Best Cash Back Credit Cards in Canada for February 2023

The best cash back credit cards in Canada give you back a percentage of your spending on purchases. For example, a card with a 2% cash back rate pays you $2 cash back if you spend $100 on an eligible purchase.

Depending on how the credit card’s cash-out options work, you may be able to withdraw the cash back earned or redeem it as a statement credit to lower your card balance.

Read on to learn about the best cash back credit cards in Canada for 2023.

Best Cash Back Credit Cards in Canada – Featured

Best Canadian Cash Back Credit Cards of 2023

Credit Card	Cash Back Reward	Annual Fee
Tangerine Money-Back Credit Card	2% unlimited cash back in up to 3 spending categories; 0.5% on everything else	$0
Tangerine World Mastercard	2% unlimited cash back in up to 3 spending categories; 0.5% on everything else	$0
Scotia Momentum Visa Infinite Card	4% cash back on groceries, recurring bills, and subscriptions; 2% cash back on gas/transit; 1% cash back on everything else	$120 (waived 1st year)
KOHO Prepaid Mastercard	1% cash back on groceries and bills; up to 5% cash back at partner stores	$0
Neo Card™	Up to 5% cash back at thousands of locations across Canada	$0
SimplyCash Card from American Express	1.25% to 2% cash back on purchases	$0
SimplyCash Preferred Card from American Express	2% to 4% cash back on purchases	$119.88
CIBC Dividend Visa Infinite Card	4% cash back on gas and groceries; 2% on dining and recurring bills; 1% on everything else	$120 (waived 1st year)
Scotiabank Gold American Express Card	5% back on groceries, restaurant, food delivery and entertainment; 3% back on gas; 1% back on everything else	$120 (waived 1st year)
Meridian Visa Infinite Cash Back Card	4% cash back on gas and grocery; 2% cash back on pharmacy and utilities; 1% cash back on everything else	$99 (waived 1st year)
Simplii Financial Cash Back Visa	0.5% to 4% cash back on purchases (spending limits apply)	$0

Best No-Fee Cash Back Credit Cards

Here are the best no-annual-fee cash back credit cards that are great for your wallet.

Tangerine Money-Back Credit Card

Opposed to paying annual credit card fees but want to earn a decent cash back rate? The Tangerine Money-Back Credit Card offers a flexible cash back regime that puts you in control so you can choose where best to maximize your earnings.

The Tangerine Money-Back Credit Card tops our list of the best no-fee credit cards in Canada.

It has no annual fees, and you get to choose your reward categories.

This card gives you 2% unlimited cash back in 2 categories of spending, including everyday expenses such as groceries, gas, entertainment, recurring bill payments, and more.

If you deposit your cash back into a Tangerine Savings Account, you get a third 2% category.

All other purchases earn 0.50% unlimited cash back.

While it is not often marketed as a balance transfer card, the Tangerine Money-Back Credit Card has a low 1.95% balance transfer rate for the first 6 months.

In addition, this card provides purchase protection and an extended warranty average.

For a limited time, new cardholders enjoy a bonus 15% cash back rate worth up to $150 when they spend at least $1,000 in the first 2 months.

Cash back redemption: Cash back is automatically paid out once every month.

Income eligibility: You need a minimum annual personal income of $12,000 to qualify. Learn more about Tangerine cards.

Tangerine World Mastercard

If your annual personal income is $60,000 or more, you may qualify for the Tangerine World Mastercard and enjoy more benefits. This premium version of the Tangerine cash back credit card has even more perks.

Like the Tangerine Money-Back Card, it has no annual fees and pays 2% unlimited cash back on up to 3 spending categories.

It also includes rental car insurance, mobile device insurance, Boingo Wi-Fi at over 1 million hotspots worldwide, and Mastercard Airport Experience provided by LoungeKey.

Best Cash Back Credit Card for Groceries and Recurring Bills

The overall best credit card in Canada, Socitbank Momentum Visa Infinite, shines the most when considering its cash back rate for groceries and recurring bill payments.

In addition to this card are the KOHO Mastercard and Neo Card™.

