Cash back credit cards are an extremely popular type of rewards card in Canada. Each cash back credit card has its own features and benefits, so you’ll want to compare the annual fee, earn rate and any additional benefits before you apply.
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Best cash back cards by category
To help you pick the right card we’ve put together a list of our favourites based on different categories.
| Best card by category | Highlights | Details | Eligibility requirements |
|---|---|---|---|
| FEATURED SimplyCash Preferred Card from American Express  GO TO SITE | Award: Best overall cash back credit card Best features: 4% back on groceries and gas, and 2% on all other purchases | Annual fee: $120 Rewards: 2% to 4% cash back Interest rates: 21.99% on purchases, 21.99% on cash advances | Income: None specified Credit score: 725 or higher |
| FEATURED CIBC Dividend Visa Infinite  GO TO SITE | Award: Honourable mention for best overall Best features: 4% back on groceries and gas, and Visa’s widespread acceptance | Annual fee: $120 Rewards: 1% to 4% cash back Interest rates: 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers | Income: $60,000 (personal) or $100,000 (household) Credit score: 725 or higher |
| FEATURED SimplyCash from American Express  GO TO SITE | Award: Best no-fee cash back card Best features: 2% back on groceries and gas, and at least 1.25% on all purchases, with no annual fee | Annual fee: $0 Rewards: 1.25% to 2% cash back Interest rates: 21.99% on purchases, 21.99% on cash advances | Income: None specified Credit score: 725 or higher |
| FEATURED Tangerine MoneyBack Card  GO TO SITE | Award: Honourable mention Best features: 2% back in up to 3 bonus categories (choose your own from 10 options), and get $100 cash bonus upon approval with Ratehub.ca | Annual fee: $0 Rewards: 0.5% to 2% cash back Interest rates: 20.95% on purchases, 22.95% on cash advances, 22.95% on balance transfers | Income: $12,000 (personal or household) Credit score: 660 or higher |
| FEATURED Rogers Red World Elite Mastercard  GO TO SITE | Award: Best flat-rate cash back card Best features: A flat 1.5% back on all your Canadian purchases (or 2% back for Rogers, Fido and Shaw customers), plus enough back on all U.S.-dollar purchases to cover forex fees | Annual fee: $0 Rewards: 1.5% to 3% cash back Interest rates: 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers | Income: $80,000 Credit score: 725 or higher |
| FEATURED BMO CashBack Mastercard for students  GO TO SITE | Award: Best cash back credit card for students Best features: 3% back on groceries and redeem rewards at any time | Annual fee: $0 Rewards: 0.5% to 3% cash back Interest rates: 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers | Income: None specified Credit score: None specified |
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.
Best overall cash back credit card
At a glance: This cash back card offers impressive earn rates on grocery and gas purchases, two of the most-used spending categories. Crucially, it also has the highest base earn rate in Canada, at 2%. Combined with solid insurance coverage, access to Amex benefits and free supplementary cards, this is hands down one of the best credit cards in Canada.
Amex SimplyCash Preferred
Annual fee: $120
- 4% cash back on eligible gas and grocery purchases
- 2% cash back on everything else
Welcome offer: Earn a bonus 10% cash back on all purchases for your first three months (up to $2,000 in purchases) and a $50 statement credit when you make a purchase in month 13 (total value of up to $250).
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
Pros
- Generous earn rates: Get 4% cash back on gas and groceries and a strong 2% cash back on all other purchases.
- No income requirement: This cash back card is super accessible.
- Exclusive Amex perks: Includes dining and retail experiences, Amex Front of the Line event access, and tailored monthly Amex Offers.
- Free supplementary cards: Maximize the card’s cash back potential at no added cost.
Cons
- Limited acceptance: Amex is not as widely accepted as Visa or Mastercard, especially at certain stores like Loblaw banners.
- Yearly redemptions: Cash back is issued as a statement credit once a year in September.
Honourable mention
At a glance: Like the SimplyCash Preferred Card, this one comes with some of the best cash back rates on groceries and gas. And there’s no limit on the total amount of cash rewards you can earn.
CIBC Dividend Visa Infinite
Annual fee: $120 (rebated first year)
- 4% cash back on eligible gas, EV charging and grocery purchases
- 2% on dining, daily transit and recurring payments
- 1% on everything else
Welcome offer: Earn 10% cash back (up to $300 in cash back on your first four statements), plus a first-year annual fee rebate. Offer not available to Quebec residents.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | Personal income of $60,000 or household income of $100,000 |
| Credit score | 725 or higher |
Pros
- Broad spending categories: Enjoy boosted rewards on more purchases, including transportation, which includes taxis, ride sharing and public transit.
- Fuel discounts: Link your card with Journie Rewards and save 3 cents per litre at Pioneer, Fas Gas, Ultramar and Chevron gas stations. Get an additional 7 cents off per litre every time you reach 300 Journie Rewards points.
- Flexible redemptions: Get your cash back whenever you need it.
Cons
- Less competitive base rate: 1% is pretty standard but lower than some other cards, like the SimplyCash Preferred Card with a 2% base rate.
- High income requirement: It may be more difficult to qualify for this card than some others.
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Best no-fee cash back card
At a glance: Unlike many no-fee cards, the SimplyCash Card doesn’t skimp on the base rate. At 1.25%, it’s among the highest in this category so you’ll have more earning power. Accelerated rates of 2% back on groceries and gas make this a strong contender in the cash back category.
