Can Dining Credit Cards Help You Save Money? Experts Weigh In

If you eat out more than twice a week, order takeouts, or go drinking every weekend, chances are you already have a dining credit card that comes with umpteen privileges and reward points. However, with more and more brands and platforms coming up with their own dining credit cards, it’s worth considering if dining credit cards can actually help you save money; though they offer a number of dining deals including discounts, reward points, offers and cashback, can it actually help you stay in your budget?

A recent survey conducted by YouGov India recently conducted a survey whose results focused on urban Indians and their choices of fast food consumption from different chains and outlets. The study claims that 47 per cent of men and 44 per cent of women prefer ordering from outside at least once a week. 

Many dining cards offer reward points for transactions made through food delivery apps like Swiggy, Zomato, and Uber Eats. Some cards provide direct cashback on takeout purchases, offering immediate savings. The newly launched Swiggy HDFC Bank Credit Card, for instance, is ideal for frequent Swiggy users since cardholders receive a generous 10% cashback on various Swiggy services such as food delivery, quick commerce grocery delivery, and dining out.

It also offers 5% cashback on more than 1000 e-commerce platforms and apart from Swiggy, the card offers 5% cashback on a wide array of e-commerce platforms, including major ones like Amazon, Flipkart, Myntra, Nykaa, and more. The cardholders are entitled to a free 3-month Swiggy One membership, offering benefits across food, grocery, dining out, and pick-up and drop services. Users also earn 1% cashback on other spends, making it a rewarding card for everyday purchases.

A Spokesperson from Swiggy shares, “The Swiggy credit card differs from other dining credit cards primarily due to its comprehensive rewards structure and partnership with Swiggy. While typical dining credit cards may offer cashback or rewards specifically for dining expenses, the Swiggy HDFC Bank co-branded credit card extends its benefits to various online platforms beyond just dining. This includes not only food delivery but also groceries, e-commerce shopping, and more, making it a more versatile option for consumers.”

Dining credit cards are now being designed to attract customers with better reward structures which can help them save money in the long run and also offer them perks while travelling or dining out. Many cards offer complimentary memberships to dining clubs or loyalty programs, which can provide additional discounts, early access to events, or special reservations at restaurants.

Some premium dining credit cards include access to airport lounges, where cardholders can enjoy free meals and refreshments, enhancing the overall travel experience. HDFC Bank’s Diners Club Black Credit Card, for instance, offers complimentary annual memberships of Club Marriott, Forbes, Amazon Prime, Swiggy One and complimentary vouchers for Ola cabs, BookMyShow, TataCliQ vouchers on spends of over Rs. 80,000 every month, along with several reward points.                          

A Spokesperson from Swiggy shares, “The Swiggy credit card differs from other dining credit cards primarily due to its comprehensive rewards structure and partnership with Swiggy. While typical dining credit cards may offer cashback or rewards specifically for dining expenses, the Swiggy HDFC Bank co-branded credit card extends its benefits to various online platforms beyond just dining. This includes not only food delivery but also groceries, e-commerce shopping, and more, making it a more versatile option for consumers.”

“If someone is spending around 2,000 to 3,000 rupees every week on food delivery, a cashback of Rs 200 to 300 rupees is significant in my opinion. So, a Swiggy Credit card makes a lot of sense, or a card like HSBC cashback also works. There’s an Axis card which offers 10% cashback on apps like Swiggy, Zomato, and Big Basket up to Rs. 500 in a month. We also have super premium cards where you can earn a lot of rewards on food delivery,” says Ankush Setia, co-founder of the credit card recommendation platform Multiply.

Cross-platform benefits, cashback or discounts?

For consumers who order frequent takeouts, a card with high rewards on food delivery platforms, low annual fees, and flexible redemption options can be of most use. While some cards may have exclusive tie-ups with specific platforms, others might offer competitive benefits across multiple platforms, ensuring that users are not restricted to a single service.

Card issuers often run promotional campaigns that provide additional discounts, bonus reward points, or cashback on transactions made through partnered food delivery services. “If someone wants to use dining credit cards for saving money, it’s important to pay attention to cashback and also offers and reward points for other platforms. For instance, some dining cards offer free subscriptions for OTT portals which can save you hundreds per year; some cards can help you escape surge pricing and delivery fees, which is also really useful,” says Kushal Nigam, a Delhi-based financial consultant. 

So, what should you look for while choosing a dining credit card? If you spend a substantial amount every month on food, travel, shopping, and OTT subscriptions, you may need a premium card that helps you save more money. Cards that offer frequent reward points or cashback rates on dining-related transactions, both at restaurants and through food delivery services like Swiggy, Zomato, and Uber Eats are ideal.

In fact, many cards offer annual fee waivers if you meet certain spending thresholds within a year. Look for features that can help you save money on a day-to-day basis. Access to programs like Zomato Pro or Swiggy One, which provide additional discounts, priority deliveries, and other perks. Dining credit cards that offer complimentary lounge access can add significant value, especially if lounges include dining services. In fact, some premium cards have unique partnerships designed to help their customers save. Setia broke down one such example. 

“The HDFC Infinia has a collaboration with GyFTR, which is a platform from where you can buy gift cards or vouchers and Zomato and Swiggy are a part of that. If you buy Zomato vouchers, you get 5x reward points, so you usually get 5 points on every 150 rupees that you spend. But by buying these vouchers and adding them to the Zomato or Swiggy account, you are getting 25 points for every 150 rupees that you are spending. And one point is equal to 1 rupee in terms of flights and hotel. If you use those points for booking sites, that is a reward rate of around 15-16%. This is one way to leverage your premium credit card for benefits,” he explains.

It all boils down to your individual needs and how much you spend on your family or friends. “Firstly, think about what kind of benefits you can expect, which depends largely on how much you spend. If you live alone and don’t really spend a lot on family or don’t eat out that much, investing in a dining credit card may not help but if you spend on takeouts on a regular basis, you should definitely consider it,” says Nigam.