Cash back rewards are great for their simplicity and flexibility, and anyone can appreciate a little extra money in their bank account.
These are our picks for the best cash back credit cards in Canada.
Best Cash Back Credit Cards
Best Lifestyle Cash Back Credit Card
- Earn 20,000 Scene+ points upon spending $1,000 in the first three months
- Earn an additional 20,000 Scene+ points upon spending $7,500 in the first year
- Earn 6x Scene+ points at Sobeys, IGA, Safeway, FreshCo, and more
- Plus, earn
1x5x Scene+ points on groceries, dining, and entertainment - Also, earn
1x3x Scene+ points on gas, transit, and select streaming services - Redeem points for statement credit for any travel expense
- No foreign transaction fees
- Enjoy the exclusive benefits of being an American Express cardholder
- Annual fee: $120
The Scotiabank Gold American Express Card can’t be beat when it comes to earn rates on everyday spending. If you live a fast-paced lifestyle, this is the ideal cash back card for you.
You’ll earn 5% on groceries, restaurants, and entertainment purchases, the highest rate available on any card. The bonus points are capped at $50,000 spent per year in these categories, setting this card far apart from the competition.
As an added bonus, you’ll get a strong 3% earn rate on gas, transit, and streaming services, no foreign exchange fees, and the many benefits of being an American Express cardholder – including Front of the Line ticket access and exclusive Amex Offers.
While the Scotiabank Gold American Express Card is technically a travel card, its Scene+ points can be redeemed for cash-equivalent statement credits very easily. If the card’s earn rates and perks fit your needs, it’s absolutely worth considering.
The card’s everyday earning rate is what makes it a shining star, so while the welcome bonus is usually quite appealing, I’d treat it like a cherry on top and not let a low welcome bonus hold you back if the card otherwise interests you.
Best Cash Back Visa Card
- Earn 10% cash back on up to $2,500 in purchases in the first four months, up to $250 cash back†
- Then, earn 4% cash back on eligible gas, EV charging and groceries†
- Also, earn 2% cash back on eligible transportation, dining, and recurring payments†
- Minimum income: $60,000 personal or $100,000 household†
- Annual fee: $120 (rebated for the first year)†
The CIBC Dividend Visa Infinite Card is another jack of all trades, with 4% cash back on groceries and gas, and 2% back on restaurants and transit. These are some of the most useful categories for bonus rewards because they typically make up the majority of most Canadians’ everyday purchases.
While other cards may offer similar rewards but with lower annual fees or higher spending limits, none have the same overall mix of category bonuses. If you’re looking for high rates on groceries, gas, and restaurants, don’t want to pay annual fees for more than one premium card, and can’t use American Express where you shop, the CIBC Dividend Visa Infinite is the total package.
Plus, since it’s issued by a major Canadian bank, you’ll get seamless integration with your chequing account if you also bank with CIBC. Although Desjardins and Meridian have similar cards with a lower annual fee, they don’t have as big of a national presence in case you need customer support.
If you don’t meet the minimum income requirements for this card, you can apply for the CIBC Dividend Visa Platinum instead. It has all of the same earn rates and fees, just weaker insurance, and only requires an annual personal income of $15,000.
Best Cash Back Card for Recurring Bills
- Earn
1%4% cash back on groceries and recurring bill payments - Also, earn
1%2% cash back on gas and transit - Minimum income: $60,000 personal or $100,000 household
- Annual fee: $120 (waived for the first year)
The Scotiabank Momentum Visa Infinite Card earns bonus rewards on recurring bills. This includes any utility companies that accept credit cards and are set up as a recurring pre-authorized payment, as well as select streaming services.
Eligible recurring transactions earn 4% cash back. That’s by far the highest available earn rate for your recurring bills. Also, with 4% cash back on groceries, this card is a great choice for families with many mouths to feed and large homes to heat.
Plus, new cardholders can often find an offer for their first-year annual fee waived and 10% cash back in the first three months.
Best TD Credit Card for Cash Back
- Earn 10% cash back† in the first three months, on up to $3,500 spent on eligible groceries, gas, and recurring bills set up on your account†
- Then, earn 3% cash back† on eligible groceries, gas, and recurring bill payments set up on your account†
- Free Deluxe TD Auto Club Membership for roadside assistance†
- Minimum income: $60,000 personal or $100,000 household
- Annual fee: $0 for the first year†, then $139
- Application must be approved by June 3, 2024 to receive this offer
The TD Cash Back Visa Infinite Card is chief among TD’s cash back cards. You’ll earn 3% cash back on groceries, gas, and recurring bill payments.
