Gift Cards and Points: Which Credit Card Earns the Most

Buy gift cards where your credit card earns the most, then pay the other store with the gift card: our card picks, store by store.

November 6, 202610 min readUpdated November 7, 2026

A woman compares a gift card and a credit card in front of a gift card display in a grocery store

Key Takeaways

Rewards on a gift card depend on where it is purchased and the credit card’s terms.
Later payment with the gift card does not automatically provide the insurance of a direct credit card purchase.
Before using the strategy, check rewards exclusions, fees, and gift card conditions.

To earn more points with gift cards, buy them where your credit card earns the most, often at the grocery store, then pay the other store with the gift card. A $100 Simons gift card paid for at the grocery store with the TD First Class Travel Visa Infinite Card earns you 600 TD Rewards points, versus 200 at Simons.

Why gift cards earn you more points

You'll find gift cards from dozens of stores on the displays of grocery stores, drugstores and gas stations. We like them for a simple reason: they move a purchase into your card's best-paying category.

Gift cards help you in 3 situations:

Unlock a new card's welcome bonus
Earn 2 to 3 times more points on purchases made elsewhere
Pay with an American Express card at a store that refuses it

Start by finding the category where your credit card earns you the most.

Take the TD First Class Travel Visa Infinite Card: it gives you 6 TD Rewards points per dollar on groceries, up to $25,000 in purchases per year, and 2 points on your other purchases. For a $100 purchase at Simons:

	Number of points accumulated
Purchase with TD First Class Travel Visa Infinite Card directly at Simons ( 2-point Other Purchases category)	200 points ($100 X 2)
Simons gift card for $100 paid at the grocery store (Grocery category at 6 points) and payment with the gift card at Simons	600 points ($100 x 6)

Repeated all year, this habit grows your points balance much faster, whether you're aiming for a flight or for cash back.

Unlock a welcome bonus with gift cards

You know your spending for the coming months: groceries, gas, gifts, renovations. Gift cards let you prepay part of it with your new card.

Gift cards help you reach the spending threshold of a new card, often within 3 months.

Here's an example of a monthly budget converted into gift cards:

Type	Gift card examples	Amount
Gas	Esso, Petro-Canada, Shell…	$150
Grocery	Metro, Super C, IGA, Provigo, Walmart…	$500
Alcohol	SAQ, LCBO	$100
Pharmacy	Jean Coutu, Shoppers Drug Mart, Familiprix…	$100
Monthly subscriptions	Netflix, Apple, Google Play…	$75
Online shopping	Amazon	$200
Shopping	Gap / Old Navy / Banana Republic, La Vie en Rose, Sail, Simons, Sports Experts, lululemon, Reitmans…	$150
Home Improvement	Home Depot, Canadian Tire, Home Hardware…	$100
Everyday life	Starbucks, Tim Hortons, McDonald’s, St-Hubert, The Keg…	$50
Culture	Renaud-Bray, Archambault, Cineplex	$75
TOTAL	$1,500

By planning your spending over the next 2 or 3 months, as long as you have the cash flow to pay ahead, you unlock the welcome bonus faster, without spending a dollar more than planned.

They also help a few weeks before the deadline, if your regular purchases aren't enough to reach the spending threshold.

Pay your liquor store or Netflix at the grocery rate

Beyond the welcome bonus, get into the habit of buying the gift card where your card earns the most.

Your American Express Cobalt Card earns only one point per dollar at a liquor store such as the SAQ. Buy a gift card for that store at a stand-alone grocery store that sells it, such as Super C, and you earn 5 points per dollar instead.

Your liquor store purchases then earn you 5 points per dollar instead of one.

$25 SAQ gift card and American Express Cobalt Card held in front of an SAQ Sélection liquor store

The same math works for every store whose gift card you can find at a grocery store or drugstore:

Walmart
Netflix
Shell
Home Depot
Canadian Tire
SAQ

Below, we show you which card to use depending on the store where you buy the gift card.

