Best cash back credit cards in Canada for 2024
Fact Checked: Scott Birke
Updated: May 17, 2024
The best cash back credit cards can help maximize your earnings on everyday spending. Cash back is one of the most attractive credit rewards options because you can spend it however you choose. There are no rules or restrictions on how you use your cash.
But which cash back credit card is best for you? We’ve done the leg work of comparing all the options to help you pick one of the best cash back credit cards for your spending.
Best cash back credit card
CIBC Dividend® Visa Infinite
Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $250!†
4%
Earn 4% cash back on gas, EV charging, and groceries.
2%
Earn 2% cash back on dining, transportation, recurring payments or bills.
1%
Earn 1% cash back on all other purchases with no limit.
10 cents
Save 10 cents per litre with CIBC and Journie Rewards (Ultramar, Chevron, Pioneer, Fas Gas)
Earn 4% cash back on gas, EV charging, and groceries.
4%
Earn 2% cash back on dining, transportation, recurring payments or bills.
2%
Earn 1% cash back on all other purchases with no limit.
1%
Save 10 cents per litre with CIBC and Journie Rewards (Ultramar, Chevron, Pioneer, Fas Gas)
10 cents
20.99%
Purchase APR non-Quebec residents†
22.99%
Balance Transfer Rate non-Quebec residents†
22.99%
Cash Advance APR non-Quebec residents†
$120
Annual Fee First year rebated. Each additional card is $30 per year, max 3.
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$120
Good
Recommended Credit Score
$60,000
Required Annual Personal Income
$100,000
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$60,000
Required Annual Household Income
$100,000
Pros
-
Very high cash back rates on eligible groceries and gas and electric vehicle charging
-
Lucrative welcome offer
-
Flexible cash back redemption policy
-
Premium Visa Infinite benefits†
-
No limit on the total cash back you can earn†
Cons
-
Maximum annual spending limits in accelerated cash back
-
High-ish annual fee
-
Mid-level income requirement
4%
Earn 4% cash back on gas, EV charging, and groceries.
2%
Earn 2% cash back on dining, transportation, recurring payments or bills.
1%
Earn 1% cash back on all other purchases with no limit.
10 cents
Save 10 cents per litre with CIBC and Journie Rewards (Ultramar, Chevron, Pioneer, Fas Gas)
Earn 4% cash back on gas, EV charging, and groceries.
4%
Earn 2% cash back on dining, transportation, recurring payments or bills.
2%
Earn 1% cash back on all other purchases with no limit.
1%
Save 10 cents per litre with CIBC and Journie Rewards (Ultramar, Chevron, Pioneer, Fas Gas)
10 cents
20.99%
Purchase APR non-Quebec residents†
22.99%
Balance Transfer Rate non-Quebec residents†
22.99%
Cash Advance APR non-Quebec residents†
$120
Annual Fee First year rebated. Each additional card is $30 per year, max 3.
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$120
Good
Recommended Credit Score
$60,000
Required Annual Personal Income
$100,000
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$60,000
Required Annual Household Income
$100,000
Pros
-
Very high cash back rates on eligible groceries and gas and electric vehicle charging
-
Lucrative welcome offer
-
Flexible cash back redemption policy
-
Premium Visa Infinite benefits†
-
No limit on the total cash back you can earn†
Cons
-
Maximum annual spending limits in accelerated cash back
-
High-ish annual fee
-
Mid-level income requirement
Best no annual fee cash back credit card:
Tangerine Money-Back Credit Card
about new welcome offers by email
2%
Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
3
Get a Tangerine Savings account and add a 3rd 2% cash back category.
0.5%
Earn 0.50% on all your other everyday purchases.
Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
2%
Get a Tangerine Savings account and add a 3rd 2% cash back category.
3
Earn 0.50% on all your other everyday purchases.
0.5%
19.95%
Purchase APR
1.95%
Balance Transfer Rate 1.95% interest for first 6 months, 19.95% after that.
19.95%
Cash Advance APR $3.50 within Canada, $5.00 outside Canada
$0
Annual Fee $0 for additional cardholders
2.50%
Foreign Transaction Fee
Purchase APR
19.95%
Balance Transfer Rate
1.95%
Cash Advance APR
19.95%
Annual Fee
$0
Foreign Transaction Fee
2.50%
Fair
Recommended Credit Score
$12,000
Required Annual Personal Income
Recommended Credit Score
Fair
Required Annual Personal Income
$12,000
Pros
-
No annual fee
-
Choose the spending categories where you want to earn the most cash back
-
Unlimited cash back—no maximum spending limit for any purchase category
-
Cash back is paid out monthly rather than annually
-
Periodically includes a special welcome offer where you can get extra cash back
-
1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*
Cons
-
Regular cash back rates are still lower than what you can get from a card with an annual fee
-
Limited extra perks or benefits beyond the cash back and balance transfer promotion
-
Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart
-
Tangerine does not have any physical bank branches
2%
Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
3
Get a Tangerine Savings account and add a 3rd 2% cash back category.
