The best cash back credit cards in Canada for 2025
Jordann Brown, Personal Finance Contributor
December 2, 2025 | Fact-checked by: Natasha Macmillan, Business Unit Director - Everyday Banking
Cash back credit cards can be very rewarding as you earn certain percentages for different purchases. It’s important that your credit card matches your spending habits. To help you find the right card, we’ve made a list of the best cash back credit cards in Canada.
Find Canada’s best cards suited for you in 60 seconds! View cards and offers you’re likely to qualify for without affecting your credit or needing a SIN.
Canada’s best cash back credit cards at a glance
Find Canada’s best cards suited for you in 60 seconds! View cards and offers you’re likely to qualify for without affecting your credit or needing a SIN.
Our methodology: how we choose the best credit cards
Ratehub.ca evaluates the best credit card rewards credit cards by considering overall consumer value and suitability for various types of consumers. Our evaluation methodology incorporates factors such as the card’s annual fee, rewards earning rates, ease-of-use, welcome or promotional offers, approval rates, eligibility criteria, and redemption choices. We have also considered the pros and cons of each card to help you determine which case best suits your financial needs and spending habits.
Cash back cards: FAQ
What is the best cash back credit card in Canada?
The best cash back credit card depends on your spending habits and which categories you use most often. There is no objective “best” cash back credit card, but you can find the right one for you by analyzing your buying habits and determining which categories you spend the most money in. At Ratehub, we like the CIBC Dividend® Visa Infinite. This card offers the best rewards for everyday essentials, with a 1% earn rate for all purchases and an industry-leading 4% cash back on both groceries and gas purchases – two of the most common spending categories for Canadian households. Thanks to CIBC’s new Cash Back on demand feature, you can choose to redeem rewards any time, starting at just $10.
Are cash back credit cards worth it?
Cash back credit cards are worth it when the rewards you earn outweigh any fees or interest you might pay. Cash back credit cards, especially those with a higher percentage, can earn you a significant sum over time, especially if you use your card regularly to pay for specific items or recurring bills. It’s important to pay off your bill in full every month, however, as growing debt can quickly overtake any benefits the card offers.
Is cash back better than points?
Whether cash back is better than points depends on the type of rewards you prefer and how you plan to use them. Point systems can be a little more complicated, but can reap high savings on flights and hotels for users who travel frequently. Cash back, on the other hand, is a simpler option for those who would rather save on everyday purchases like groceries and gas, or like to have more choice in what they redeem their points on.
What is the best cash back credit card for grocery and gas?
The best cash back credit card for grocery and gas is the Neo World Elite® Mastercard. This card offers strong earn rates on everyday essentials and is designed to help frequent shoppers and commuters maximize their rewards in two of the most common household spending categories.
What is the best cash back credit card with no annual fee?
The best cash back credit card with no annual fee is the SimplyCash® Card from American Express. It’s a great option for users who want to earn cash back without paying an annual fee, offering competitive earn rates on everyday purchases and access to helpful Amex perks at no added cost.
Best cash back card per category
Getting perks like flights and merchandise with your credit card is great, but nothing compares to the flexibility of receiving cash back. We’ve made a list of the best cash back credit cards in Canada for 2025.
| Cash back credit card | Best for | Annual fee |
| CIBC Dividend Visa Infinite | Best overall | $120 |
| Neo World Elite Mastercard | Gas and groceries | $125 |
| SimplyCash from American Express | No fee cash back | $0 |
| Tangerine Money-Back World Mastercard | No fee - honourable mention | $0 |
| Home Trust Preferred Visa | No foreign transaction fee | $0 |
| Neo World Mastercard | Recurring bill payments | $0 |
| PC Mastercard | Store cash back | $0 |
| Rogers World Elite Mastercard | US shopping | $0 |
| TD Cash Back Visa Infinite | Everyday spending | $139 (first year waived) |
Best overall cash back credit card
Best for Groceries & gas
based on spending $2,200/mo after the annual fee
- Earn rewards
1% – 4% / dollar spent
- Welcome bonus
Earn up to $250
- Annual fee
see Details
Perks of the CIBC Dividend® Visa Infinite* Card
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | $500,000 per person | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | $5,000,000 for 10 days (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | MSRP of up to $65,000, for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Up to $1,000 per occurence | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Replacement/repair within 90 days | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
Ratehub.ca’s 2023 Award Winner – Best Cash Back Credit Card
Join and earn up to $400 in value including a first year annual fee rebate.†
Here’s how you can earn up to $400 in value
- Earn a 10% cash back welcome bonus of up to $250 (first 4 statements†)
- A $50 cash back bonus for setting up one pre-authorized payment within the first 4 monthly statements.†
- First year annual fee rebate valued at $120.†
- After that, get 4% cash back on eligible gas, EV charging and grocery purchases.†
- 2% cash back on eligible transportation, dining purchases and recurring payments†
- 1% cash back on all other purchases†
- Get cash back on demand – redeem your cash back at any time when you have a minimum of $10 through CIBC Online and Mobile Banking®†
- Save over $600 with CIBC and Skip
Get a 12-month Skip+ free trial and other exclusive benefits when you link your CIBC Dividend Visa Infinite Card with Skip.† - Save on gas with CIBC and Journie Rewards
- Link and use your CIBC Dividend® Visa Infinite* Card with Journie Rewards to save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†
- This is a digital-exclusive offer. To be eligible for this offer: 1) this offer must have been directly communicated to you from CIBC or from a partner/affiliate; and 2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.† This offer is reserved for you. Please do not forward it to anyone else.
