The 12 Best Cash Back Credit Cards in Canada

Imagine a world where your wallet gets thicker each time you swipe your credit card. This isn’t just a daydream; it’s the ingenious reality of cash back credit cards. Thanks to these cards, you don’t need to figure out the value of the points you earn nor the best way to redeem them; you get credited an amount every month based on how much money you spend, and you can spend it however you like. Without further ado, let’s dive into the best cash back cards available in Canada in 2024.

Getting Cash Back with a Secured Credit Card

Customized Bonus Rewards Categories

Gas and Electric Vehicle Charging

BMO Cashback World Elite Mastercard Credit Card: Best Overall

(Offer productType=”CreditCard” api_id=”5f31593392ec22115033b2b6″)

We reviewed the BMO CashBack World Elite card and were impressed with its offer. The BMO CashBack World Elite Mastercard offers an excellent cash back rate on purchases: 5% on groceries, 4% on transportation, 3% on gas, 2% on recurring bill payments and 1% on all other purchases. The best part is that you can redeem your cash back as soon as you accumulate $1! A great thing is that you can enjoy the flexibility to put your cash back where you want: your statement credit, BMO chequing or savings account or InvestorLine.

As a benefit, cardholders benefit from BMO World EliteTravel Insurance coverage. This includes collision damage waiver benefits on rental cars, unexpected return home benefits, 8 days emergency medical benefits up to $2 million. With this card, you save up to 25% off rentals at participating National Car Rental and Alamo Rent A Car locations. You also have access to roadside assistance including battery boosts, flat-tire change, lockout service and towing.

For purchase protection, there is purchase insurance and an extended warranty. The advantage with this card is that it covers damage and loss of purchases for 180 days. The retail warranties are doubled to a maximum of two years.

Finally, as with many BMO credit cards, cardholders benefit from attractive discounts to several events and shows. These offers even apply to Cirque du Soleil shows!
The annual fee for this card is $120, and here is also a $50 annual fee for each additional card. The minimum annual income to obtain the BMO CashBack World Elite Mastercard is $100,000 per person, or $150,000 per household. So, this is not a card for everyone. Finally, the minimum credit limit is $5,000.

(Offer productType=”CreditCard” api_id=”5f298ccf68c746304bee1258″)

The BMO CashBack Mastercard is particularly interesting because it is easy to use and it is possible to take advantage of the cash back rate on all purchases made with the card. With 3% cash back, it’s a great card for groceries. You also earn 1% on recurring bill payments and 0.5% on all other purchases.

As an added benefit, the BMO CashBack Mastercard offers purchase insurance and extended warranty insurance. Finally, cardholders also have access to exclusive discounts for certain events and shows.

This card has no annual fee and no minimum annual income is required to be eligible, which makes it interesting for many people. Indeed, it’s great to have a good cash back rate without the need to pay an annual fee.

Rogers World Elite Mastercard: Best for USD Purchases

(Offer productType=”CreditCard” api_id=”5f9043f69499f16c55a7c5c0″)

The Rogers World Elite Mastercard credit card is available to people with a minimum personal income of $80,000 per year or a household income of $150,000 or more. The card has no annual fee and offers a welcome bonus of $25 in cash back. To get this welcome offer, make your first purchase within three months of receiving your card.

With this card, you’ll earn 1.5% cash back on all your purchases. But it becomes more interesting if you shop regurlarly in U.S. dollars. You’ll get 3% cash back on all eligible purchases in U.S. dollars.

The Rogers World Elite Mastercard also offers a range of insurance, including an extended warranty and purchase protection, plus collision and damage insurance with a rental car. For your trips in the United States and elsewhere, you get out-of-province or out-of-country emergency medical care insurance, as well as trip interruption and trip cancellation insurance. You’ll also receive a free Mastercard Travel Pass, giving you access to 1,300 airport lounges worldwide at a cost of $32 USD per visit.

Neo Secured Credit: Best Secured Cash Back Card

(Offer productType=”CreditCard” api_id=”6209e06d9c5f4c05c0de0111″ id=”171391″)

Neo offers a credit card that is different from traditional credit cards. With Neo Secured Credit you can earn up to 15% cash back on first-time purchases. This is huge! You can then spend your cash back the way you want. The other amazing advantage of Neo is that you can get approve without a credit history. Simply sign up for the Neo Secured Credit and your approval is guaranteed.