0.5%
Earn 0.50% on all your other everyday purchases.
Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
2%
Get a Tangerine Savings account and add a 3rd 2% cash back category.
3
Earn 0.50% on all your other everyday purchases.
0.5%
19.95%
Purchase APR
1.95%
Balance Transfer Rate 1.95% interest for first 6 months, 19.95% after that.
19.95%
Cash Advance APR $3.50 within Canada, $5.00 outside Canada
$0
Annual Fee $0 for additional cardholders
2.50%
Foreign Transaction Fee
Purchase APR
19.95%
Balance Transfer Rate
1.95%
Cash Advance APR
19.95%
Annual Fee
$0
Foreign Transaction Fee
2.50%
Fair
Recommended Credit Score
$12,000
Required Annual Personal Income
Recommended Credit Score
Fair
Required Annual Personal Income
$12,000
Pros
-
No annual fee
-
Choose the spending categories where you want to earn the most cash back
-
Unlimited cash back—no maximum spending limit for any purchase category
-
Cash back is paid out monthly rather than annually
-
Periodically includes a special welcome offer where you can get extra cash back
-
1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*
Cons
-
Regular cash back rates are still lower than what you can get from a card with an annual fee
-
Limited extra perks or benefits beyond the cash back and balance transfer promotion
-
Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart
-
Tangerine does not have any physical bank branches
Best flat-rate cash back
SimplyCash® Preferred Card
Welcome Bonus of up to $400 in Statement Credits
4%
Earn 4% cash back on gas in Canada.
4%
Earn 4% cash back on grocery purchases in Canada, up to $1,200 cash back per year.
2%
Earn 2% cash back on everything else with no limit.
Earn 4% cash back on gas in Canada.
4%
Earn 4% cash back on grocery purchases in Canada, up to $1,200 cash back per year.
4%
Earn 2% cash back on everything else with no limit.
2%
21.99%
Purchase APR
21.99%
Cash Advance APR
$119.88
Annual Fee $9.99 per month. Additional cards are free.
Purchase APR
21.99%
Cash Advance APR
21.99%
Annual Fee
$119.88
Excellent
Recommended Credit Score
Recommended Credit Score
Excellent
Pros
-
Earn up to $400 in statement credits in first 10 months
-
Competitive cash back rates: Up to 4% on gas and groceries, and more
-
Refer-a-friend bonus up to $750 annually
-
Extra benefits like rental car insurance and travel accident coverage
-
Manufacturer's warranty doubled on purchases
Cons
-
$9.99/month fee ($119.88 annually)
-
Cash back redeemed annually in September
-
Requires spending $750 monthly for maximum bonus
-
Not all benefits may be relevant to all users
-
Limited to American Express acceptance
4%
Earn 4% cash back on gas in Canada.
4%
Earn 4% cash back on grocery purchases in Canada, up to $1,200 cash back per year.
2%
Earn 2% cash back on everything else with no limit.
Earn 4% cash back on gas in Canada.
4%
Earn 4% cash back on grocery purchases in Canada, up to $1,200 cash back per year.
4%
Earn 2% cash back on everything else with no limit.
2%
21.99%
Purchase APR
21.99%
Cash Advance APR
$119.88
Annual Fee $9.99 per month. Additional cards are free.
Purchase APR
21.99%
Cash Advance APR
21.99%
Annual Fee
$119.88
Excellent
Recommended Credit Score
Recommended Credit Score
Excellent
Pros
-
Earn up to $400 in statement credits in first 10 months
-
Competitive cash back rates: Up to 4% on gas and groceries, and more
-
Refer-a-friend bonus up to $750 annually
-
Extra benefits like rental car insurance and travel accident coverage
-
Manufacturer's warranty doubled on purchases
Cons
-
$9.99/month fee ($119.88 annually)
-
Cash back redeemed annually in September
-
Requires spending $750 monthly for maximum bonus
-
Not all benefits may be relevant to all users
-
Limited to American Express acceptance
Best cash back for travel
Rogers™ World Elite Mastercard
$25 Welcome Bonus in cash back rewards upon first card purchase within 3 months of receiving your card2
3%
Earn 3% unlimited cash back on purchases made in U.S. dollars.