Scotiabank Momentum Visa Infinite Card

The Scotia Momentum Visa Infinite Card offers some of the best cash back rates in Canada with 4% cash back on groceries and recurring payments, 2% cash back on gas and daily transit purchases, and 1% cash back on everything else.

For the first 3 months, you earn up to a 10% promotional cash back bonus valued at $200.

This premium card also provides comprehensive travel insurance coverage (8 types) as well as new mobile device insurance, purchase security, and extended warranty coverage benefits.

Cash back redemption: Cash back is credited to your account statement once per year in November.

Income eligibility: You need a minimum annual income of $60,000 or $100,000 in household income to qualify. Read our in-depth breakdown of the card.

KOHO Prepaid Mastercard

An unlikely winner in the grocery and recurring bills cash back category is the free KOHO Prepaid Mastercard. With no annual fees, you earn 1% unlimited cash back on grocery purchases and bill payments. It also pays a 0.50% interest rate on your balance.

Learn how it works.

Neo Card™

Not to be left out is the no-annual-fee Neo Card™ which offers up to 5% cash back at over 10,000 stores and partner brands in Canada.

Add on its optional Everyday Essentials perk bundle for $8.99 monthly, and you get access to 2% cash back at Walmart and Costco and multiple gas stations.

Best No Fee Flat-Rate Cash Back Credit Card

If you prefer to earn the same cash back rate on all purchases, the SimplyCash Card from American Express is worth looking at. It also has no annual fees.

SimplyCash Card from American Express

The SimplyCash Card from AMEX pays a 2% cash back rate on groceries and gas ($300 annual cash back limit at this rate; 1.25% after) and a 1.25% rate on all other purchases without a cap on how much you can earn.

This card also offers up to $100,000 in travel accident insurance when you pay your travel tickets in full using the card.

In addition, it provides standard purchase protection and extended warranty coverage benefits.

Cash back redemption: Cash back is credited to your account annually in August.

Income eligibility: No minimum income threshold is specified for this card. Get more details here.

SimplyCash Preferred Card from Amex

If American Express cards are to your taste and you like the SimplyCash Card from Amex, this card offers higher rewards for an annual fee.

For a $119.88 annual fee tag, you could get the SimplyCash Preferred Card from AMEX and enjoy additional benefits:

• 4% cash back on gas and groceries ($1,200 annual cash back limit); 2% unlimited cashback on all other purchases
• Comprehensive travel insurance benefits including emergency medical, flight delay, baggage delay, hotel burglary, lost or stolen baggage, travel accident, and car rental insurance
• Purchase protection and extended warranty benefits
• American Express Experiences

This card also does not have a minimum income requirement.

Best Cash Back Credit Cards for Groceries and Gas

The best credit cards for grocery purchases relieve your wallet when you do your weekly grocery runs. The same goes for cards that pay decent cash back when you buy gas.

CIBC Dividend Visa Infinite Card

The CIBC Dividend Visa Infinite Card is one of CIBC’s best cash back credit cards.

Users earn 4% cash back on gas and grocery purchases, 2% cash back on transportation, dining, and recurring bill payments, and 1% back on everything else.

This card also offers the following insurance categories:

• Mobile device insurance
• Out-of-province emergency travel medical insurance
• Common carrier accident insurance
• Car rental insurance

Cash back redemption: Redeem your cash back anytime when your balance is $25 or more.

Income eligibility: At least $60,000 personal annual income or $100,000 for a household.

The CIBC Dividend Visa Infinite Card’s 4% and 2% earn rates are limited to $20,000 worth of spending in each category and an $80,000 cap overall.

Scotiabank Gold American Express Card

The Scotiabank Gold American Express Card is not your typical cash back card. However, it is on this list based on its high earn rates, bonus offer, and ease of rewards redemption.

Cardholders earn:

• 5 points per $1 spent on groceries, fast food, food delivery, restaurant and entertainment purchases
• 3 points per $1 spent on gas, daily transportation, and streaming services
• 1 point per $1 spent on everything else.

This card waives the 2.50% foreign transaction fees you normally pay when you purchase things abroad.

It also provides comprehensive travel insurance coverages (8 types) and a discounted Priority Pass membership with access to VIP airport lounges worldwide.

