Tangerine World Mastercard
- Enjoy a 10% cashback welcome bonus
- Earn unlimited cashback with no caps on earning potential
- No annual fee
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Best cashback credit cards in Canada
Our picks for the best cash back credit card in Canada by category to help you earn cash rewards for every purchase you make.
The best cash back credit cards in Canada let you earn cash back rewards whenever you make purchases. Depending on the cash back card, you can earn hundreds of dollars back every year based on how much you spend. But to get the biggest bang for your buck, you’ll need to find the best cash back credit card that suits your spending habits and financial needs.
Compare the best cashback credit card options, learn how different types of cashback credit cards work, and compare providers to find the right cashback card for you
Quick view: The best cash back credit card in Canada by category
- Best overall cash back credit card: BMO CashBack Mastercard
- Best cash back credit card for low interest rate : Home Trust Equityline Visa Card
- Best cash back credit card overall: SimplyCash Preferred Card from American Express
- Best tiered cash back card: Scotia Momentum Visa Infinite Card
- Best choose your own categories cash back card: Tangerine Money-Back Credit Card
- Best cash back credit card welcome bonus: BMO CashBack World Elite Mastercard
How we select the best cash back credit cards in Canada
BMO CashBack Mastercard
660
Min. credit score
Min. credit score
$0
Annual fee
Annual fee
Up to
3%
Cash back
Cash back
5% cash back
Welcome offer
Welcome offer
The BMO CashBack Mastercard makes switching credit cards convenient with a low interest rate on balance transfers as well as a promotional cash back rate. Get 5% cash back on all eligible purchases in the first three months of card membership (up to a maximum spend of $2,500, after which standard cash back rates apply).
- Get 5% cash back on all eligible purchases in the first three months of card membership (up to a maximum spend of $2,500, after which standard cash back rates apply).
- This card has no annual fee.
- Earn cash back at a standard rate of 3% on groceries, 1% on recurring bill payments and 0.5% on all other eligible purchases.
- For the first 9 months, new customers can get a 0.99% introductory interest rate with a 2% fee on balance transfers from non-BMO credit cards. After that, balance transfers are subject to a 22.99% cash advance interest rate.
- This card has a balance transfer fee of 2%.
- Each statement cycle period, you can only redeem up to $ cash back on grocery purchases and up to $ cash back on recurring bill payments, after which the base cash back rate of applies.
- This card has a foreign transaction fee of 2.5%. This will apply on any overseas purchases or any purchases made online with an international retailer.
| Annual Fee | $0 |
|---|---|
| Purchase APR | 20.99% |
| Cash Advance Rate | 22.99% |
| Balance transfer APR | 0.99% intro for the first 9 months (then 22.99% ) |
| Welcome offer |
Get 5% cash back on all eligible purchases in the first three months of card membership (up to a maximum spend of $2,500, after which standard cash back rates apply). |
| Rewards | Earn cash back at a standard rate of 3% on groceries, 1% on recurring bill payments and 0.5% on all other eligible purchases. |
Home Trust Equityline Visa Card
620+
Min. credit score
Min. credit score
$0
Annual fee
Annual fee
Up to
1%
Cash back
Cash back
n/a
Welcome offer
Welcome offer
Earn 1% cash back on all eligible purchases to get more out of your everyday spending
| Annual Fee | $0 |
|---|---|
| Purchase APR | 5.99% |
| Cash Advance Rate | N/A |
| Balance transfer APR | N/A |
| Welcome offer | N/A |
| Rewards | Earn 1% cash back on all eligible purchases to get more out of your everyday spending |
SimplyCash Preferred Card from American Express
700
Min. credit score
Min. credit score
$119.88
Annual fee
Annual fee
Up to
4%
Cash back
Cash back
$400
Welcome offer
Welcome offer
In your first 10 months, earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases. This could add up to $400 in statement credits in the first 10 months. The card also offers a suite of travel insurance benefits and exclusive offers on dining and entertainment. Just watch out for the annual fee of $119.88.
- Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back annually), and 2% cash back on all other purchases.
- In your first 10 months, earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases. This could add up to $400 in statement credits in the first 10 months.
- Get up to $100,000 travel insurance coverage for delayed flights, lost or stolen baggage, car rentals and accidents. Plus, enjoy up to up to $5,000,000 Out-of-Province/Country Emergency Medical Insurance in emergency medical coverage.
- This card has an annual fee of $119.88.
