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12 Best Cash-Back Credit Cards in Canada for December 2024

Dec 1, 2024NerdWallet's picks for the best cash-back credit cards in Canada include top contenders across numerous categories. Choose the right one for your spending habits and financial goals.
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Written by Georgia Rose
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When it comes to the complex world of credit card rewards, there are few words as simple — or as sweet — as “cash back.” If you’re looking for a cash-back credit card in Canada, you have plenty of choices.

NerdWallet Home PagePartner Spotlight
Neo World Elite® Mastercard*

Maximize every dollar with the Neo World Elite® Mastercard – Canada’s ultimate cashback card for everyday spend. Start earning market leading cashback on your everyday purchases today. This cashback card offers 5% back on groceries, 4% on recurring bills, 3% on gas and 1% on everything else from day one. Plus earn an average of 5% back on their network of over 10,000 partners across Canada. Click 'Apply Now' for complete details.

APPLY NOW
on Neo's website
Neo World Elite® Mastercard*

Compare the best cash-back credit cards in Canada

Best overall cash-back card
Annual fee
$119.88
Regular APR
21.99% / 21.99%
Rewards rate
2%-4%
Sign-up bonus
Up to $250
Recommended credit score660-724

Our pick for: Cash back on recurring bills
Annual fee
$120
Waived first year
Regular APR
20.99% / 22.99%
Rewards rate
1%-4%
Sign-up bonus
Up to $200
Recommended credit score700-900

Our pick for: Cash back on groceries
BMO CashBack® World Elite®* Mastercard®*
APPLY NOW
on BMO's website
Annual fee
$120
Waived first year
Regular APR
20.99% / 23.99%
Rewards rate
1%–5%
Sign-up bonus
Up to 10% cash back
Recommended credit score660-900

Our pick for: Cash back on restaurants
Annual fee$0
Regular APR
20.99% (Purchase)‡ / 22.99% (Cash advance)‡
Rewards rate
0.5%-10%
Sign-up bonus
Up to 10% Cash Back
Recommended credit score760-900

Our pick for: Newcomers
BMO CashBack® Mastercard®*
BMO CashBack® Mastercard®*
4.5
NerdWallet rating
APPLY NOW
on BMO's website
Annual fee$0
Regular APR
20.99% / 22.99%
Rewards rate
0.5%-3%
Sign-up bonus
Up to 5% cash back
Recommended credit score640-900

Our pick for: Students
BMO CashBack® Mastercard®* for Students
APPLY NOW
on BMO's website
Annual fee$0
Regular APR
20.99% / 22.99%
Rewards rate
0.5%–3%
Sign-up bonus
Up to 5% cash back
Recommended credit score640-900

Our pick for: Bad or no credit
Secured Neo Mastercard
Secured Neo Mastercard
4.7
NerdWallet rating
APPLY NOW
on Neo's website
Annual fee$5 / Month
Regular APR
19.99%-29.99% / 22.99%-31.99%
Rewards rate
0%-4%
Sign-up bonusN/A
Recommended credit score300-900

Our pick for: Prepaid cash-back rewards
Neo Money™ Card
Neo Money™ Card
3.9
NerdWallet rating
APPLY NOW
on Neo's website
Annual fee$0
Regular APRN/A
Rewards rate
Up to 3%
Sign-up bonusN/A
Recommended credit scoreN/A

Our pick for: Flexibility
Annual fee$0
Regular APR
20.95% / 22.95%
Rewards rate
0.5%-2%
Sign-up bonus
Up to $100
Recommended credit score655-724

Our pick for: Cash back on gas
CIBC Dividend® Visa Infinite Card
CIBC Dividend® Visa Infinite Card
4.9
NerdWallet rating
Annual fee
$120
Waived first year
Regular APR
20.99% / 22.99%
Rewards rate
1%-4%
Sign-up bonusN/A
Recommended credit score760-900

Our pick for: Low interest
Desjardins Odyssey® Visa Infinite Privilege
Desjardins Odyssey® Visa Infinite Privilege
5.0
NerdWallet rating
Annual fee
$295-$395
Regular APR
11.90% / 12.90%
Rewards rate
1.75%-4%
Sign-up bonusN/A
Recommended credit score760-900