There are no annual or monthly fees with Neo Mastercard. The average cash back at thousands of Neo partners is 5%. They include gas stations, grocery stores, restaurants, gyms and coffee shops. Neo Financial guarantees you at least 0.5% cash back every month. So, at the end of the month, if your instant cash back adds up to less than 0.5% across all your purchases, Neo will top your cash back up to 0.5%.

The credit rates for Neo Mastercard are standard, or slightly above standard. They depend on Neo’s assessment of your credit application, credit profile, and your province.

Tangerine Money-Back Credit Card: Best for Customized Bonus Rewards Categories

(Offer productType=”CreditCard” api_id=”5f34494292ec22115033b302″)

The Tangerine Money-Back Card is unique in that it allows you to choose from a list of purchase categories that qualify for enhanced cash back. A 2% cash back is available on any two categories from the following list: groceries, entertainment, transportation and parking, furniture, restaurants, hotels and motels, gas, recurring bill, pharmacy, and home improvement. This flexibility makes this card one of the best credit cards for gas. Deposit your cash back into a Tangerine savings account and get a third category at 2%.

Whether the cash back is deposited on the credit card statement or directly into the Tangerine savings account, it is automatically paid monthly instead of annually like some credit cards. All other purchases earn 0.5% cash back. Users of this card are entitled to an unlimited amount of cash back for the Tangerine Money-Back Credit Card.

This card is free of charge, as are additional cards issued to other authorized users. However, you must have an annual income of at least $12,000 to be eligible for this card. It comes with purchase insurance, which covers damage and loss of products purchased with the credit card for the first 90 days of ownership. The extended warranty doubles the retailer’s warranty for up to an additional year.

TD Cash Back Visa Infinite* Credit Card: Best for Recurring Bill Payments

(Offer productType=”CreditCard” api_id=”6334640861728a40bc5d854b”)

The TD Cash Back Visa Infinite* card offers 3% cash back for every dollar spent on gas, groceries and recurring bill payments, and 1% on all other purchases.

Those who hold the TD Cash Back Visa Infinite* card have the option to receive their rewards at any time of the year, provided their accounts are open, in good standing and the minimum amount of the return is $25.

The TD Cash Back Visa Infinite* card comes with a free Deluxe TD Auto Club membership that provides roadside assistance in the event of a problem on the road, both day and night. By using this credit card for all Avis and Budget car rentals, cardholders save 10% in Canada and the United States and 5% internationally. Cardholders also receive collision damage waiver on rental vehicles, which applies only if the rental was paid for with the credit card.

The card also provides travel medical insurance, which is combined with $2,000,000 coverage for stays of 10 days or less for those 65 and under and for stays of 4 days or less for those 65 and over. Cardholders also receive $1,000 per person in coverage for any delayed or lost luggage.

The annual fee for the primary cardholder is $139. For the first additional card, the fee is $50, but for subsequent additional cards, there is no additional fee. The minimum annual income to obtain this card is $60,000 per person or $100,000 per household.

Scotia Momentum Visa Infinite Credit Card: Best for Newcomers to Canada

(Offer productType=”CreditCard” api_id=”5f32a25c92ec22115033b2cf” id=”145744″)

The Scotia Momentum Visa Infinite Card offers attractive cash back that varies by purchase category. There is 4% cash back for every $1 of grocery store purchases as well as for all recurring payments or subscriptions, 2% cash back on the purchase of gas and public transit including car-sharing services such as Uber and 1% back on all other types of purchases. If you’re new to Canada, Scotiabank offers credit cards even if you don’t yet have a credit file here.

This card offers the Visa Infinite program, which includes three major benefits. Cardholders have access to what is called a concierge service, which is a 24-hour telephone service, seven days a week; this service is designed to help in many ways, such as finding a gift for Father’s or Mother’s Day, finding tickets for a show, etc. There are also several hotels where Visa Infinite cardholders can have discounted prices, in addition to having the option to upgrade their hotel room. They also have access to free Wi-Fi in hotel rooms.

The card also comes with several included insurances. Cardholders benefit from protection on new mobile devices, available for all mobile phones or tablets under contract with a mobile carrier.

