Best Cashback Credit Cards in Canada

How Do You Earn Cashback?

When you use a cashback card and make qualifying purchases, you earn cashback. While some cards have no limits to how much cashback you might earn, some others have caps in place. For example, a card may offer cashback on all purchases, up to a maximum spending amount of $2,500 per month or even up to $100,000 per year. 

Some cashback credit cards offer higher cashback returns for purchases made in specific categories. For instance, a card might offer 4% cashback on groceries and gas, 2% cashback on recurring payments, and 1% cashback on all other purchases.

In some cases, you might benefit from getting a higher cashback of 4% to 10% for an introductory period of three to six months. Some cards also come with welcome cashback bonuses that cardholders can earn by meeting specific spending criteria.

When Do You Get Your Cashback?

When you receive your cashback depends on your card provider. In some instances, you need to earn a minimum amount of cashback before redeeming becomes possible. Some cashback credit cards offer cash back rewards once a month, and in some cases, it might extend to once a year.

Annual Fees

You can find cashback credit cards that charge no annual fees. However, they usually don’t offer much in the form of additional features. Annual fees, when applicable, typically vary from $99 to $199. Depending on the card you get, you might qualify for a first year fee waiver. If you choose to apply for a card that attracts an annual fee, determine if the cash back you earn will offset the fees you pay ahead of time.

Additional Benefits

Depending on the card you get and the annual fee you need to pay, you might get access to a range of benefits. These include:

• Mobile device insurance
• Travel insurance
• Purchase protection
• Extended warranties
• Concierge service
• Visa Infinite Dining and Music Series / American Express Invites
• Balance transfer
• Referral bonus
• Auto Club membership
• Medical insurance