- CIBC may approve your application, but you are not eligible to receive this Offer if you have opened, transferred or cancelled another Dividend card within the last 12 months.†
- This offer is not available for the residents of Quebec.
- †Terms and Conditions Apply. Select Apply Now to learn more.
Ratehub’s take
The biggest selling point of the CIBC Dividend Visa Infinite is its impressive rewards on everyday essentials. On top of the 1% earn rate for all purchases, this card earns 4% cash back on both groceries and gas purchases – the best on the market, for two of the most common spending categories for Canadian households.
Pros
- High earn rates on specific categories: Significantly higher earn rates on groceries, EV charging, and gas than most other cards (4% cash back)
- Redeem any time: Users can redeem rewards at any time as a statement credit starting in increments of $10
- Convenient payment option for large purchases: Access to CIBC’s Pace It program, allowing you to pay off large purchases in monthly increments
- Exclusive program access: Access to the Visa Infinite Program, entitling you to attend special dining events and hotel perks at participating hotels and restaurants
Cons
- Income requirement: The annual fee ($120) and personal income requirements ($60,000) may be prohibitive
- Limited insurance coverage: Insurance coverage isn’t as comprehensive as other similar rewards cards (if insurance is a priority for you, consider the cards featured on our list of best credit cards for travel insurance)
- Annual cash back is limited: While the points earnings rate is impressive, annual rewards at 4% and 2% are capped at $80,000 total, then you’ll earn at the base rate
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 21.99%
Cash advance: 22.99%
Balance transfer: 22.99%
Annual fee
$120
Best cash back card for gas and groceries
Best for Everyday spending
based on spending $2,200/mo after $125 annual fee
- Earn rewards
1% – 5% / dollar spent
- Annual fee
$125
Perks of the Neo World Elite® Mastercard
| Perks | Details | |
|---|---|---|
| Lounge access | Included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | first fourteen (14) consecutive days; up to $1,000,000 | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | up to (48) consecutive days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | combined maximum $5,000 per Covered Trip with trip interruption | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | combined maximum $5,000 per Covered Trip with trip cancellation | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | maximum of $500 per any one occurrence | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | up to a maximum of $1,000 | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | up to a maximum of $1,000 | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | up to a maximum of $1,000 | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | up to ninety (90) days after the date of purchase | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | one full year following the expiry of the applicable Manufacturer’s Warranty | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- The Neo World Elite® Mastercard combines premium benefits with top cashback rates.
- 5% cashback on groceries, 4% on recurring payments, 3% on gas and 1% on everything else.
- Instant approvals and access to virtual card to start using straight away
- Boost with An Everyday account – up to 7% on Groceries, 5% on recurring payments and 4% on Gas
- Exclusive offers of up to 15% at over 10,000 businesses across Canada
- Cashback redeemable at anytime
- Premium insurance coverage
Ratehub’s take
The Neo World Elite Mastercard offers excellent cash back rewards that can be further boosted with a Neo Everyday account.
Pros
- Generous cash back earning: Cash back rewards apply to gas and grocery purchases, as well as purchases with Neo partners
- Instant cash back: Cash back is instantly available in your app wallet
- Customize rewards: For a low monthly fee, you can subscribe to Perks which allow you to earn rewards from your spending and benefits like airport lounge access for specific categories, such as travel or wellness
Cons
- Higher interest rate: The card’s interest rate ranges from 19.99% to 26.99% depending on your credit profile and location. This is quite a bit higher than some low interest cards
- High annual income requirement: To be eligible for this card, you need a personal annual income of $80,000, or a household income of $150,000
Eligibility requirements
Minimum income: $80,000/yr
Interest rates
Purchase interest: 19.99% – 29.99%
Cash advance: 22.99% – 28.99%
Balance transfer: N/A
Best cash back card with no annual fee
Best for Everyday spending
based on spending $2,200/mo after $0 annual fee
- Earn rewards
1.25% – 2% / dollar spent
- Welcome bonus
Earn up to $100
- Annual fee
$0
Perks of the SimplyCash® Card from American Express
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Covered for 90 days | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- In your first 3 months as a new SimplyCash® Card from American Express Cardmember, you can earn a bonus 5% cash back on all purchases (up to $2,000 in purchases). That’s on top of your everyday cash back earn rates. That’s up to $100 in bonus cash back.