Our pick for: Businesses
Scotia Momentum® for Business Visa* Card
Scotia Momentum® for Business Visa* Card
3.4
NerdWallet rating
Annual fee$79
Regular APR
19.99% / 22.99%
Rewards rate
1%-3%
Sign-up bonusN/A
Recommended credit scoreN/A

Methodology

BACK TO TOP

NerdWallet Canada selects the best credit cards based on unique attributes, overall consumer value and suitability for specific kinds of consumers. Factors in our evaluation methodologies may include annual fees, rewards rates, interest rates and other noteworthy features specific to the card type. To learn more about how we evaluate and select financial products, you can review our credit card methodology.

Summary of the best cash-back credit cards in Canada

NerdWallet ratingAnnual feeRegular APRRewards rate
SimplyCash® Preferred Card from American Express
SimplyCash® Preferred Card from American Express
5.0/5
$119.88
21.99%/21.99%
2%-4%
APPLY NOW
on American Express' website
Scotia Momentum® Visa Infinite* Card
Scotia Momentum® Visa Infinite* Card
4.9/5
$120
Waived first year
20.99%/22.99%
1%-4%
APPLY NOW
on Scotiabank's website
BMO CashBack® World Elite®* Mastercard®*
BMO CashBack® World Elite®* Mastercard®*
4.9/5
$120
Waived first year
20.99%/23.99%
1%–5%
APPLY NOW
on BMO's website
Simplii Financial™ Cash Back Visa Card
Simplii Financial™ Cash Back Visa Card
4.9/5
$0
20.99% (Purchase)‡/22.99% (Cash advance)‡
0.5%-10%
APPLY NOW
on Simplii Financial™ 's website
BMO CashBack® Mastercard®*
BMO CashBack® Mastercard®*
4.5/5
$0
20.99%/22.99%
0.5%-3%
APPLY NOW
on BMO's website
BMO CashBack® Mastercard®* for Students
BMO CashBack® Mastercard®* for Students
4.3/5
$0
20.99%/22.99%
0.5%–3%
APPLY NOW
on BMO's website
Secured Neo Mastercard
Secured Neo Mastercard
4.7/5
$5/Month
19.99%-29.99%/22.99%-31.99%
0%-4%
APPLY NOW
on Neo's website
Neo Money™ Card
Neo Money™ Card
3.9/5
$0
N/A
Up to 3%
APPLY NOW
on Neo's website
Tangerine World Mastercard®
Tangerine World Mastercard®
4.1/5
$0
20.95%/22.95%
0.5%-2%
APPLY NOW
on Tangerine's website
CIBC Dividend® Visa Infinite Card
CIBC Dividend® Visa Infinite Card
4.9/5
$120
Waived first year
20.99%/22.99%
1%-4%
Desjardins Odyssey® Visa Infinite Privilege
Desjardins Odyssey® Visa Infinite Privilege
5.0/5
$295-$395
11.90%/12.90%
1.75%-4%
Scotia Momentum® for Business Visa* Card
Scotia Momentum® for Business Visa* Card
3.4/5
$79
19.99%/22.99%
1%-3%

How cash-back credit cards work in Canada

Before deciding which cash-back credit card is right for you, it’s helpful to understand how the cash-back redemption process works, the many categories cash-back rewards can fall into, and how cash-back cards compare to other types of credit cards.

What is a cash-back credit card?

Cash-back credit cards are pretty straightforward: you use them as you would any other credit card, and in exchange for making eligible purchases, you get a certain percentage of what you’ve spent back in cash.

Advantages and Disadvantages of a cash-back credit card?

Advantages

  • Simplicity — cash-back cards make it easy to earn valuable rewards.

  • Welcome bonuses and introductory offers can be quite generous.

  • Accumulated rewards can help pay down your card balance.

  • High earn rates for items you buy regularly can yield big rewards.

Disadvantages

  • You may not typically buy items that yield above-average earn rates.

  • Amassing rewards can be slow depending on how much you spend each month, and whether you pay your bill in full.

  • Bonus and introductory offers tend to come with conditions, including spending minimums, which may be challenging to meet.

  • Should I choose cash-back or rewards points?

Types of cash-back credit cards

All cash-back credit cards work similarly, but even minor differences are worth noting as they can affect your earn rate.

