9 Best Cash Back Credit Cards in Canada

Offsetting your spending costs is a wise step to building financial security over time.  After writing about the best credit cards in Canada, I realized that some cards are best for cash back while others are perfect for rewards points.

Unlike reward points, cash back credit cards offset a portion of your purchases with real cash. You can earn a portfolio of your purchase expenses as much as you make eligible purchases.

However, different cash back credit cards in Canada offer different rates. This makes it essential to shop for the best cards for maximum benefits.

This article discusses the 9 best cash back credit cards in Canada, highlighting their pros and cons, features and rewards.

Overview of the 9 Best Cash Back Credit Cards in Canada

9 Best Cash Back Credit Cards in Canada

The different cashback credit cards offer different rates. The credit card you use determines your overall earnings. This makes it essential to choose the best card to earn maximum benefits.

Here are the 9 best cash back credit cards in Canada suitable for different spending habits:

1. Scotiabank Momentum Visa Infinite

• Annual Interest Rate on Purchase: 19.99%
• Annual Fee: $120
• Intro offer: Welcome bonus: 10% cash back on purchases for the first three months (capped at $2,000). Pay no annual fee for the first year
• Cash Back Structure: 4% cashback on groceries and recurring spending. 2% cashback on gas and daily transit purchases. 1% cashback on all other purchases.

The Scotia Momentum Visa Infinite is our overall best cashback credit card in Canada, offering high-rate cash back on different purchases.

You can easily cover the high-interest rates and annual fees with their stellar reward rates. Scotia Momentum Visa Infinite offers 4% cash back on groceries and recurring purchases, 2% cash back on gas and daily transit purchases, and 1% cash back on every other purchase.

The first-year annual fee is waived for new users, giving you maximum benefits for a start. However, you must have a minimum of $60,000 personal annual income, or $100,000 family annual income or $250,000 minimum assets under management to qualify.

Pros

• Offers the highest rate on groceries than any cash-back card in Canada
• Offers the highest earn rate on recurring bills category
• Gas and transit costs can really add up, making the 2% cash back rate a welcome reprieve. This rate even applies to ride-share spends, such as Uber.
• The caps on welcome bonus is quite generous

Cons

• You have to pay an extra $50 annually for additional authorized users.
• You can’t redeem your cash back at any time as cash back is only rewarded once per year
• You’ll need to earn at least $60,000 (or $100,000 as a household) annually to qualify

2. Neo Financial Mastercard Essential

• Annual Interest Rate on Purchase: 19.99%
• Annual Fee: $0
• Intro offer: $15
• Cash Back Structure: 5%+ cash back on all eligible purchases.

The Neo Financial Mastercard is one of Canada’s best cashback credit card in Canada, offering competitive cashback with no annual fee. Besides offering up to a 15% welcome bonus, Neo Financial Mastercard tops up cash back that is less than $1, helping you earn more.

However, you can maximize your cashback by paying an annual fee according to the table below:

Pros

• No annual fee
• Earn up to 15% cash back on purchases with select Neo partners.
• The card is accessible to all budgets because of the small $50 minimum deposit
• Hard credit checks are not made on applications.
• Guaranteed approval, as long as you meet eligibility requirements.

Cons

• Interest rates could be as high as 24.99% for some users.
• Although Neo plans to report card activity to TransUnion, this function isn’t fully operational yet. Therefore, the credit-building benefits of this card will be delayed.

3. BMO CashBack Mastercard

• Annual Interest Rate on Purchase: 20.99%
• Annual Fee: $0
• Intro offer: 5% cash back on all eligible purchases within the first 3 months capped at $2,500, (Spend up to $500 on grocery, up to $500 on recurring bill payments, and up to $1,500 on all other purchases)
• Cash Back Structure: 5% cashback on the first three months.

The BMO Cashback Mastercard is our best no-fee cashback credit card in Canada with competitive offers. This card offers a 5% cashback as a welcome bonus for the first three months. After that, it offers 3% cashback on grocery purchases, 1% cashback on recurring bills purchases, and 5% cashback on all other purchases.