While not the absolute best card on the market for any one of these categories, it’s the only card with high earn rates on all three. If you don’t want to juggle several credit cards and these categories cover most of your expenses, the TD Cash Back Visa Infinite would serve you well.
Considering its frequent First Year Free promotions and the ability to waive your annual fee every year with a TD All-Inclusive Chequing account, it’s not hard to maintain these rewards year after year at no cost.
Also, the card comes with a Deluxe TD Auto Club Membership. It’s their only credit card with this benefit, and one of the only cards in Canada that offers roadside assistance. For heavy commuters or road-trippers, it’s a valuable perk that could get you out of an unpleasant situation.
Not to mention, the roadside assistance dovetails nicely with the 3% rewards on gas, giving you one credit card for all of your driving needs.
Best Premium Cash Back Mastercard
- Earn 1.5% cash back† on eligible purchases, up to $25,000 spent per year
- Plus, earn 1% cash back† on all other eligible purchases when you spend more than $25,000 per year
- Annual fee: $99
The RBC Cash Back Preferred World Elite Mastercard is marketed as as premium cash back card, with a simple earning structure for those who want a decent return on their spending without having to concern themselves with bonus categories.
It earns 1.5% cash back on all qualifying purchases up to $25,000 spent, equivalent to $375 back. After $25,000, it earns 1% cash back on all qualifying purchases in perpetuity.
The card also includes a few interesting benefits, making it a premium card, including 12 months of free DashPass from DoorDash and 3¢/L saving on fuel at Petro-Canada, along with earning 20% more Petro-Points.
Furthermore, you’ll also have free Boingo Wi-Fi as long as you remain a cardmember.
Finally, you can earn 50 Be Well points for every $1 spent on eligible products at Rexall, as well as a have an improved redeeming ratio of 25,000 Be Well points = $10
Best Cash Back Card for Online Shopping
- Earn 1.5% cash back on eligible online expenses*
- Annual fee: $0
The main reason to get the HSBC Cash Rewards Mastercard is to build a relationship with HSBC and if you’re looking for a cash back card for online shopping.
You’ll earn cash back at the following rates:
- 1.5% cash back on eligible online purchases, up to $6,000 spent, equivalent to $90 cash back
- 1% cash back on eligible gas, grocery, and drugstore purchases
- 0.5% cash back on eligible other purchases.
Of note is the 1.5% cash back for online purchases, which would usually fall under “all other purchases” for other cards, so it would be worth optimizing that and earning your full $90 cash back.
Online purchases even include things like streaming services, online subscriptions, and food delivery.
However, 1% cash back on gas and grocery is fairly unremarkable, and you could get a better return on your spending with another card.
Cash Back Credit Cards: What You Need to Know
When choosing a cash back credit card, you should familiarize yourself with what benefits a cash back credit card can offer, what features to look out for, and how cash back credit cards can fit into an optimized overall credit card strategy.
Why earn cash back rewards?
Cash back cards are great for one simple reason: cash is king. You’re not locked into using your rewards at one particular store or brand, and you can get immediate value for your rewards rather than waiting several months to take a trip you just booked on points.
Plus, cash is easy to understand, and the value of your rewards is plain as day. You may prefer to use cash back credit cards if you’d rather not spend time learning the rules of a complicated loyalty program just to reap the benefits of your credit card.
Even for frequent travellers, cash gives you unparalleled flexibility as you book your travel arrangements. You can use it for airlines that aren’t part of an alliance, offbeat accommodations, or car rentals. In fact, you can subsidize your trips however you like, using cash rewards for anything like public transportation, excursions and experiences, dining, or souvenirs.
What should you look for in a cash back credit card?
One major advantage of premium cash back cards is that they tend to have significant bonus rewards for spending in specific categories. For example, many Visa Infinite cards offer 1% cash back on most purchases, but 4% cash back at grocery stores.
Other cards instead offer the same cash back rate on all purchases. These cards are simple, and it’s easier to stay organized with them. They’re good for miscellaneous purchases, as they usually have a higher flat rate than non-bonused spending on cards with bonus rates.