1.5%
Earn 1.5% unlimited cash back on everything else.
Earn 3% unlimited cash back on purchases made in U.S. dollars.
3%
Earn 1.5% unlimited cash back on everything else.
1.5%
19.99%
Purchase APR Increasing to 20.99% April 2024
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee To maintain eligibility, you must spend at least $15,000/year.
Purchase APR
19.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
Lucrative cash back rates on USD and CAD purchases
-
No annual fee with valuable insurance benefits
-
Competitive against foreign transaction fee cards
-
Convenient cash back redemption options
-
Travel insurance perks and airport lounge access
-
Welcome bonus in cash back rewards
Cons
-
High income requirement: $80,000 personal or $150,000 household
-
Foreign transaction fee applies
-
Limited redemption options for statement credits
3%
Earn 3% unlimited cash back on purchases made in U.S. dollars.
1.5%
Earn 1.5% unlimited cash back on everything else.
Earn 3% unlimited cash back on purchases made in U.S. dollars.
3%
Earn 1.5% unlimited cash back on everything else.
1.5%
19.99%
Purchase APR Increasing to 20.99% April 2024
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee To maintain eligibility, you must spend at least $15,000/year.
Purchase APR
19.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
Lucrative cash back rates on USD and CAD purchases
-
No annual fee with valuable insurance benefits
-
Competitive against foreign transaction fee cards
-
Convenient cash back redemption options
-
Travel insurance perks and airport lounge access
-
Welcome bonus in cash back rewards
Cons
-
High income requirement: $80,000 personal or $150,000 household
-
Foreign transaction fee applies
-
Limited redemption options for statement credits
Best cash back for groceries and bills
Scotiabank Momentum® Visa Infinite
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on additional cards.
4%
For every $1 you spend on grocery store purchases, recurring bill payments and subscription purchases
2%
For every $1 you spend on gas and daily transit purchases
1%
Cash back on all other purchases with no cash back limit
For every $1 you spend on grocery store purchases, recurring bill payments and subscription purchases
4%
For every $1 you spend on gas and daily transit purchases
2%
Cash back on all other purchases with no cash back limit
1%
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$120
Annual Fee $50 per supplementary card
2.50%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$120
Foreign Transaction Fee
2.50%
Excellent
Recommended Credit Score
$60,000
Required Annual Personal Income
$100,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$60,000
Required Annual Household Income
$100,000
Pros
-
High earn rate on everyday spending categories
-
Comprehensive travel and purchase insurance
-
Visa Infinite perks such as concierge, events, and special offers
-
25% Car rental discounts at Avis and Budget
-
Mobile device insurance
-
Up to $200 welcome bonus
Cons
-
Income requirements are higher: $60k personal or 100k household
-
Cash back can only be redeemed once a year
4%
For every $1 you spend on grocery store purchases, recurring bill payments and subscription purchases
2%
For every $1 you spend on gas and daily transit purchases
1%
Cash back on all other purchases with no cash back limit
For every $1 you spend on grocery store purchases, recurring bill payments and subscription purchases
4%
For every $1 you spend on gas and daily transit purchases
2%
Cash back on all other purchases with no cash back limit
1%
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$120
Annual Fee $50 per supplementary card
2.50%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$120
Foreign Transaction Fee
2.50%
Excellent
Recommended Credit Score
$60,000
Required Annual Personal Income
$100,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$60,000
Required Annual Household Income
$100,000
Pros
-
High earn rate on everyday spending categories
-
Comprehensive travel and purchase insurance
-
Visa Infinite perks such as concierge, events, and special offers
-
25% Car rental discounts at Avis and Budget
-
Mobile device insurance
-
Up to $200 welcome bonus
Cons
-
Income requirements are higher: $60k personal or 100k household
-
Cash back can only be redeemed once a year
Best no annual fee card for groceries
BMO CashBack® MasterCard®
Get 5% cash back in your first 3 months*
Expires
Jun 1, 2024
3%
Cardholders earn 3% (up to a monthly max of $500) cash back on groceries
1%
Cardholders can earn 1% (up to $500 per month) on any recurring bill payments*
0.5%
Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*
Cardholders earn 3% (up to a monthly max of $500) cash back on groceries
3%
Cardholders can earn 1% (up to $500 per month) on any recurring bill payments*
1%
Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*
0.5%
20.99%