You can save hundreds of dollars in a year with this $0 annual fee. It is ideal for value-seekers and big grocery shoppers.  Also, the card has lenient approval criteria for students looking to pick their first credit card.

Pros

• BMO CashBack Mastercard earns more in straight cash back with its 3% on groceries than any other no fee cash back credit card in Canada.
• BMO Cashback Mastercard is accepted virtually everywhere including Costco, and allows you earn the bonus 2% on your purchases from the mass, big box retailer.

Cons

• The card has reward caps on its bonus categories. You earn 3% on the first $500 spent on groceries per month and 0.5% on every other purchase after that.
• No travel insurance or side perks.

4. TD Business Cash Back Visa Card

• Annual Interest Rate on Purchase: 19.99%
• Annual Fee: $0
• Cash Back Structure: 2% cash back on gas and office supplies purchases. 2% cashback on recurring purchases. 0.5% cashback on all other purchases.

The TD Business Cash Back Visa Card is Canada’s overall winner on the best business cash back credit card. This card doesn’t charge an annual fee or additional card fees. As a result, you can earn hundreds of thousands in a year, accumulating competitive cashback.

You can earn 2% in Cash Back Dollars when you purchase eligible Office Supply Purchases and Gas, 2% in Cash Back Dollars on any regularly recurring bill payment, 0.5% in Cash Back Dollars on all other Purchases, and 50% more Stars at participating Starbucks® stores.

In addition, this card offers Purchase Security and Extended Warranty Protection with comprehensive insurance coverage.

Pros

• No annual fee
• Amazing cash back rates
• Your Cash Back Dollars doesn’t expire
• Offers Purchase Security and Extended Warranty Protection

5. Brim World Elite Mastercard

• Annual Interest Rate on Purchase: 19.99%
• Annual Fee: $199
• Cash Back Structure: 2% cashback on all purchases.

The Brim World Elite Mastercard is another competitive cashback credit card in Canada worthy of mention.

By waving the first-year annual fee for new users, you can maximize your cashback earnings with 2% cashback on all eligible purchases.

Also, this card has no foreign exchange fees, helping you save more.

Pros

• No foreign exchange fees
• Mastercard Travel Pass by DragonPass
• Complimentary Boingo Wi-Fi
• You’ll get access to 13 types of insurance coverage
• World Elite Mastercard benefits including Mastercard priceless cities, World Elite Mastercard concierge, and Mastercard World Experiences.
• Brim Installment plans
• Advanced security
• Top of the line mobile wallet access

Cons

• High annual fees
• High income requirements

6. Tangerine Money-Back Credit Card

• Annual Interest Rate on Purchase: 19.95%
• Annual Fee: $0
• Cash Back Structure: 2% cashback on everyday purchases and 0.50% cash back on every other purchase.

You can earn unlimited cashback with the Tangerine Money-Back Credit Card without an annual fee.

Overall, you can save hundreds of dollars in a year by earning 2% cashback on everyday purchases and 0.50% cashback on every other purchase.

However, you must have a minimum of $12,000 personal annual income without the latest bankruptcy history to qualify.

Pros

• The card lets you pick your own bonus categories.
• This Mastercard is accepted virtually everywhere, including Costco
• You can choose up to three bonus categories to earn cash back based on your own spending habits, and you can change your chosen bonus categories at any time.
• There are no limits or caps for the bonus categories
• Cash back is automatically redeemed every month, so you won’t need to wait for an annual payout.

Cons

• The base earn rate of 0.5% is low compared to other no-fee cards.
• Though the Tangerine Money-Back card is accepted at Costco, Costco purchases don’t fall under any of the card’s available bonus categories.

7. SimplyCash Preferred Card from American Express

• Annual Interest Rate on Purchase: 20.99%
• Annual Fee: $119.88
• Cash Back Structure: 2% cashback on all eligible purchases.

SimplyCash Preferred Card from American Express offers unlimited flat-rate cash back on all eligible purchases.