Flat-rate

This type of cash-back credit card earns cash-back at the same rate for all purchases made.

Bonus rewards categories

Some cash-back credit cards offer an increased earn rate for rewards on select spending categories, such as groceries and restaurants.

Flexible bonus cash-back cards

Some cards allow you to choose the spending categories to earn your bonus rewards. By selecting categories that align with the types of items you buy frequently, you can maximize your cash-back rewards.

How to earn cash-back

You’ll need to make purchases to earn cash-back rewards with a credit card. For example, let’s say you have a card that offers 2% cash back on groceries. If tomorrow’s weekly run to the supermarket winds up costing you $100 and you pay with your card, you’ll earn $2 in cash-back rewards.

Cash-back rewards will accumulate as you continue using your cash-back credit card. The running total of how much cash you’ve earned should be easy to find on your monthly statement or via your online account.

Make sure to stay within your credit limit, keep your account in good standing, and look closely at your cash-back credit card’s details to find out how much you can earn on your purchases. Earn rates can vary based on time, such as when an introductory offer provides a higher rate of rewards and what kinds of products you purchase.

How to redeem cash-back

Once you have accumulated enough cash-back rewards, you can redeem them for statement credits, bank deposits, gift cards, or other rewards. Make sure to understand the redemption options and requirements of your card. Some may require you to meet a minimum threshold of cash-back rewards before redemption. If you don’t have enough points available, you’ll have to sit on them until you do.

Redemption requirements by issuers

Every credit card provider has different rules when it comes to redeeming your cash back. Some allow monthly redemption, while others pay out annually. Other providers allow redemption only after you’ve hit a certain threshold. The following are the payout requirements for the major cash-back credit card issuers:

  • American Express. All cash back earned is paid out annually on your September statement.

  • BMO. Redeem as little as $1 in cash back as a statement credit. You can also set up automatic direct deposits to your BMO chequing or savings account starting at $25.

  • CIBC. Cash-back redemptions start at $25. Any unredeemed cash back will appear on your January statement annually.

  • RBC. Once you earn $25 in cash back, you can have the balance credited to your account at any time by calling in. Alternatively, all accumulated cash back will be credited to your account every January.

  • Scotiabank. All cash back earned appears as a credit on your November statement.

  • Tangerine. Paid monthly to your savings account or applied to your credit card balance.

  • TD. You can redeem your cash back when you have a minimum amount of $25. Another option is to take your cash back annually every January where there is no minimum amount required.

» MORE: Read our in-depth TD Cash Back Visa Infinite* Card review

When is a good time to redeem my cash-back rewards?

Many cash-back credit cards will allow you to redeem your rewards as soon as they reach a minimum threshold. But you can also save them up over time and cash them in for a more significant, single-shot pay-down of your credit card balance, for example.

Choosing to redeem cash rewards on a regular basis is certainly satisfying. But it could mean dipping below your minimum threshold. The next time you want — or need — to use your rewards, you may not have enough at your disposal. Saving your cash back rewards to generate more impact — to ease the blow of a particularly big purchase — is a worthy strategy, too. But know that if you fail to keep your account in good standing or decide to close it suddenly, you could lose out on accumulated rewards.

Cash-back bonus rewards categories

Cash-back bonus rewards categories refer to the specific spending categories or types of purchases that earn higher cash-back rewards on a credit card.

For example, let’s say your credit card gives you 4% cash back on gas. If the card has a flat rate of 1%, this means you’ll earn cash back on gas with a bonus rate of 3%, making it so all your gas purchases would give you 4% cash back. Since many gas stations sell other things, such as snacks and gift cards, you’d also earn 4% cash back on any of those items.

Generally speaking, Canada’s best cash-back credit cards offer multiple bonus categories. Getting a cash-back card that aligns with your spending patterns can be pretty lucrative. For example, if you spend a lot on groceries, getting a cash-back credit card with an increased earn rate on groceries can significantly benefit you.

You’ll earn cash back at an increased rate when making purchases in specific spending categories, but you’ll still earn the base earn rate when you make purchases that don’t fall under a bonus category or after you have reached the bonus category cash-back limit. The base earn rate differs for each cash-back credit card but typically ranges between 0.5% and 2%.