- Earn 2% cash back on eligible gas purchases in Canada, 2% cash back on eligible grocery purchases in Canada (up to $300 cash back annually), and 1.25% cash back on all other eligible purchases
- Access events and special offers curated for Cardmembers with Amex ExperiencesTM
- Insurance coverage and 24/7 Customer Service
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.
Ratehub’s take
The SimplyCash from American Express credit card lets you earn cash back without restrictions. This card is a great option for those who aren’t looking for premium perks or who won’t earn enough rewards to offset an annual fee. offers a great cash back rate, no limit to the amount you can earn, and all the benefits of American Express perks.
Pros
- Streamlined rewards structure: Simple and easy rewards structure that doesn’t require any extensive research or understanding
- Insurance: Travel and purchase protection coverage, including travel accident insurance ($100,000), purchase protection, and extended warranty
- 24/7 concierge services
- Exclusive access: Enjoy privileges such as access to Front of the Line Presale and Reserved tickets to concerts, theatre performances, movie screenings, culinary events, and other special offers
- No annual fee: No annual fee for primary or additional cardholders
Cons
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Low redemption flexibility: Cash-back rewards are only redeemable once per year
- Low earn rate: The card’s standard earn rate of 1.25% isn’t particularly compelling when stacked up against other no-fee cash back cards
- Limited insurance: Other than the standard purchase protection and extended warranty, the only coverage offered is travel accident insurance (up to $100,000)
Eligibility requirements
Minimum credit score: 725
Minimum income: N/A
Interest rates
Purchase interest: 21.99%
Cash advance: 21.99%
Balance transfer: N/A
Honourable mention - no fee cash back card
Best for Flexible spending
based on spending $2,200/mo after $0 annual fee
- Earn rewards
0.5% – 2% / dollar spent
- Welcome bonus
Earn up to $120
- Annual fee
$0
Perks of the Tangerine® Money-Back World Mastercard®*
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Not included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Get $120 with a Money-Back World Mastercard®* Spend $1,500 in your first 3 months to enjoy this Bonus. It’s the no annual fee Credit Card with the most cash back categories to choose from † Apply by January 30, 2026.
- 2% Money-Back Rewards on purchases in two categories of your choice.
- Deposit your Rewards into a Tangerine Savings Account and get a third 2% Money-Back category.
- Groceries, gas, and beyond, choose from 13 categories to suit your spending. And change them up every 90 days to match your purchases.
- Get built-in peace of mind when you use Tangerine’s Money-Back Credit Card with features like Purchase Assurance and Extended Warranty.**
Ratehub’s take
The Tangerine World Mastercard is a well-rounded credit card offering thorough insurance coverage, including mobile device coverage, exclusive World Mastercard benefits, and airport lounge access through the Mastercard Travel Pass. This card makes a fantastic travel companion while providing great cash back value.
Pros
- Customizable bonus categories: Pick up to three bonus categories to earn 2% cash back on (out of a total of 10 options), which is in sharp contrast to most other cards, where you have fixed bonus categories that you have no control over. Users are also given the freedom to change the bonus categories at any time (changes will take up to 90 days to come into effect)
- Balance Transfer Option: Take advantage of a 1.95% balance transfer promotion for the first 6 months, providing potential savings on interest charges to help you pay off your credit card debt. (Balance transfer fee of 3%)
- Comprehensive Insurance Coverage: Surprisingly robust insurance coverage, particularly mobile device insurance, which is uncommon for a no-fee card.
- Exclusive World Mastercard Benefits: Access Mastercard Priceless Cities and Mastercard World Experiences for unique global experiences and valuable offers.
- Airport Lounge Access: Enjoy access to over 1,000 airport lounges worldwide through Mastercard Travel Pass, enhancing your travel experience (at a cost of $32 USD per visit)
Cons
- High Income Requirements: The card comes with a high annual income requirement of $60,000. However, if these are not met, the Tangerine Money-Back Credit Card is a viable alternative with few sacrifices.
- Low Earn Rate: You only earn 0.5% on all purchases outside of bonus categories.
Eligibility requirements
Minimum credit score: 725
Minimum income: $50,000/yr
Interest rates
Purchase interest: 20.95%
Cash advance: 22.95%
Balance transfer: 1.95% for the first 6 months. 22.95% after promo.
