Top Cash Back Credit Cards in Canada

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Written by FrugalTrader on Aug 9, 2007 filed under Credit Cards

After you guys gave me your favorite credit cards in my article "Ask the Readers: Favourite Rewards Credit Card?", I did a little research and came up with what I think are the best free cash back cards in Canada. With rewards points constantly depreciating in value, sometimes it's best to get cold hard cash back.

Here are the contestants for the coveted title of The Top Cash Back Credit Card in Canada:

Citibank Enrich Mastercard

1% cash back on all purchases.
Maximum of $250 cash back / year ($25,000 spending).
Price Protection (if you find a lower price within a certain time frame of your purchase, Citibank will refund the difference).

Capital One 1% Cash Back Platinum Mastercard (discontinued?)

1% cash back on all purchases.
No maximum rebate.
Purchase Protection - 90 days insurance in case of theft or damage.
Extended Warranty - doubles warranty up to 1 yr.
Car Rental Insurance
Notes: Instead of redeeming your rebate once a year, you can redeem anytime your rewards account is above $15.

Canadian Tire Cash Advantage Mastercard

1% cash back when you spend over $1000 during a billing cycle.
2% cash back for purchases at Canadian tire stores and gas stations.
No maximum rebate.
Pays out rebate quarterly which is applied against your balance.

CIBC 1% Dividend Visa

0.25% cash back on annual purchases up to $1,500.
0.50% cash back on annual purchases from $1,500.01 to $3,000.
1% cash back for net annual purchases over $3,000.
No maximum rebate.
Purchase Protection - 90 days insurance in case of theft or damage.
Extended Warranty - doubles warranty up to 1 yr.

American Express Costco Platinum Cash Rebate Card

0.25% cash back on the first $2,000 in purchases.
0.50% cash back on the next $3,000 in purchases.
1.50% cash back on any amount over $5,000.
Maximum rebate of $500 ($37,000 spending).
Purchase Protection - 90 days insurance in case of theft or damage.
Extended Warranty - doubles warranty up to 1 yr.
Notes: Need a Costco Membership ($55/yr), rebate is collected every Janurary @ Costco as a gift card or cash.

Based on my Scenario, I spend around $30k / year on my credit card. This would equate to a cash back rebate of:

Enrich: $250 (max)
Capital One: $300
Cash Advantage: $300 (more if I make purchases @ CT store/gas station)
Dividend: $281.25
AMEX Costco: $395 - costco membership ($55) = $340

Even though my favorite credit card is the MBNA SPG Mastercard, if I were to choose a cash back card based on my spending levels (~$30k / year), it would probably be the Costco AMEX card. We enjoy shopping at Costco, and it gives us a great rebate to boot. The only problem I can see is that it's an American Express Card which isn't as widely accepted as M/C or Visa. The Capital One card would be a close second as they have a no limit rebate, a flexible redemption option and it includes car rental insurance on top of the purchase protection/extended warranty.

Any thoughts?

Update: I have a new pick for the Best Cash Back Credit Card in Canada.

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39 Comments, Comment or Ping

1. Canadian Capitalist

I have the Costco Amex card and I get about $300 back every year. Like you say, the only problem is Amex is not accepted everywhere, so it is necessary to have backup card.

Aug 9th, 2007 @ 10:31 am
2. Moneydork.com

What a unique post! I never really thought a lot about how Canada might differ from the types of credit cards you could get. I’m going to send this to my cousin in Alberta. Good work, eh. :)

Aug 9th, 2007 @ 10:42 am
3. SavingsJourney

PC Financial Mastercard, http://www.pcmastercard.pcfinancial.ca/rocen/cardapp/index.htm. $25 incentive for signing up, about 1% cashback, but could be greater if you redeem PC points for movie tickets for example, which would give you about 1.25% - 1.4% cashback. Also rental vehicle insurance coverage, and free warranty doubling on product purchases, as well as the other typical types of incentives like it. No cap on reward points that I’m aware of.

