10 Best Cash Back Credit Cards in Canada For 2023

Cashback credit cards are some of the popular means of reducing your expenses on everyday purchases.

With the historic inflation rocking the entire country, this could be the perfect time to apply for a cashback credit card.

While there’s no shortage of cashback credit cards to choose from in Canada, picking the perfect one could be challenging.

The immediate temptation would be to choose a card that offers the highest cash back on purchases.

But what are the applicable interest rates and annual fees? These two could render your cashback worthless.

The good news is that there are different categories of cashback credit cards to choose from out there.

From no-fee, low-interest, groceries, and students to business cashback credit cards — there are different options to choose from.

In this review, we will discuss the best cashback credit cards in Canada according to different categories.

Table of Contents

What are Cash Back Credit Cards?

Cash-back credit cards are a type of credit card that returns part of your funds when you make purchases with them.

Although cashback credit cards operate like other credit cards. However, they differ from other credit cards by offering real cash back on your purchases.

Let’s say you’re buying some groceries worth $1,000 with a cashback credit card that offers 15%. This means that you will get $150 back from your purchase.

But the thing is, different cashback credit cards have varying cash back rates on purchases. To get the best deal, you want to choose the card with the highest cash back.

Keep reading to learn about the best cashback credit cards in Canada.

Cash Back Bonus Categories in Canada

Let’s take a look at the different industries where you can get a cash-back bonus with a cashback credit card.

Groceries When you buy groceries in places like Loblaws, Metro, and other grocery stores, you can get cash back.
Transportation: Payments for flight tickets, hotels, car rentals, Uber, or public transport can also give you cash back.
Gas: Stations like PetroCanada and Shell also give cashback on purchases.
Streaming services and Entertainment Centers: If you’re a regular user of platforms like Netflix, Spotify, or Disney+, you can get cash backs on your subscription payments.
Restaurants: This should be of interest to you if you don’t eat homemade food often. SkipTheDishes, DoorDash, and Uber Eat give cash back also.
Recurring Bills: You can also get cash backs on utilities, Internet, wireless phones, etc when you pay with your credit card.

Cash Back Credit Cards: The Pros and Cons

Let’s look at the pros and cons of cash-back credit cards in Canada.

Pros

Cost-saving: A cash back credit card reduces the cost of purchases compared to other credit cards. If you run a business, a cashback credit card could help lower your operational costs.
Competitive welcome bonus: Most cash-back credit cards have amazing offers for first-time users. This might be an opportunity to buy something valuable for less price.
Reduce credit debt: With a cashback credit card, you can easily avoid credit card debt by using a portion of your purchases to offset your card balance.

Cons

High-interest rates: You may get to pay above-the-market interest rates on cash-back credit cards.
Limited offers: In exchange for cashback, some cashback credit cards limit their perks compared to other credit cards.

10 Best Cash Back Credit Cards in Canada

It’s time to take a look at the best cash back credit cards in Canada and their key features:

1. Tangerine Money-Back Credit Card

The Tangerine Money-Back Credit Card is a popular cash back credit card that doesn’t require an introduction.

Below are the key features of the Tangerine Money-Back Credit Card:

15% cash back bonus on everyday purchases up to $1,000 for the first 2 months of sign up
2% unlimited cash back rate on 3 categories of your choice.
0.50% cash back on other categories.
Cash-back bonuses are paid monthly.
Zero annual fees
19.95% interest rate on unpaid balances from purchases and cash advances
1.95% low promotional interest rates for transferred balances for 6 months
Requires a minimum of $12,000 personal annual income

If you have a large purchase to make, the Tangerine 15% welcome cashback would save you $150 on $1000 purchases within two months of cardholding.

If you are currently carrying a balance on a high-interest interest card, you can transfer the balance to Tangerine Money-Back Credit Card and enjoy a 1.95% interest rate for 6 months.

Learn more about Tangerine Money-Back Credit Card.

2. Neo Financial Mastercard

Neo Financial Mastercard is a game-changer in the world of cashback credit cards in Canada.

Neo Financial Credit Card offers one of the highest cashback rates in Canada.