Best cash back card with no FX fee
Best for No FX fees
based on spending $2,200/mo after $0 annual fee
- Earn rewards
1% / dollar spent
- Annual fee
$0
Perks of the Home Trust Preferred Visa
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Not included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Not included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn 1% cashback on eligible purchases1 in Canada, with no caps on cashback earn
- No annual fee
- 0% foreign currency conversion charge on purchases abroad
- This product is currently not available to residents of Quebec
- For a more in-depth look at this credit card, read our full Home Trust Preferred Visa Review
- 1Cash advances, balance transfers, interest, fees and foreign transactions (including online purchases in foreign currencies) are not eligible for CashBack Rewards
- This offer is not available for residents of Quebec
Ratehub’s take
The Home Trust Preferred Visa not only saves you from foreign transaction fees, but also offers several additional benefits – like no annual fee and the added perk of earning 1% cash back on all your spending in Canada without any limits or caps.
Pros
- No foreign transaction fees: Save 2.5% on all non-Canadian currency purchases
- No annual fee: Enjoy the card’s travel benefits without an annual fee; however, it is important to note that the card has an inactivity fee (if you don’t use the card to make at least one purchase during a consecutive 12-month period, you’ll be charged $12)
- Cash back earnings: Earn 1% cash back on all Canadian purchases, providing consistent rewards
- Additional perks: Take advantage of a number of other perks, including car rental insurance and Visa Zero Liability coverage to help ensure you are protected against potential fraudulent activities
Cons
- Not available to Quebec residents
- Transaction limitation: It’s worth noting that the card is limited to 10 authorized transactions per day
- No rewards on foreign exchange purchases: While this card charges no foreign exchange fees, it does not offer any rewards for those purchases
- Limited insurance coverage: Insurance coverage isn’t as comprehensive as other similar rewards cards (if insurance is a priority for you, consider the cards featured on our list of best credit cards for travel insurance)
- Lacking in bonus rewards: Other than the 1% cash back rate, there is not much else offered in the way of rewards, bonus offers or perks with this card
Eligibility requirements
Minimum credit score: 660
Minimum income: N/A
Interest rates
Purchase interest: 21.99%
Cash advance: 21.99%
Balance transfer: N/A
Best cash back card for recurring bill payments
Best for Everyday spending
based on spending $2,200/mo after $0 annual fee
- Earn rewards
0.5% – 2% / dollar spent
- Annual fee
$0
Perks of the Neo World Mastercard®
| Perks | Details | |
|---|---|---|
| Lounge access | Included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | first fourteen (14) consecutive days; up to $1,000,000 | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | up to (48) consecutive days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | combined maximum $5,000 per Covered Trip with trip interruption | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | combined maximum $5,000 per Covered Trip with trip cancellation | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | maximum of $500 per any one occurrence | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | up to a maximum of $1,000 | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | up to a maximum of $1,000 | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | up to a maximum of $1,000 | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | up to ninety (90) days after the date of purchase | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | one full year following the expiry of the applicable Manufacturer’s Warranty | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Not included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- The Neo World Mastercard® is designed to elevate your everyday spending with the best no annual-fee cashback card in Canada*
- 2% cashback on groceries, gas & recurring payments. 0.5% on everything else.
- Instant approvals and access to your virtual card immediately
- No annual fee
Ratehub’s take
The Neo World Mastercard offers attractive cash back rewards on everyday spending with no annual fee.
Pros
- No annual fee
- Cash back earning: Cash back rewards apply to gas and grocery purchases, as well as purchases with Neo partners
- Instant cash back: Cash back is instantly available in your app wallet
- Instant approval: Get approved instantly and receive a digital card that can be used immediately through Apple Wallet or Google Pay before your physical card arrives.
Cons
- Higher interest rate: The card’s interest rate ranges from 19.99% to 26.99% depending on your credit profile and location. This is quite a bit higher than some low interest cards
- Income requirement: To be eligible for this card, you need a personal annual income of $50,000, or a household income of $80,000
Eligibility requirements
Minimum income: $50,000/yr
Interest rates
Purchase interest: 19.99% – 29.99%
Cash advance: 22.99% – 31.99%
Balance transfer: N/A
Best store branded cash back card
Best for PC Points
based on spending $2,200/mo after $0 annual fee
- Earn rewards
10pts – 30pts / dollar spent
- Welcome bonus
Earn up to 20,000 points (a $20 value)
- Annual fee
$0
Perks of the PC® Mastercard®
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | In the event of theft, loss or damage in the first 90 days when you pay in full with your PC Financial Mastercard credit card. | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Doubles the manufacturer's regular warranty for up to an additional year on items purchased with your PC Financial Mastercard credit card. | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Not included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Mastercard Global Service™
- Award-winning, no annual fee credit card
- Earn at least 3 cents per litre in PC Optimum™ points on gas at Esso™ and Mobil™ stations
- Earn at least 30 points per litre on gas at at Esso™ and Mobil™ stations
- Earn 25 PC Optimum™ points per $1 spent at Shoppers Drug Mart® stores
- Earn 10 PC Optimum™ points for every $1 spent everywhere you shop
- No limits on points earning and points don’t expire
- Welcome offer of 20,000 bonus PC Optimum™ points to kickstart your rewards journey
Ratehub’s take
The PC Mastercard is a great option if you want to earn rewards on one of the most common expenses – groceries. Especially if you frequently shop at affiliated stores like Loblaws, No Frills or Shoppers Drug Mart.