Additionally, the card provides protection against trip interruptions or cancellations, as long as the cost of the trip has been charged to the Scotia Momentum Visa Infinite Card. Cardholders under 65 years old have access to emergency medical travel coverage due to an accident or illness of up to $1,000,000. In addition, if the plane is delayed, the user can be reimbursed for all expenses incurred while waiting for the next flight (hotel room, food, etc.). For all lost or late baggage of more than four hours, there is insurance that can partly reimburse losses or expenses for first aid items if the luggage is late. Cardholders are also covered for accidents on public transport or in rental cars. Despite these incredible advantages, always compare flights and compare hotels before booking.

Finally, there is insurance on purchases made with the card, that covers damage or loss of items within 90 days of the date of purchase. Lastly, there is an extended warranty that doubles the manufacturer’s warranty on products purchased with the card for a maximum of one additional year.

The annual fee is $120 for the primary cardholder and $50 for each additional card. However, there are no annual fees in the first year. To be eligible, you must have an annual income of $60,000 per person or $100,000 per household. The minimum credit limit is $5,000 with this credit card.

Simplii Financial Cash Back Visa: Highest Welcome Offer

(Offer productType=”CreditCard” api_id=”61a1344886fe7e29f7ee241c”)

The Simplii Financial Cash Back Visa lets you earn 4% cash back at eligible restaurants, coffe shops and bars up to $5,000 per year, 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year and 0.5% on all other credit card purchases with no limit on how much you can earn. For your first 3 months, you enjoy an incredible 20% cash back on eligible gas, groceries, drugstore purchases and pre-authorized payments. This applies to a $500 spending limit, meaning that you should get $100 back.

You only get your cash back at the end of the year, unfortunately. All accumulated cash back is automatically redeemed on the last day of your December statement, resulting in your cash back balance being reset to zero, and applied as an annual credit on the primary cardholder’s January statement or, in limited circumstances, at such other time as may be permitted by Simplii.

The Simplii Financial Cash Back Visa is free and you can add up to 3 additional cardholders (for free) to earn cash back faster. It also comes with Purchase Security and Extended Protection Insurance to protect your purchases.

(Offer productType=”CreditCard” api_id=”604aaa18e770040140f2203e” id=”220578″)

KOHO offers prepaid credit cards. The KOHO Extra plan costs only $84/year. It gives you 2% cash back on groceries, transportation, eating & drinking, and 0.5% cash back on all other purchases. You also earn 4.5% interest on the first $1,000 of your balance and 3% on the rest.

Your cash back raises to 6% if you book your travel with Booking.com. You also get 1 free international withdrawal per month and no foreign exchange fees, all the while enjoying meals and drinks (with cash back) in a foreign country.

MBNA Smart Cash World Mastercard: Best for Authorized Users

(Offer productType=”CreditCard” api_id=”5f4535be4726ce7207266a6f” id=”180778″)

With MBNA Smart Cash World Mastercard, you earn 2% on gas and groceries as well as 1% on all other purchases. To accumulate cash back faster, you can add up to 9 authorized users with no additional fee. This card comes with a rental vehicle collision damage waiver. In case of emergency, MBNA can make a decision about increasing your credit line in 1-hour during regular business hours.

CIBC Dividend Visa Infinite Credit Card: Best for Gas and Electric Vehicle Charging

(Offer productType=”CreditCard” api_id=”5f3432a892ec22115033b2fc”)

If you drive a Hummer, you’re gonna like this one! The CIBC Dividend Visa Infinite card is definitely one of the best Visa cards in Canada. It offers different cash back rates that vary according to the categories of purchases. It offers 4% cash back per dollar spent on all gas, electric vehicle charging and grocery purchases, 2% back on dining, transportation and recurring bills, as well as 1% back on all other purchases.

You could also link and use your CIBC Dividend Visa Infinite card with Journie Rewards to save up to 10 cents per litre at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.

Finally, it also offers a wide variety of travel insurance. It offers out-of-country or out-of-province emergency medical coverage for the cardholder, spouse, and children, this coverage is set at a maximum of $5,000,000 per person. The trip must last 10 days, and the cardholder must be under the age of 64 to be eligible. There is also Common carrier coverage up to $500,000. CIBC Dividend Visa Infinite offers compensation in case of accidental death or dismemberment resulting from riding as a passenger on a common carrier (land, air or water transportation).

Lastly, there is extended warranty and purchase insurance, which covers all accidental damage, theft, and loss during the first 90 days of ownership and doubles the retailer’s warranty for up to one year. 

This card has an annual fee of $120 and $30 for each additional card. To qualify for this card, the primary cardholder must have a minimum salary of $60,000 per year or $100,000 per household.

