Buying groceries is a weekly occurrence for most people. So, consider benefiting from this regular occurring expense by paying with a credit card that earns rewards. Whether you want to earn cash back or loyalty points, this article will cover some of the best Canadian credit cards to use for groceries.
Here are my top picks of credit cards to use for groceries in Canada.
- Tangerine Money-Back credit card
- Scotiabank Momentum Visa Infinite card
- American Express Cobalt card
- PC Financial World Elite MasterCard
Overview: best credit cards for groceries
| Credit card | Annual fee | Earn rate on groceries | Rewards for $1,000 /month on groceries | Welcome bonus | Income requirements |
|---|---|---|---|---|---|
| Tangerine Money-Back Credit Card | $0 | 2% cash back | $20 | 10% cash back on purchases in the first 2 months (up to $1,000 spend) | $12,000 |
| Scotiabank Momentum Visa Infinite card | $120 (first year free) | 4% cash back | $40 | 10% cash back on purchases in the first 3 months (up to $2,000 spend) | $60,000 personal or $100,000 household |
| American Express Cobalt card | $155.88 ($12.99 monthly) | 5 MRS points/$ | 5,000 points (worth $50) or 6,000 Marriott Bonvoy points | 2,500 MRS points for each month you spend $500 on your card in the first year BONUS $100 cash back via GCR! | None indicated |
| PC Financial World Elite MasterCard | $0 | 30 PC Optimum point/$ at Loblaws banner stores | 30,000 points (worth $30) | 100,000 PC Optimum points (until Jul 5, 2023) | $80,000 personal or $150,000 household |
1. Tangerine Money-Back credit card
Tangerine’s Money-Back Credit Card is the best no annual fee cash back credit card in Canada. This card allows you to earn 2% cash back on 2 categories of your choice, including groceries! Plus, you can add a third 2% cash back category if you opt to have your cash back deposited into your savings account. Purchases in other categories will earn 0.5% cash back.
Also, a great benefit of the the Tangerine Money-back Credit Card is that it pays out every month (unlike other cash back credit cards which pay out only once a year)! Plus, your cash-back earnings are unlimited with no yearly cap on the amount you can earn!
So, if you spend $1,000 per month on groceries, this card would earn you $20 monthly or $240 yearly in cash back.
Currently, there’s a special offer on the Tangerine Money-Back Credit Card until July 5, 2023. New cardholders earn 10% cash back on all purchases for the first 2 months, up to a maximum of $1,000 spend. This equates to a welcome bonus of $100 all for no annual fee!
Learn more about the Tangerine Money-back credit card’s benefits and apply now.
Plus, check out my in depth review about Tangerine bank.
2. Scotiabank Momentum Visa Infinite card
The Scotiabank Momentum Visa Infinite card is one of the best Canadian cash back credit cards available. It allows you to earn an impressive 4% cash back on groceries and also recurring bill payments. In addition, you earn 2% cash back on gas station and public transit purchases and 1% on everything else. Plus, this card comes with comprehensive travel insurance and new mobile device insurance coverage.
Right now, there’s a special offer on this card until June 30, 2023. New cardholders earn 10% cash back on all purchases for the first 3 months, up to a maximum of $2,000 spend. Plus, there’s no annual fee in the first-year which is an immediate savings of $120! Keep in mind that bonus cash back will be credited to your account within 7 months of your account open date.
Therefore, if you spend $1,000 per month on groceries, this card would earn you $40 monthly or $480 yearly in cash back. Certainly, this is one of the most lucrative credit cards to earn cash back on your grocery purchases!
Learn more about the Scotiabank Momentum Visa Infinite card’s benefits and apply now.
3. American Express Cobalt Card
The American Express Cobalt card lets you earn Membership Rewards Select (MRS) points instead of earning cash back on your purchases. This card is unique because it allows you to earn an incredible 5 MRS points per dollar spent on grocery purchases. Also, you earn 5 MRS on restaurants, cafes and food delivery purchases!! In addition, you earn 3 MRS on streaming services and 2 MRS points on gas station, travel and public transportation (including taxis) purchases. Lastly, you earn 1 point per dollar on everything else.
Plus, Amex is offering new cardholders a 30,000 points welcome bonus in their first year. Each month you spend $500 on your card, you’ll receive 2,500 MRS points for a total of 30,000 MRS points.
Therefore, if you spend $1,000 per month on groceries, this card would earn you 5,000 MRS points monthly or 60,000 MRS points yearly. Plus, with the welcome bonus of 30,000 MRS points, you could earn up to 90,000 MRS points in your first year! That’s worth at minimum $900 against any of your purchases.
Also, there’s an additional reason to sign up for this card. If you apply for the Cobalt card via Great Canadian Rebates, you could earn $100 cash back!!! The cash back rate used to be $40 so $100 cash back is a great offer for this card.
Options to redeem your MRS points
- Redeem for statement credits. You can use your points to pay for previous card purchases depending on the category. You can exchange a minimum of 1,000 MRS points for a $10 credit towards any eligible purchase.