As a way of saying thank you, the card offers a welcome bonus of $25 upon signing.

The Neo Financial Mastercard has the following key features:

15% cash back on your first purchase.
$25 sign-up bonus
An average of 5% cashback bonus on purchases from many partners
Zero annual fees
19.99% interest rate on purchases and 21.99% on cash advances.
Automated debit payment service

The main drawback of the Neo Mastercard lies is that it has above-average interest on cash advances compared to other cashback credit cards on this list.

Learn more about Neo Financial Credit Card.

3. HSBC +Rewards Mastercard

HSBC +Rewards Mastercard has the lowest interest rates in Canada at an 11.9% interest rate on purchases, cash advances, and balance transfers.

Instead of offering cash back, HSBC +Rewards Mastercard rewards you with points on purchases which you can redeem for cash.

Below are some of the features of the HSBC +Rewards Mastercard:

35,000 points (Worth $175 travel fund) when you spend $2,000 within the first 180 days of card holding
Earn 2 points on every $1 payment for dining and entertainment and 1 point on $1 for other everyday purchases.
A 21-day interest-free grace period on all your purchases.
Waived the $25 annual fee for the first year for the primary cardholder
11.9% interest rate on purchases, cash advances, and balance transfers.
Insurance on purchases and price protection services.

Learn more about HSBC +Rewards Mastercard

4. KOHO Standard Prepaid Mastercard

This is not a standard credit card like others discussed here. It’s a prepaid card that uses only the funds you have deposited into your account.

KOHO Standard Prepaid Mastercard gives you interest rates on your deposited funds and cashback on your purchases.

The following key features of KOHO Standard Prepaid Mastercard make it one of the best cash back credit cards in Canada:

0.50% cash back on all your purchases and up to 6% on KOHO partners added instantly to your account.
$20 sign-up bonus
1.20% interest rate on your balance
Zero annual fees
No deposit amount is required

Download the KOHO Financial app on the Google play store or Apple store to get started.

5. Rogers World Elite Mastercard

Rogers World Elite Mastercard offers more perks if you travel often. Although it requires a minimum personal or household income to access

Below are some of the features of the Rogers World Elite Mastercard:

Purchase within 3 months of opening the account.
1.5% cash back bonus on all regular purchases
3% cash back bonus on all purchases made in USD.
$25 sign-up bonus upon your first
Zero annual fees.
Access to over 1,300 Airport lounges worldwide.
Additional insurance coverages.
19.99% interest rate on purchases and 22.99% on cash advances.
Requires a personal annual income minimum of $80,000 or household income minimum of $150,000.

This may not be a good choice if you earn and spend less annually.

Apart from the minimum income required, you only maximize the perks if you travel often.

Learn more about Rogers World Elite Mastercard

6. WestJet RBC World Elite Mastercard

This is another cash-back credit card for people who travel often. WestJet RBC World Elite Mastercard has perks for you and your companion.

While this cashback credit card has an annual fee and a minimum income requirement, it offers competitive cashback on purchases.

Below are some of the features of the WestJet RBC World Elite Mastercard.

2% cash back in WestJet dollars from flights or packages with WestJet or WestJet Vacations.
1.5% cash back in WestJet dollars on everyday purchases.
Enjoy other benefits of checked bags on travelling, companion vouchers and lounges, gas purchases with PetroCanada, food from DoorDash, and medical products from Rexall.
$119 annual fees.
19.99% interest rate on purchases and 22.99% on cash advances.
Requires a personal annual income minimum of $80,000 or household income minimum of $150,000.

Learn more about WestJet RBC World Elite Mastercard

7. SimplyCash Preferred Card from American Express

SimplyCash Preferred Card is good for everyday purchases.

It offers some of the highest cashback rates on gas and grocery store categories.

Below are some of its features.