Purchase APR
22.99%
Cash Advance APR 21.99% for Quebec residents
$0
Annual Fee
Purchase APR
20.99%
Cash Advance APR
22.99%
Annual Fee
$0
Good
Recommended Credit Score
$15,000
Required Annual Personal Income
Recommended Credit Score
Good
Required Annual Personal Income
$15,000
Pros
-
No Annual Fee: A rare find in Canada for a cash back card
-
A generous 3% cash back on groceries (up to $500 monthly)
-
Easily redeem from $1, set up automatic redemptions, or use as a statement credit
-
Additional perks include discounts on rentals, free supplementary cards and show discounts
Cons
-
Outside of groceries and recurring payments, the standard earn rate drops to 0.5%
-
Monthly caps on top earn rates for groceries and recurring payments
-
A 2% balance transfer fee applies
-
The interest rate on the remaining balance transfer amount increases after the introductory period
3%
Cardholders earn 3% (up to a monthly max of $500) cash back on groceries
1%
Cardholders can earn 1% (up to $500 per month) on any recurring bill payments*
0.5%
Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*
Cardholders earn 3% (up to a monthly max of $500) cash back on groceries
3%
Cardholders can earn 1% (up to $500 per month) on any recurring bill payments*
1%
Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*
0.5%
20.99%
Purchase APR
22.99%
Cash Advance APR 21.99% for Quebec residents
$0
Annual Fee
Purchase APR
20.99%
Cash Advance APR
22.99%
Annual Fee
$0
Good
Recommended Credit Score
$15,000
Required Annual Personal Income
Recommended Credit Score
Good
Required Annual Personal Income
$15,000
Pros
-
No Annual Fee: A rare find in Canada for a cash back card
-
A generous 3% cash back on groceries (up to $500 monthly)
-
Easily redeem from $1, set up automatic redemptions, or use as a statement credit
-
Additional perks include discounts on rentals, free supplementary cards and show discounts
Cons
-
Outside of groceries and recurring payments, the standard earn rate drops to 0.5%
-
Monthly caps on top earn rates for groceries and recurring payments
-
A 2% balance transfer fee applies
-
The interest rate on the remaining balance transfer amount increases after the introductory period
Best cash back credit card for restaurants
Simplii Financial™ Cash Back Visa* Card
about new welcome offers by email
4%
on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year.†
1.5%
on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited.
0.5%
on all other credit card purchases with no limit on how much you can earn.†
on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year.†
4%
on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited.
1.5%
on all other credit card purchases with no limit on how much you can earn.†
0.5%
20.99%
Purchase APR ‡ Purchase Interest Rate
22.99%
Balance Transfer Rate ‡ Balance Transfer Interest Rate
22.99%
Cash Advance APR ‡ Cash Advance Interest Rate
$0
Annual Fee for primary cardholder and up to 3 additional cards
2.50%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Foreign Transaction Fee
2.50%
Good
Recommended Credit Score
$15,000
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Household Income
$15,000
Pros
-
Extremely high cash back on bars and restaurants
-
Solid cash back on groceries, drug store, gas and prepayments
-
No annual fee
-
Up to three additional cards free of charge
Cons
-
Cash back applied as year-end statement credit
4%
on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year.†
1.5%
on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited.
0.5%
on all other credit card purchases with no limit on how much you can earn.†
on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year.†
4%
on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited.
1.5%
on all other credit card purchases with no limit on how much you can earn.†
0.5%
20.99%
Purchase APR ‡ Purchase Interest Rate
22.99%
Balance Transfer Rate ‡ Balance Transfer Interest Rate
22.99%
Cash Advance APR ‡ Cash Advance Interest Rate
$0
Annual Fee for primary cardholder and up to 3 additional cards
2.50%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Foreign Transaction Fee
2.50%
Good
Recommended Credit Score
$15,000
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Household Income
$15,000
Pros
-
Extremely high cash back on bars and restaurants
-
Solid cash back on groceries, drug store, gas and prepayments
-
No annual fee
-
Up to three additional cards free of charge
Cons
-
Cash back applied as year-end statement credit
Best cash back credit card for perks
Neo Credit
Good
about new welcome offers by email
1%
cashback on gas and groceries, no matter where you pay for them.
Up to 15%
On first-time purchases at participating partners with new offers added regularly.
Up to 5%
cashback on food delivery, streaming and rideshare, restaurants, bars, and cafes and retail partners
cashback on gas and groceries, no matter where you pay for them.
