Mastercards are accepted around the world, and the best Mastercards in Canada come with a slate of benefits, including rewards points, travel and car rental insurance, and generous cashback programs, depending on the provider you decide to sign up with.
Learn how to choose the best Mastercard to suit your financial needs, how to activate a Mastercard, the types of Mastercard insurance available and all about Mastercard security features in our guide to the best Mastercards in Canada.
| Annual fee | $0 |
|---|---|
| Purchase APR | 19.95% |
| Balance transfer APR | 1.95% intro for the first 6 months (then 19.95% ) |
| Balance transfer fee | $5 or 1% of the transaction, whichever is greater |
| 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. |
| 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 | 23.99% |
| 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. |
| Annual fee | $39 |
|---|---|
| Purchase APR | 8.99% |
| Balance transfer APR | 8.99% |
| Balance transfer fee | 3% |
| Rewards | N/A |
| 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 | 23.99% |
| Welcome offer |
Earn a bonus of up to 2,000 AIR MILES. Terms apply. Plus, get the annual fee of $120 waived in the first year. |
| Rewards | Get 3 Miles for every $12 spent at participating AIR MILES Reward Partners, 2 Miles for every $12 spent at any eligible grocery store and 1 AIR MILE for every $12 spent on eligible purchases. |
| Annual Fee | $0 |
|---|---|
| Purchase APR | 20.99% |
| Cash Advance Rate | 22.99% (21.99% for Quebec residents) |
| Balance transfer APR | 22.99% |
| Welcome offer |
Get up to 5% cash back in the first three months (up to a maximum spend of $2,500, and earn 3% cash back on groceries, 1% on recurring bill payments and 0.5% on all other eligible purchases thereafter). |
| Rewards | Earn 3% cash back on groceries, 1% on recurring bill payments and 0.5% on all other eligible purchases. |
| Annual fee | $59 |
|---|---|
| Purchase APR | 19.8% |
| Balance transfer APR | 19.8% |
| Recommended minimum credit score | N/A |
Mastercard, a third party payment processor, is a common credit card option offered by a large number of credit card providers in Canada. It is not very different from its main competitor, Visa, given that credit cards with either logo find acceptance in most countries around the world.
Here’s a look at the key benefits of using a Mastercard:
Mastercard is accepted universally in hundreds of countries and millions of locations around the world. You can use your Mastercard wherever the Mastercard symbol is displayed, including at ATMs, credit card terminals in local shops, restaurants and online.
Just about all newly issued Mastercard credit cards make use of this technology that enables cardholders to make contactless payments for purchases under $100. Simply hold your Mastercard up to the credit card terminal and your payment will be processed without entering a PIN or signing anything.
When you use your Mastercard overseas, you don’t have to worry about making confusing currency conversion calculations because it automatically pays the merchant in the local currency and bills you in CAD. Some Mastercard issuers even provide no foreign transaction fees, whether you’re shopping online or in person. That’s a saving of 2.5% on all of your purchases made in foreign currencies.
You can contact Mastercard’s customer service team on 1-800-307-7309 to help you with the reporting of lost or stolen cards, and it can provide emergency replacement cards and cash advances. It can also help you find the nearest Mastercard ATM and provide information related to your account.
With World Mastercard, cardholders can take advantage of wine privileges at participating restaurants, complimentary meals at partnered hotels, plus exclusive dining and travelling experiences.
Mastercard Priceless Cities offers cardholders access to a variety of unique and exclusive experiences ranging from dining, shopping, entertainment, travelling and golfing.
While credit cards with all the bells and whistles from insurance to rewards points are great, you need a credit card that comes with convenience and safety first. These are the key features of a Mastercard credit card:
The kind of Mastercard that is right for you depends on your particular requirements. Keep in mind that you should always pay attention to the interest rate and fees that each card charges, as they could vary for different Mastercard products depending on the features the card offers.
If you’re on the fence about which Mastercard to go with, here are some important factors to help you narrow down your shortlist:
Online Mastercard activation is often the fastest way to start using your card, but you’ll first need an online account with your provider. If you don’t yet have one, enrol by providing personal information such as your Social Insurance Number and date of birth, then:
Card activation by phone is another widely-used method. Here’s how to do it:
Most large card providers allow you to activate Mastercard credit cards with their mobile app.
These are the main security features and services provided by Mastercard credit cards:
Contactless payments come with encryption that is unique to every purchase. And since the card or your mobile device doesn’t leave your hand, it reduces the risk of loss or counterfeit. In case you tap twice by accident, Mastercard will make sure to bill you only once. This makes the payment method one of the safest ways to pay.
Contactless payments are just as popular in Canada as regular debit and credit card transactions. Smartphone technology and apps such as Google Wallet and Apple Pay allow contactless payments from your mobile phone or other smart devices. These methods are also covered by Mastercard’s Zero Liability policy and tokenization.
Security features offered by your credit card issuer can include a selection of features that include:
Travel insurance is another useful perk that some Mastercard issuers provide. Before you purchase travel insurance through an independent provider, it may be worth checking your Mastercard’s travel insurance to see what your policy covers and if you can buy an extended policy. In some cases, all you need to do is book your trip with your Mastercard for the benefits to kick in while others require you to buy an additional policy via your Mastercard issuer.
Depending on your provider, your Mastercard may come with these key features or you can take out additional coverage to your existing benefits:
This insurance covers the cardholder in the event that you need medical treatment while you’re on vacation. You’ll need to check your issuer’s policy to ensure your spouse or dependents are included in this coverage. Another caveat is the duration of coverage. Most travel insurance included with credit cards, especially ones without an annual fee, are capped out at 7 to 14 days. Some travel-specific cards can come with coverage up to 31 days.