Common rewards categories

Cash-back categories can vary depending on the credit card and issuer, but here are some common categories in Canada:

  • Grocery. Any purchase made at grocery stores, such as Loblaws, No Frills and Metro.

  • Gas. Includes any purchase made at a gas station or service station, like Shell, PetroCanada and Esso.

  • Restaurants and dining. This usually includes takeout and food delivery services like Uber Eats, DoorDash and SkipTheDishes.

  • Travel spending. Airline tickets, hotels, car rentals, etc.

  • Transit and transportation. This may include taking an Uber, a taxi, or paying for public transportation.

  • Streaming services. Monthly subscriptions to products like Netflix, Disney+, Spotify, etc.

  • Drug stores and pharmacies. This may include purchases made at a drug store, like Shoppers Drug Mart.

  • Entertainment. This may include money you spend on tickets to the movies, theater, or a live music concert.

  • Bills and recurring payments. Including wireless phone, internet, and utility bills paid with a credit card.

The key thing to understand is that each credit card defines its categories differently and employs its own merchant category codes. For example, some cards may group gas and transportation. Some cards lump groceries and restaurants into a “food and drink” category. To further complicate things, some merchants don’t fall into the categories you would think they would. For example, Costco is not considered a grocery store. As far as credit card processors are concerned, Costco is a wholesale store.

Credit card companies do not typically reveal all of the stores associated with a merchant category publicly. Still, you should be able to contact your credit card provider’s customer service to ask about a specific store. Overall, it’s pretty easy to figure out what category your purchases will fall under, but you may need some trial and error.

How to choose a cash-back card

Before applying for a cash-back credit card, select the right one for you and ensure you’re eligible.

Compare cash-back credit card options

With dozens of cash-back credit cards available, comparing them all can be time-consuming. That said, there are a few things you should look at when considering any cash-back card.

  • Interest rates. It’s important to look closely at the interest rates associated with any cash-back credit cards you’re considering; many start out in the 19.99% range. Zero interest is charged on balances paid in full every month, but if you don’t, it can significantly add to your debt and erode the benefit of any cash-back rewards you earn.

  • Annual fee. Decide if you want to pay an annual fee or not. In most cases, paying a yearly fee means earning more cash back and getting better benefits. On the other hand, no-fee cash-back cards may have a lower earn rate, but if you don’t charge much to your card, you could come out ahead compared to a card with a fee.

  • Welcome bonus or intro offer. Cash-back credit cards in Canada commonly offer a sign-up bonus for new applicants. The welcome bonus usually comes as a higher cash-back rate for a set period. For example, you might get 10% cash back on all purchases up to $3,000 in spending. If the earn rates are similar with two cards, but one has an excellent welcome bonus, then you might as well take advantage of the promotion. Credit card bonus offers nearly always come with terms and conditions to be met, but be sure you read over the offer thoroughly and understand how much you may need to spend to qualify.

  • Bonus rewards categories. The increased earn rate on bonus categories is arguably the most critical factor when comparing cash-back cards. It’s ideal to choose a card that gives you the most cash-back in the categories where you do the most spending. Remember that the amount you spend in bonus categories every year could earn you more than any welcome bonus offered.

  • Credit card insurance and additional perks. Many cash-back credit cards offer various forms of insurance and additional benefits that may appeal to you. Some perks to look out for include:

Make sure you qualify

Even though the benefits of a cash-back credit card are relatively simple to understand, you’ll still have to reckon with a few eligibility requirements to consider before applying.

  • Age and residency status. Most cash-back credit cards require you to be both a Canadian resident and the legal age of majority in the province where you live to apply for your own card. The age of majority is 18 in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan. It’s 19 everywhere in all other provinces.

  • Credit score. A good credit score is required in most cases to qualify for a cash-back credit card. In Canada, a credit score that ranges between 660 and 724 is considered good. If you do not have a good credit score, consider a credit card designed for bad or no credit, a prepaid card, or a secured credit card instead of a cash-back credit card.

  • Personal or household income requirements. Some cash-back credit cards come with relatively lower income requirements, but if you want a higher-tier cash-back credit card, you’ll likely need a higher income.