1%
On first-time purchases at participating partners with new offers added regularly.
Up to 15%
cashback on food delivery, streaming and rideshare, restaurants, bars, and cafes and retail partners
Up to 5%
19.99% - 29.99%
Variable APR Dependent on your application, credit profile, and province.
22.99% - 31.99%
Cash Advance APR Variable based on your credit profile
$0
Annual Fee Option to pay $4.99 per month to increase cashback to 3% on has and groceries
Variable APR
19.99% - 29.99%
Cash Advance APR
22.99% - 31.99%
Annual Fee
$0
Good
Recommended Credit Score
Recommended Credit Score
Good
1%
cashback on gas and groceries, no matter where you pay for them.
Up to 15%
On first-time purchases at participating partners with new offers added regularly.
Up to 5%
cashback on food delivery, streaming and rideshare, restaurants, bars, and cafes and retail partners
cashback on gas and groceries, no matter where you pay for them.
1%
On first-time purchases at participating partners with new offers added regularly.
Up to 15%
cashback on food delivery, streaming and rideshare, restaurants, bars, and cafes and retail partners
Up to 5%
19.99% - 29.99%
Variable APR Dependent on your application, credit profile, and province.
22.99% - 31.99%
Cash Advance APR Variable based on your credit profile
$0
Annual Fee Option to pay $4.99 per month to increase cashback to 3% on has and groceries
Variable APR
19.99% - 29.99%
Cash Advance APR
22.99% - 31.99%
Annual Fee
$0
Good
Recommended Credit Score
Recommended Credit Score
Good
Best cash back credit card from RBC with no annual fee
RBC Cash Back Mastercard
about new welcome offers by email
2%
Up to 2% unlimited cash back on groceries
1%
Up to 1% unlimited cash back on everything else
$0.03
Link your card and instantly save 3¢/L on fuel and 20% more Petro-Points at Petro Canada
50
Get 50 Be Well points for every $1 spent on eligible products at Rexall
Up to 2% unlimited cash back on groceries
2%
Up to 1% unlimited cash back on everything else
1%
Link your card and instantly save 3¢/L on fuel and 20% more Petro-Points at Petro Canada
$0.03
Get 50 Be Well points for every $1 spent on eligible products at Rexall
50
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR $3.50 fee
$0
Annual Fee No annual fee
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Good
Recommended Credit Score
Recommended Credit Score
Good
Pros
-
No annual fee, no fee for additional cardholders
-
Up to 2% cash back on groceries², up to 1% cash back on everything else²
-
No limit on cash back earned¹
-
Save money on gas at Petro-Canada⁵
-
Easy approval requirements
Cons
-
Cash back rewards on groceries drop to 1% after you accumulate $6,000 in grocery charges
-
No travel insurance or other perks
-
No welcome bonus
-
0.5% applies to the cash back on everything else up to $6,000 but what is impressive is that for all non-grocery spend the cash back rate actually goes up from the 0.5% to 1% on spend over $6,000, rewarding as your spend more instead of diminishing
-
No travel insurance or other perks
-
No welcome bonus
2%
Up to 2% unlimited cash back on groceries
1%
Up to 1% unlimited cash back on everything else
$0.03
Link your card and instantly save 3¢/L on fuel and 20% more Petro-Points at Petro Canada
50
Get 50 Be Well points for every $1 spent on eligible products at Rexall
Up to 2% unlimited cash back on groceries
2%
Up to 1% unlimited cash back on everything else
1%
Link your card and instantly save 3¢/L on fuel and 20% more Petro-Points at Petro Canada
$0.03
Get 50 Be Well points for every $1 spent on eligible products at Rexall
50
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR $3.50 fee
$0
Annual Fee No annual fee
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Good
Recommended Credit Score
Recommended Credit Score
Good
Pros
-
No annual fee, no fee for additional cardholders
-
Up to 2% cash back on groceries², up to 1% cash back on everything else²
-
No limit on cash back earned¹
-
Save money on gas at Petro-Canada⁵
-
Easy approval requirements
Cons
-
Cash back rewards on groceries drop to 1% after you accumulate $6,000 in grocery charges
-
No travel insurance or other perks
-
No welcome bonus
-
0.5% applies to the cash back on everything else up to $6,000 but what is impressive is that for all non-grocery spend the cash back rate actually goes up from the 0.5% to 1% on spend over $6,000, rewarding as your spend more instead of diminishing
-
No travel insurance or other perks
-
No welcome bonus
Best BMO cash back Mastercard
BMO CashBack® World Elite® Mastercard
Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first anniversary*.