Aug 9th, 2007 @ 11:47 am
4. FrugalTrader

SavingsJourney, the PCF M/C is a great card. But the reason I didn’t include it in my list is b/c it doesn’t pay back cold hard cash. If it was just based on points, then I would pick the SPG card to be the winner.

Aug 9th, 2007 @ 11:53 am
5. FrugalTrader

CC, looks like you made a decent choice! When you get your rebate at the end of the year, do you simply go to the service desk and get cash?

Aug 9th, 2007 @ 12:29 pm
6. Ross

there is actually a pretty good comparison of other no-fee cards at redflagdeals under the article section. I love my amex costco - especially when you pair if up with their executive membership which gives you an additional 2% rebate.

Aug 9th, 2007 @ 1:39 pm
7. FrugalTrader

That’s interesting Ross, so working out the numbers, the exec membership is $45 more than the regular which means that you would have to spend $45/2% = $2250 @ costco/yr to justify the higher cost.

Aug 9th, 2007 @ 1:46 pm
8. Neil

I don’t see the Capital One 1% Cash Back Platinum Mastercard offered on their website. The link takes me to the Capital One No Hassle Rewards Platinum MasterCard which is a miles card, not a cash rebate card. Is this card available to the general public?

Aug 9th, 2007 @ 2:07 pm
9. FrugalTrader

Neil, I think it’s in their “faq” or terms and conditions where it states that with this card you can choose the “1% cash back option” instead of points. I would call their CS before applying.

Aug 9th, 2007 @ 2:10 pm
10. Investoid

Thanks for the information! It’s sad to see how much higher US cash back cards can be (like Amex Blue).

Aug 9th, 2007 @ 4:28 pm
11. FrugalTrader

Investoid, yes, it’s unfortunate that we don’t have the competition like our US neighbors have. The Amex blue website has a pretty nifty calculator too. :)

Aug 9th, 2007 @ 4:32 pm
12. nobleea

FrugalTrader;

I assume you would have to spend $2250 extra a year at Costco to make the exec membership worthwhile? But that must be hard since one would think your current purchases at Costco are already included in the 30K you charge.

Aug 9th, 2007 @ 6:27 pm
13. nancy (aka money coach)

not precisely cash back, but for ‘feel good’, Citizens Bank of Canada visa cards donate 10¢ to your choice of Amnesty international or Oxfam Canada each time you use it. In addition, you can redeem your rewards points for RRSP contributions or term deposits.

Aug 10th, 2007 @ 2:21 am
14. just called

Yes, you can redeem miles for cash back and get either a cheque or a credit to your account. To initiate cash back, you need a minimum of 10,000 miles, which equals $75.00.

Sounds like it only works out to 0.75% cash back on the capital one platinum card :(

http://www.capitalone.ca/canada/faqs/rewards_card_offer.php?linkid=CAN_Z_Z_Z_CRPLAT_C1_01_T_RCOFQ#12_pg_sl

Aug 10th, 2007 @ 6:01 pm
15. Sue

I use PCF M/C. I use the points to pay for groceries at Loblaws stores. Here in Alberta, that would be The Real Canadian Superstore. I earn 1% in points. I can apply points in $10 increments ($1,000 worth of card expenditures) off my groceries as right at the checkout. Not cold, hard cash — but works like cash. Since I shop there every week or so, it works out fine. I have never redeemed points for anything else.

Aug 10th, 2007 @ 8:14 pm
16. SavingsJourney

Hi FT, thanks for the info about the SPG card. I read your review of it as well. I’m using the American Express Aeroplan Plus Gold card, http://www10.americanexpress.com/sif/cda/page/0,1641,19913,00.asp. I’ve been a long time Aeroplan reward miles member. Do you think that the SPG rewards system would be more beneficial, considering I typically book flights on Star Alliance airlines?