It has a monthly fee of $9.99 which adds up to an annual fee of $119.88. You can earn up to $400 cashback in a year with the welcome bonus of 10% cashback for your initial four months of registration.

his card also offers 4% cash back on gas  for all eligible gas station purchases in Canada, 4% cash back on grocery for all eligible grocery purchases in Canada, up to $1,200 cash back annually, and 2% cash back on everything else, with no limit to the amount of cash back you can earn.

You can earn up to $1,500 cashback as a maximum annual referral bonus with the SimplyCash Preferred Card from American Express.

Pros

• More earning potential
• Stellar welcome bonus
• Below average annual fee
• Good travel insurance
• Earn from referrals

Cons

• No mobile device insurance
• Rebates arrive annually
• American Express is not as widely accepted as Visa or Mastercard in Canada

8. Rogers World Elite Mastercard

• Annual Interest Rate on Purchase: 19.99%
• Annual Fee: $0
• Intro offer: $25
• Cash Back Structure: 1.5% cashback on all eligible regular purchases. 3% unlimited cash back on every eligible US dollars purchases.

The Rogers World Elite Mastercard is Canada’s best cashback credit card for travel, offering unlimited cashback on eligible purchases. With zero annual fees, you can earn up to $360 in a year using the Rogers World Elite Mastercard to make regular purchases.

In addition to a $25 cashback welcome bonus, this card offers comprehensive travel and insurance benefits. However, to qualify, you must have an average of $80,000 personal annual income or $150,000 household annual income.

Pros

• No annual fee
• An impressive 1.5% cash back on everything you buy
• The Rogers World Elite is a definite contender for the best card to use with big hauls at Costco, since it’s a Mastercard.
• Offers an accelerated 3% cash back on purchases made in U.S. dollars, which effectively offsets any foreign-transaction fees to attention, snowbirds and online shoppers.
• Using the Rogers app, you can redeem cash back rewards in increments of $10 at anytime.

Cons

• You must charge at least $15,000 in purchases annually to keep the card
• The annual income requirement of at least $80,000 per year (or $150,000) is expensive
• The Roger World Elite is meant to only save you on purchases made in U.S. dollars

9. CIBC Dividend Visa Infinite Card

• Annual Interest Rate on Purchase: 20.99%
• Annual Fee: $120
• Intro offer: 10% cash back on all purchases (capped at $250 in value) for the first four statements (up to a maximum of $2,500 in purchases) and the annual fee is waived for the first year
• Cash Back Structure: 4% cash back on gas and groceries. 2% cash back on dining, transportation, and recurring payments. 1% cashback back all other purchases.

There’s no complete mention of Canada’s best cashback credit cards without CIBC Dividend Visa Infinite Card. This card offers unlimited category-based cashback, helping you maximize your earnings.

Despite the above-average interest rates on purchases and the $120 annual fee, you can earn hundreds of dollars with this card because it waives your first-year annual fee.

Furthermore, the CIBC Dividend Visa Infinite Card offers comprehensive insurance coverage with emergency travel medical and mobile devices. However, you must have an average of $60,000 personal annual income of $100,000 household annual income to qualify.

Pros

• CIBC Dividend Visa Infinite card gets you the highest earn rate on groceries in Canada
• The 4% cash back on gas is also the highest available
• The card offers 2% bonus on dining, recurring bills and any modes of transit in Canada
• Also offers flexible redemptions and access your cash in $25 increments whenever you want.

Cons

• The annual fee is high
• An annual income of at least $60,000 (or $100,000 as a household) to qualify may be unaffordable for some applicants.
• Credit cards for additional authorized users costs $30 each per year.

How I Reviewed the Best Cash Back Credit Cards in Canada

Here are the factors I considered when determining the best cash back credit cards in Canada.