A 4% cash back on eligible gas station purchases and 4% cash back on eligible grocery store purchases of up to $1,200 annually in Canada.
An unlimited 2% cashback bonus on other everyday purchases
$9.99 monthly fee ($119.88 annually)
Zero fees on additional cards
20.99% interest rate on purchases and 21.99% on cash advances.
Up to $40 per month if you spend $750 each month as a statement credit in your first 10 months of cardholding.
Up to $1,500 referral bonus
Multiple insurance coverage

Learn more about SimplyCash Preferred Card from American Express

8. BMO CashBack Business Mastercard

BMO Cashback Business Mastercard is another best cashback credit card in Canada. This card can help you to reduce the overhead costs of running your business.

It allows you to add up to 22 of your employees as cardholders and reduce your business expenses through cashback.

Below are some of the features of the BMO Cashback Business Mastercard.

10% cash-back bonus on gas, office supplies, and cell phone and internet bill payments for 3 months
1.75% interest rate on Shell gas station and in-store purchases and 1.5% back on gas purchase from other stations
1.5% interest rate on office supplies, cell phone and internet bill payments
0.75% on other everyday purchases
Zero annual fees
19.99% interest rate on purchases and 22.99% on cash advances

Learn more about BMO CashBack Business Mastercard

9. Scotiabank L’earn Visa Card

Scotiabank L’earn Visa Card can help you to reduce your living expenses as a student.

It’s designed for students with low annual incomes who are looking to save costs on their purchases.

Below are some of the key features of the card.

Earn 1% cash back on purchases and get up to 20% discount on car rentals.
Earn up to $100 annually if you spend a minimum of $200 weekly throughout the year.
No annual fees on primary and supplementary cards
19.99% interest rate on purchases and 22.99% on cash advances
$500 minimum credit limit

Note that this card is not eligible for students with over $12,000 minimum annual income.

Learn more about Scotiabank L’earn Visa Card.

10. Students – BMO CashBack Mastercard

Students – BMO CashBack Mastercard differs from Scotiabank L’earn Visa Card in a few ways.

While it has higher interest on purchases, it’s offers higher Cashback with no income eligibility

Below are some of the key features of this card:

Get up to 5% cash back in your first 3 months if you’re a new user.
3% cash back bonus on all grocery purchases, 1% on recurring bills, and 0.5% on other purchases after your first 3 months of card holding.
Up to 25% discount when you rent cars from National Car Rental and Alamo Rent a Car location
No annual fees on primary and supplementary cards
20.99% interest rate on purchases, 21.99% on cash advances if you’re in Quebec, and 22.99% in other provinces.
Extended warranty and purchase protection.

Learn more about Students – BMO CashBack Mastercard.

READ ALSO:

Choosing the Best Cash Back Credit Card in Canada

From the above compilation, you can see how the best cash back credit cards in Canada differ in terms of cash back rate, annual fees, interest rates, income eligibility, welcome offers and perks.

The question is, which of the above cards is suitable for you?

As mentioned earlier, it’s a worthless endeavour if you lose more than you gain at the end of the day.

Below are things you should consider before you make a choice.

Cash back value: Take a good look at the cashback rate and compare it with the overall value of the card. Don’t just capitalize on the cash back rate, but also consider the underlying features of the card such as fees, interest rates, discounts and other perks.
Interest rates and fees: As good as the cashback rates are, they should not make you forget the interest rates and fees. These interest rates and fees can be more than all your cash back at the end of the year.
Your needs and financial capability: Your choice of cash-back credit cards should reflect your needs and affordability. This should help you determine the card that suits your limit, income eligibility and spending habit.
Welcome bonus vs referral bonus: Some credit cards like Neo Financial have competitive welcome bonuses while others like SimplyCash have higher referral bonuses. This should inform your decision especially if you’re looking for quick or long-term earnings.

READ ALSO:

Verdict on the Best Cash Back Credit Cards in Canada

Cash-back credit cards are a great way to reduce your living expenses. They present an opportunity to be rewarded based on your purchases.

However, choosing among the pool of cashback credit cards in Canada requires insight and guidance. I believe this article has offered you enough of that.

If you need more clarification on how to choose the best cashback credit card in Canada that suits your spending habit, hit me up in the comment below.

Before leaving, kindly check out our Credit Card Archive for more related information about the best credit cards in Canada.

Facebook X (Twitter) Email WhatsApp Pinterest