SimplyCash from American Express
Annual fee: $0
- 2% cash back on gas and groceries
- 1.25% cash back on all other purchases
Welcome offer: Earn a bonus 5% cash back on your first $2,000 in purchases during your first three months (up to $100 in bonus cash back).
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
Pros
- High base earn rate: Earn unlimited 1.25% cash back on all purchases, significantly higher than the typical 0.5% for no-fee cards.
Cons
- Limited acceptance: American Express is less widely accepted in Canada than Visa or Mastercard.
- Yearly redemptions: Rewards are applied as a statement credit once a year.
- Earning cap: The limit of up to $300 in cash back on groceries and gas is relatively low for bonus categories, but the generous base earn rate makes up for it.
Honourable mention
At a glance: The Tangerine Money-Back Credit Card takes a slightly different approach to providing a no-fee cash back card by allowing you to pick up to three bonus categories, earning at 2% each, from a possible list of ten. Plus, you can change your categories as needed, with 90 days’ notice.
Tangerine Money-Back Credit Card
Annual fee: $0
- 2% in up to 3 categories of your choice (including groceries, gas and dining)
- 0.5% cash back on everything else
Welcome offer: Earn an extra 10% cash back during the first two months (up to $100 in cash back).
Card details
| Interest rates | 20.95% on purchases, 22.95% on cash advances and 22.95% on balance transfers |
| Income required | Personal or household income of $12,000 |
| Credit score | 660 or higher |
Pros
- Customizable bonus categories: Pick two bonus categories for unlimited 2% cash back, and get a third 2% category by automatically depositing your earnings into a Tangerine account. Change your categories any time with 90 days’ notice.
- Free supplementary cards: Maximize earnings at no added cost.
Cons
- Limited insurance offerings: Only the two most basic coverages, purchase assurance and extended warranty, are included.
- Monthly redemptions: Rewards are paid out once a month.
- Income requirement: Although the requirement is low, some great cash back cards have no requirement at all.
Best flat-rate cash back card
At a glance: If you want the simplicity of a consistent and high 1.5% return on all your Canadian purchases, without worrying about bonus categories or spending limits, this no-fee card is a good option. Plus, as a World Elite Mastercard, you’ll get access to extras like Mastercard Travel Pass Provided By DragonPass, which gets you access to airport lounges.
Rogers Red World Elite Mastercard
Annual fee: $0
- 3% cash back on all U.S. dollar purchases
- 1.5% cash back on all purchases (plus, 0.5% more for Rogers, Fido or Shaw customers)
Welcome offer: This card does not have a welcome bonus at this time.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | $80,000 per year |
| Credit score | 725 or higher |
Pros
- Solid rewards: Earn 1.5% on all purchases in Canada. And as a Mastercard, this is one of the best cards to use at Costco, which doesn’t accept Visa or American Express.
- Rogers, Fido and Shaw customers earn more: Get an additional 0.5% back on all purchases, plus a 1.5x redemption bonus when redeeming for Rogers, Fido or Shaw purchases—that’s equal to 3% back.
- Great for U.S. shopping: Earn 3% cash back on purchases in U.S. dollars, offsetting the typical 2.5% foreign transaction fee.
- No annual fee: This is uncommon for World Elite Mastercards in Canada.
- Flexible redemptions: Redeem rewards against purchases on your card for as little as $10.
Cons
- High income requirement: As a World Elite Mastercard, the eligibility requirements put it out of reach for some.
- Annual spending requirement: Spend $15,000 annually to maintain eligibility or you may be switched to another Rogers Bank credit card.
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Best cash back credit card for students
At a glance: With a 3% return on groceries, flexible redemptions and no annual fee, our pick for the best student credit card for cash back is the BMO CashBack Mastercard. An additional boosted spending category of 1% on recurring bills offers more help to cash-strapped students.
BMO CashBack Mastercard
Annual fee: $0
- 3% cash back on groceries
- 1% on recurring bills
- 0.5% on everything else
Welcome offer: Earn up to 5% cash back in your first 3 months. Conditions apply.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | None specified |
| Credit score | None specified |
Pros
- High grocery earnings: 3% cash back is the highest return on groceries for a no-fee credit card in Canada.
- Flexible redemptions: Redeem cash back when you need it (with a $25 minimum) as a statement credit or deposit it into your BMO chequing, savings or InvestorLine account.
Cons
- Spending caps: Rewards are only earned on the first $500 spent each month in each bonus category. Although it’s not too low, it’s still more restrictive than other cards.
How we determine the best cash back cards
Our editors apply their credit card expertise and knowledge of Canadians’ financial goals to come up with selection criteria that matches the needs of the intended cardholder. With cash back cards, what matters most is generally the return on your spending—the best cards have high earn rates, across multiple categories, with few or unnoticeable caps on spending. Beyond that, we consider annual fees, eligibility criteria and other factors, specific to the category. The addition of links from affiliate partners has no bearing on the results. Read more about our selection process and about how MoneySense makes money.
How to make the most of your cash back credit card
Never carry a balance
The payoff with a cash back credit card is the 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 bank 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 $0.02 on every $1—no complicated math 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” because it can be used for anything you want, such as 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 there is, 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 it 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.
Other ways to earn cash-back rewards
Credit cards aren’t the only way to earn cash-back rewards. Consider a cash back debit card. It’s a way using your own money and not falling to risk of owing any interest or not paying the balance off on time—which could negate some of your rewards. Another hack: Use your cash back bank account and transfer money to a prepaid credit card. That’s perfect for travel or online shopping. Check your banking app to see if that's an option with the cash-back savings account.
Video: 5 reasons to swap your debit card for a prepaid cash back cardMore of Canada’s 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
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