Pros:
- Accessible to all: No annual fee and no income requirements, making it accessible to a wider range of customers
- Abundant earning opportunities: Loblaw is one of Canada’s largest retailers, so there’s no shortage of opportunities to earn and redeem points
- Unlimited points earnings: Your Optimum points earnings isn’t limited to monthly or annual amounts like with other cards
Cons:
- Redemptions are restricted: You can’t redeem your points for things like statement credits, you are limited to redeeming for gas or groceries at affiliated stores
Eligibility requirements
Minimum credit score: 560
Minimum income: N/A
Interest rates
Purchase interest: 21.99%
Cash advance: 22.97%
Balance transfer: N/A
Best cash back card for everyday spending
Best for Household spending
based on spending $2,200/mo after $139 annual fee
- Earn rewards
1% – 3% / dollar spent
- Welcome bonus
Earn up to $600
- Annual fee
$139 $0 first year waived
Perks of the TD Cash Back Visa Infinite* Card
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| No foreign exchange fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Not included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn up to $600 in value†, including 10% in Cash Back Dollars in the first 3 months on Bonus Eligible Purchases up to a total spend of $3,500†. Conditions apply. Offer effective as of April 30, 2025.
- Bonus Eligible Purchases are Grocery, Gas & Electric Vehicle Charging, Public Transit, Recurring Bill Payments, and Streaming, Digital Gaming & Media Purchases, until a total collective spend of $3,500 of such purchases have been made†
- 24/7 Emergency Roadside Assistance with Deluxe TD Auto Club membership, included at no additional cost†.
- Get an annual fee rebate for the first year†.
- To receive the first-year annual fee rebate for the Primary Cardholder, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening. To receive the first Additional Cardholder first-year annual fee rebate, you must add your first Additional Cardholder while the offer is in effect.
- Earn Cash Back Dollars on every eligible Purchase.
- Emergency Road Services with Deluxe TD Auto Club Membership†
- Complimentary Visa Infinite* Concierge service† available 24/7
- Mobile Device Insurance†
- Earn 3% in Cash Back Dollars on Grocery, Gas & Electric Vehicle Charging, Public Transit Purchases†.
- Earn 3% in Cash Back Dollars on Recurring Bill Payments, and Streaming, Digital Gaming & Media Purchases†.
- Earn 1% in Cash Back Dollars on all other Purchases made with your Card†
- Redeem your Cash Back Dollars to help pay down your Accounts balance whenever you please – the choice is yours†!
- This offer is not available for residents of Quebec
- †Terms and conditions apply.
- Financial institutions pay us for connecting them with customers, including by paying for advertisements, clicks, or when someone applies for/is approved for a product. Terms and conditions apply between you and the provider of the product – please be sure to review them. Product information and details vary for Quebec. The content provided on our site is for information only; it is not meant to be relied on or used in lieu of advice from a professional. Partners/Advertisers are not responsible for the accuracy of information on our site. However, not all products we list are tied to compensation for us. Our industry-leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.
Ratehub’s take
The TD Cash Back Visa Infinite offers a strong earn rate on rewards and the option to redeem your cash back at any time (minimum $25). Plus, the card packs a punch with added benefits like travel insurance coverage – which is rare for a cash back card.
Pros
- High earn rate: Strong earn rate of 3% cash back on gas, groceries and recurring bills and 1% on all other purchases
- Additional perks: Complimentary roadside assistance through Deluxe TD Auto Club membership, discounts at Avis and Budget Rent-A-Car locations
- Travel insurance: This card includes travel medical and delayed/lost baggage insurance, which is quite uncommon for non-travel cards. Additional insurance includes purchase security and extended warranty protection.
Cons
- Cap on key spending categories: $15,000 yearly spending cap for gas, groceries and recurring bills – after which the rate drops to 1%. Big spenders in these categories may want to consider partnering this card with one that offers non-capped rates
- Income requirements: $60,000 minimum personal income requirement may pose a hurdle for some users
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 21.99%
Cash advance: 22.99%
Balance transfer: 22.99%
Everything you need to know about cash back credit cards in Canada
What is a cash back credit card?
With a cash back credit card, you can earn a small percentage (typically 1-4%) of each purchase back in cash, helping you pay off your credit card bill or save on future purchases. Often, certain categories of purchases (e.g. restaurants, travel, recurring bills) will give you a higher percentage back, rewarding those who always use their card more frequently in those areas.
How do cash back credit cards work?
