The Best Credit Cards to Use at The Grocery Store in Canada

Let’s talk about the best credit cards to use at the grocery store. Most Canadians have at least one credit card in their wallet. There are a number of cards in the market provide great value at the grocery store. Having at least one of them as part of your portfolio could provide a great return on investment. 

Whether you’re striving to get your finances under control, or you’re planning on taking that dream vacation, it’s important to ensure that you’re maximizing the rewards opportunities on your purchases (especially purchases of $100 or more). While receiving a low percentage of cash back, or a few extra travel rewards may not seem like it’s worth the effort, it’s important to understand that these rewards, and this cash back can rack up over the course of the year. 

There are a number of credit cards in the market, and I’ll be the first to say that it can be daunting to know the right one for you. In the past, I’ve had a single rewards card in my wallet, and I thought this was enough. It turns out that I was getting a mere fraction of a return when comparing my rewards card to the top rewards or cash back cards in the market.

The number of credit cards that you should have in your wallet should vary depending on the individual. Someone who is a small business owner, accumulating a large number of purchases over the course of a year should have far more credit cards than a student. 

Regardless if you have 1, 2, 5 or 10 credit cards, it’s important to have a card which offers high travel rewards, or a high cash back return at the grocery store. 

The average Canadian spends $5,800 annually on groceries, so it’s important to emphasize the grocery store when focusing on your credit card portfolio. 

In this post we’ll cover the top credit cards for Canadians to use at the grocery store.

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Best Overall – The American Express Cobalt Card

The American Express Cobalt Card is the premier card in the market in terms of food & beverage. Through the American Express Cobalt Card, you earn American Express Membership Rewards 

American Express Membership Rewards can be transferred to a number of airline & hotel partners including Aeroplan, British Airways Executive Club & Marriott Bonvoy (and many more).

Sign up here

The cost for the card is $12.99 monthly, & comes with the following benefits:

• Sign-up Bonus:
  • 2,500 Membership Rewards each month you spend $500 (for the first 12 months)
    • Total of 30,000 points
• Earn Rate: 
  • 5 Membership Rewards per dollar spent on food & dining
  • 3 Membership Rewards per dollar spend on streaming services
  • 2 Membership Rewards per dollar spent on gas & travel
  • 1 Membership Reward for everywhere else
• Insurance
  • Emergency Medical Travel Insurance – up to $5,000,000
  • Car rental damage insurance Baggage delay insurance – up to $500
  • Lost or stolen baggage insurance – up to $1,000
  • Hotel burglary – up to $500 
• Perks
  • Occasional discounts on select products

Card Valuation 

Annual Fee – $12.99 monthly fee

Sign up Bonus –30,000 Membership Rewards

Annual Spend – $500 per month for the first 12 months

First Year Value – $600

While this card isn’t as strong as some of American Express’ top cards (the perks and the insurance are well below cards like the AMEX Platinum), the Cobalt card is a great card to have in the wallet if you regularly shop at a grocery store that accepts American Express.

The 5 Membership Rewards per dollar spent on food & beverage is the best earning rate for any card in the market, and the relatively manageable monthly fee of $12.99 could entice Canadians to keep this card in their wallet year over year. 

Best for Cash Back – CIBC Dividend Visa Infinite

For Canadians who do not frequently travel, there are still a number of credit cards in the market that provide ample cash back returns at the grocery store. 

The CIBC Dividend Visa Infinite provides a 4% earn rate on gas and grocery purchases, along with strong cash back on everyday spending. The $120 annual fee (which is rebated in the first year for new applicants) comes with the following benefits

Sign up here

• Earn rate:
  • 4% cash back on groceries and gas
  • 2% back on spends at Tim Hortons and Telus
  • 1% on everything else
• Insurance
  • Travel Medical Insurance 
  • Flight Delay & Baggage Insurance
  • Trip Interruption Insurance 
  • Auto Rental Insurance
  • Purchase Security & Extended Protection Insurance
• Perks
  • Save up to 10 cents per litre at participating Pioneer, Fas Gas, Ultramar and Chevron

Card Valuation 

Annual Fee – $120 (first year free) 

For individuals who do not travel frequently, or don’t collect travel points, that doesn’t mean you can’t get a great return on your purchases. The CIBC Dividend Visa Infinite leads the pack in terms of cash back opportunities at the grocery store.

Best No Fee Card – BMO Cashback Mastercard

It should be noted that a number of travel cards offer a first year fee rebate. For extreme travel hackers, this could be something you should further explore, as these cards can be “churned” in order to receive repeat signup bonuses, and further rack up the rewards points.  

That being said, there are a number of no fee credit cards which provide you great return at the grocery store. The BMO CashBack Mastercard is one of the best credit cards on the market with strong cash back on groceries, along with no annual fee.