Expires
Nov 30, 2024
5%
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
4%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
3%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
2%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
1%
Everything Else: 1% cash back, unlimited*
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
5%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
4%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
3%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
2%
Everything Else: 1% cash back, unlimited*
1%
20.99%
Purchase APR
23.99%
Balance Transfer Rate
23.99%
Cash Advance APR 21.99% for Quebec residents
$120
Annual Fee
2.90%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$120
Foreign Transaction Fee
2.90%
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
Valuable sign-up bonus
-
High 5% cash back rate on groceries
-
Free roadside assistance
-
Excellent extended warranty and purchase protection terms
Cons
-
Restrictive spending limits for most cash back categories
-
Sign-up bonus structure is head-scratchingly complicated
-
High minimum income requirements
5%
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
4%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
3%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
2%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
1%
Everything Else: 1% cash back, unlimited*
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
5%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
4%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
3%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
2%
Everything Else: 1% cash back, unlimited*
1%
20.99%
Purchase APR
23.99%
Balance Transfer Rate
23.99%
Cash Advance APR 21.99% for Quebec residents
$120
Annual Fee
2.90%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$120
Foreign Transaction Fee
2.90%
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
Valuable sign-up bonus
-
High 5% cash back rate on groceries
-
Free roadside assistance
-
Excellent extended warranty and purchase protection terms
Cons
-
Restrictive spending limits for most cash back categories
-
Sign-up bonus structure is head-scratchingly complicated
-
High minimum income requirements
Expert tip: How to choose the best cash back credit card
Shop around for a cash back card that has an accelerated rate in spending categories that you will use the most but be mindful of spending caps. When it comes to rewards credit cards, cash back is a popular choice because it means your money can go towards any purchase. It’s often applied to your statement credit but some cards allow you to deposit the cash back into your savings account as well. Cash back cards vary in the percentages of cash back that you can earn, how often the cash back is paid out (ie: monthly or annually), as well as how much cash back you can actually earn. Some cash back credit cards have spending caps (monthly or annually) while others have no limits on how much cash back you can earn.
—Hannah Logan, Money.ca credit card, saving and travel expert
Breakdown by annual cash back earned by credit cards with cash back
How we compared and chose the best cash back cards in Canada
For each cash back credit card there are some broad criteria we look at when assessing a card’s merit. Here are some of the factors we considered when determining the best credit card in every category and the best card overall:
- Cash back earn rate: The point of a cash back credit card is to earn cash back! However, which card will deliver the most cash back depends a lot on how you spend your money. Because most cash back credit cards provide more value in some purchase categories than others, your own spending patterns will determine if a tiered rewards or flat-rate earnings structure is best.
- Promotional bonuses: We love credit cards that deliver major perks sooner than later, which is why the promotional balance matters when signing up for a credit card. We did our main assessment without factoring any time-sensitive bonuses, but make sure you consider how extra cash back or a faster earn rate for a certain period can make one card stand out above the others for you.
- Annual fee: An annual fee can really cut into the value of a cash back credit card, so you have to ensure the dollar value it provides in cash back and other perks exceeds this cost. In order to come up with an accurate comparison, we presented the above cards’ net cash back earnings after subtracting the annual fee.
- Redemption structure: How you get your cash back is as important as earning it! Some cards disperse cash back monthly, others annually, and some only when you hit a minimum balance threshold. Since many cash back credit cards will only disperse cash back to a chequing or savings account at the same bank, you might want to stick with one of the financial institutions you’re already using if you really want cold hard cash. However, virtually all cash back credit cards let you use your cash back as statement credit, so you have your pick!
- Overall value relative to cost: Free isn’t always better. We determine if features like a big welcome bonus, strong redemption value, or high earn rate trump a card’s annual fee.
- Other fees: Annual fees aren’t always the only cost of owning a credit card. We factor in other charges like foreign transaction fees and balance transfer fees into the mix.
- Special features and perks: Benefits like extended warranties, discounts, premium insurance packages and exclusive invites warrant scrutiny. When assessing a card’s added perks, we also consider their relevance for the cardholder. We know cash back cards are a favorite of savvy shoppers, so discounts or freebies stand out as fringe perks.
How to choose the best cash back credit card
When comparing cash back cards, make sure to consider how much cash back it will really deliver to your budget. Where and how you spend your money is the biggest determining factor! However, other things like where you bank, how often you want to receive cash back, how you want to use your cash back, and if you want other perks from your credit card will make it easier to choose. The items listed below are the most important to think about when applying for a cash back credit card.
