Canada’s best cash back credit cards 2020

Best flat-rate cash back card

The SimplyCash Preferred Card from American Express*

The SimplyCash Preferred Card from American Express is ideal for if you spend a lot on your credit card and don’t want to deal with different spending categories. You’ll earn 2% cash back on all your purchases, regardless of whether it’s gas, groceries or plane tickets.

Although the card has an annual fee of $99, you get an increased earn rate of 5% cash back (up to $300) on all purchases for the first six months of card membership.

• Annual fee: $99
• Welcome bonus: 5% cash back on all purchases for the first 6 months (up to $300 cash back)
• Earn rate: 2% cash back on all purchases
• Additional benefits: American Express Invites; comprehensive car rental and travel insurance; referral bonus, free authorize users

Click here for more details about the SimplyCash Preferred Card*

Best no fee cash back card

Rogers World Elite Mastercard

The Rogers World Elite Mastercard often doesn’t get as much love as it deserves. With this card, you earn 1.5% cash back on all your purchases. Best of all, you can redeem that cash back towards most of your purchases made with your card within the last 90 days.

The 3% cash back on purchases made in U.S. currency effectively means you earn 0.5% in cash back on purchases once you factor in the 2.5% foreign exchange fee. In other words, this is a card for online shoppers and U.S. travellers to consider. The one major caveat (aside from its $80,000 annual income requirement): you must charge at least $15,000 in purchases on the card every 12 months to keep it, otherwise you’ll be downgraded to the entry-level Rogers Platinum Card that earns a less impressive 1% cash back on everything.

• Welcome bonus: $25 in cash back rewards when you make your first card purchase
• Earn rate: 3% cash back on purchases in U.S. currency; 1.5% on all other purchases
• Income requirement: $80,000 (personal) or $150,000 (household)
• Additional benefits: Travel insurance; cash back on foreign purchases

Best cash back credit cards for groceries and gas

CIBC Dividend Visa Infinite Card

The CIBC Dividend Visa Infinite provides a 4% earn rate on gas and grocery purchases. If you’re a Telus customer and a Tim Hortons regular, you’ll like the fact that those card charges earn you 2%. Plus, cardholders earn 1% on everything else. 

Out-of-province medical insurance, auto rental collision and loss/damage protection fill out the Dividend Visa’s offering, and secures its spot as one of the most compelling cash back cards from a big bank.

• Annual fee: $99 (the first year is waived for new applicants)
• Earn rate: 4% cash back on groceries and gas; 2% back on spends at Tim Hortons and Telus; 1% on everything else
• Income requirement: $60,000 (personal) or $100,000 (household)
• Additional benefits: Travel insurance; concierge service; access to Visa Infinite Dining and Wine Country Series

Meridian Visa Infinite Cash Back

For many Canadians, the largest and most regular expenses are gas and groceries. For them, finding a cash back card that rewards well on these spends is just good money management. With 4% back in both these categories, the Meridian Visa Infinite Cash Back card tops the list. You’ll receive 2% on drug store purchases and recurring bills, and the 1% base earn rate on all other purchases sweetens the deal. 

The Meridian card also offers a few extra features like mobile device insurance and up to 48 days of travel insurance.

• Annual fee: $99 (first year free)
• Earn rate: 4% cash back on gas and groceries; 2% on drug stores and recurring bills; 1% on everything else
• Income requirement: $60,000 (personal) or $100,000 (household)
• Additional benefits: Mobile device insurance; travel insurance; concierge service; Visa Infinite Dining and Wine Country Series

Best cash back credit card for groceries and bills

Scotia Momentum Visa Infinite

The Scotia Momentum Visa Infinite is a strong cash back card that offers competitive perks and rewards and comes with an excellent welcome offer. Cardholders can earn an impressive 4% cash back on groceries, recurring bills and subscription services—a structure that may well suit large families or households. Transportation expenses—gas and public transit—earn at 2%, and everything else comes in at 1%. Note that there is a $25,000 cap on qualifying spends in each category; any purchases exceeding that amount will earn the base 1%. There’s also $1,000 in mobile device insurance and $1,500 per person in trip cancellation protection.

Since this is a Visa Infinite card, there is a minimum annual income of $60,000 or a minimum household income of $100,000 requirement to be approved for the card. The annual fee—now $120—will be waived for new applicants for the first year.

