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Recurring payments are an important part of our daily lives, whether for subscriptions, insurance or telephone services. Using a credit card tailored to these monthly expenses can offer significant benefits, such as cash back or reward points for travel.
This article explores the best credit cards in Canada for optimizing your recurring payments.
A recurring payment is a direct debit made at regular intervals (monthly, quarterly or annually) for services such as subscriptions to streaming platforms (like Netflix, Disney+, etc.) or a gym membership, mobile services, internet bills, insurance or even rent payments.
These payments are often referred to as “pre-authorized payments” because they require you to set up your credit card as the payment method with the merchant and authorize them to make withdrawals on specific dates. These transactions are recurring and allow you to benefit from automated payments without having to take action at each due date.
Not all insurance providers allow monthly premium payments by credit card. In fact, they will allow annual payment by credit card, but only pre-authorized debits when you choose the monthly plan. However, some providers do, such as Sonnet or Manulife.
Another example of a major recurring payment might be rent. With services like Chexy, it’s possible to pay your monthly rent, recurring bills or taxes via credit card, although this may entail a small surcharge. This option allows you to earn points or cash back on a recurring expense as important as rent.
However, for a payment to be considered recurring, it must first be authorized by the merchant. You must have set up a recurring payment, which means that it will be automatically debited from your card. It’s always wise to check with the merchant or run a test to make sure that the payment will be classified as recurring.
Opting for a credit card for your recurring payments offers several advantages.
Many credit cards offer attractive rewards, such as loyalty points, cash back for every dollar spent. There are credit cards that specifically give more points for the “recurring payments” category of purchases. By centralizing your recurring payments on such a card, you maximize your earnings automatically. This can accelerate your accumulation of points or cash back, helping to finance future trips or purchases.
Grouping all your recurring payments on a single card also allows you to centralize your spending, making it easier to monitor and manage your budget. You can view all your transactions in one place, reducing the risk of forgetting a bill or making a late payment. It also allows you to better plan your monthly finances and ensure that your payments are made on time, avoiding late fees or service interruptions.
Some credit cards offer additional protection and insurance that may prove useful for your recurring payments. For example, by paying your cell phone bill with certain cards, you may benefit from coverage for repair or replacement of your device in the event of damage or theft.
Tout d’abord, parlons des meilleures cartes de crédit pour les paiements récurrents offrant des remises en argent. En tête de liste, la Carte Visa Infinite Momentum Scotia se démarque avec son généreux 4 % de remise en argent, une offre inégalée dans cette catégorie. Aucune autre carte ne fait mieux pour maximiser vos récompenses sur ces dépenses fixes.
Juste derrière, la Carte Visa Infinite* TD Remises offre un solide 3 % sur les paiements récurrents, une excellente option pour ceux qui cherchent une alternative performante.
Ensuite, on retrouve la Carte Dividendes CIBCMD Visa Infinite* et la Carte World Mastercard Remises Tangerine, toutes deux à 2 %. Si votre priorité est uniquement les paiements récurrents, la Carte World Mastercard Remises Tangerine est un choix stratégique, puisqu’elle est sans frais annuels. Bien que la Carte Dividendes CIBCMD Visa Infinite* offre de meilleures remises sur d’autres catégories, comme l’épicerie, la Carte World Mastercard Remises Tangerine peut être utilisée exclusivement pour les paiements récurrents gratuitement, tout en optimisant vos autres dépenses avec des cartes mieux adaptées selon votre stratégie d’accumulation.
Secondly, some credit cards offer rewards in the form of points, often travel points, which can be used to reimburse travel-related expenses (via an account credit). The value of these points varies depending on how you use them. For example, Scene+ points can be redeemed for any travel-related expense or even grocery purchases at a value of 1 cent per point. However, if you opt for an account credit to pay down your card balance, the value of the points will be lower. So, for a card like the Scotiabank Gold American Express® Card, which awards 3X Scene+ points on recurring spending, this can translate into a return of up to 3%, depending on how you use your points.
MBNA Rewards points can be flexibly redeemed for a variety of goods, gift cards, statement credits and more. However, to maximize their value, we recommend using them via the MBNA travel portal, where each point is worth the equivalent of 1 cent. Depending on your usage, this could earn you up to 5 cents per dollar spent with the MBNA Rewards World Elite® Mastercard®, including recurring payments for digital media, subscriptions and household utilities.
For the TD First Class Travel® Visa Infinite* Card and the National Bank World Elite Mastercard respectively, they offer 4X and 2X points on recurring payments. According to Milesopedia’s value estimates, these two cards offer a return of around 2% on this category.
Finally, the American Express Cobalt® Card which awards 3X points for streaming services (like Netflix, Disney Plus, Spotify, etc.), does not award these points for traditional recurring payments, such as internet or insurance bills. However, these points are highly sought after by travellers, as they can be transferred to a wide range of partners. In fact, while Membership Rewards points have a minimum value of 1 cent, they can reach a much higher value depending on how well you optimize their use. This means you can get a guaranteed minimum return of 3% on your streaming services or even more!
Although the Hydro-Quebec bill is a major recurring expense, it can’t be paid directly by credit card, except with Canadian Tire’s World Elite MastercardMD TriangleMD, which offers the equivalent of 1% return at no extra charge. However, services such as Plastiq or Chexy offer more advantageous payment, despite fees. With a card like the MBNA World EliteMD Rewards Mastercard, you can earn 5X points on your Hydro-Quebec payments!
Lors du choix d’une carte de crédit pour gérer vos paiements récurrents, plusieurs critères doivent être pris en compte afin de maximiser les avantages et optimiser la gestion de vos finances.
Certaines cartes de crédit proposent des taux bonifiés spécifiquement pour les paiements récurrents, tels que les abonnements mensuels ou les paiements de services publics. Ce type de carte avec multiplicateur plus élevé dans cette catégorie permet de cumuler des récompenses supplémentaires ou des remises en argent plus élevées, ce qui peut se traduire par des économies significatives ou des avantages en points pour vos voyages de vos factures récurrents.
Avant de vous engager à souscrire une carte de crédit, il est essentiel d’évaluer si les avantages et les récompenses offerts justifient les frais annuels de la carte. Certaines cartes imposent des frais annuels, mais, en contrepartie, elles offrent des récompenses substantielles. Toutefois, il est important de vous assurer que ces avantages dépassent le coût des frais.
Par exemple, si vous avez seulement douze paiements annuels de 30 $ dans cette catégorie de paiement récurrent, des récompenses à 4 % avec la Carte Visa Infinite Momentum Scotia ne vous rapportera que moins de 15 $. Dans ce cas, il pourrait être plus avantageux de choisir une carte sans frais annuels comme la Carte World Mastercard Remises Tangerine, même si elle offre un taux de remise que de 2 %, car le gain total serait plus intéressant à long terme. En effet, il revient à chacun de faire les calculs et de comparer les options disponibles pour trouver la solution la plus rentable.
Choisissez une carte de crédit dont le programme de récompenses correspond à vos objectifs et préférences. Par exemple, si vous êtes un voyageur, une carte qui offre des points pour des billets d’avion ou des hôtels pourrait être un choix judicieux. Si vous ne voyagez pas trop et que vous préférez des remises en argent, optez pour une carte qui vous permettra de récupérer un pourcentage de vos paiements récurrents.
*Pour les services de diffusion en continu seulement.
Recurring payments make up a significant part of our monthly budget. By choosing a credit card that offers rewards on these expenses, you can earn points or cash back easily. Depending on your preferences, some cards will be more advantageous than others. Take the time to analyze your spending profile and choose the card that’s right for you.
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