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Canadians are always on the lookout for ways to stretch their dollars further. Whether it’s through loyalty programs, discounts, or rebates, the value of getting something back on your spending is undeniable. One of the most effective ways to do that is with cashback credit cards. In 2025, several Canadian banks and financial institutions are offering credit cards that can give you up to $1,200 in cashback rewards annually or through welcome bonuses. This article dives deep into the best cashback credit cards in Canada, their benefits, how to apply, and how to maximize your rewards — all while staying compliant with financial best practices.
What Is a Cashback Credit Card?
A cashback credit card is a type of credit card that rewards you with a percentage of your purchases in the form of cash. Instead of earning points or miles, you get actual dollars back, usually credited to your statement or deposited into your account.
How It Works
- Spend Money: Use your cashback card for purchases.
- Earn Rewards: Get a percentage back (usually between 1% to 6%).
- Redeem Cash: Apply it toward your statement balance, direct deposit, or gift cards.
Why Choose a Cashback Card in 2025?
- Inflation-Proof Savings: Cashback reduces your effective cost of living.
- Simple Rewards System: Easier to understand than point systems.
- No Redemption Hassle: Redeem directly as cash.
- Bonus Categories: Some cards offer up to 10% cashback on select categories.
- Sign-Up Bonuses: Some cards give up to $500 as a welcome bonus.
Top 10 Canadian Cashback Credit Cards in 2025
1. Scotia Momentum® Visa Infinite
- Welcome Bonus: Earn up to $350 in the first 3 months
- Cashback Rate: 4% on groceries and recurring bills
- Annual Fee: $120 (often waived the first year)
- Perks: Travel insurance, mobile device insurance
- Ideal For: Families and high grocery spenders
2. Tangerine Money-Back Credit Card
- Welcome Bonus: Up to $150
- Cashback Rate: 2% on up to 3 categories
- Annual Fee: $0
- Perks: Flexibility in choosing categories
- Ideal For: Budget-conscious users
3. BMO CashBack® World Elite® Mastercard®
- Welcome Bonus: Up to $260
- Cashback Rate: 5% on groceries for the first 3 months
- Annual Fee: $120
- Perks: Roadside assistance, travel insurance
- Ideal For: Frequent travelers and drivers
4. CIBC Dividend® Visa Infinite
- Welcome Bonus: $300 in cashback
- Cashback Rate: 4% on gas and groceries
- Annual Fee: $120 (first year rebated)
- Perks: Purchase protection, mobile insurance
- Ideal For: Commuters and families
5. Rogers World Elite Mastercard
- Welcome Bonus: $25
- Cashback Rate: 3% on USD purchases, 1.5% on others
- Annual Fee: $0
- Perks: Free Boingo Wi-Fi, travel insurance
- Ideal For: Cross-border shoppers
6. American Express SimplyCash Preferred
- Welcome Bonus: Up to $400
- Cashback Rate: 4% on gas and groceries
- Annual Fee: $120
- Perks: Amex Offers, front-of-the-line access
- Ideal For: Entertainment and everyday use
7. KOHO Prepaid Mastercard (with cashback)
- Welcome Bonus: N/A
- Cashback Rate: Up to 5% with partnered retailers
- Annual Fee: $0–$9/month
- Perks: Budgeting tools, early payroll
- Ideal For: Young adults and students
8. Simplii Financial Cash Back Visa Card
- Welcome Bonus: $50
- Cashback Rate: 4% on dining and groceries
- Annual Fee: $0
- Perks: Purchase protection
- Ideal For: Foodies and urban dwellers
9. National Bank World Elite Mastercard
- Welcome Bonus: Up to $300
- Cashback Rate: Up to 5 points per dollar (redeemable as cash)
- Annual Fee: $150
- Perks: VIP lounge access, insurance
- Ideal For: Professionals and travelers
10. Walmart Rewards Mastercard
- Welcome Bonus: $25
- Cashback Rate: 1.25% at Walmart, 1% elsewhere
- Annual Fee: $0
- Perks: Instant credit availability
- Ideal For: Walmart shoppers
How to Choose the Right Card for You
1. Spending Habits
Match your card’s reward categories to where you spend most.
2. Annual Fee vs. Benefits
Sometimes paying a fee gives you better perks and more cashback.
3. Sign-Up Bonuses
Some cards offer lucrative bonuses if you spend a certain amount in the first few months.
4. Interest Rates
Always check the APR, especially if you might carry a balance.
5. Credit Score Requirements
Premium cards often require a good to excellent credit score (680+).
How to Maximize Cashback Rewards
- Use the Right Card for the Right Purchase
- Automate Recurring Payments on high-cashback categories
- Combine Cards with different strengths (e.g., one for groceries, one for gas)
- Monitor Spending to avoid interest charges
- Leverage Promotions from the card issuer or third-party retailers
How to Apply for a Credit Card in Canada
- Check Your Credit Score: Use Equifax or TransUnion
- Compare Offers: Use aggregator sites or bank websites
- Fill Out the Online Application: Takes about 5–10 minutes
- Wait for Approval: Usually within minutes to a few business days
- Activate and Start Using the Card
Common Cashback Credit Card FAQs
Q1: Can I get a cashback card with bad credit?
Yes, but options may be limited. Consider secured or prepaid cards.
Q2: Are cashback rewards taxable in Canada?
Generally, no — if rewards are considered a discount rather than income.
Q3: Is it worth paying an annual fee?
Yes, if your cashback exceeds the fee.
Q4: What’s the difference between cashback and points?
Cashback is usually simpler to redeem and more flexible.
Q5: Do cashback cards work internationally?
Yes, but foreign transaction fees may apply.
Final Thoughts
Cashback credit cards can help you save hundreds — even thousands — of dollars each year if used responsibly. With offers in 2025 going as high as $1,200, it’s never been a better time to compare your options and apply for the best card that suits your needs. Whether you’re a student, a commuter, a traveler, or a family provider, there’s a Canadian cashback card that fits your lifestyle.
Apply wisely, spend smartly, and enjoy the perks.
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