One of the best cash back credit cards in Canada is getting a refresh.
Come August 1st, the Scotia Momentum Visa Infinite will undergo changes that will tilt its cash back rewards to be more in favour of recurring bills and public transit, and less towards gas and pharmacies. The card will also up its insurance offering along with its annual fee.
The card’s updates (detailed below) will roll out in less than two-months time and will impact all Scotia Momentum Visa Infinite cardholders – present and future.
Scotia Momentum Visa Infinite changes
|Features / Cash Back||Before August 2019||Starting August 2019||Annual Fee||$99||$120|
|Recurring Bills (+)||2%||4%|
|Public Transit / Ride Sharing (+)||1%||2%|
|All Other Purchases||1%||1%|
|Mobile Device Insurance||None||$1,000|
|Trip Cancellation Insurance||None||$1,500 Per Person|
|APR on Purchases||19.99%||20.99%|
Scotia Momentum Visa Infinite changes – in more detail
Double the cash back on recurring bills
Once August hits, the Scotia Momentum Visa Infinite will offer double the cash back on recurring bills – going from 2% to 4%. That will be the highest earn rate on recurring bills in the credit card market.
So, what counts as a recurring bill exactly?
Simple. Almost any payment that is automatically charged to your credit card on a monthly basis. That can include everything from your smartphone and cable bills, along with any other regularly-made payments like insurance, video and music streaming subscriptions, and even gym memberships. Just to be sure, you may want to check with the service providers you use and ask if they allow for recurring monthly payments through Visa. Odds are, however, the answer will be yes. Plus, if you’re currently a Scotia Momentum Visa Infinite cardholder, you’ll likely already have a sense of what’s counted as a recurring bill and what’s not.
Since recurring bills is such a broad bonus category, this change could mean a substantial increase to your cash back earnings every year. It’s worth noting that if your recurring bill payments cross $25,000 in a year, the 4% cash back rate will drop to 1%. As far as rewards caps go, $25,000 is extremely high and will be hard to it. The cap will also reset every year.
More cash back on daily transit
Do you leave your car in the garage in favour of public transit when commuting during the week? Or, do you not own a car at all and rely on transit and Ubers to get around? Then you’ll like the card’s new Daily Transit bonus category, which come August, will earn you 2% cash back for every dollar you spend on public transit, taxis, and Ubers on the Scotia Momentum Visa Infinite.
Mobile device and trip cancellation insurance
With how expensive and delicate smartphones have become, you’re probably well aware of the toll it can take on your wallet to have one fixed or replaced. The good news is the Scotia Momentum Visa Infinite will be rolling out mobile device insurance as a new benefit starting August.
The card’s mobile device insurance will provide upwards of $1,000 in coverage in the event your smartphone or tablet is accidentally damaged, lost, or stolen. In order for the mobile insurance to kick in, you’ll need to either buy the device on your Scotia Momentum Visa Infinite Card after July 30, or if you plan on getting a two-year contract, have all of your wireless bill payments charged to the card. If you used your card to pay for a device before August 1, it won’t be covered under this policy unfortunately.
Another new insurance benefit coming to the Scotia Momentum Visa Infinite is trip cancellation insurance, which will offer $1,500 in coverage per person for you, your spouse and your dependents up to a total of $10,000 per trip.
Cash back on groceries is still 4%
Some of the best news in our eyes is less about what will change and more about what won’t. The Scotia Momentum Visa Infinite will continue to offer 4% cash back at supermarkets and groceries, maintaining its position as one of the best credit cards for groceries in Canada.
Annual fee increase and (minor) interest rate change
The card’s annual fee will be bumped up from $99 to $120 for the primary cardholder, and the fee for authorized users will also increase from $30 to $50. This change will mean the card’s annual fee will be on par with that of other cash back cards like the TD Cash Back Visa Infinite.
The card’s annual percentage rate (APR) on purchases will also increase, but by just a hair from 19.99% to 20.99%. Don’t forget, as long as you pay off your balance in full every month, the interest rate won’t affect your bottom line at all.
Less cash back on pharmacies and gas
While the upcoming changes will mean you’ll earn more rewards on recurring bills and transit, on the flip side, you’ll get less cash back at pharmacies and at the the pump.
As of August, the Scotia Momentum Visa Infinite will go from offering 2% to 1% at pharmacies, and from 4% to 2% on gas. If you’re a car owner who originally chose this card because it was one of the best credit cards for gas, you’ll want to run the numbers to see if the card’s other new benefits will offset the lower cash back on gas spending. If it doesn’t and you have thoughts of cancelling your card, before you do, consider transferring your account to another Scotiabank credit card with no annual fee or one that offers a higher return on gas like the Scotiabank Gold American Express. That way, you’ll maintain your credit history that’s tied to your card.
You may also want to consider…
It’s worth mentioning that the Meridian Visa Infinite Cash Back Card has the exact same rewards structure as the Scotia Momentum’s current offering (4% on both gas and groceries) for a $99 annual fee, with no current announcement of a change. So, you may want to consider that card if you want to continue to maximize your cash back on both gas and groceries.
What are your thoughts on the upcoming changes to the Scotia Momentum Visa Infinite? Let us know in the comments section below.