- When you spend overseas, you'll face a foreign transaction fee of 2.5%.
| Annual Fee | $119.88 |
|---|---|
| Purchase APR | 20.99% |
| Cash Advance Rate | 21.99% |
| Balance transfer APR | N/A |
| Welcome offer | In your first 10 months, earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases. This could add up to $400 in statement credits in the first 10 months. |
| Rewards | Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back annually), and 2% cash back on all other purchases. |
Scotia Momentum Visa Infinite Card
750
Min. credit score
Min. credit score
$120
ongoing
Annual fee
Annual fee
Up to
10%
Cash back
Cash back
Fee rebate
Welcome offer
Welcome offer
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, pay no annual fee in the first year. Apply by April 30, 2023. The card also offers a great suite of travel insurance benefits, an introductory balance transfer rate and exclusive offers on dining and entertainment – just watch out for the annual fee of $120.
- Earn 4% cash back for every $1 spent on eligible grocery purchases & recurring bill payments, 2% per $1 spent on eligible gas purchases & public transit, and 1% per $1 spent on all other eligible purchases.
- Earn 10% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, pay no annual fee in the first year. Apply by April 30, 2023.
- Pay for your flight with your card and get complimentary insurance for emergency medical situations up to $1,000,000, trip interruptions and cancellations, flight delays, lost and delayed baggage.
- You won't be held liable for fraudulent charges on your account with Zero Liability coverage.
- Interest rates for balance transfers are in your first .
- This card has an annual fee of $120.
- When you spend overseas, you'll face a foreign transaction fee of 2.5%.
| Annual Fee | $0 intro annual fee for the first year ($120 thereafter) |
|---|---|
| Purchase APR | 20.99% |
| Cash Advance Rate | 22.99% |
| Balance transfer APR | 22.99% |
| Welcome offer | Earn 10% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, pay no annual fee in the first year. Apply by April 30, 2023. |
| Rewards | Earn 4% cash back for every $1 spent on eligible grocery purchases & recurring bill payments, 2% per $1 spent on eligible gas purchases & public transit, and 1% per $1 spent on all other eligible purchases. |
Tangerine Money-Back Credit Card
600
Min. credit score
Min. credit score
$0
Annual fee
Annual fee
Up to
2%
Cash back
Cash back
10% cash back
Welcome offer
Welcome offer
Earn 2% cash back in two Tangerine credit card categories of your choice (or three categories if you open a Tangerine Savings Account and directly deposit your cash back into the account), and 0.5% cash back on everything else. Categories include groceries, restaurants, hotels, gas, recurring bill payments, drug store, home improvement and entertainment.
- Earn accelerated cash back in 2 categories (with an optional third category).
- No annual fee.
- Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months Valid until May 2, 2023.
- Receive only cash back on all other categories of spending.
- You'll pay a foreign transaction fee of 2.5% on all overseas purchases.
- Pay a balance transfer fee of 3% of the total transferred amount or $5, whichever is greater.
| Annual Fee | $0 |
|---|---|
| Purchase APR | 19.95% |
| Cash Advance Rate | 19.95% |
| Balance transfer APR | 1.95% intro for the first 6 months (then 19.95% ) |
| Welcome offer | Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months Valid until May 2, 2023. |
| Rewards | Earn 2% cash back in two Tangerine credit card categories of your choice (or three categories if you open a Tangerine Savings Account and directly deposit your cash back into the account), and 0.5% cash back on everything else. |
BMO CashBack World Elite Mastercard
760
Min. credit score
Min. credit score
$120
ongoing
Annual fee
Annual fee
Up to
5%
Cash back
Cash back
10%
Welcome offer
Welcome offer
This card offers a wide range of benefits including an attractive signup bonus and the chance to earn cash back on eligible everyday purchases. Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year. After the promotional period ends, continue to enjoy rewards at the regular rate. Earn 5% cash back on groceries, 4% on transit including ride sharing, taxis and public transportation, 3% on gas and electric vehicle charging, 2% on recurring bill payments and 1% unlimited cash back on all eligible purchases. Plus, cardholders can enjoy a host of travel and entertainment perks.
- Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year.
- Earn 5% cash back on groceries, 4% on transit including ride sharing, taxis and public transportation, 3% on gas and electric vehicle charging, 2% on recurring bill payments and 1% unlimited cash back on all eligible purchases.
- Get access to extensive travel perks. Get complimentary membership in Mastercard Travel Pass provided by DragonPass.