It’s rare to find a one-size-fits-all cash back card. If you care about maximizing your rewards on everyday spending, you’ll likely want at least two or three of these cards, where each one covers the others’ weaknesses. That way, you’ll get high cash back rates on as many categories as you can.
On the other hand, if you’d prefer the simplicity of only managing one card at a time, the best cash back card will depend on your spending habits.
Cash back cards also offer some premium benefits, even though they aren’t travel cards with a full-fledged suite of travel perks. Indeed, cash back cards are often still useful for travellers:
- Cash Back Visa Infinite cardholders still get all of the same benefits as Visa Infinite travel cards, including Concierge services and the Luxury Hotel Collection.
- Cash Back World Elite Mastercard members still get all of the same benefits as World Elite travel cards, including a LoungeKey membership and Boingo Wi-Fi.
- Many cash back cards provide purchase protection insurance, and some even provide various types of travel insurance.
- Some cash back cards waive foreign transaction fees.
- Some cash back cards have unique services that aren’t found on travel cards, such as roadside assistance.
What’s the optimal strategy for cash back credit cards?
When it comes to maximizing credit cards as a whole, cash back credit cards typically play a more supplementary role in a savvy credit card user’s wallet compared to travel rewards credit cards.
That’s because the main appeal of a cash back credit card is its simplicity and ease of use: you get a certain percentage of cash back as a reward for your spending.
In exchange, however, the overall upside of your rewards is limited: you’ll be able to get 1.5–2% back on your spend, but the potential outsized return of travel rewards (5%, 10%, or even more!) isn’t accessible to you.
If you’d like to get the best of both worlds, consider a travel credit card that earns “cash equivalent” points rewards. For example, the Scotiabank Gold American Express Card offers sky-high 5% earning rates on groceries, food, and drinks – you’ll never get these types of rewards on a regular cash back credit card.
Technically, this credit card earns Scene+ points rather than cash back. However, Scene+ points can be redeemed at 1 cent per point against travel purchases – including refundable travel purchases that effectively leave you with a statement credit if they’re refunded.
Since a statement credit is basically as good as cash in your pocket, these two credit cards (and others that can be used the same way) can be thought of as more powerful versions of a traditional cash back credit card.
Overall, traditional cash back credit cards are best suited to credit card users who prefer to keep things as simple as possible. If you’d like to “set it and forget it” in terms of your credit card strategy, you might go with a simple cash back card and call it a day.
But for credit card users who are looking to optimize, cash back credit cards alone probably won’t cut it in terms of the welcome bonus or the regular return on spending.
Frequently Asked Questions
Below are some questions we frequently hear from readers about the best cash back credit cards in Canada.
When can I redeem my cash back rewards?
Many cards let you request cash back to be issued as a statement credit any time you’ve accumulated enough rewards. Depending on the card, you can do this online or over the phone, or rewards may be paid automatically.
Some cards only pay out monthly, quarterly, or yearly. If you have one of those cards, make sure you’re never counting on your cash back urgently, and don’t be alarmed if it isn’t credited immediately after each purchase.
I prefer the earn rates and perks of travel credit cards more than cash back credit cards. Can I redeem travel rewards for cash back?
Some travel cards let you redeem points for statement credit to cover any travel expense, including refundable bookings. Examples include credit cards that earn Scene+ points, HSBC Rewards points, MBNA Rewards points, or American Express Membership Rewards points.
By making a refundable booking, covering the expense with your points, and then refunding the booking, you can therefore “cash out” your points. If you can use your points this way, they’re effectively as good as cash back.
Other types of travel rewards may let you redeem for cash back, but often at a very poor rate when compared to flights or hotels. In these cases, it’s better to redeem points directly towards your travel plans.
Whichever type of credit card you apply for, make sure you think about the value you expect to redeem the points for, before you submit your application.
How do I know if my purchase counts as a recurring bill payment?
Recurring bill payments are unlike other purchases. To get the bonus rate, they have to be set up as an automatic charge to your credit card, with a pre-authorization on file with the biller.
If you make a manual payment every time you receive your monthly utility bill, you likely won’t receive the recurring bonus rate, even if it’s the same amount every time.
Some banks, like Scotiabank, also have partnerships with specific merchants. If you have any questions about what qualifies as a recurring payment, it’s best to contact the credit card issuer for clarification.