Earning Process
Unlike the calculations sometimes required with a points-based system, earning cash back with a credit card is fairly straightforward. As an example, let’s imagine you have a cash back card that gives you 4% back on restaurants and takeout. If you spend $100 on a dinner out, that's an automatic $4 cash back you'll receive in return.
For example, how much you'd earn with the CIBC Dividend Visa Infinite:
| Purchase category | Amount spent | Cash back rate | Cash back earned |
| Groceries | $100 | 4% | $4.00 |
| Gas | $100 | 4% | $4.00 |
| Dining out | $50 | 2% | $1.00 |
| Public transit | $50 | 2% | $1.00 |
| Recurring bills/ subscriptions/ payments |
$75 | 2% | $1.50 |
| Other everyday purchases | $200 | 1% | $2.00 |
Tracking your cash back balance is important if you want to ensure you're getting the most out of your rewards. Thankfully, most providers offer an easy way to do this through their website and mobile app, allowing you to monitor your total and cash out at the right time.
Cash back rewards can vary based on dates and purchase categories, so make sure you're very familiar with your card's rewards details before signing up. Many cash back cards offer ultra-attractive welcome bonuses with accelerated cash back in certain areas, but these are typically only for a limited time. Once the promotional period ends, you’ll be dropped back down to a standard earn rate going forward, so it’s more important to focus on that than the glossier sign-up offer. Likewise, many cash back cards offer higher rates for purchases in select categories such as groceries, gas, or travel, so make sure those high-earning areas are the ones where you spend the most in order to maximize savings.
Redemption Process
Every bank has a different redemption process for its cash back cards. Scotiabank, Home Trust, and American Express will give you cash back once a year, Tangerine’s cash back is paid out monthly, and TD allows you to redeem your cash back rewards as soon as you earn at least $25.
| Credit card issuer | Cash back redemption frequency | Cash back redemption method |
| American Express | Once per calendar year in September | Statement credit |
| BMO | Any time in increments of $1 | Statement credit or a deposit into a BMO savings or chequing account |
| CIBC | Any time with a minimum of $10 | Statement credit |
| Home Trust | Once per calendar year in January | Statement credit |
| Scotiabank | Once per calendar year in November | Statement credit |
| Tangerine | Once per month | Statement credit or a deposit into a Tangerine savings account |
| TD | Any time with a minimum of $25 | Statement credit |
One important thing to note: when redeeming cash back rewards, credit card companies won’t send you an envelope of literal dollar bills. Rather, your cash back will be applied as a credit on your card statement, reducing your balance and ultimately leaving you with more cash in your bank account.
Depending on the credit card, you may have additional redemption options. For instance, Tangerine Bank will deposit your cash back into a Tangerine savings account every month, where compound interest will help your rewards grow gradually over time. BMO allows you to redeem your cash back as a statement credit or directly deposit your rewards into either a BMO chequing, savings, or investment account.
How to choose the best cash back credit card
With so many options for cash back credit cards in Canada, the best one for you will depend on your spending habits, lifestyle, and how you prefer to redeem rewards. Before signing up for a new card, here are the most important factors to consider:
Look at where you spend the most
The best cash back credit card for you is the one that rewards your biggest everyday expenses. Before applying, take stock of where your money typically goes each month. If you consistently spend more on groceries, gas, dining, or recurring bills, choosing a card that offers higher earn rates in those areas can make a noticeable difference in how much cash back you collect over time.
Check where the card is accepted
Not every credit card network is accepted everywhere, and this can impact how much you’re able to earn. Some retailers like Costco only accept Mastercard for in-store purchases, while certain smaller restaurants and shops may not take American Express. If you shop frequently at specific stores or rely on certain services, make sure the card you choose will be accepted where you spend the most.
Consider the annual fee
Annual fees aren’t necessarily a drawback. Cards with fees often come with higher earn rates and added benefits that can outweigh the cost if you use the card regularly. However, if your monthly spending is on the lower side or you prefer a more hands-off approach, a no-fee credit card may offer better overall value. The key is to make sure the rewards you earn comfortably exceed any fee you pay.
Review income requirements
Some cash back credit cards have minimum income requirements for approval. These thresholds vary by issuer and card type, so it’s worth checking that you meet the eligibility criteria before applying. If you don’t meet the requirements for a higher-tier card, many no-fee and mid-range options still offer competitive earn rates.
Look at how and when you can redeem your rewards
Redemption rules differ between card issuers. Some allow you to redeem cash back at any time once you reach a small minimum, while others release rewards monthly or on a once-per-year schedule. If you prefer more frequent access to your rewards, a card with flexible redemption options may be a better fit. It’s also worth noting whether rewards are applied as a statement credit or can be deposited into a bank account.