Display of SAQ, Netflix, Home Depot and Canadian Tire gift cards at the entrance of a Super C grocery store

Compare

American Express Cobalt^® Card

5.0 / 5

American Express Amex Amex Membership Rewards

Annual fee: $191.88
Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$255Total$255Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.: $255
Welcome offerGet 1,250 points after $750 in purchases per month for 12 months: Up to 15,000 points

The American Express Cobalt^® Card, often called the Amex Cobalt or the Cobalt card, turns groceries, restaurant meals and food delivery into Membership Rewards points. Its main strength is 5 points per dollar on eligible eats and drinks in Canada. You can use the points as statement credits or transfer them to partners such as Aeroplan.

How you earn points

5 points per dollar on eligible groceries, restaurants, bars and food delivery in Canada, on up to $2,500 in combined purchases per month, then 1 point per dollar;
3 points per dollar on eligible streaming subscriptions in Canada;
2 points per dollar on eligible gas, transit and ridesharing in Canada;
1 additional point on eligible hotel and car rental bookings made through American Express Travel Online;
1 point per dollar on everything else, including purchases outside Canada.

Welcome offer. In your first year as a new Cobalt Cardmember, you earn 1,250 Membership Rewards points for each monthly billing period in which you charge $750 in net purchases to the Card. That adds up to 15,000 points over 12 months. Current and former Cardmembers with this Card are not eligible.

What the Cobalt card costs. The fee is $15.99 per month ($191.88 per year) outside Quebec. Quebec residents pay $191.88 once a year. Additional cards have no annual fee. Purchases in a foreign currency carry a 2.5% conversion fee, so this is not the best card to carry abroad.

Travel insurance and other protections. The Cobalt card includes:

emergency medical insurance outside your province or country, up to $5,000,000 for the first 15 days of a trip (under age 65);
flight delay and baggage delay insurance, up to $500 combined;
lost or stolen baggage insurance, up to $500 per trip;
hotel burglary insurance, up to $500;
travel accident insurance, up to $250,000;
car rental theft and damage insurance, for vehicles with an MSRP up to $85,000 and rentals of 48 days or less;
Purchase Protection (90 days, up to $1,000 per occurrence), Buyer’s Assurance (up to one extra year on the manufacturer’s warranty) and Mobile Device Insurance (up to $1,000, for up to 2 years).

Read your certificate of insurance for the exclusions. Our guide to Amex Cobalt insurance explains each coverage.

Other benefits. Eligible Cardmembers can earn up to $60 in Instacart statement credits within a 12-month period, until December 31, 2027. You also get access to Front Of The Line presale tickets and to The Hotel Collection benefits on stays of 2 or more consecutive nights.

Using your points. Points are worth 1,000 for $10 as a statement credit on eligible purchases. You can also transfer them 1:1 to airline and hotel partners. Our Membership Rewards guide lists the partners.

Who it suits. The Cobalt card fits households that spend a lot on food in Canada. If you spend more on travel, compare it with the Amex Gold Rewards Card or read our guide on moving from the Cobalt to the Gold. If you prefer a Visa Infinite card with cash back at partner merchants, see our Wealthsimple Visa Infinite review. To check which merchants earn 5X, see the list of eligible merchants, or browse our best Membership Rewards cards.

Legal

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, we may receive compensation from American Express, which can be in the form of monetary payment.

Annual fee

Primary card$191.88

Additional card$0

Annual income required

Individual$0

Household$0

Conversion fees

2.5%

Earning rate

5xRestaurants
5xGroceries
3xStreaming
2xTransit
2xGas
1xAll spending

Value

1st Year Value$1,675

2nd Year Value$799

Transfer partners

AeroplanAirline
British Airways ClubAirline
Cathay Asia MilesAirline
Etihad GuestAirline
Flying BlueAirline
Hilton HonorsHotel
Marriott BonvoyHotel

Travel insurance

Travel medical (under 55)Up to $5,000,000 / 15 days

Travel medical (55-64)Up to $5,000,000 / 15 days

Delayed BaggageUp to $500

Lost BaggageUp to $500

Flight DelayUp to $500

Hotel BurglaryUp to $500

Travel AccidentUp to $250,000

Purchase protection

Purchase ProtectionUp to $1,000 / 90 days

Extended Warranty+1 years

Mobile DeviceUp to $1,000 / 2 years

Auto Rental Collision (primary)Up to $85,000 / 48 days

Pay with American Express where it's refused

Some stores still refuse American Express. You can work around this by buying their gift card at a grocery store or drugstore that accepts your Amex card, when its display carries it. See the list of stores that accept American Express in Canada.