Travel accident insurance covers you, the cardholder, your spouse and any dependants in the case of bodily injury, including death, during travel. A physical loss includes life, speech, hearing or limbs. This is another key feature that you’ll need to check exists within your Mastercard’s travel insurance. RBC’s WestJet Mastercard travel insurance, for example, includes travel accident insurance of up to $500,000 in the event of loss while travelling on a common carrier.
When you’re travelling, delays and cancellations are inevitable. Trip cancellation/interruption insurance covers you if you need to cancel your trip for a qualifying reason, such as an injury before your travel date or an adverse reaction to vaccinations required for your trip. You can also count on trip interruption insurance to kick in if your flight is delayed by a set amount of hours, usually 4. With this insurance, you won’t be left on the hook to pay for a trip you are unable to take, and you can rely on reimbursed funds to plan another vacation instead. Watch out for caps on how much you can claim, along with the list of eligible causes for cancellation. The policy for the BMO Mastercard travel insurance, for example, points to a maximum claim of up to $2,500 per insured person for an overall maximum of $5,000 per account.
Unlucky travellers may find themselves at their destination without their luggage waiting for them on the carousel. When this unfortunate situation happens, it’s great to have lost luggage and baggage delay insurance on your side. In this case, this insurance provides compensation when your baggage is lost, damaged or delayed. Either the insurance will reimburse you for the cost of your lost items or it will reimburse you for expenses you may incur for replacing items that are lost in transit.
Travel insurance coverage varies between credit card companies, so the onus is on you to do your homework and read the fine print for your policy. Clarify what basic coverage is provided with your Mastercard, the duration of time that cardholders receive coverage for each trip, who is covered under your policy, and if you need to buy supplemental insurance via your issuer.
While certain Mastercard products do offer car rental insurance, this benefit’s inclusion ultimately comes down to the issuer’s discretion. Check with your issuer to see if you have access to the feature. If this feature is important to you and you don’t necessarily want a Mastercard, compare other credit cards with car rental insurance.
Mastercard car rental insurance covers your rental vehicle against physical damage and theft. It may also pay for reasonable loss-of-use and towing charges. To get this coverage, use your Mastercard to pay for the entire rental and decline the rental company’s coverage.
Mastercard car rental insurance is secondary, which means you can claim through it only after you’ve claimed through the following:
There is good news: In most cases, your Mastercard policy will cover your deductible for your primary auto insurance or other forms of coverage. It’s worth noting that Mastercard car rental insurance applies worldwide, except where it’s prohibited by law or where it conflicts with a country’s law. PC Mastercard car rental insurance, for example, may not apply to rentals in foreign countries. Check with your issuer before you travel if you intend on using car rental insurance while you’re abroad.
As a general rule, Mastercard car rental insurance coverage will typically pay the lesser of:
Keep in mind, Mastercard car rental insurance doesn’t cover all types of vehicles. These are excluded:
There is also a long list of instances when your Mastercard car rental insurance will be void. But here are the highlights that cover the vast majority of exceptions:
Follow these steps to use your Mastercard car rental insurance:
The list of information to include with your claim is fairly standard, though you’ll have to do a bit more legwork if you’re claiming for loss of use. Required documentation includes:
If you’re unsure of what your Mastercard car rental insurance covers, call your issuer or read through your policy carefully. You can find your issuer’s full policy online. The policy for the BMO Mastercard car rental insurance, found online, includes details on car rental benefits, collision damage waiver benefits, and even limitations and exclusions.
Rewards points, loyalty programs, cashback, travel and car rental insurance – Mastercard cardholders pick up plenty of perks while making purchases with plastic. There are a few more benefits of paying for big purchases on your Mastercard too, including:
If you’re ready to take the plunge and sign up for a Mastercard, you’re spoiled for choice when it comes to issuers in Canada. Below is a list of issuers that provide Mastercard credit cards across the country, from Canada’s top 5 banks to major retailers.
Keep in mind that these Mastercard credit cards are issued by these institutions, not by Mastercard itself. Each issuer has its own set of perks and loyalty programs to sweeten the deal for your new Mastercard credit card.
Below are some of the features you may find with different types of Mastercard World and World Elite cards. Keep in mind that each card will have its own unique set of features that will depend on your provider.
| Feature | Mastercard | Mastercard World | Mastercard World Elite |
|---|---|---|---|
| Minimum annual income requirement | No minimum income | $60,000 individual or $100,000 household | $80,000 individual or $150,000 household |
| Typical annual fee | $0 to $120 | $0 to $120 | $100 to $150 (though some may be cheaper) |
| Rewards | Lower return on Mastercard rewards | Mid-level return on World Mastercard rewards | High return on World Elite Mastercard rewards |
| Basic Insurance |
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| World and Mastercard World Elite benefits and fees vary based on which card you have – this table provides a sample overview of what benefits and fees you might expect with each type of card. | |||
You can choose from two types of World or World Elite Mastercards:
You’ll also get travel perks and benefits with an Elite Mastercard. These include Mastercard World Elite benefits such as comprehensive travel insurance, airport lounge access and special travel discounts. The benefits and perks you’re eligible for will depend on your card and provider.
Mastercard began operations in the late 1940s, at a time when a number of American banks gave their customers specially issued paper that they could use in the form of cash at local establishments. Mastercard issued its first batch of credit cards in California, to serve as direct competition to the Bank of America card that later went on to become Visa.
With time, a number of franchises evolved in several cities, and in 1966, one such group formed the Interbank Card Association (ICA). No single bank dominated the running of this organization and member committees came into effect for this very purpose. ICA went on to become Mastercard in 1979.
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