Cashback credit cards are one of the best ways to earn rewards on your everyday purchases in Canada. Whether you’re spending on groceries, gas, dining, or travel, using the right cashback strategy can help you save money while making routine purchases. However, not all cashback cards are created equal, and maximizing your rewards requires smart spending habits.
In this guide, we’ll break down the best strategies to maximize your cashback earnings, avoid common pitfalls, and ensure you’re getting the most value from your credit card.
1. Choose the Right Cashback Credit Card for Your Spending Habits
Not all cashback credit cards reward the same types of purchases equally. Some offer higher cashback rates for specific categories (e.g., groceries, dining, gas), while others provide a flat rate on all purchases.
Types of Cashback Credit Cards in Canada
- Category-Based Cards – Higher cashback for select spending categories (e.g., groceries, gas, dining) and a lower rate on everything else.
- Example: CIBC Dividend Visa Infinite (4% cashback on gas & groceries).
- Flat-Rate Cards – Earn the same cashback rate on all purchases, with no category restrictions.
- Example: SimplyCash Card from American Express (1.25% on everything).
- No-Fee Cashback Cards – A solid option if you want to earn rewards without paying an annual fee.
- Example: Tangerine Money-Back Credit Card (2% cashback in chosen categories).
- Premium Cashback Cards – Higher cashback rates, but they come with an annual fee.
- Example: Scotia Momentum Visa Infinite (4% cashback on groceries & recurring bills).
✅ Tip: Choose a card that matches your biggest spending categories to maximize rewards.
2. Use Multiple Cashback Cards for Maximum Rewards
No single credit card offers the highest cashback in every category. Using two or more strategically can boost your earnings.
Example Cashback Strategy Using Two Cards:
- Groceries & Gas: Use the Scotia Momentum Visa Infinite (4% cashback).
- Dining & Travel: Use the American Express Cobalt Card (5x points, which can be converted to cashback).
- All Other Purchases: Use the SimplyCash Preferred Card from American Express (2% cashback on everything).
By pairing cards, you can optimize cashback across multiple spending categories instead of settling for a lower rate in certain areas.
✅ Tip: Check if the cashback card you choose has restrictions on where it earns bonus rates (e.g., Costco only accepts Mastercard in-store).
3. Take Advantage of Welcome Bonuses
Many cashback credit cards in Canada offer sign-up bonuses that provide a higher cashback rate for the first few months or a cash reward when you meet a spending threshold.
Examples of Welcome Offers:
- Scotia Momentum Visa Infinite – 10% cashback in the first 3 months (up to $2,000 spent).
- BMO CashBack World Elite Mastercard – 10% cashback for 3 months (up to $2,600 spent).
Using a cashback card with a strong welcome bonus and maximizing spending during the promotional period can result in huge savings.
✅ Tip: Time your big purchases (like travel, electronics, or home appliances) during the bonus period to maximize rewards.
4. Automate Recurring Bills and Subscriptions on Your Card
Many premium cashback cards reward recurring payments, such as:
- Streaming services (Netflix, Spotify, Disney+)
- Utility bills (Hydro, internet, cellphone)
- Insurance payments
For example, the Scotia Momentum Visa Infinite offers 4% cashback on recurring bills. If you pay $300 per month on subscriptions and bills, that’s an easy $144 back per year.
✅ Tip: Set up automatic payments on your cashback card to avoid missing due dates while earning rewards.
5. Use Your Cashback Card for Everyday Purchases (But Pay the Balance in Full)
Using your cashback credit card for all everyday purchases (groceries, dining, gas, shopping) can increase your cashback earnings. However, carrying a balance and paying interest will wipe out any cashback rewards.
How to Maximize Rewards Without Paying Interest:
✔ Pay your balance in full every month to avoid interest charges.
✔ Use your credit card instead of debit for purchases you’d normally make anyway.
✔ Avoid unnecessary spending just to earn cashback.
✅ Tip: Set up automatic payments from your bank account to avoid missing due dates and paying interest.
6. Look for Special Promotions & Multipliers
Some cashback credit cards increase rewards temporarily through special promotions. Banks also partner with brands to offer additional cashback at certain retailers.
Examples of Cashback Promotions in Canada:
- American Express Offers – Exclusive cashback deals with select merchants.
- RBC Cashback Offers – Bonus cashback at participating retailers (e.g., Uber Eats, DoorDash, Petro-Canada).
- Scotiabank Scene+ Program – Additional cashback on groceries at Sobeys, Safeway, and FreshCo.
✅ Tip: Check your bank’s online cashback portal regularly to activate new offers.
7. Avoid Foreign Transaction Fees
Most Canadian credit cards charge a 2.5% foreign transaction fee when you make purchases in a currency other than CAD. This fee negates any cashback you earn on international spending.
Best No Foreign Transaction Fee Cashback Cards:
- Scotiabank Passport Visa Infinite – 2% cashback on groceries, no foreign fees.
- Rogers World Elite Mastercard – 1.5% cashback on foreign purchases.
✅ Tip: Use a no-foreign-transaction-fee card when traveling or shopping online internationally.
8. Redeem Your Cashback Wisely
Cashback cards offer different redemption options, and choosing the right one can maximize your benefits.
Common Cashback Redemption Methods:
- Statement Credit – The best option; reduces your card balance directly.
- Direct Deposit – Some banks allow cashback deposits into a chequing or savings account.
- Gift Cards or Merchandise – Some programs offer discounts when redeemed for specific items.
✅ Tip: Avoid cashback cards that force you to wait until you reach a minimum amount (e.g., $50) to redeem.
9. Be Mindful of Annual Fees
While some premium cashback cards charge an annual fee, the benefits can outweigh the cost if you earn enough rewards.
When an Annual Fee is Worth It:
- If the extra cashback percentage offsets the fee.
- If the welcome bonus covers multiple years of fees.
- If the card includes perks like travel insurance, extended warranties, or lounge access.
For example, if a card has a $120 annual fee but earns you $500+ in cashback per year, it’s still a great deal.
✅ Tip: If you’re unsure whether an annual fee is worth it, calculate how much cashback you’d realistically earn per year.
Final Thoughts: Get the Most Cashback in Canada
Maximizing cashback rewards in Canada isn’t just about choosing a high-cashback card—it’s about using the right strategies to get the most value.
Quick Recap of Key Strategies:
✔ Pick a card that matches your top spending categories.
✔ Use multiple cards to get the highest rates in different categories.
✔ Take advantage of welcome bonuses and promotions.
✔ Automate recurring bills and subscriptions to earn cashback passively.
✔ Always pay your balance in full to avoid interest charges.
✔ Use a no-foreign-transaction-fee card for international purchases.
By following these strategies, you’ll maximize your cashback earnings and make every dollar you spend work for you.
👉 Need help picking the best cashback card? Let me know your spending habits, and I’ll recommend the best options!