- You'll get rental car discounts. Get up to a 25% discount at National Car Rental and Alamo Rent A Car locations with complimentary Collision Damage Waiver benefits (MSRP of up to $65,000).
- Get 15% off admission to Cirque du Soleil shows touring Canada, and 20% off resident shows in Las Vegas.
- You'll get up to $2 million Out-of-Province/Out-of-Country Emergency Medical benefits
- This card has an annual fee of $120.
- You'll need to accrue at least $50 in cash back before you can redeem.
- This card has a foreign transaction fee of 2.5%. This will apply on any overseas purchases or any purchases made online with an international retailer.
- You'll need to earn a personal income of at least $80,000, or a combined household income of at least $150,000 annually to apply.
| Annual Fee | $0 intro annual fee for the first year ($120 thereafter) |
|---|---|
| Purchase APR | 20.99% |
| Cash Advance Rate | 23.99% (21.99% for Quebec residents) |
| Balance transfer APR | 22.99% |
| Welcome offer | Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year. |
| Rewards | Earn 5% cash back on groceries, 4% on transit including ride sharing, taxis and public transportation, 3% on gas and electric vehicle charging, 2% on recurring bill payments and 1% unlimited cash back on all eligible purchases. |
How we chose the best cash back credit cards
We’ve chosen the cards on this page based on the credit cards available in our Credit Card Finder. These cards may not be representative of the entire market. None of these picks are sponsored – we also take into account providers and cards that we aren’t partnered with – so that our winners for each category are chosen without bias.
We take these factors into account when choosing our winners:
- Welcome deals and promotional offers for new cardholders.
- Cash back earn rate and any earning caps.
- Type of cash back (flat rate, accelerated, tiered)
- Annual fees and interest rates on purchases, cash advances and balance transfers.
- Additional notable features offered such as complimentary travel insurance coverage and airport lounge access.
No single card will be the best choice for everyone, so compare your options before picking your new card. Learn more about how we rate and choose the best credit cards in our credit card methodology guide here.
Compare more cashback credit cards in Canada
What is a cashback credit card?
A cashback credit card is a card that lets you reclaim a small percentage of what you spend on your credit card back in the form of cash. This money accumulates under the rewards section of your credit card statement or online banking, and is usually displayed as a separate cash balance on your account. When you’re ready to redeem your cash, you will typically apply it to your credit card to pay off a portion of the amount you owe.
Typical features of a cashback credit card
Basic cashback credit cards. These cards often come with low or no annual fees. They usually let you earn between 0.5% and 2% in cash back, and most come with few additional benefits aside from purchase protection and extended warranty coverage. Examples include the Tangerine Money-Back Credit Card and the Brim Mastercard.
Premium cashback credit cards. Premium cards usually come with fees between $120 and $150 per year. They may let you earn between 3% and 5% cash back on purchases, and many come with extra benefits such as car rental insurance, travel insurance and mobile device protection. Examples include the TD Cash Back Visa Infinite Card and the BMO CashBack World Elite Mastercard.
How does a cashback credit card work?
You’ll typically earn between 0.5% and 5% cash back on purchases – depending on what type of card you have (basic or premium). This percentage may be applied as a flat rate to any amount you spend on your card. You may also earn different percentages for individual purchases depending on which spending category they fall into.
Once you’ve earned enough money on your account, you can redeem your cash back towards a statement credit on your account. Some credit card companies may also let you exchange your cash for rewards such as gift cards or merchandise, though this is less common.
Three types of cashback cards
There are three main types of cashback credit card in Canada, each coming with a slightly different rewards structure:
- Flat-rate cashback cards. Flat rate cards let you earn a set cashback rate on all of your purchases. For example, you might earn 1.5% cash back on everything you buy regardless of which spending category your purchase applies to.
- Best for people who want to earn a higher flat rate across all purchases instead of earning accelerated cash back in certain spending categories.
- Tiered cashback cards. Tiered cards usually offer different cashback rates based on which categories you spend money in. For example, you may be able to earn a fixed rate of 3% on travel purchases, 2% on gas and grocery purchases, and 1% on everything else.
- Best for people who want to earn accelerated rewards for spending money on targeted categories such as gas, groceries or travel.
- Rotating categories cashback cards. These are similar to tiered cards, except you get to choose which categories you earn more cash in. For example, you may be able to choose a high cashback rate for gas and travel in one month, followed by a high rate for groceries and bill payments in the next month.