• Annual fee: $120 (first year free)
• Earn rate: 4% cash back on groceries, recurring bills and subscription services; 2% on public transit and gas; and 1% on everything else
• Income requirement: $60,000 (personal) or $100,000 (household)
• Additional benefits: Mobile device insurance; travel insurance; concierge service; Visa Infinite Dining and Wine Country Series

Honourable mentions

TD Cash Back Visa Infinite Card*

With an annual fee of $120 (which is waived for the first year for you and one other cardholder) and an earn rate of 3% cash back on gas, grocery and recurring bill payments, the TD Cash Back Visa Infinite Card is worth considering seriously.

The welcome bonus of 10% on all purchases is great, as is the included TD Auto Club membership which is basically a roadside assistance package. TD Auto Club is comparable to CAA and covers you for things such as a dead battery, tire changes, gas delivery, $200 in accident towing, $200 in emergency transportation and more.

When it comes to travel insurance, you only get travel medical coverage and delayed and lost baggage insurance which is not very comprehensive, however the welcome offer and the TD Auto Club membership are excellent perks in their own right.

• Annual fee: $120 (free for first year)
• Welcome bonus: 10% cash back on all purchases for the first 3 months on the initial $2,000 in purchases
• Earn rate: 3% cash back on gas, grocery and recurring bill payments; 1% on all other purchases
• Income requirement: $60,000 (personal) or $100,000 (household)
• Additional benefits: TD Auto Club membership; some medical insurance

Click here for more details about the TD Cash Back Visa Infinite Card*

BMO CashBack Mastercard*

Recent changes to this no-fee card, often recommended for students, have made it more interesting to a wider range of value-seekers. Cardholders now earn 3% cash back on groceries, 1% on recurring bill payments and an unlimited 0.5% on everything else. And the welcome bonus—5% back for the first three months—can rack up to $100.

• Annual fee: $0
• Earn rate: 3% cash back on groceries; 1% on recurring bills; 0.5% on everything else
• Welcome bonus: 5% cash back for the first 3 months; introductory 1.99% interest rate on balance transfers for 9 months
• Additional perks: Purchase protection and extended warranty; discounts at Avis and National Car Rentals and Cirque du Soleil; free to add authorized cardholders
• Income required: None specified

Click here for more details about the BMO CashBack Mastercard*

How to make the most of your cash back credit card

Never carry a balance

The payoff with a cash back credit card is cash—a reward that is easily cancelled out by the penalties and interest accrued if you carry a balance. Like all rewards credit cards, cash back cards tend to carry annual interest rates at the higher end, usually around 19.99%. At this rate, unpaid debt will rapidly accumulate interest charges that eat up any gains you’ve made. As long as you pay off your balance in full every month, you’ll avoid this pitfall, but if you find you regularly carry a balance, you might consider a low interest credit card instead.

Compare your cash back card options

It’s easy to go with the cash back card offered by your current bank, but that’s not always the best choice. Take the time to compare your options to identify the card that delivers the highest return based on your particular spending habits and lifestyle. Remember: you don’t need to open a chequing or savings account with a bank in order to get a credit card, and you can pay your bill electronically from any account.

Don’t dismiss cash back cards with an annual fee

While it might seem counterintuitive to pay an annual fee on a cash back card, be aware that cards with a fee generally deliver better rewards and perks. If these perks are worth more than the annual fee (and if the card fits your spending habits in other ways), you might choose a cash back card with a fee.

Consider using multiple credit cards

Using too many credit cards at once is generally frowned upon, as this can be a sign of insolvency. However, a strong credit-card strategy can involve pairing cards to maximize benefits. For example, the TD Cash Back Visa Infinite offers 3% back on gas, groceries and recurring bills, but only 1% on everything else, while the Tangerine Money Back Card has no annual fee and offers 2% back in up to three spending categories of your choice. Strategically it would make sense to select drug stores, parking/public transit and restaurants to fill in the gaps on everyday spends without having to pay more for the better earn rate.

Add your partner as an authorized user

Adding an authorized user, typically your partner, to your account can be a cost-effective (or even free!) way to boost your earnings on a premium card. With this setup, both cardholders accrue rewards or cash back on their spends without paying double the annual fees. If, for example, your card has a $120 annual fee, you might be able to get an additional authorized user for as little as $30 more. Some premium cards, like the SimplyCash Preferred from American Express, even let you add authorized users for free. It does bear mentioning that this requires some thought as only the primary cardholder will be responsible for paying off the balance—not the authorized users.

