Cash back credit cards are trendy in Canada. Find out why you should have one and the best offers right now.
Why You Should Use a Cash Back Credit Card?
Most banks in Canada issue cash back credit cards. Easy to use, these credit cards give you cash back for each purchase you made: either instantly, monthly, or yearly.
These credit cards are for those:
- Who think that “money is king, “more tangible than points whose value can fluctuate, often downwards;
- Who are not, currently, looking for a welcome bonus for another card;
- Who have a lot of expenses in a specific store (office supplies, etc.) or looking for the best-earning rate anywhere.
You must know that cash back credit cards are the majority of credit cards issued in Canada! Far ahead of all other types of credit cards (travel points, airline or hotel co-branded credit cards).
The Best Cash Back Credit cards for consumers
These 5 credit cards are excellent cash back credit cards in Canada.
SimplyCash Preferred from American Express
The SimplyCash™ Preferred from American Express is the only credit card in Canada offering 2% cash back on all purchases. And there’s no limit to how much cash back you can earn!
Besides, with this welcome offer, you earn 10% cashback in your first 4 months (up to $400 cash back).
This Card stands out for its premium insurance: Car Rental Theft and Damage, $100,000 travel accident, Emergency medical insurance (outside the province or country), Lost or Stolen Baggage, Flight delay insurance and misdirected baggage, Hotel or motel burglary, Purchase Protection® Plan, Buyer’s Assurance® Protection Plan.
Would you like a cashback credit card with no-annual-fee and a high earning rate on all your purchases? Here’s an option for you: the SimplyCash™ from American Express.
With this Card, you earn a 1.25% cashback on all purchases.
For the first 6 months, you can earn 4% cash back with the SimplyCash™ from American Express (up to $200 cash back).
And you’ll get insurance with it: $100,000 travel accident insurance, Purchase Protection® Plan, Buyer’s Assurance® Protection Plan.
American Express Cobalt® Card
The American Express Cobalt™ Card is the best credit card from American Express, whether you want points for travel or cashback.
The welcome bonus is distributed monthly for the first 12 months. You earn 2,500 Membership Rewards points for every $500 in purchases charged to your card during the month (whether in the 1X, 2X, 3X or 5X category). That’s up to 30,000 Membership Rewards points.
Plus, you can earn a Welcome Bonus of 20,000 Membership Rewards points when you spend a total of $3,000 in purchases on your Card in your first 3 months of Cardmembership. That’s up to 50,000 Membership Rewards points as a welcome bonus!
You can easily use these points as statement credits for everyday or travel purchases. The value is the same for both: 1,000 points = $10. Or, you can transfer your points to Aeroplan, Marriott Bonvoy, or Hilton Honors.
With the American Express Cobalt™ Card, you can earn between 1 and 5 points per dollar:
|Category||Points per dollar|
|Restaurants and bars||5|
|Gas & Transit||2|
This is a 1 to 5% return on all these purchases.
In addition, this card provides excellent insurance coverage: car rental theft and damage, baggage delay, lost or stolen baggage, flight delay, $250,000 travel accident, hotel or motel burglary, Mobile Device Insurance, Extended Warranty, Purchase Protection Insurance.
Find out in this article how to optimize the welcome bonus to get 87,500 points with your current spending.
CIBC Dividend® Visa Infinite* Card
The CIBC Dividend® Visa Infinite* Card is one of the best Visa credit cards with cash back in Canada. The minimum annual income required for this card is $60,000 (personal) or $100,000 (household).
With this Card, you earn:
- 4% cash back on eligible gas and groceries purchases
- 2% cash back on eligible transportation, dining purchases and recurring payments
- 1% on all other purchases
Currently, you will get 10% cash back for the first 4 statements on total purchases of up to $2,000. And you’ll get a first-year annual fee rebate!
And this card has comprehensive insurance:
- Auto Rental Collision/Loss Damage Insurance
- $500,000 Common Carrier Accident Insurance
- Flight Delay and Baggage Insurance
- Trip Interruption Insurance
- Out-of-Province Emergency Travel Medical Insurance
- Purchase Security and Extended Protection Insurance
BMO® CashBack® World Elite®* Mastercard®*
The BMO® CashBack® World Elite®* Mastercard®* is one of the best Cash Back Mastercard in Canada.
Currently, you will get 10% cash back on all your purchases during the first 3 months for a limited time. Besides, the $120 annual fee is waived in the first year!
With the BMO® CashBack® World Elite®* Mastercard®*, you earn between 2% and 5% cash back on many spending categories:
- 5% on grocery purchases (on the first $500 you spend monthly)
- 4% on transit (on the first $300 you spend monthly)
- 3% on gas and electric vehicle charging (on the first $300 you spend monthly)
- 2% on recurring bill payments (on the first $500 you spend monthly)
Everywhere else, you’ll earn 1% cash back, including at Costco.
Scotia Momentum® VISA Infinite* card
Currently, there is no annual fee in the first year, including on additional cards.
With the Scotia Momentum® VISA Infinite* card, you earn:
- 4% cash back on groceries and recurring bills
- 2% cash back on gas and transit
- 1% cash back on everything else
And this card has outstanding insurance.
BMO® CashBack® Mastercard®*
The BMO® CashBack® Mastercard®* is a cash back credit card with no annual fee.
With the BMO® CashBack® Mastercard®*, you can earn 5% cash back for the first 3 months. It’s a maximum welcome bonus of $100.
Then you get:
- 3% cash back on grocery purchases, including at Walmart Supercenters
- 1% cash back on recurring bill payments
Finally, you can also get a 1.99% introductory interest rate on Balance Transfers for 9 months.
The Best Cash Back Credit cards for Businesses
American Express Business Edge™ Card
The American Express Business Edge™ Card is a great credit card for small businesses in Canada. With a low annual fee of only $99, this American Express credit card offers up to 57,000 Membership Rewards points in the first year, a $570 value.
You can also transfer your points to airline (Aeroplan, British Airways Executive Club, etc.) and hotel (Marriott Bonvoy, Hilton Honors) partners.
Here are the details for the welcome bonus:
- You earn 45,000 Welcome Bonus points when you charge $5,000 in purchases to your Card in your first three months
- You earn 1,000 Membership Rewards points for each monthly billing period in which you spend $3,000 in purchases on your Card. This could add up to 12,000 points in a year.
With this Card, you can get 3x the points on purchases:
- Office supplies (Staples, etc.)
- Electronic (Apple, Dell, etc.)
- Eats & Drinks
Besides, you can add up to 99 supplementary cards at no cost.
BMO CashBack® Business Mastercard®*
The BMO CashBack® Business Mastercard®* is one of the best Cash Back business Mastercard credit cards in Canada.
You can get 6% cash back for four months on:
- office supplies
- cell phone/internet payments
After that, you’ll get 1.5% on these purchases and 1.75% at Shell.
Cash back credit cards probably won’t offer you a business-class seat to travel around the world.
On the other hand, these cards will offer you flexibility: you will be able to use this cash as you wish!