Consider additional perks and insurance
While earning cash back is the main appeal, extra benefits can add meaningful value depending on your lifestyle. Many cards include built-in protections such as purchase insurance, extended warranty coverage, mobile device insurance, or rental car insurance. Some also offer travel-related perks like roadside assistance or reduced foreign transaction fees. If you regularly travel, shop online, or rely on your card for large purchases, these added protections can help you get more from your card overall.
Types of cash back credit cards
“Bonus category” cards
“Flat-rate” cards
“Flexible bonus category” cards
Cash back credit card annual fees
There are a number of great cash back cards with no annual fee, such as the Home Trust Preferred Visa or the SimplyCash Card from American Express. However, cash back cards with an annual fee can be worth the cost because they offer more lucrative cash back rewards along with more perks.
If you use a credit card to pay for the majority of your everyday purchases, odds are you’ll walk away with far more value with an annual fee card (even after paying the fee). If you don’t use credit all that much or your monthly spending is below $500, a no fee card could be a better fit.
Annual fees on cash back cards are usually around $99 to $120.
Cash back welcome offers
If you pick up a new cash back card, there’s a good chance it comes with some kind of promotional offer.
The welcome offers on cash back cards don’t offer a one-time surge in rewards, but instead, let you earn an accelerated cash back rate for a limited period of time or up to a certain amount of spending. For example, while the BMO CashBack Mastercard lets you earn 1% cash back on all your purchases, as part of its welcome offer, you’ll get 5% cash back on your spending for your first three months up to a maximum of $100.
When comparing cash back welcome offers, it’s important to not only look at the accelerated cash back percentage but to dig deeper into the terms and conditions to see how long the offer lasts for and what it maxes out at. As part of their offer, some cards with an annual fee will often waive it for the first year.
One of our favourite things about cash back welcome offers is they’re easy to take advantage of – you’ll just earn more cash per dollar on your everyday spending. In contrast, sign up bonuses on most travel credit cards come with minimum spending requirements (i.e. spending $3,000 within your first three months), which means you might not qualify for the offer if you don’t spend enough on the card fast enough.
What’s better – cash back or points?
The reality is there’s no clear cut answer.
The biggest advantage of cash back is the rewards are simple, flexible, and consistent. The value of 1% in cash back always equals $0.01 – no matter what. Cash back rewards will help you save on all your everyday purchases charged to your card – not just on travel or merchandise and gift cards from specific retailers. Finally, redemptions are easy and often applied to your card’s statement balance automatically.
Points – on the other hand – are less straightforward but are potentially more lucrative, particularly if you’re a traveller.
Unlike cash back, the value of points isn’t consistent and vary depending on the loyalty program and what you’re redeeming. For example, 1 Scotia Rewards point is worth $0.01 when redeemed for travel rewards like flights, but that same point will be worth around 25% less when redeemed for a gift card and around 30% less for cash credits. With other points programs, like Air Miles and Aeroplan, the value of your points will even vary when redeeming for travel based on factors like your destination or whether you’re travelling during low or high seasons.
The key benefit of travel cards is they typically come with more bonus categories and perks, as well as larger welcome offers. Plus, depending on the travel card, you can redeem strategically and get well above the standard $0.01 per point, stretching the value of your rewards even further.
In short, travel points can offer great value, specifically when redeemed for travel rewards like flights and hotel stays. But if you want simple rewards, don’t travel frequently, and want the flexibility to use your credit card rewards to save on all your everyday spending, then a cash back card is a better fit for you.
Credit card insurance for cashback credit cards
Most cash back credit cards include a few basic insurance features, such as purchase protection, extended warranty coverage, and sometimes rental car insurance. Some cards also come with extra benefits like mobile device insurance or roadside assistance, which can add value if you regularly rely on your card for everyday purchases.
Travel insurance is where cash back cards tend to offer less coverage. While a few premium cash back cards include emergency medical insurance or baggage protection, the coverage periods are usually shorter than what you’d get with a travel-focused card. These benefits can still be helpful for short trips, but they may not be enough if you travel often or for longer periods of time.
If travel protection is a priority, a travel rewards credit card will generally offer more complete coverage. Cash back cards still provide useful insurance perks, but they’re designed more for day-to-day spending than for frequent travellers.
Bonus earning categories
As we’ve touched on earlier, bonus categories are types of purchases that’ll earn you higher rewards per dollar and play a huge role in deciding which is the best cash back credit card for you. For example, the Scotiabank Momentum Visa Infinite has groceries as a bonus category and earns 4% cash back on groceries versus the standard 1% it offers for most other purchases – making it an ideal match if you spend a lot at your local supermarket.
Whether or not a purchase falls under a specific bonus category has less to do with what you’re buying and more with who you’re buying from. That’s because the three big credit card companies (Visa, Mastercard, and American Express) categorize retailers and not the specific items they sell.
