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Cashback Credit Cards

Cashback credit cards, Cashback credit card reviews and credit card application details.

Cash back credit cards are featured with rewards or rebates received by holders for charging purchases to the credit card. When card issuers operate cashback schemes, clients normally receive between 0.5 percent and 2 percent of the net expenditures (purchases less the refunds). This annual rebate is either paid to card holders separately, e.g. by check, or credited to their cards.

As of recently, some of the major card issuers have raised the percentage of cash back up to 5 percent. The 5 percent cash back rate typically applies to items charged to the card at pharmacies, grocery stores, and gas stations for a period of 6 months. The high cash back rate serves to grab the attention of potential customers and lure them into applying for the credit card. After the initial period of 6 months, the rate goes from 5 percent to 2 percent on grocery store, pharmacy, and gas station purchases and to 1 percent on all other purchases. When looking for a cash back product, settle for what will work best for you. For example, some cards go with 5 percent cash back on clothing, travel, and movie purchases.

Rewards and rebates that are based on credit card products are beneficial for holders who prefer to pay off their card statements every month. The APR is typically higher for rewards cards. Moreover, clients who fail to pay their balance in full are charged extra interest.

Here is a simple calculation to illustrate how much you will get back in one year if a quarter of your purchases earns 4 percent and the remaining three quarters earn just 1 percent. If you charge $1000 a month, the amount of cash back equals $240 a year. If you spend $5000 in purchases a month, you will get a total of $1200 a year.

Due to the global recession, many of the credit card providers have revised their cash back programs. With revising being equal to reducing (more often than not), it is wise to review the terms and conditions of the cards you hold. This way, you will see if any of the programs has changes to it and is no longer worth participating. In that case, you might want to shop for other products that are more generous and come with additional beneficial features.

If you are looking for cash back credit products, the Canadian market has plenty of them. Check the offers of the big banking institutions first. The Bank of Nova Scotia features the No-Fee Scotia Moneyback® VISA* card which goes with no annual fee, interest rate of 21.5 percent on balance transfers and cash advances and 19.5 percent on purchases. The grace period is 21 days while the minimum credit limit is set at $500. Customers get up to 1 percent cash back on purchases. The Smart Cash Platinum Plus by MBNA goes with a slightly higher interest rate of 19.99 percent (zero annual fee), but card holders earn up to 5 percent cash back when charging purchases at grocery stores and gas stations.

NameTypeInterest RateAnnual Fee
American Express Costco Platinum Cash Rebate CardAMEX19.75%$0
CIBC Dividend CardVisa19.9%$0
CIBC Dividend Platinum VISA CardVisa19.9%$79
Capital One Cash Back Gold MasterCardMasterCard19.8%$0
Citi Drivers Edge Platinum MasterCard MasterCard19.99%$59
VISA Desjardins PlatinumVisa9.9%$169
TD Gold Elite Visa CardVisa19.99%$99
Citi Enrich MasterCardMasterCard19.99%$0
Citi STAPLES easyRewards MasterCard MasterCard19.99%$0
Club Sobeys MasterCard MasterCard19.9%$0
American Express Business CardAMEX18.5%$0
Blue Sky from American ExpressAMEX19.99%$0
Scotia Moneyback VISA CardVisa19.5%$0
HSBC MasterCardMasterCard19.9%$0
HSBC Premier MasterCard MasterCard12.9%$0
MBNA PremierRewards Platinum Plus MasterCardMasterCard19.99%$29
National Bank Ultramar MasterCardMasterCard19.9%$0
Canadian Tire Options MasterCardMasterCard18.9%$0
Walmart Credit CardMasterCard18.87%$0
True Earnings Card from Costco and American ExpressAMEX19.99%$0
BMO Premium CashBack MasterCardMasterCard19.5%$49
BMO CashBack MasterCardMasterCard19.5%$0
BMO SPC CashBack MasterCardMasterCard19.5%$0
Cash Advantage MasterCardMasterCard18.9%$0
ScotiaBank Learn VISA cardVisa19.99%$0
TD Rebate Rewards Visa CardVisa19.99%$0
HSBC Advance MasterCardMasterCard17.9%$0
Aspire Cash Platinum MasterCardMasterCard16.8%$0
Aspire Cash World MasterCardMasterCard16.8%$120
Scotia Momentum VISA Infinite cardVisa19.99%$99
Scotia Momentum VISA cardVisa19.99%$39
Scotia Momentum No-Fee VISA cardVisa19.99%$0