Which card to use by store

You'll find gift card displays in 5 types of stores across Canada:

Grocery stores: Metro, Sobeys, IGA, Super C
Gas stations: Esso, Shell, Petro-Canada
Drugstores: Shoppers Drug Mart, Jean Coutu, Rexall
Home improvement stores: Home Depot, Rona, Home Hardware
Office supply stores: Staples

The best card changes from one store to the next. Here are our picks, store by store, with what $500 of gift cards a month earns you.

Gift cards: which card to use by store, and what $500 a month earns
Where you buy the gift card	Card	Rate	On $500 a month
Grocery store	TD First Class Travel Visa Infinite Card	6 TD Rewards points per dollar	3,000 TD Rewards points
Grocery store	American Express Cobalt Card	5 points per dollar	2,500 Membership Rewards points
Grocery store	National Bank World Elite Mastercard	5 points per dollar	2,500 points (if your monthly purchases stay under $2,500)
Grocery store	Scotia Momentum Visa Infinite Card	4%	$20
Gas station	SimplyCash Preferred Card from American Express	4%	$20
Drugstore	American Express Gold Rewards Card	2 points per dollar	1,000 Membership Rewards points
Drugstore or home improvement	Tangerine Money-Back Credit Card	2% (chosen category)	$10
Office supplies	BMO Ascend World Elite Business Mastercard	4 points per dollar	2,000 BMO Rewards points

Gift cards at grocery stores: 5 cards

For gift cards bought at the grocery store, these 5 cards earn you the most:

Gift cards bought at the grocery store: the 5 cards that earn the most
Credit card	Earn rate at grocery stores	Cap
TD First Class Travel Visa Infinite Card	6 TD Rewards points per dollar	$25,000 in purchases per year
American Express Cobalt Card	5 points per dollar (stand-alone grocery stores)	$2,500 per month, restaurants and delivery included
National Bank World Elite Mastercard	5 points per dollar	First $2,500 in monthly purchases, all categories; then 2 points
Scotia Momentum Visa Infinite Card	4%	$25,000 in purchases per year
SimplyCash Preferred Card from American Express	4% (stand-alone grocery stores)	$30,000 in purchases per year ($1,200 cash back)

The American Express Cobalt Card gives 5 points per dollar at stand-alone grocery stores that accept American Express, such as Metro, Sobeys and IGA.

On gift cards bought at a stand-alone grocery store, the Cobalt therefore earns you 5 points per dollar, up to $2,500 in purchases per month in its bonus categories (restaurants, grocery stores and food delivery).

To choose between the two most popular American Express cards for groceries, read our Cobalt vs Scotiabank Gold comparison.

Our credit card selection
Credit card	Annual fee	Welcome offer
American Express Cobalt^® Card	Annual fee$191.88	Welcome offerGet 1,250 points after $750 in purchases per month for 12 months Up to 15,000 pointsGet 1,250 points after $750 in purchases per month for 12 months	Apply NowCompare
Exclusive \| ContestNational Bank World Elite^® Mastercard^®	Annual feeAnnual fee rebated in the first year$150 $0Annual fee rebated in the first yearFirst year free	Welcome offer+ First-year annual fee refundedUp to 15,000 points from net purchases, plus 10,000 with payment insurance for 90 days and 10,000 with a first eligible chequing account. Conditions apply. Up to 35,000 points+ First-year annual fee refundedUp to 15,000 points from net purchases, plus 10,000 with payment insurance for 90 days and 10,000 with a first eligible chequing account. Conditions apply.Ends Mar 31, 2027	Apply NowCompare

American Express Cobalt Card held in front of a Super C grocery store

If your grocery store doesn't take American Express, the National Bank World Elite Mastercard gives you 5 points per dollar on groceries and restaurants, on the first $2,500 in monthly purchases across all categories, then 2 points per dollar.