Cash back versus travel credit cards

When choosing a rewards credit card, many Canadians find themselves torn between two types: cash back and travel. This shouldn’t come as a surprise—both are popular and have valuable strengths. Here we break down both card types to help you decide which card is right for you.

Simplicity

It’s important to be able to understand your credit card rewards program, and cash back cards are about as clear as you can get. If you earn 2% back, you absolutely know you’re going to receive two cents on every dollar—no complicated math is required. With travel rewards credit cards, there are sometimes different earn rates and redemption values. These variables can affect how or when you want to collect or redeem. 

• Bottom line: If you’re invested in earning travel rewards, acquainting yourself with your card’s program may be the best way to go, otherwise you can’t top cash when it comes to simplicity.

Rewards and bonus categories

How you earn can be just as important as what you earn. Travel rewards credit cards usually offer a very wide breadth of spending categories to earn in, while cash back cards can be more restrictive.

Aside from a few exceptions, the majority of cash back credit cards offer the same limited selection of bonus categories (namely gas, groceries and utility bills). In comparison, travel credit cards have a far larger selection of bonus categories (like restaurants, hotel stays, flights, Uber rides and public transit, in addition to the groceries and gas), which means you can potentially earn more points on more types of purchases. 

• Bottom line: You’re likely going to earn more Points or Miles, in more spending categories, with a travel rewards card than cash with a cash back card. 

Flexibility

The reason they say cash is king is because it can be used for anything you want, such as your everyday spending on gas and groceries. In contrast, the points you earn on travel cards are usually geared towards travel rewards and offer the best value when redeemed for flights and hotel stays.

• Bottom line: Cash is the most flexible reward out there, but if you’re looking to save on flights and hotel stays, a travel card can offer considerably more value.

Welcome bonuses

Typically, travel rewards cards can offer hundreds of dollars in rewards as a sign-on bonus, while cash back cards usually offer an increased earning percentage for a short introductory time. One thing to note is that bonuses on cash back cards are usually easier to earn—while travel rewards cards usually are worth more but have stricter spending requirements. 

For example, with the BMO World Elite Mastercard, you can get 3,000 bonus Points ($240 value) only after you spend $3,000 on the card within your first three months. In contrast, the BMO CashBack World Elite’s welcome offer lets you earn 5% cash back right out of the gate on all your purchases for the first three months but maxes out at just $200. 

• Bottom line: The welcome bonuses on cash back cards are typically worth less but are easier to get than the offers available on travel cards.  

Side perks

Perks are little extras available to you as a cardholder. These are usually things like airport lounge access, longer and more comprehensive travel insurance coverage, or refunds on certain expenses like a Nexus entry fee. As you can see, perks are very often tied directly to travel, so it should come as no surprise that you’re more likely to find them on travel rewards cards than on cash back cards

• Bottom line: In many ways, cash is the perk on a cash back card. If you’re looking for little extras, your best bet is a travel rewards card.

More on the best credit cards

• Best credit cards in Canada
• Best rewards credit cards
• Best travel credit cards
• Best no fee credit cards
• Best low interest credit cards
• Best balance transfer credit cards
• Best student credit cards

Our methodology

For the best cash back credit cards 2020 ranking, MoneySense tapped into Ratehub.ca’s‡ credit card tool and calculated the numbers for both fee and no fee cash back rewards cards based on $2,000 in monthly spending. We used the following scenario: $500 on groceries, $200 on gas, $200 on restaurants, $125 on bill payments, $175 on travel, $225 on entertainment, $75 on pharmacy purchases and $500 on everything else.

The end game was a magic number—that is, the annual net reward in dollar terms to identify the top cash back cards for each type of spender, along with an honorary mention. Our methodology also took into consideration other factors, including limited-time accelerated earn rates, the range of spending bonus categories, annual fee waivers, purchase protections and travel insurance perks.

‡MoneySense.ca and Ratehub.ca are both owned by parent company Ratehub Inc. We may be partnered with some financial institutions, but this does not influence the “Canada’s Best Credit Card” rankings. You can read more about this in our Editorial Code of Conduct.