Desjardins Cash Back World Elite Mastercard: Best for Entertainment

Desjardins’ Cash Back World Elite Mastercard offers 4% per $1 spent on groceries, 3% on restaurants, entertainment and alternative transportation, as well as 1% on everything else. To be eligible, you need a minimum annual income of $80,000 (personal) or $150,000 (household).

Among its other benefits, you get free travel insurance for you and your family for three day trips. This includes emergency healthcare coverage up to $5 million per person, trip cancellation coverage as well as $500  if your baggage is lost or damaged by a common carrier, delayed for more than 6 hours or stolen. During your travel, you have access over 1,300 airport lounges in more than 140 countries, courtesy of Mastercard Travel Pass provided by DragonPass.

Desjardins’ Cash Back World Elite Mastercard also provides auto rental collision and loss damage insurance, which covers you for up to 48 consecutive days in the event your rental car is damaged or stolen. For renting the car, go to Hertz, Thrifty or Dollar, where you get up to 25% off and several other advantages when you use your Desjardins credit card.

FAQs About Cash Back Credit Cards in Canada

What is a cash back credit card?

A cash back credit card is a type of credit card that rewards you with money when you use it for things like purchases, bill payments, and other eligible transactions. Do not confuse cash back credit cards with cash back apps. In most cases, you are paid a percentage of each dollar you spend on the card. For example, if a credit card offers 5% cash back and you make $100 purchase, you will be given $5 cash back.

What is the best cash back credit card in Canada?

There is no such thing as “the best” cash back credit card, only one that’s best suited to your needs and goals. The SimplyCash® Preferred Card from American Express will suit most people’s needs. It offers 4% cash back on all gas purchases and groceries.

To find the right cash back credit card for you, first track your expenses to see where you spend the most money and much you spend each month. Then, look for a credit card that pays the highest cash back rate on those purchase categories.  If there is an annual card fee, you should run some calculations to see if your total monthly spending will earn enough cash back to cover the fee and still leave a positive cash back balance. Most credit cards provide rewards and cash back calculators on their website. If you break even or worse, consider a no-fee cash back card. Read the fine print for things like spending limits in high cash back categories, eligible merchants, and other conditions. Consider using more than one cash back credit card to earn the most cash back possible on all your spending. Finally, look for cash back credit cards that offer additional benefits that fit your needs or preferences like travel insurance, purchase protection, mobile device insurance, and other perks.

How do cash back credit cards work?

When you use a cash back credit card to make a purchase, you earn money back based on how much you spend. Some cash back credit cards pay a flat percentage per dollar on every purchase. Others might pay a different percentage per dollar spent in different spending categories like groceries, restaurants, travel, or bill payments. For example, you might earn 3% on groceries, 2% on gas, and 1% on everything else. Compare credit cards to find the best one for you.

Typically, your cash back balance is paid out to you as a credit on your statement or deposited into your bank account. Some credit cards only pay out your cash back balance once a year, others do it once a month, and some pay it within a few days of your purchase.

Is cash back from credit cards taxable income?

For the vast majority of people, cash back earned from credit cards is not subject to income tax. The CRA considers credit card cash back to be a discount or rebate, like coupons at the supermarket, rather than earned income. Taxes only come into play in very specific situations, typically related to business activity.

Are cash back credit cards worth it?

Cash back credit cards are absolutely worth it when used properly. Compare credit cards to find the best one for you. Like any other credit card, you should always pay the balance off in full every month. Otherwise, the interest charges you pay on credit card debt cancel out the benefit of cash back. As long as you pay off your balance each month, you could earn a significant amount of cash back, which is free money. That means the credit company actually pays you to use the card, and not the other way around.

How to use the cash back I accumulated on my credit card?

The beauty of cash back is that you don’t have to wait to be ready to travel or make a big purchase to use it. Some credit card providers will apply it to your statement, but others let you decide when and what you want to do with it. For exemple, you can pay you credit card bill once a year or onece a month with your cash back or deposit the money in your chequing account.

How do banks make money on cash back credit cards?

When you shop with your cash back credit card, the merchant that accepts payment via credit card is required to pay a percentage of the transaction amount to the credit card company. Also, don’t forget about those high-interest rates on balances carried over month-to-month or late fees, that go straight into the credit card company’s pockets. Additionnally, many cash rewards programs have an annual maximum limit, and they become less generous once you reach this limite.