Desjardins: Devaluation of all Odyssey credit and cash back cards

** Update November 13, 2023: After announcing the devaluation of its Odyssey credit cards on October 26, Desjardins has also announced the devaluation of its cash back credit cards.

Desjardins has announced two major changes to its credit cards:

• Odyssey Gold Visa
• Odyssey World Elite Mastercard
• Odyssey Visa Infinite Privilege
• Cash Back Visa
• Cash Back Mastercard
• Visa Bonus
• Cash Back World Elite Mastercard

For all these Desjardins credit cards, there will be changes on two different dates:

• Change in interest rate from November 29, 2023
• New earning ceiling for BONUSDOLLARS or cash back in certain categories as of January 1, 2024

The most important change is to the BONUSDOLLARS rewards and cashback program. Holders of these cards will be subject to a maximum accumulation on certain categories in which earning potential was higher.

From November 29, 2023, the interest rate on these cards will increase from 1% to 2%, depending on the type of transaction:

• Odyssey Gold Visa
• Odyssey World Elite Mastercard
• Cash Back Visa
• Cash Back Mastercard
• Visa Bonus
• Cash Back World Elite Mastercard

The interest rate will be :

• For purchases: the rate will rise from 19.9% to 20.9%
• For cash advances and balance transfers: the rate will rise from 19.9% to 21.9%

Then, for the Odyssey Visa Infinite Privilege card, it will be :

• For purchases: the rate will rise from 10.9% to 11.9%
• For cash advances and balance transfers: the rate will rise from 10.9% to 12.9%

The change is identical for credit cards:

• Cash Back Visa discounts, Cash Back Mastercard (in cash back)
• Bonus Visa (in BONUSDOLLARS)

The accumulation of 2% on eligible purchases made in restaurants and for pre-authorized debit will no longer be unlimited. From January 1, 2024, cardholders there will be a maximum of cash back that can be earned in these 2 categories.

Between January 1 and December 31 of each year, cumulative annual spending in the “Restaurant” and “Pre-authorized debit” categories will result in the following earning.

• Expenses between $0 and $3,600: 2% earning
• $ 3,601 and over: 0.5% accumulation for the rest of the year

This $3,600 ceiling is low and represents an average of $300 per month. For example, for a person with $1,000 in monthly spending in these categories, this will make a big difference in the cash back earned.

• Before: $240 in cashback ($12,000 x 2%)
• After : $ 114 in cash back ( $3,600 x 2% + $8,400 x 0.5%) or a 53% reduction

In addition, the definition of the “Entertainment” category will change. Ticket purchases for sporting events (such as sports associations, gyms and other training facilities) will no longer be considered in this 2% cash back earning category. From January 1, 2024, they will fall to 0.5%, i.e. the “All other purchases” category.

The accumulation of 4% and 3% on eligible grocery and restaurant purchases will no longer be unlimited. As of January 1, 2024, cardholders will be able to collect a maximum amount of cash back in these 2 categories.

Therefore, between January 1 and December 31 of each year, the cumulative annual expenses part of the “Grocery” category will lead to the following earning.

• Expenses between $0 and $10,000: 4% earning
• 10,001 and over: 1% earning for the rest of the year

This $10,000 ceiling is rather low, and represents an average of about $834 per month. This is not ideal, especially when grocery store prices are increasing.

For example, for a family with monthly grocery expenses of $1,000, this would represent 12.5% less total cash back.

• Before: $480 cash back ($12,000 x 4%)
• After : $420 cash back ($10,000 x 4% + $2,000 x 1%)

Then, between January 1 and December 31 of each year, the cumulative annual spending made in the“Restaurant” category will lead to the following accumulation.

• Between $0 and $6,000: 3% earning
• $6,001 and over: 1% earnings for the rest of the year

What’s more, the definition of certain categories will change.

In the “Grocery” category, convenience store purchases will no longer count as 4% cash back. It will be cut by 3/4, to 1%.

The same goes for sports events (such as sports associations, gyms and other training facilities), which will no longer be categorized as “Entertainment”, where the cashback earning is 3%. From January 1, 2024, they will fall into the 1% category, i.e. “Any other purchase”.

The accumulation of 2% on eligible purchases made in restaurants and for pre-authorized debit will no longer be unlimited. From January 1, 2024, cardholders will be able to collect a maximum of BONUSDOLLARS in these 2 categories.

Between January 1 and December 31 of each year, cumulative annual spending in the “Restaurant” and “Pre-authorized debit” categories will result in the following earning.

