Gift Cards and Points: Which Credit Card Earns the Most
Loading article…
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.
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.
- 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
Apply Now
on American Express's website
Apply with confidenceCheck whether your application will be approved before you submit it, with no impact on your credit score*When you apply for a personal American Express Credit Card, we will tell you whether you are eligible without affecting your credit score. So you can apply with confidence.*Instant decisions are only available for consumer Card applications (also called “personal Cards”).
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.
| 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:
| 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.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $191.88 | |||
| $0 |
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.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $119.88 | |||
| $0 |
Gift cards at gas stations
For gift cards bought at the gas station, these 3 cards earn you 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
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $250 | |||
| $191.88 |
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
- Annual fee
- $119.88
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$200Total$200Plus $50 of bonus paid after the first year, 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
Apply Now
on American Express's website
Apply with confidenceCheck whether your application will be approved before you submit it, with no impact on your credit score*When you apply for a personal American Express Credit Card, we will tell you whether you are eligible without affecting your credit score. So you can apply with confidence.*Instant decisions are only available for consumer Card applications (also called “personal Cards”).
Gift cards at drugstores
For gift cards bought at a drugstore, two cards earn you more:
| Credit card | Earn rate at drugstores | Reward |
|---|---|---|
| Tangerine Money-Back Credit Card | 2% (drugstore category chosen) | Cash back |
| American Express Gold Rewards Card | 2 points per dollar (stand-alone drugstores) | Membership Rewards points |
Most large drugstore chains accept American Express: look for the logo at your store's checkout.
If you prefer Membership Rewards points, the American Express Gold Rewards Card gives you 2 points per dollar at stand-alone drugstores, as it does at grocery stores and gas stations.
- Annual fee
- $250
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$1,020Total$1,020Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $1,020
- Welcome offerAfter $12,000 in 12 months
- Up to 60,000 points
Apply Now
on American Express's website
Apply with confidenceCheck whether your application will be approved before you submit it, with no impact on your credit score*When you apply for a personal American Express Credit Card, we will tell you whether you are eligible without affecting your credit score. So you can apply with confidence.*Instant decisions are only available for consumer Card applications (also called “personal Cards”).
If you prefer cash back, the Tangerine Money-Back Credit Card and the Tangerine Money-Back World Mastercard give you 2% in the drugstore category, with no annual fee.
Simply add the drugstore category to your 2% categories.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $0 |
Gift cards at home improvement stores
For gift cards bought at a home improvement store, two no-fee cards earn you 2%:
| Credit card | Earning rate |
|---|---|
| Tangerine Money-Back Credit Card | 2% |
| Tangerine Money-Back World Mastercard | 2% |
With the Tangerine Money-Back Credit Card or the Tangerine Money-Back World Mastercard, you get 2% cash back in 2 categories of your choice, or 3 if you deposit your cash back into a Tangerine savings account, and 0.5% on everything else.
Simply choose the home improvement category among your 2% categories.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $0 |
Gift cards at office supply stores
If you run a business, one card stands out for gift cards bought at an office supply store. Its $175 annual fee is waived the first year.
| Credit card | Earning rate |
|---|---|
| BMO Ascend World Elite®* Business Mastercard®* | 4 points per dollar |
You'll earn BMO Rewards points on gift cards bought for your business's everyday expenses:
- BMO Ascend World Elite Business Mastercard: 4 points per dollar on office supplies, gas, and cell phone and internet bills, then 1.5 points per dollar on your other purchases
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 |
Our advice for your gift cards
Our advice: keep one strong card for groceries and run the gift cards of the stores where you already shop through it. You double or triple the points on purchases you would have made anyway, without spending a dollar more.
To follow new card offers and get our best strategies, create your free member account.
Frequently Asked Questions
Which card earns the most points on gift cards?
At the grocery store, the TD First Class Travel Visa Infinite Card earns you 6 TD Rewards points per dollar, while the American Express Cobalt Card and the National Bank World Elite Mastercard earn 5 points. A point isn't worth the same from one program to the next: compare them with our credit card comparison tool.
Can you get gift cards with your points?
Yes. With American Express Membership Rewards points, you can redeem your points for gift cards on the program's website. Compare first with a statement credit: on the Cobalt Card, 1,000 points are worth $10 applied to your eligible purchases.
How does a gift card help you earn more points?
Buying a gift card is a regular purchase on your statement: it earns the rate of the category of the store where you buy it. A Home Depot gift card bought at the grocery store therefore earns your card's grocery rate, not its base rate.
Why didn't my gift card earn the grocery rate?
The rate depends on the category of the store where you pay, not on the gift card you buy. American Express limits its bonus rates to stand-alone grocery stores: the grocery aisle of a big-box store doesn't count. TD gives its 6 points at merchants that Visa classifies as grocery stores and supermarkets (code 5411).
Where can you buy Amazon, Apple or Home Depot gift cards?
You'll find Amazon, Apple, Home Depot or Canadian Tire gift cards on the displays of grocery stores and pharmacies, and at some gas stations. The selection varies from one location to another: check your grocery store's display before you plan your purchases.
How do you check a gift card balance?
Enter the card number and, if needed, its PIN in the balance section of the merchant's website. You can also call the number on the back of the card or ask for the balance at the checkout.
Are there risks in buying gift cards with a credit card?
The main risk is prepaying purchases you wouldn't have made. Only buy gift cards from stores where you already spend, and always at the checkout of a known retailer. A stranger who asks you to pay a bill in gift cards, by phone or by email, is attempting fraud.
Do gift cards expire?
In Quebec, a merchant cannot put an expiry date on a gift card exchangeable for a good or service, according to the Office de la protection du consommateur (page in French). Elsewhere in Canada, the rules vary by province: read the terms on the back of the card before you buy it.