• Cash Back Caps: Not all cash back credit cards have the same limit. While some cash back has unlimited earning limits, others have certain limits. Most of the above cash back credit cards have unlimited earning limits. This means getting a reward on all your purchases 24/7. However, it’s essential to consider the cash back rate when deciding between limited and unlimited cash back caps.
• Interest rate: An interest rate can undermine a cash back rate. This is why we choose the above best cash back credit card in Canada with competitive interest rates. Most cash back credit cards have 19.99% annual interest rates. However, you can avoid this interest rate by paying your complete monthly balance. Failure to meet your monthly balance payment may rack up the interest rate and consume your cash back earnings.
• Annual Fees: Like interest rate, cash back annual fees can undermine your cash back earnings. That’s what we considered why selecting the above best cash back credit cards in Canada. Most of the above best cash back credit cards in Canada have zero annual fees. This means earning more with less. However, some of the above cash back credit cards have an annual fee but with a competitive cash back rate and perks. You can earn more with this type of cash back.
• Perks: If you’re looking for a reward card with special offers, the above best cash back credit cards in Canada got you covered. The above cash back credit cards offer competitive perks from purchase assurance to extended warranty. Getting cash back rewards with perks makes the above-best cash back credit cards a luxurious alternative to other credit cards in Canada.
• Welcome Offers: Not all credit cards offer a welcome bonus. However, most of the above best cash back credit cards in Canada offer a welcome bonus. The above cash-back credit cards have varying attractive welcome offers from introductory interest rates to special cash-back rates. A welcome offer helps boost your earnings within a given time frame while giving you the luxurious feeling of the best cash-back credit card.

3 Types of Cash Back Credit Cards in Canada

The type of credit card you use determines how much you will make. Hence, it’s essential to know the various types of cashback to choose the perfect one.

Here are three types of cashback credit cards in Canada:

1. Flat-Rate Cash Back Credit Card

This type of cashback credit card offers flat-rate cash back on every purchase. This makes it possible to earn the same cashback on all purchases. So regardless of your spending habits, flat-rate cash back offsets a portfolio of all purchases with the same cashback rate.

2. Bonus Cash Back Credit Card

As the name implies, a bonus cashback credit card is a type of cashback credit card based on certain purchases. Unlike flat-rate cashback, this cashback rewards you differently, improving your earning potential.

A bonus cashback credit card is the most popular type of cashback credit card in Canada, perfect for everyday shoppers.

3. Flexible Cash Back Credit Card

This type of cashback credit card is customized based on your spending habits. As a result, you can choose your cashback according to your spending habits.

You can easily align flexible cash-back credit cards to your spending habits – from groceries, entertainment parking, and hotels to transportation.

How Can I Redeem My Cash Back rewards?

In most cases, you get credited for your cashback rewards on your monthly statement by your credit card provider. However, the cashback will be deposited into your chequing account if you have a bank account with the same credit card provider.

Your credit provider and type of card determine the frequency of your cashback payments. Depending on your credit card provider, you can redeem your monthly, quarterly or yearly cashback rewards.

However, some credit card providers allow you to redeem your cashback whenever you want or set automatic redemption when you reach a particular amount.

Cash Back vs. Points: Which to Choose?

The debate on cashback vs. points has been on for a long time due to the growing misunderstanding of the two. Both cash back and points are loyalty programs card providers use to reward users upon purchases or spending.

However, their value is the main difference between cash back and points. While 1% cashback is always valued at $0.01, points have varying values, depending on the card provider.

Furthermore, cash back is more flexible than points as you can earn and withdraw it easily. However, points are complex but are more lucrative, especially for travelers.

The major advantage of points over cash back is their multiple perks and bonus categories. In fact, points can have more value than cash back depending on the loyalty program and redemption options.

Overall, you can’t make a wrong choice with cash back or points. However, consider the redemption options and reward value before deciding.

Final Thoughts on the Best Cash Back Credit Card in Canada

If you’re looking to save costs on your regular purchases, now you know the best cash back credit card to use. While the above cashback credit cards have competitive offerings, narrowing your selection for maximum benefits is essential.

Hopefully, now you know the best cashback credit cards in Canada and how to choose the one that suits your spending habits. So which cashback credit card are you starting with?

Let me know in the comment section.