Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information about any information on any advertiser product, please visit their website. We receive compensation from some financial institutions listed on this site. Although we are compensated for each approved financial product through our website’s affiliate links, our research and content are based on an objective analysis. †Terms and conditions apply.
Recurring payments are part of everyday life. Subscriptions, telecommunications, insurance, and monthly bills recur, month after month. Yet, these expenses are often paid without a strategy, even though they can easily generate cash back or reward points.
By choosing a suitable credit card, your recurring payments become a source of rewards, without changing your spending habits.
In this guide, we review the best credit cards for recurring payments and simple strategies to better optimize them.
A recurring payment is an automatic debit made at regular intervals, such as monthly or annually.
It applies to several common expenses, including subscriptions to platforms like Netflix or Disney+, gym memberships, telecommunication services, internet, and certain insurance policies.
These payments are often called pre-authorized payments, as they require you to authorize the merchant to debit your card on specific dates, without your intervention.
Not all insurers accept monthly premium payments by credit card. Often, only the annual option is offered, while the monthly plan requires pre-authorized debits. However, some providers, such as Sonnet or Manulife, do allow monthly payments by card.
Rent can also become a recurring payment. Thanks to services like Chexy, it is possible to pay rent, certain bills, or even taxes by credit card, for a fee. We will return to this later in the article.
To be recognized as a recurring payment, the debit must be authorized in advance by the merchant. It is recommended to verify or perform a test if necessary.
Using a credit card for your recurring payments allows you to accumulate points or cash back on essential expenses.
Some cards offer boosted rates for the recurring payments category. At the top of the list is the Scotia Momentum Visa Infinite Card, which stands out with 4% cash back on eligible recurring payments. By consolidating these payments on a suitable card, rewards accumulate automatically.
Centralizing your recurring payments on a single card also simplifies budget management. You track all your expenses in one place and reduce the risk of oversight.
Finally, some cards include useful insurance. For example, paying your mobile phone bill can activate device repair or replacement protection.
Some credit cards clearly stand out for recurring payments, especially for cash back.
At the top of the list, the Scotia Momentum Visa Infinite Card offers 4% cash back on eligible recurring payments, a rate difficult to match.
The TD Cash Back Visa Infinite* Card follows closely with 3%, making it an excellent high-performing alternative.
Other options offer 2%, including the CIBC Dividend® Visa Infinite* Card and the Tangerine® Money-Back World Mastercard®*.
If your primary goal is solely recurring payments, the Tangerine® Money-Back World Mastercard®* is particularly attractive, as it has no annual fee. It can be used exclusively for these expenses, while reserving other cards for more lucrative categories according to your strategy.
Some cards offer rewards in the form of points, often travel-related. Their value varies depending on how you redeem them.
Scene+ points can be used to pay for travel expenses or even groceries, at a value of approximately 1 cent per point. However, a statement credit reduces this value. With the Scotia Gold American Express Card, the 3X Scene+ points on recurring payments can represent a return of up to 3%, depending on how the points are used.
MBNA Rewards points are flexible, but their maximum value is achieved through the MBNA travel portal, where each point is worth 1 cent. Thus, the MBNA Rewards® World Elite® Mastercard® can offer a return of up to 5% on certain recurring payments, such as digital subscriptions and household utilities.
The TD First Class Travel® Visa Infinite* Card and the National Bank World Elite Mastercard offer 4X and 2X points respectively on recurring payments. According to Milesopedia, this equates to a return of approximately 2%.
Finally, the American Express Cobalt® Card grants 3X points on streaming services, such as Netflix, Disney Plus, or Spotify. These points do not apply to traditional recurring payments, but their value can exceed 1 cent when transferred to partners, for a guaranteed minimum return of 3% on these subscriptions.
Hydro-Quebec bills are generally not payable by card, except with the Canadian Tire Triangle® World Elite Mastercard® (approximately 1% return). Services like Plastiq or Chexy allow you to pay it by card, for a fee. With the MBNA Rewards® World Elite® Mastercard®, you can accumulate up to 5X points.
To choose a credit card suitable for recurring payments, you must evaluate several criteria to maximize rewards and facilitate the management of your finances.
Some cards offer boosted rates on recurring payments, such as monthly subscriptions or utilities. These cards allow you to accumulate more points or cash back, which can generate savings or benefits for your travels.
Before subscribing, compare the annual fees and the rewards offered. Cards with high fees can be worthwhile if the benefits outweigh the cost, but this is not always the case.
For example, twelve annual payments of $30 with the Scotia Momentum Visa Infinite Card at 4% would yield less than $15. In this case, a Tangerine® Money-Back World Mastercard®* with no annual fee and offering 2% could be more profitable in the long run.
Finally, choose a card whose rewards program aligns with your goals. Travelers may prefer cards that offer points for flights or hotels. Cash back enthusiasts can opt for a card offering a percentage on recurring payments.
Chexy is a Canadian platform that allows you to pay certain recurring expenses by credit card, even when they do not directly accept it.
The service acts as an intermediary. You pay with your credit card, and Chexy then makes the payment to the payee, such as a landlord or a financial institution.
This approach allows you to accumulate rewards on significant payments, such as rent and taxes, which are usually excluded.
Use code MILES15 to get $15 off your first recurring payment with Chexy, when creating your account. This code does not apply to one-time payments and is valid only on the first recurring payment.
Chexy allows you to pay for, among other things:
Terms and conditions may vary depending on the type of payment and the credit card used. It is therefore important to fully understand how it works before proceeding.
Chexy charges service fees on each transaction. These fees must be compared to the actual value of the points or cash back earned.
Thus, Chexy becomes particularly interesting in certain specific contexts:
To delve deeper into the topic, we have written several detailed guides, including a complete guide on Chexy, strategies for paying your taxes, as well as articles on rent, tuition fees, and use by small businesses.
Recurring payments represent a simple opportunity to optimize your personal finances, without additional daily effort. With the right credit card, your bills and subscriptions can generate rewards throughout the year.
Solutions like Chexy also expand possibilities, by allowing you to pay certain expenses otherwise inaccessible by credit card.
Ultimately, the key is to compare cards, understand the terms and conditions, and choose a strategy tailored to your profile and recurring expenses.
A recurring payment is an automatic payment charged regularly to a credit card, such as a subscription or a monthly bill.
No. Some cards exclude specific categories. You must check the specific terms and conditions of each credit card.
Yes, in most cases. However, the exact processing depends on the card issuer and the transaction category.
Yes. However, centralizing your recurring payments facilitates tracking and optimizing rewards.
Rarely. Most landlords do not directly accept credit cards, hence the benefit of a platform like Chexy.
Savings are here (if you don’t see the sign-up form, please click here):
You can change your preferences or opt out at any time by clicking on one of the hyperlinks available at the bottom of each newsletter.
If you are already a subscriber and would like to unsubscribe, you can click on the link at the bottom of any of our e-mails.