For a limited time, new cardholders get up to 45,000 bonus points valued at $450 when redeemed towards travel:

• 25,000 bonus points when you spend at least $1,000 in the first 3 months
• 20,000 bonus points when you spend at least $7,500 in the first year

Cash back redemption: Redeem points as a statement credit or for gift cards, travel purchases, or merchandise.

Income eligibility: A minimum annual personal income of $12,000 is required.

Meridian Visa Infinite Cash Back Card

The Meridian Visa Infinite Cash Back Card is one of the best cash back credit cards in Canada.

Users earn:

• 4% cash back on gas and grocery purchases
• 2% cash back on pharmacy purchases and utility bill payments
• 1% cash back on all other purchases

The card also offers comprehensive travel insurance benefits.

Note that the 4% and 2% cash back earn rates only apply to the first $25,000 in purchases. A 1% rate applies after you exceed this amount.

Cash back redemption: Cash back is credited monthly and can be redeemed starting at $50 as an account credit or for merchandise, gift cards and event tickets.

Income eligibility: You need a minimum personal income of $60,000 or $100,000 for a household.

Simplii Financial Cash Back Visa Card

Lastly, the Simplii Financial Cash Back Visa Card is a noteworthy cash back credit card.

What Is a Cash Back Credit Card?

A cash back credit card is a credit card that gives you back a percentage of what you spend in cash.

Let’s say you spend $100 on eligible purchases and have a card offering 1% cash back. In this case, you would receive $1 back.

You accumulate cash back over the weeks and months, and you can see how much you have earned in your account.

While this is the basic principle, there are quite a few details you need to be aware of. These include the type of products you can purchase to earn cash back, any limits on how much you can earn, how to redeem your cash back and more.

Types of Cash Back Credit Cards in Canada

You can choose from several types of cash back credit cards in Canada. They work on the same principle but have minor differences.

Firstly, you need to consider the different ways to earn cash back.

Some cards have a flat rate of cash back. For example, this could be 1% on all purchases.

Others have a flat rate in addition to bonus categories. These are certain categories of spending where you can earn more. So, you could earn 2% for all eligible grocery purchases and 1% for everything else.

Other cards may even let you choose which categories you want to earn more cash back on (e.g. grocery and dining).

There are several cash back bonus categories for credit cards in Canada. The most common include:

• Groceries – Usually at major grocery stores in Canada, and you may be limited to certain stores.

• Entertainment – Earn cash back when you buy tickets to the cinema, concerts, theatres, etc.

• Gas – Earn cash back for purchases at gas stations for your travel costs.

• Dining – This could include eating out at restaurants, takeout, food delivery services, or all of them.

• Transportation – Some cards allow you to earn cash back for the money you spend on different types of transportation, including public transport.

• Monthly subscriptions – These include subscriptions like Netflix and recurring bills like internet and utility bills.

• Travel – Including hotels and car rentals.

You should always check your card details because different cards will have different definitions.

For example, some will provide cash back for dining, including food deliveries, while others will be limited to restaurants.

In addition, grocery shopping may be restricted to certain stores, and some monthly subscriptions may not include bills.

How To Choose a Cash Back Credit Card

There are several factors you should consider when applying for a cash back credit card:

Rewards categories: Always consider how much you can earn on specific categories of purchases. If you regularly shop at a particular store, find out whether you can earn more cash back by shopping there. If you primarily use your credit card to purchase gas, ensure you get a better rate.

Additional rewards: Premium cash back cards typically offer extra perks alongside cash back. These include travel insurance, rewards points, discounts, and more.

Annual fee: Premium credit cards often come with high annual fees. In return, they often provide higher cash back rates or additional perks. You have to decide whether the additional fee is worth it. If you don’t need travel insurance benefits, a no-fee cash back credit card can save you on fees.

Promotions: Many cash back credit cards offer juicy promotional rates as welcome bonuses. You may be able to earn significantly more cash back in the first few months, or you may find a card that waives the annual fees for the first year.

Income eligibility: Check whether you are eligible for the card based on your income. While American Express cards do not have a minimum income requirement, for the Visa Infinite Cards on this list, you need to earn at least $60,000 per year to qualify.