Below are some common bonus categories found on cash back credit cards:
Groceries encompass purchases from most grocery stores and supermarket chains – including food items (both groceries and pre-prepared meals), toiletries, cleaning supplies, and more. Virtually any grocery store that comes to mind falls under this category – like Loblaws, Metro, Sobeys, Wholefoods, and countless more. That said, some corner stores, discount groceries, and warehouse retailers may not count as groceries according to your credit card (and that includes Costco and most Walmart locations).
Gas is arguably the most straightforward bonus category and includes virtually all gas service stations including Shell, Esso, Petro-Canada and more.
Recurring bills covers recurring payments that are set to automatically charge your credit card every month – including cable, smartphone bills, streaming services, and even insurance payments. Certain recurring payments may not fall under this category however – monthly gym memberships and certain insurance payments may not, for example. It all really depends on whether the company or service provider charging your credit card sets the monthly payment as a pre-authorized charge (PAC).
Dining generally covers most dining establishments (including restaurants, fast food chains, cafes, and delivery services). That said, with so many restaurants and cafes (several of which are independently run), not every location will have the correct designation. It’s also worth noting only a tiny handful of cash back credit cards – primarily Tangerine and Simplii Financial – have dining as a bonus category.
While on the topic of bonus categories:
- Other common bonus categories include pharmacies, entertainment, and public transit.
- You should always aim to find a credit card that offers bonus categories on the purchases you make the most often.
- Credit card companies organize retailers based on four-digit merchant codes. Each card company has its own merchant codes system. For example, retailers with the code MCC 5411 are recognized as groceries by Mastercard. Your bank has no control over the merchant code system.
Interest rates
Like all rewards credit cards, cash back credit cards have annual interest rates in the double digits – usually 19.99%. These interest charges can be completely avoided as long as you pay off your balance in full every month. But if you don’t, the interest you rack up will outweigh any cash back rewards you earn. If you anticipate you’ll regularly carry a balance month to month, consider a low interest credit card over a cash back rewards card – it could help your bottom line in a big way.
Tips for using a cash back credit card
Keep an eye on welcome offers
Credit card providers are always updating and replacing their sign up bonuses and incentives, and keep a watchful eye on any offers you can take advantage of. Pay extra close attention to those which advertise an accelerated cash back or point value and a waived/rebated annual fee. Because these deals can net you huge savings without charging you anything for the first year, they’re the most lucrative. If you’re responsible enough to handle it, you can even try “churning” - that is, signing up for a card, using its welcome offer to your advantage, then closing it before its annual fee kicks in. While there are plenty of risks associated with this practice, it’s still an effective way for savvy users to get the most out of rewards cards.
Make major purchases in the first three months
While welcome offers look attractive on paper, there is one major caveat: they typically require you to spend a certain amount within a specific time frame after getting the card (usually three months). While this can be a pain, you can use it to your advantage by planning to make major purchases just after you sign up. For instance, if you got approved for a card with a welcome bonus offering 12% cash back on all purchases for the first three months (providing you spend at least $2000), think about what big-ticket items you’ve had on your wish list and use the card to purchase them. If you’re able to hit the minimum $2000 mark, you’ve just saved yourself $240.
Purchase gift cards
If you’re carrying a cash back card that offers big rewards on groceries and gas, you’ve got a ready-made way to earn even more in other categories. Because grocery stores and gas stations usually sell gift cards to movie theatres, restaurants, and other retailers, you can purchase them and get the immediate cash back, then use the cards instead of cash whenever you patronize these specific places, effectively saving even more.
Keep more than one card
Plenty of rewards-card enthusiasts carry multiple cards for different purposes as a way to maximize their earnings. As an example, you could keep one card for everyday purchases that gives you a solid cash back rate on things like groceries, gas, and recurring bills. When you're out on the town, you can use another card that offers excellent rates on entertainment and dining out. Even further, many users keep a cash back card with no foreign transaction fees that they strictly use for travel. Because different cards have unique strengths, its wise to use them together for maximum earning potential.
Add extra cardholders
If your provider allows you free supplementary cards/users, take advantage of this by adding other members of your household onto your account and getting them their own cards. With multiple users making purchases on your account, you’ll be getting way more cash back than you would alone. Just make sure you trust anyone you’ll be adding, as any spending they do on your account will ultimately be your responsibility.
What are the pros and cons of cash back credit cards?
Pros
- Accelerated spending categories offer higher-than-normal rates for purchases like gas, groceries, travel, and more
- Compared to points-based rewards cards, cash back cards offer a more streamlined and easy-to-understand method of reward calculation
- Cash back rewards can be used for statement credits, helping you pay off a credit card bill
- Welcome bonuses can offer big savings if used strategically
Cons
- Cash back cards with an annual fee may not be worth it for less-frequent users
- Interest charges from late or partial payments may end up cancelling out any rewards earned
- Many sign up offers contain spending minimums which some users may find challenging to meet