Promotional earn rate
Many cash-back credit cards will offer a short term promotional earn rate, that will let you earn a supercharged amount of cash back on some or all of your purchases. This typically lasts for up to 3 months and can make a big difference in the card’s benefits to you. If you’re planning to make a large purchase with your credit card, like booking a vacation, a generous cash back promotion can really pay off!
Earn rate by spending category
Cash back credit cards either offer a flat rate of cash back, or they offer tiered rates, with higher returns in some spending categories than others. Knowing your personal budget and spending behavior will tell you where you spend the most money, and therefore can reap the most rewards! Many cards offer higher cash back earn rates on groceries and gas purchases, but a lower rate on everything else. Review your own spending patterns to determine if you’ll earn the most from a flat-rate cash back card, or if you can benefit from one that rewards specific categories of purchases.
Cash back caps
One of the more frustrating aspects of some cash back credit cards is a cap on how much cash back you can earn. Sometimes this cash back is only for the promotional period at a higher earn rate, but sometimes it’s for a specific spending category or overall for the card. Most cash back caps are quite high, but some are surprisingly low which can really put a damper on the value of a card. However, there are plenty of cash back credit cards out there that let you earn unlimited cash back! Knowing how much you’re planning to charge to your credit card before you apply will tell you if you’ll hit a cash back limit or not, so do the math before you apply.
Redemption frequency and flexibility
Virtually all cash back cards will give you the option to use your cash back for statement credit. Others will deposit it to a chequing or savings account. Some cash back cards require you to hit a minimum cash back balance of $25 or $50 to redeem, whereas others will automatically disperse any amount you’ve earned. There are cash back cards that pay monthly, and ones that pay annually! The schedule and threshold required to access your cash back that you feel comfortable with is totally personal to your spending habits.
Annual fee
Paying an annual fee for a cash back credit card seems counter-intuitive, but it can be worth it if the card offers a particularly high cash back rate and other perks. Don’t write off a card with a fee immediately, as the rewards sometimes pay off the fee. Do the math to find out if the amount you plan to spend on the card will generate enough cash back to justify the cost!
Processor
A card’s payment processor, whether Visa, Mastercard, or American Express, can tremendously impact its cash back value to you. If your favourite grocery store where you do most of your spending doesn’t accept American Express, it doesn’t matter how great the cash back rate is! To truly earn cash back from a credit card, you need to make sure it’s accepted where you shop, so take this into consideration before you apply.
What are the types of cash back cards?
Cash-back credit cards come in three main categories:
Flat percentage: these cash-back cards are just as they sound --- they pay cash back at the same rate for all purchases.These cards are best for people who want something back without having to overthink it. The trade-off for this convenience is that you typically only earn 1% or 2% for each transaction.
Tiered rewards: These cash back cards are great for people who tend to spend more on certain things. If you do all the grocery shopping for your household and a lot of the driving, a tiered rewards card that pays a higher percentage for groceries and gasoline may be an excellent option. You’ll get a smaller return on other purchases.
Bonus category: These cards are for dedicated rewards earners. They offer high rebates of up to 5% in specific spending categories, such as at restaurants.The bonus categories can change every quarter, and you may have to register, or "opt in," for the bonus category each quarter.
Spending that earns the bonus may also be capped at a certain amount, like $1,500 during the quarter; and purchases in other categories will likely earn you just 1% cash back.
What you need to know about merchant codes to max your cash rewards for credit
Merchant category codes, or MCC, help tell a credit card issuer what credit card category your purchase falls into for cash back.
Shoppers drug mart, for example, despite selling many grocery items, is still categorized as "Pharmacies/Drug Stores" and therefore its merchant code is MCC 5912. Grocery stores are 5411.
It gets a bit confusing, so let's show you an example comparing the Tangerine Money Back Card, PC Financial World Elite Mastercard, and our pick for the best cash back card, the CIBC Dividend Visa Infinite. To limit our results, let's pick Shoppers Drug Mart as our pharmacy of choice.
Let's also assume you're spending $1,000 per year on drugstore purchases that may include shampoo, soap, toilet paper, etc.
Tangerine | PC Financial World Elite Mastercard | CIBC Dividend Visa Infinite |
---|---|---|
Cash back potential: 2% cash back with drugstore category |
Cash back potential: Earn 45 points per $1 spent.