- Booking flights. Use your MRS points to book flights with the American Express Fixed Points Travel Program. Under this program, a fixed number of points covers the base ticket price of eligible flights up to the max base ticket price. For example, 20,000 points covers a short haul flight to an adjacent province/state up to a max price of $300.
- Transfer points to Marriott Bonvoy™ for hotel stays. It’s possible to transfer your MRS points directly to Marriott Bonvoy hotel loyalty program. The transfer rate is 5 MRS points = 6 Bonvoy points so 30,000 MRS points is equal to 36,000 Bonvoy points. This is the best option to redeem your points if you want FREE hotel stays! Read more about redeeming your Marriott Bonvoy points.
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Transfer points to airline partners like Aeroplan (NEW). As of Aug 16, 2021, it’s now possible to convert your Amex Cobalt points to Amex’s partner airlines. This includes Air Canada’s Aeroplan and also British Airways Executive Club with a 1:1 transfer ratio.
If you’re interested in the Amex Cobalt card, consider applying through Great Canadian Rebates as they are offering cash back for successful applications.
4. PC Financial World Elite MasterCard
There are many Loblaws banner stores including No Frills, Real Canadian Superstore, Maxi and Fortino’s to name a few. For those who shop at these Loblaws stores and/or Shoppers Drug Mart, the PC Financial World Elite MasterCard is the best card for you.
This no annual fee card allows you to earn a generous 30 PC Optimum points per dollar spent (equivalent to 3%) at any Loblaws affiliated store. Also, you earn 45 points per dollar spent (equivalent to 4.5%) at Shoppers Drug Mart and 10 points per dollar on all other purchases.
Plus, apply for this card before July 5, 2023 and you can earn 100,000 PC Optimum points (worth $100). Earn 20k points after your first purchase at a Loblaws banner store, Shoppers Drug Mart or Esso gas station. Then, you can earn 20¢/litre in points on a max of 400 litres in fuel at at Esso™ and Mobil™ stations in your first 90 days. That’s up to 80,000 points.
You can redeem your points at some of the same stores you earn PC Optimum points like Loblaws, No Frills, Shoppers Drug Mart and also Joe Fresh. Easily redeem 10,000 PC Optimum points for $10 off your purchase at any participating store.
Keep in mind that PC Optimum points need to be redeemed in 10,000 point increments and cannot be redeemed for certain items like gift cards, tobacco and alcohol.
Therefore, if you spend $1,000 per month on groceries at Loblaws stores, this card would earn you 30,000 points (worth $30) monthly or 360,000 points ($360) yearly. Overall, this is a great no annual fee card for those who shop regularly at Loblaws banner stores and/or Shoppers Drug Mart.
One downside of this card is that it requires a high annual income of $80,000 (or $150,000 for household). If you don’t qualify with these income requirements, you can also apply for the PC Financial Mastercard. It doesn’t have any income requirements but the earning rates are lower than the World Elite version.
Learn more about the PC Financial World Elite MasterCard’s benefits and apply now.
Summary
With so many choices of credit cards to use for grocery purchases, it’s important to select the one best suited to you based on its strengths and weaknesses.
Overall, the American Express Cobalt card is a clear winner with a rate of 5 MRS points/$ spent on groceries. Plus, Amex MRS points have flexible uses. They can be redeemed for a statement credit, used to book a flight or transferred to the Marriott Bonvoy hotel program. But, there’s a $12.99 monthly fee for the card and not every retail store accepts Amex. For a limited time, apply via Great Canadian Rebates to earn $100 cash back!!!
The Tangerine Money-Back credit card is the best no fee credit card and lets you earn 2% cash back on your grocery purchases. Generally, it’s a simple card to use and you get paid cash back every month. Also, it’s offering 10% cash back (up to $1,000 spend) if you apply before July 5, 2023.
Next, the Scotiabank Momentum Visa Infinite card has the highest cash back rate on grocery purchases at 4%. Currently, I would say this is the best non-Amex card. It’s offering 10% cash back for the first 3 months (up to $2,000 spend) and the annual fee of $120 is waived for the first year! Hurry as this promo ends on June 30, 2023!
Finally, the PC Financial World Elite Mastercard is good choice for those that shop regularly at Loblaws banner stores (30 PC Optimum points/$) and Shoppers Drug Mart (45 PC Optimum points/$). Remember that you can only redeem points in 10,000 point increments and to obtain this card, you need a personal income of $80,000 or higher. Also, earn 100,000 PC Optimum points (worth $100) when you apply for this card before July 5, 2023.
Which credit card(s) do you use for grocery shopping? Let me know in the comments below 🙂
**Bonus card
From May 15 to August 31, 2020 the Marriott Bonvoy American Express card allows cardholders to earn 5 points per dollar spent at grocery stores, food delivery and takeout. This rate is higher than the usual 2 points per dollar spent. So, this promotion is ideal for those who wish to earn Marriott Bonvoy points!
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