Interest rate: While cash back and other rewards may be your primary concern, don’t forget to check the interest rate for purchases and cash advances. If you carry a balance, a low interest rate can help you pay less and repay your debt sooner.

How To Redeem Cash Back Rewards

When you have earned cash back from your card, you’ll want to get your hands on it. So how should you redeem it?

This is usually straightforward, but all cards have slightly different processes.

Often, you can use your cash back rewards to pay off your credit card balance. However, some cards set a minimum cash back amount before you can redeem it, so you need to reach a certain amount.

Others may have restrictions on how frequently you can redeem your cash back. This could be once a week or a month, for example. Some may only pay out annually.

With some cards, you can deposit your cash back rewards directly into a linked savings account and then use it as cash.

Here is a list of the major credit card providers and their standard processes for redeeming cash back:

• BMO – You can redeem anything over $1 as statement credit and set up automatic direct deposits from $25 to your BMO accounts.

• American Express – Cash back is paid out on an annual basis.

• CIBC – You can redeem cash back from $25 and over.

• TD – The minimum cash back earnings before you can redeem is $25, or you can redeem it annually without any minimum requirements.

• Scotiabank – The cash back you earn is credited to your account once a year.

• Tangerine – Cash back is paid directly to your savings account every month or applied directly to your balance.

• RBC – You can redeem your cash back once you have earned a minimum of $25. Or it is automatically credited to your account once a year.

You may want to cash out more regularly, or you might want to save up your cash back to pay towards a large purchase.

Just make sure you check the full details of the card. For example, if you plan to use it regularly, you don’t want to get a card that only allows you to claim your cash back once a year.

Related: TD Cash Back Visa Infinite Card Review.

Benefits of Cash Back Credit Cards

Cash back is easy to understand as opposed to earning points. With cash back, you know exactly how much you are getting upfront, i.e. $50 = $50.

The value of points varies with the redemption option you choose. For example, 5000 points may be equivalent to $50 when you redeem for travel and $35 when you redeem at a statement credit or for merchandise.

Downsides of Cash Back Credit Cards

Many of the best cash back credit cards have hefty annual fees.

Some also require you to have a minimum annual personal or household income to be eligible.

How To Apply for a Cash Back Credit Card

Applying for a cash back credit card in Canada is straightforward. The process is the same as for most other types of credit cards.

First, choose the right credit card based on the amount of cash back you can earn, how you can redeem it, and other factors like interest rates, annual fees, etc.

When you have found a card that you like the look of, check the eligibility requirements.

There is usually a minimum age and a residency status requirement. Most require that you are a resident of Canada and the legal age of majority in your province.

You will also need to have a good credit score for most cards. Very few credit cards will approve your application with a bad credit score; the same is true for cash back credit cards.

This means having a score of over 660. If you don’t have a good credit score, you may want to apply for a secured credit card instead.

Finally, check the income requirements. The card provider may state that you need a minimum personal income or household income, but not always.

Sometimes it is quite low, about $12,000 per year. But it can be higher for premium cards, like $80,000.

When you are ready to apply, you should be able to apply for your card online by providing the required information. You may also be able to apply over the phone or in person at your local branch.

How To Maximize Credit Card Cash Back

When you have applied for and received your cash back credit card, you will want to maximize the amount of cash back you earn. There are several ways to do this.

Firstly, choose a card that allows you to earn the most cash back based on your spending habits. For example, if you visit a certain grocery store every week, choose a card that provides a higher rate of cash back for shopping at that store.

Some cards allow you to choose the spending category to get a higher rate of cash back. While it may provide 1% cash back for general purchases, you could earn 3% or more for some categories

Look for welcome offers and consider applying for a new card when planning a larger purchase. You could get a higher cash back rate for the first few months but check for limits.

Use several credit cards to maximize your cash back. For example, one card may provide a higher cash back rate for one category, like travel, while you could use another for grocery shopping.

Add authorized users like your spouse or children, so they can earn cash back too.

Cash Back Credit Card Canada FAQs

Related:

• Best Aeroplan Credit Cards in Canada
• Best Low Income Credit Cards
• Best Credit Cards for Newcomers
• Best Credit Cards for Students
• Best Store Credit Cards