What is a spending category on a credit card?

A spending category groups similar purchases, such as groceries, gas, or restaurants. Each card assigns a different earning rate per category. Thus, the same purchase earns more or less depending on the card used.

How to compare points and cash back?

You need to multiply the rate by the point value. For example, 5 American Express Membership Rewards points are worth approximately 8.5%, because one point is worth 1.7 cents. Conversely, 5 BMO points are worth approximately 3.3%. Cash back, however, is always worth its exact percentage.

Why does my bonus rate stop mid-month?

Because most bonus rates are capped. Beyond a monthly or annual amount, the rate reverts to the base level. For example, the American Express Cobalt® Card limits its 5 points to $2,500 in spending per month.

Which card offers the best rate for groceries?

In terms of real return, the American Express Cobalt® Card leads with approximately 8.5% thanks to its 5 Membership Rewards points. For cash back, the BMOᴹᴰ Cash Back World Eliteᴹᴰ offers 5% on the first $500 per statement. For an uncapped return, PC Optimum cards shine at Loblaw.

Can you combine multiple cards per category?

Yes, and it's often the best strategy. You use one card for groceries, another for gas, and a third for bills. This way, you maximize each category while respecting each card's caps.

Which cards have no cap on their categories?

The Tangerine Money-Back Credit Card at 2%, Scotiabank Scene+, and PC Optimum cards accumulate without limit in their bonus categories. They are therefore suitable for high spenders who would quickly exceed the caps of other cards.

Jean-Maximilien Voisine

Jean-Maximilien Voisine is the President and Founder of Milesopedia and a leading expert in rewards programs, credit cards, and travel across Canada, France, and the U.S.A. Now 40 years old and a father of two, he has explored more than 100 countries—many of them alongside his wife Audrey and their children. Specializing in loyalty programs such as Aeroplan, Flying Blue, American Express Membership Rewards, and Marriott Bonvoy, Jean-Maximilien helps travellers unlock the full potential of their points and benefits. His mission: empower others to travel better and smarter across North America and Europe.

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