The Scotia Momentum Visa Infinite Card and the SimplyCash Preferred Card from American Express give you 4% back on groceries. The Momentum applies that rate up to $25,000 in purchases per year; the SimplyCash Preferred, up to $30,000, or $1,200 in cash back.

Our credit card selection
Credit card	Annual fee	Welcome offer
Scotia Momentum^® Visa Infinite +* Card	Annual feeFirst Year Annual Fee Rebate$120 $0First Year Annual Fee RebateFirst year free	Welcome offerAfter $2,000 in 3 months Up to $200 Cash BackAfter $2,000 in 3 monthsEnds Apr 30, 2027	Apply NowCompare
SimplyCash^® Preferred Card from American Express	Annual fee$119.88	Welcome offerAfter $2,000 in 3 months Up to $250 cash backAfter $2,000 in 3 months	Apply NowCompare
TD First Class Travel^® Visa Infinite* Card	Annual feeFirst Year Annual Fee Rebate$139 $0First Year Annual Fee RebateFirst year free	Welcome offerAfter $7,500 in 6 months Up to 160,000 pointsAfter $7,500 in 6 months	Apply NowCompare

Gift cards at gas stations

For gift cards bought at the gas station, these 3 cards earn you the most:

Gift cards bought at gas stations: the 3 cards that earn the most
Credit card	Earn rate at gas stations	Reward
SimplyCash Preferred Card from American Express	4% (stand-alone gas stations)	Cash back
American Express Gold Rewards Card	2 points per dollar	Membership Rewards points
American Express Cobalt Card	2 points per dollar	Membership Rewards points

Most gas stations accept American Express. Your choice therefore depends mostly on the type of reward you want.

If you prefer American Express Membership Rewards points, two cards give you 2 points per dollar:

American Express Gold Rewards Card: 2 points per dollar at stand-alone gas stations
American Express Cobalt Card: 2 points per dollar on gas, transit and ride share

Our credit card selection
Credit card	Annual fee	Welcome offer
American Express^® Gold Rewards Card	Annual fee$250	Welcome offerAfter $12,000 in 12 months Up to 60,000 pointsAfter $12,000 in 12 months	Apply NowCompare
American Express Cobalt^® Card	Annual fee$191.88	Welcome offerGet 1,250 points after $750 in purchases per month for 12 months Up to 15,000 pointsGet 1,250 points after $750 in purchases per month for 12 months	Apply NowCompare

If you prefer cash back, one card leads:

SimplyCash Preferred Card from American Express: 4% cash back at stand-alone gas stations in Canada, then 2% on your other purchases

Compare

SimplyCash^® Preferred Card from American Express

4.8 / 5

American Express Amex Cash Back

Annual fee: $119.88
Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$200Total$200$50 deferred bonus, excluded from the first-year estimate and not counted in this total.Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.: $200
Welcome offerAfter $2,000 in 3 months: Up to $250 cash back

The SimplyCash^® Preferred Card from American Express focuses on straightforward cash back: 2% on everyday purchases and 4% at eligible gas stations and grocery stores in Canada. It also suits larger purchases, such as furniture or appliances, that earn the 2% rate.

The 4% rate applies on up to $30,000 in combined purchases per Cardmembership year across the two categories, then the rate becomes 2%.

To get started, earn 10% cash back on your first $2,000 in purchases in the first 3 months, worth up to $200. Add a $50 statement credit after making a purchase in month 13, for a total welcome offer of up to $250.

The Card also includes travel insurance, purchase protection, and an extended warranty, subject to applicable terms. It lets you bring your spending together on a card that rewards regular shopping and occasional purchases alike.

Legal

American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and up-to-date product information, click the « Apply Now » link. If you apply and get approved for an American Express Card, we may receive compensation from American Express, which can be in the form of monetary payment.