Also off the top of your head, do you think that the Aeroplan card is less beneficial than the CIBC Aerogold, http://www.cibc.com/ca/visa/aerogold-visa-card.html? The reason I ask about this is because we’re actually in the process of switching to this car, because of the 15,000 Aeroplan reward miles incentive they offer for sign up. Strangely enough I submitted an application several weeks ago online and still haven’t heard from them. Anyway, the 15,000 miles incentive is enough for one flight to the closer U.S. states and Canadian provinces, which we do often enough.

Aug 12th, 2007 @ 10:56 pm
17. FrugalTrader

The SPG might not be your best option if you fly with the star alliance often b/c star alliance requires 30k points for the same flight that 25k would get you on aeroplan. SPG, in my opinion, is best for their hotel redemptions b/c of the no blackouts and diverse selections.

There are good sides and bad sides to both the amex and the cibc aerogold. What’s great about the amex is the comprehensive insurance package, free supplemntary card, and extra points once you reach $10k in spending. The downside to the amex is lower acceptance than Visa in Canada. The CIBC aerogold on the other hand costs extra for the supplementary card ($50 i believe) and lacks insurance for purchases. However, Visa is widely accepted by merchants, and the aerogold offers 1.5 points for spending @ gas stations, grocery and drug stores.

Aug 12th, 2007 @ 11:13 pm
18. SavingsJourney

Yes, acceptance is a biggie for us and something I’ve definitely noticed! We have Amex and PC Financial Mastercard, so the Mastercard has been acting as our backup card for that reason mostly.

Amex also has fantastic customer service and their security systems setup seem to be more robust, at least compared to my experience with it versus PC Financial Mastercard.

I try to fly Air Canada first with my reward miles, then Star Alliance second if that’s not possible. Re the SPG card, hotel redemptions are nice but are they only for Starwood properties?

Aug 13th, 2007 @ 9:25 am
21. westcoaster

I have the Canadian Tire cash back Mastercard along with other credit cards. I am now shying away from using them as it seems every one of them want your business and offer cash back, points or miles. For people who want the cash back and pay their bill on time, its a good way to get a few percent back but for those who run a balance, you really are not getting anything back. The card companies hope you always run a balance.

Aug 23rd, 2007 @ 11:22 pm
22. Jackboot

I just phoned capital one - they do NOT currently offer the cashback card!

If you google for “capital one cash back” the first result is for their cashback card - but when you click the link it brings you to their miles reward card. I was confused about wtf was going on so I just phoned and the rep confirmed that they are not offering a cashback card in Canada right now. I even took the rep through the links where it makes reference to the cashback program and she stated that was left up for customers that currently have the card and not for new signups. She said that she couldn’t even see the same info on her end because the offer wasn’t available for reps to see. Too bad - the reward is just slightly less than the CDN Tire cashback card but the Captial One offers other perks like purchase protection, extended warranty and car insurance which the CTFS card does not. Actually, the CTFS card offers a $5 / mo service which gives you purchase protection and warranty doubling up to 7 years. But that makes it a $60/year card so no deal.

Aug 24th, 2007 @ 6:25 am
23. FrugalTrader

Jackboot, perhaps they just haven’t updated their FAQ in a while. I’m going to modify the post to indicate that this card may not be available anymore.

Aug 24th, 2007 @ 4:24 pm
26. nicholas sean haydon

I,too, had the canadian tire mastercard.If one owns a house or a condo,this card is very good indeed.My reason for cancelling it concerned the
$5.00 monthly fee for the purchase protection and
extended warranty.For the moment,I am using the
rbc starbucks visa and the bmo mosaik with the .5%
cashback option.

Sep 19th, 2007 @ 7:11 pm
27. Bob Orchard

Seems to me that the best card is the Citi Bank Driver’s Edge card. It isn’t a cash back card per say but gives a full 2% on all purchases (up to $1000 back per year). If you buy cars and most of us do then it’s just like a cash back card and it can be used for new or used car purchases. It also has other featres included like purchase protection and has no fees at all.