- Best for people who spend money in different categories each month, and want to choose their accelerated rewards accordingly.
How to choose the best cash back credit card in Canada for you
- Fee-free vs extra benefits. Pay an annual fee for a higher rate of cash back and perks or search for a fee-free card to save money up-front.
- Flat-rate vs accelerated cash back. Figure out if you want to get a flat return rate on all spending categories, or if you want a higher rate on some purchases (like gas, groceries or dining out). Some providers let you choose your own categories too.
- Generous welcome bonus. Optimize your cash back with a card that offers a generous welcome bonus.
- Comprehensive benefits. Find out about extra perks on offer like travel insurance coverage, airport lounge access, concierge services, roadside assistance and more.
How to redeem your cash back
Check the table below to see how often popular banks and credit card providers in Canada allow you to redeem your cash back.
| Provider | Redemption frequency |
|---|---|
| American Express | Once per year in September |
| BMO | Any time (in $1 increments) |
| CIBC | Once per year in December |
| Scotiabank | Once per year in November |
| Tangerine | Once every month |
| TD | Any time (in $25 increments) |
What else should I know about cash back credit cards?
- Annual fee. For the most part, if you pay more for your annual fee, you’ll get a higher rate of cash back.
- High interest rates. Many cash back cards come with high interest rates, so you should try to pay your balance off in full every month.
- Cash back limits. Some credit cards cap the amount of cash back you can earn per year.
- Expiration dates. Your cash back rewards may expire if you don’t use them within a certain time period.
- Excluded purchases. Some purchases aren’t eligible for cash back, such as cash advance transactions, so you should look into your rewards program to find out where you stand to earn the most.
Cash back cards are some of the most popular on the market because they offer flexible rewards and can offer a high-end return on spending, particularly if you spend a lot on your card and clear your balance each month.
Where can I get a cashback credit card in Canada?
You can get a cashback credit card from banks, credit unions and private institutions. Check out the table below for samples of the types of cashback cards offered by popular institutions in Canada:
Which cashback credit card type has the best value?
You’ll earn a percentage of any money you spend on your credit card in cash back, with variable rates based on which type of card you have. Here’s a quick comparison of the cash back you might earn from the different card types based on our sample budget:
- $3,000 per year on dining and entertainment
- $6,000 per year on groceries
- $5,000 per year on other purchases
Remember that signup bonuses and annual fees can change the amount of cash back you earn, as well as any restrictions the provider places on annual allowable earn rates.
1. Flat rate cashback credit card
| Category | Annual spending | Reward rate | Cash back |
|---|---|---|---|
| Dining and entertainment | $3,000 | 1.4% | $45 |
| Groceries | $6,000 | 1.5% | $90 |
| Other purchases | $5,000 | 1.5% | $75 |
A flat rate cashback card with a 1.5% flat cashback rate would give you $210 in rewards.
2. Tiered cashback credit card
| Category | Annual spending | Reward rate | Cash back |
|---|---|---|---|
| Dining and entertainment | $3,000 | 4% | $120 |
| Groceries | $6,000 | 2% | $120 |
| Other purchases | $5,000 | 1% | $50 |
A tiered cashback credit card would give you $290 in cash back with a higher rate for dining and groceries and a lower rate for all other purchases.
3. Rotating categories cashback credit card
| Category | Annual spending | Reward rate | Cash back |
|---|---|---|---|
| Dining and entertainment | $3,000 | 2% | $60 |
| Groceries | $6,000 | 2% | $120 |
| Other purchases | $5,000 | 1% | $50 |
A rotating categories card would give you $230 in cash back. Ultimately, the cash back you earn depends on your preferred categories and how you allocate your spending.
It’s important to note that you’ll only receive cash back for “eligible purchases”. Other transactions such as cash advances, buying gift cards or spending money in a casino may not give you a cashback return.
Find out what else is defined as a cash advance transaction
Is a cashback credit card right for you?
While the opportunity to earn cash back may sound appealing, cashback credit cards aren’t for everyone. A cash rewards credit card may be ideal for you if you:
- Pay your balance in full every month. Paying interest on a cashback credit card can add up quickly. Spending money on interest negates the cashback rewards you earn on your credit card.
- Earn more in cash back than you spend on your annual fee. You’ll want to make sure that you earn enough cash back to justify spending money on an annual fee. If you don’t, it could make sense to opt for a low or no fee cashback credit card with a lower cashback return rate.