How to maximize your cash-back rewards

There are plenty of tricks to help you get the most out of your cash-back credit cards. The more tips you adopt, the more cash back you’ll earn. That said, it’s best only to follow the advice that you’re comfortable with.

  • Apply for a new card ahead of major expenses. Since many of Canada’s best cash-back credit cards have a generous welcome bonus, it’s often worth your trouble to apply for a new card before you make a major purchase. For example, let’s say you need to renew your home and auto insurance, which will cost you about $2,000. You could apply for a cash-back credit card offering 10% cash back as the welcome bonus. Then, when you charge your insurance to your card, you’d get $200 back.

  • Keep your eye out for attractive intro offers and sign-up bonuses. Welcome offers are constantly changing, so watch for any current promotions. Getting 10% cash back for a set period is generous, but if the card also waives the annual fee for the first year, they’re practically paying you to sign up. When you get close to 12 months of card membership, you might cancel the card before your annual fee posts. You could then apply for a new cash-back credit card with a strong bonus.

  • Pay attention to intro offer limits. Keep in mind that many cash-back credit cards have a limit on their sign-up offer. If you have a substantial purchase, you could apply for more than one card and split up your purchase to maximize your cash back. However, if you need to pay an annual fee for the new card, it may negate the cash back you earn, so pay attention to the details.

  • Carry multiple cards. Many people focus on a single cash-back credit card, but there’s nothing wrong with having multiple credit cards. In fact, having more than one card is the easiest way to maximize your cash back. Start with a primary card that gives you an increased earn rate where you spend most of your spending. You could then complement that card with a no-fee card that gives you bonus categories where your primary card doesn’t. Just use the credit card that gives you the most cash back whenever you shop.

  • Buy gift cards in bonus categories. Groceries and gas are two of the most popular merchant categories where you’ll earn additional cash back. Here’s the thing: grocery stores and gas stations sell gift cards that can be used at many retailers. That essentially allows you to earn extra cash back.

  • Add supplementary users. Most credit cards allow you to add supplementary users. The advantage is that all authorized cardholders earn cash back on their purchases, including any bonus. Best of all, the cash back gets combined into a single pool, so you’ll be racking up that cash back in no time.

  • Use cash-back websites. Various online sites allow you to earn additional cash whenever you shop online. First, you need to create an account. Afterwards, you would select the partner retailers through their online portal. When you do your shopping, eligible purchases will earn you cash back. You’ll earn cash back twice if you pay with your cash-back credit card.

Should I choose cash-back or rewards points?

Answering this question depends on what you’re looking to get out of your credit card.

  • Cash-back rewards may be the route to take if you’re hoping for a little help paying your credit card bills, or want to earn rewards that are typically easy to calculate, collect and apply toward your balance.

  • Rewards points, however, can generally be redeemed in a wider variety of ways, including discounts on travel or merchandise. That flexibility can be very attractive to some consumers. However, the value of the points you collect can fluctuate, making tracking your points a more complicated endeavour than cash-back rewards.

Are cash-back credit cards worth it?

There are two situations where a cash-back card might not be the right choice:

  1. If you’ll pay more in annual fees than you’d earn in cash-back.

  2. If you can get a better return with a points-based rewards card. For example, let’s say you got a travel rewards credit card and did the same spending. Would the points you earn be worth more than the cash back you could potentially earn? If so, it makes more sense to get a travel credit card.

Frequently asked questions


Most cash-back credit cards have limits on the cash back you can earn. Look at your card’s terms and conditions for rates and limits. Most cash-back credit cards set the limit per category, but they may also lump some categories together. Additionally, the limit would factor in any purchases made by supplementary users on the account.

Some cards give you unlimited cash back, even on bonus categories. That means you would get the full earn rate, regardless of how many purchases you put on your card. Shopping around and reviewing the terms and conditions of cards you’re interested in, will help you pick the right card.

Cash-back rewards are considered a rebate/discount by the Canada Revenue Agency, so you won’t be taxed. Cash back is really no different from a coupon, which is obviously not taxable.

That said, if you earn cash as part of your employment, it may be taxable. For example, let’s say you have a company cash-back credit card. Your employer allows you to deposit the cash back earned directly into your bank account. In this case, the cash back would be taxable since it’s a form of income.