10,000 points = $10 in cash back. |
Cash back potential: Earn 4% cash back on groceries, supermarkets and gas. 2% cash back on transportation, dining, recurring bills, and 1% cash back on everything else. |
Spending cap: No cap, no limit on the cash back you can earn. | Spending cap: Unlimited points, unlimited cash back | Spending cap: $80,000 in net annual card purchases, or $20,000 by category |
What you get back in cash: $20 | What you get back in cash: $45 | What you get back in cash: $10 |
Why you need to compare cash back credit cards
You need to compare credit cards because despite a particularly enticing offer, it may not suit your needs.
In our example, PC Financial World Elite Mastercard wins, but that's because our pharmacy was Shoppers Drug Mart.
If we change our pharmacy to Rexall or Guardian, Tangerine will walk away the winner.
Finally, change our pharmacy to one within a grocery store, though (e.g. Metro or Walmart), and the winner is likely going to be the CIBC Dividend Cash Back Visa which is why it's our top reward credit card for cash back.
How do you master cash back rewards?
Choose a card that best suits your lifestyle and spending habits and that won't lure you into spending more than you should, just to chase after rewards.
Never buy what you don’t need. Track your spending for a month, and then pick a card that matches what you already spend. Always make sure you pay off your balance each month.
Credit card interest rates have been hovering around 19-21% on average. That's way higher than rewards earnings. Rolling over your balance for a couple of months can quickly eat away at your returns.
Best Canadian cash back credit cards by category
Best Canadian Cash Back cards | Details | Apply now |
---|---|---|
Best overall cashback credit card
Annual fee: $120 Rewards: Earn 15% cash back welcome bonus of up to $300. After that, 4% cash back on eligible gas, EV charging, and grocery purchases; 2% on eligible transportation, dining, and recurring payments; 1% cash back on all other purchases. |
Apply now | |
Best cash back card with no annual fee
Rewards: 2% cash back in up-to three categories; 0.5% on everything else |
Apply now | |
Best for: flat-rate cash back
Annual fee: $9.99/month ($119.88 per year) Rewards: Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back annually) and 2% cash back on all other purchases. |
Apply now | |
Best for: Cash back for in U.S. Dollars
Annual fee: $0 Rewards: 3% cash back on purchases made in U.S. dollars; 1.5% cash back on the rest. |
Apply now | |
Best for: Cash back for groceries and bills
Annual fee: $120 (first year free) Rewards: 4% cash back on groceries and recurring bills' 2% back on gas and daily transit; 1% on everything else |
Apply now | |
Best for: cash back for groceries
Annual fee: $0 Rewards: 3% cash back on groceries*; 1% on recurring bills*; 0.5% on everything else. |
Apply now | |
Best for: Perks
Annual fee: $0 Rewards: 1% cash back on everyday essentials, up to 5% cash back on food, streaming, rideshare partners. 5% cash back average at more than 10,000 partners; up to 15% cash back on first-time purchases at select Neo partners. |
Apply now | |
Best for: cash back for groceries with RBC
Annual fee: $0 Rewards: 2% cash back on groceries*; 1% on recurring bills*; 0.5% on everything else. |
Apply now | |
Best for: Highest cashback on groceries
Annual fee: $120 (first year free) Rewards: 5% cash back on groceries*; 4% on transit, 3% on gas, 2% on recurring bill payments, 1% on everything else. |
Apply now | |
Best for: Nights on the town
Annual fee: $0 Cash back rewards: 4% on dining and drinking (booze and coffee), 1.5% on gas, groceries, drugstores, and recurring bills, 0.5% back on everything else. |
Apply now |
The bottom line on cash back credit cards
Cash back is one of the most attractive credit card rewards options because it has the most flexibility. Instead of being limited to travel redemptions or merchandise purchases, you can use your cash however you want. The best cash back card for you depends on your spending behavior and earning preferences, but you can feel confident choosing one from our list.
FAQs
Bridget Casey is the award-winning entrepreneur behind Money After Graduation, a Canadian financial literacy website aimed at 20 and 30-somethings. She holds a BSc. from the University of Alberta, and an MBA in Finance from the University of Calgary. She has been featured as a millennial financial expert by Yahoo! Finance, TIME Magazine, Business Insider, CBC and BNN. Bridget was recognized as one of Alberta's Top Young Innovators in 2016.
Doug Whiteman was formerly the editor-in-chief of Money.ca. He has been quoted by The Wall Street Journal, USA Today and CNBC.com and has been interviewed on Fox Business, CBS Radio and the syndicated TV show First Business.
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.