spent in between Rs 1151-1199, the nearest 50 down round off is 1150. So u will get cb on 1150 which becomes 57.50 n will get the same cb.

Nope. I have been using the card from the very beginning (just few days after the launch date) and I can confirm that what @Magik said is correct. Also you will never get fractional cashback.

 

[Slayer]

Always do transactions in the multiple of 100s

Then no need to calculate 1% + 4%

 

[Pujaari]

Not like that actually. SBI CB is calculated on nearest 50 down round off. Suppose if u have spent in between Rs 1151-1199, the nearest 50 down round off is 1150. So u will get cb on 1150 which becomes 57.50 n will get the same cb.

What @Magik has posted above is absolutely correct and is from SBI's Tnc clause V) under Cashback.
For a transaction of ₹1199 i have personally received a cashback of ₹58(11+47) by 1% +4% rounding off rule. SBI just rounds off to whole and no decimals

 

[Magik]

... SBI just rounds off to whole and no decimals

Actually, it is round down, not round off. So if calculation comes to Rs.12.99, they will take it as Rs.12, not Rs.13.

 

[Pujaari]

Agree 👍. What i actually mean is just treat 'whole or Integral part' as cashback and forget the 'fractional part'.
Treat the number 'before the decimal' or to the 'left of decimal' or the 'characteristic' as cashback and forget the number/s 'after the decimal' or 'to the right' or the 'mantissa'....God save me if now sbi starts talking about exponents and logs and negatives🙏😂

Actually, it is round down, not round off. So if calculation comes to Rs.12.99, they will take it as Rs.12, not Rs.13.

 

[Pujaari]

Always do transactions in the multiple of 100s

Then no need to calculate 1% + 4%

Thats the plan but not possible all the time(one would invariably end up spending more to acheive that unless one buys coupons but then again one is blocking money). Another thing to remmeber that there is no cashback for anything below ₹100. Not that big a deal but just occured to me.

 

[xiddy]

So that's why my cashback doesn't always match the 5% figure.

 

[SiddharthR]

So that's why my cashback doesn't always match the 5% figure.

Congratulations!!
You are from 99% of the people who don't read T&C's :xD

 

[RakeshDey]

Not like that actually. SBI CB is calculated on nearest 50 down round off. Suppose if u have spent in between Rs 1151-1199, the nearest 50 down round off is 1150. So u will get cb on 1150 which becomes 57.50 n will get the same cb.

Yes you are right. They round off to nearest down 50. If spending is between 1150-1199, they round down to 1150 then 5% of it becomes 57.5 then another round off to 1 which is 58. That's how they provide cashback.

 

[SiddharthR]

Yes you are right. They round off to nearest down 50. If spending is between 1150-1199, they round down to 1150 then 5% of it becomes 57.5 then another round off to 1 which is 58. That's how they provide cashback.

You both are mistaken,
Calculation is like (for ₹1199)
1100*1%=11
1175*4%=47
--------------------------
Total cb=₹58

It's the simplest way to calculate cb given for Cashback SBI Card..

 

[Arnal07]

The cashback amount is actually Approximated to the Nearest Lower Interger.If you spend x rs, the cashback amount will be=[x.1%]+[x.4%] in rs.

 

[ramirami]

Exactly, for 'k' spending, cashback is FLOOR(k/100) + FLOOR(4*k/100). It's not floor after addition, but rather addition after floor. (FLOOR = closest smaller integer).

So, for 8744 spending,
1% amount is 87.44 which is rounded down to 87.
4% amount is 349.76 which is also rounded down to 349.
So total cashback is 436.

 

[AlekhyaDas]

Now it is 5% but do they do they round off the decimals? Like will they give 5% of 26990, 1349.5 or 1349?

 

[souvikr]

Now it is 5% but do they do they round off the decimals? Like will they give 5% of 26990, 1349.5 or 1349?

Yes they always do round down. Means if 5% =1349.9 then also you will get 1349