Sep 21st, 2007 @ 11:32 am
33. lance t

with canadian cash back cards. do we have to declare the cash back as revenue on our income tax return.

thx lt

Mar 10th, 2008 @ 8:06 pm
34. Dimitrios P

Hello All,

I have a different solution.

I use the RBC Classic II card. It has a RBC points system similar to Aeroplan to buy merchandise and plane tickets. You get 1 point for every dollar spent. It does not sound fantastic until you realize you can convert up the RBC points for Esso Xtra points to get gas. Basically,3000 RBC points converts to 5000 Esso Xtra points the is values at $30.00 free gas. If you do the math, it is 1% cash back for gas without the wait. Also, if the have the Affinity savings account, the credit card annual fee is covered.

With gas getting more expensice, every little bit helps.

Regards, jim

Mar 23rd, 2008 @ 2:41 pm
36. Martin

I have the Citi Enrich Platinum MasterCard which is the best card for me. Here are the features. Note that this card is not available to everyone and is not on the website.

Citi Platinum Enrich Mastercard
*need to make $35,000 a year to get it or have a $5000 credit card limit already through Citibank*

Features:

- no annual fee

- ZERO LIABILITY: “should your card fall into the wrong hands, you won’t be held responsible for unauthorized purchases made in store, over the phone, or on the web. Feel safer now? That’s the idea.”

- extra security: free photocard (your photo and signature are digitally imprinted on the front of the card; this is a free service)

- free supplementary card(s) (by the way, supplementary card numbers are exactly the same as the number for the primary cardholder’s Mastercard; I think Citibank is the only company I know of that does it like this, and I personally think it’s nuts)

- 1% cash back from the first dollar you spend (in other words–there’s no minimum you have to spend first) up to a max of $500 cash back (or $50,000 spent on your card per year).

- price protection for 60 days (if you find the exact same item advertised for cheaper elsewhere, you’ll get the difference back) up to $100 difference per item (and up to a max of $500 per year). Computer hardware and software, food, cars, and pets are excluded from price protection (and you can only submit up to 3 duplicate items at once, I think; for example, if you purchase 5 duplicate shirts, you can only claim 3 for price protection on the same insurance form). You have to submit an insurance claim form each time

- (notice it’s $500,000) travel accident and baggage delay insurance: “You receive up to $500,000 Common Carrier Travel Accident Insurance coverage whenever you travel by plane, train, bus, or boat–at no extra cost–when you purchase your tickets in full on Citi Enrich Platinum Mastercard. You’re covered for up to a maximum of $500,000 for losses resulting from injuries while traveling.” If your baggage is delayed for more than 24hrs Chubb Insurance Company of Canada will reimburse the cardholder up to $300 ($100 per day your baggage is delayed for up to 3 days).

- Car Rental Collision/Loss damage waiver : “When you charge the full cost of the car rental to your Citi Bank Enrich Platinum Mastercard, you’ll be insured up to the actual cash value of the car if it is damaged or stolen.”
This usually saves anywhere from $10-$20 on car rentals, since you don’t
have to pay extra for insurance.

- Insurance from loss, damage, or theft on items purchased for up to 90 days

- Extended Warranty (doubles manufacturer’s warranty for up to a full year)

Mar 28th, 2008 @ 11:34 pm
37. kasm

Here is a great site comparing CAsh Back credit Cards:

http://www3.telus.net/CalgaryBen/

American Express Gold Credit Card with Cash Back give up to 2% with no annual fee.

Apr 4th, 2008 @ 9:30 pm
38. molly

Use TD Canada trust’s rebate credit card if you spend over 3k per year you get 1 % rebate with no annual fee, and it’s a visa card which is accepted nearly everywhere.

Apr 30th, 2008 @ 3:16 am
39. zeromoney

thanks for this post! I read your blog, but I guess I hadn’t started when you made this one.. a quick google search for “credit cards canada cash back” gave me your post right at the top of non sponsored links.

May 28th, 2008 @ 10:18 am