• Spending between $0 and $6,000: 2% earnings
• $6,001 and over: 1% earnings for the rest of the year

This $6,000 ceiling is rather low and represents an average of $500 per month. For example, for a person with $1,000 in monthly spending in these categories, this will change the total amount of BONUSDOLLARS earned.

• Before: $240 BONUSDOLLARS cash back ($12,000 x 2%)
• After : 180 BONUSDOLLARS cash back ( $6,000 x 2% + $6,000 x 1%) or a 25% decrease

This can cause problems, especially in the pre-authorized payments category (such as a monthly or regular payment of a telecom bill, digital subscription, etc.) where expenses can be high.

In addition, the definition of the“Entertainment” category will change. Ticket purchases for sporting events (such as sports associations, gyms and other training facilities) will no longer be considered in this 2% BONUSDOLLARS earning category. From January 1, 2024, they will fall to 1%, i.e. the “All other purchases” category.

Next, the 3% and 2% accumulations on eligible grocery and restaurant purchases will no longer be unlimited. From January 1, 2024, cardholders will be able to collect a maximum of BONUSDOLLARS in these 2 categories.

Therefore, between January 1 and December 31 of each year, the cumulative annual expenses incurred in the“Grocery” category will lead to the following earning.

• Expenses between $0 and $10,000: 3% earnings
• 10,001 and over: 1.5% earnings for the rest of the year

This $10,000 ceiling is rather low, and represents an average of about $834 per month. This is not ideal, especially when grocery store prices are increasing.

For example, for a family with monthly grocery expenses of $1,000, this would represent a cash back reduction of 8.3%.

• Before: $360 cashback in BONUSDOLLARS ($12,000 x 3%)
• After : $330 cashback in BONUSDOLLARS ($10,000 x 3% + $2,000 x 1.5%)

Then, between January 1 and December 31 of each year, the cumulative annual spending made in the“Restaurant” category will lead to the following accumulation.

• Between $0 and $6,000: 2% cash back
• $ 6,001 and over: 1.5% cash back for the rest of the year

What’s more, the definition of certain categories will change.

In the “Grocery” category, convenience store purchases will no longer count as 3% BONUSDOLLARS. It will be reduced by half to 1.5%.

The same goes for sports events (such as sports associations, gyms and other training facilities), which will no longer be categorized as “Entertainment”, where the BONUSDOLLARS earning is 2%. From January 1, 2024, it will fall into the 1.5% “Any other purchase” category.

Then, the 3% earning on eligible purchases in the “Travel” category will no longer be unlimited. From January 1, 2024, cardholders will be able to collect a maximum number of BONUSDOLLARS in this category.

Therefore, between January 1 and December 31 of each year, expenses incurred in the “Travel” category will lead to the following earning rates.

• Expenses between $0 and $25,000: 3% earnings
• $25,001 and over: 1.75% earning for the rest of the year

This $10,000 ceiling represents an average spending of approximately $2,083 per month.

For someone who travels a lot and charges $3,000 a month to their Odyssey Visa Infinite Privilege credit card, the change will be :

• Before: $1,080 BONUSDOLLARS cashback ( $36,000 x 3%)
• After: $942.50 BONUSDOLLARS cashback ( $25,000 x 3% + $11,000 x 1.75%) 12.7% decrease or $137.50 less.

What’s more, the definition of certain categories will change.

In the “Grocery” category, convenience store purchases will no longer count as 3% BONUSDOLLARS. It will be reduced to 1.75%.

The same applies to sports events (such as sports associations, gyms and other training facilities), which will no longer be included in the “Entertainment” category, where the BONUSDOLLARS earning is 4%. From January 1, 2024, earning will be cut by more than half to 1.75%, the “Any other purchase” category.

Only the Flexi Visa card remains unchanged. In any case, this card doesn’t give any rewards.

The BONUSDOLLARS program is one of the most popular in Quebec.

It’s always a shame to see rewards programs being devalued. Although earnings will be reduced, the annual fee will not decrease accordingly, nor will there be any other benefits to compensate.

So you’ll need to spend more to cover the annual fee on these Desjardins credit cards.

This comes at a time when Desjardins has also increased its monthly fees for some of its bank accounts, effective October 1, 2023.

If these changes no longer suit you, we recommend that you carefully assess your needs and expenses. Take this opportunity to dust off your wallet, especially if you’ve had your credit card since you were a student!

Take a look at our Credit Card Comparator, and our suggested alternatives to find the next card that will make you happier.