- Can responsibly use a credit card. Earning the maximum amount of cash back means using your credit card as frequently as possible. However, you should spend only what you can afford to pay back and to use your income to pay off your credit card balance rather than to make additional purchases.
How to maximize your rewards
You can maximize your cashback credit card rewards in the following ways:
- Choose a credit card with a solid signup bonus. Some credit cards will let you earn up to 10% on all purchases in your first 3-10 months. Find a card that offers a long-term welcome bonus with a solid return rate, and reserve large purchases for your intro period.
- Spend enough to earn the signup bonus. Make sure you spend enough on your credit card to actually earn the welcome bonus on your card. For many cards, you may need to spend up to $3,000 in your first 3 months of card ownership to take advantage of your welcome bonus.
- Choose a card that offers accelerated rewards. Find a card that lets you earn higher cashback rates in the categories where you spend money most often. For example, if you regularly spend large amounts on groceries, you could benefit from a card that offers higher rewards at grocery stores.
- Align rotating categories with your spending habits. Align your spending categories with the way you spend money each month if you sign up for a rotating categories cashback credit card in Canada. This will ensure that you earn the maximum number of rewards for every dollar spent.
- Pay off your balance and avoid cash advances. Pay off your balance every month to save money on interest and avoid making transactions on your card that won’t earn you cash back. These include non-eligible purchases such as gift cards and cash advances.
Compare cashback credit cards you can apply for now
Benefits of a cashback credit card
You can expect to enjoy the following benefits with a cashback credit card:
Decent return. Earn cash back on purchases (0.5% to 5%).
- Low fees. Many cashback credit cards come with no or low annual fees.
Accelerated rewards. Earn more cash for categories such as groceries, dining, travel and entertainment - Signup bonuses. Earn up to 10% in your first few months of card ownership.
What to watch out for with a cashback credit card
You should watch out for the following drawbacks with a cashback credit card in Canada:
- High interest rates. You’ll typically need to pay between 19.99% and 21.99% on purchases and cash advances.
- Foreign transaction fees. You may have to pay foreign transaction fees between 1% and 3%.
- No points. You won’t earn points that you can collect to exchange for travel, merchandise or gift cards.
- Cashback limitations. You may lose out on rewards if you exceed cashback limits on your account.
How to choose the best cash back credit card for your needs
You can compare the following features to find the best cashback card for your needs:
- Annual fee. Basic cashback cards come with no annual fee while more premium cards usually cost between $120 and $150 per year.
- Signup bonus. Most cashback credit cards come with a signup bonus that lets you earn between 6% and 10% in your first few months.
- Redemption options. The majority of cashback credit cards let you redeem your cash for a statement credit on your account while a few let you exchange your rewards for merchandise, travel rewards or gift cards.
- Base cashback rate. You’ll usually earn a base rate of between 0.5% and 1.5% when you spend money on purchases that don’t qualify for accelerated rewards.
- Additional benefits. Many basic cards come with purchase protection or extended warranty coverage. Premium cards may come with extra benefits such as mobile device protection, roadside assistance and travel insurance.
Who are cashback credit cards best for?
You may want to consider a cashback credit card if you fall into these categories:
- You would prefer to earn cash. You could benefit from a cashback credit card if you want to earn cash to pay down your credit card.
- You want more flexible rewards. You might prefer a cashback card if you’d like to use your cash to pay down your balance or get yourself out of debt.
- You don’t travel regularly. You may have more use for a cashback card if you don’t travel regularly and have no desire to collect points or miles.
- You don’t want your rewards to expire. You’ll likely appreciate that cash rewards don’t expire after a certain period unless you close your credit card.
How do I redeem cash back?
You can redeem cash back by applying it as a credit on your credit card balance. Your total cash back will often be showcased somewhere on your credit card statement or in your online banking app. You simply need to click “Redeem Rewards” to have it applied to your account.
Cashback redemption options
Many providers will pay out your cash rewards on request, while others will transfer your rewards balance onto your statement on a monthly or yearly basis. A handful of providers may also let you exchange your cash for gift cards, merchandise, travel rewards or charitable donations (though this is uncommon).
Bottom line
A cashback credit card may be a good fit for you if you want a simple and transparent way to collect credit card rewards. You can choose from flat rate, tiered and rotating category cashback credit cards. Finding the right cashback credit card will allow you to collect as much as 0.5% to 5% in cash back on every dollar you spend, plus even more when you factor in welcome bonuses and accelerated rewards.
Cash back credit cards FAQ
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