Sign up here

Along with no annual fee, the BMO CashBack Mastercard providers cardholders with the following benefits: 

• Earn rate:
  • 3% cash back on groceries, up to $500 per month
  • 1% on recurring bill payments such as streaming services, subscriptions or monthly utilities
  • 0.5% everywhere else
• Welcome bonus:
  • 5% cash back for the first 3 months
  • Introductory 0.99% interest rate on balance transfers for 9 months
• Perks
  • BMO Roadside Assistance

Card Valuation 

Annual Fee – $0

For individuals who would prefer not to carry a high number of credit cards with annual fees, the BMO CashBack Mastercard can be a great backup to the American Express Cobalt. It should be noted that the grocery store return is capped at $500 per month. If you’re part of a large family who frequently spends closer to $1,000 monthly at the grocery store, you may want to choose another card to have in your wallet. 

Best Visa for Collecting Aeroplan Points  – TD Aeroplan Visa Infinite Privilege

For those looking to earn travel rewards for the purposes of free flights, there are a number of credit cards in the market which allow you to achieve this, with the TD Aeroplan Visa Infinite Privilege, being the premiere Visa card in the market for Aeroplan earnings. 

The TD Aeroplan Visa Infinite Privilege card is TD’s premier Aeroplan credit card

Aeroplan points can be used on any of Aeroplan’s partner airlines, which include; Air Canada, United Airlines & Air France, among others

Sign up here

The $599 is offset by the following perks & benefits:

• Sign-up Bonus:
  • 20,000 Aeroplan points at first purchase
  • 30,000 Aeroplan points upon spending $3,000 in the first 3 months
  • 55,000 Aeroplan points upon spending $12,000 in the first year
    • Total of 105,000 Aeroplan points
• Earn Rate: 
  • 2 Aeroplan points per dollar spent with Air Canada 
  • 1.5 Aeroplan points per dollar spent on food, beverage & travel
  • 1.25 Aeroplan points everywhere else
• Insurance:
  • Emergency Medical Travel Insurance – up to $5,000,000
  • Car Rental Insurance
  • Trip Canacellation Insurance- up to $3,000
  • Hotel Burglary insurance – up to $1,000
  • Baggage delay insurance – up to $1,000
  • Lost or stolen baggage insurance – up to $1,000
• Perks
  • Priority check in on Air Canada flights
  • First bag free on Air Canada flights
  • Access to Maple Leaf Lounge
  • 6 complimentary visits to DagonPass lounges
  • $100 Nexus credit
  • Priority Airport Services at select Canadian airports
  • Preferred pricing when redeeming Aeroplan points on Air Canada flights
  • Earn 1,000 Status Qualifying Miles and 1 Status Qualifying Segment for every $5,000 you spend on the card
  • Earn an Annual Worldwide Companion Pass after spending $25,000 on the card per year

Card Valuation 

Annual Fee – $599

Sign up Bonus – 105,000 Membership Rewards

Annual Spend – $12,000 in the first 12 months

First Year Value – $1,800

Summary 

This is the top Visa card in the market as of March 2022

While the $599 annual fee seems daunting initially, the 105,00 Aeroplan points will earn you potentially multiple free flights. 

Canadians will have to make a personal decision as to whether or not the $599 annual fee is worth taking into the second year. If you bank at TD, you can rotate through their credit card portfolios, continuously earning the signup bonus every time. 

This card requires a household income of $200,000. 

Best Card for Use at Costco: RBC WestJet World Elite Mastercard

Sign up here

Costco is a unique retailer in two ways: 

• You typically buy something other than groceries during your visit to Costco 
• Costco only accepts debit and Mastercard as a form of payment 

If you’re someone who is comfortable holding 3+ credit cards, and you regularly shop at Costco, you should consider holding a Mastercard as part of your credit card portfolio. 

The RBC WestJet World Elite Mastercard is the premier travel Mastercard in the market, which can be beneficial for use at establishments that only accept Mastercard, like Costco

WestJet rewards can be used towards WestJet flights

The $119 annual fee is offset by the following benefits: 

• Sign up Bonus
  • 250 WSJ after your first purchase, 
  • 200 WSJ upon spending $5,000 in the first 3 months
• Earn Rate:
  • 1.5% return in WestJet Dollars (with 3% return at Petro Canada gas stations) 
  • 2% return in WestJet Dollars when purchasing from WestJet Vacations
• Insurance
  • Emergency Medical Travel Insurance – up to $5,000,000
  • Car rental damage insurance 
  • Hotel burglary  insurance – up to $2,500
  • Trip interruption insurance – up to $5,000
• Perks
  • A Free checked bag on WestJet flights
  • Additional 20% in Petro Points on purchases made at Petro Canada
  • Boingo Wi-Fi on West Jet Fligts

Card Valuation 

Annual Fee – $119 annually

Sign up Bonus – 450 West Jet Dollars

Annual Spend – $5,000 in the first 3 months

First Year Value – $560

Summary

The $450 sign up bonus is virtually a $450 WestJet gift card, so it’s easily worth the $119 sign up fee.

It’s also worth noting that Petro Canada has a relationship with RBC that will allow you to save 3 cents/litre if you link your RBC debit or credit card with your Petro Points account. Needless to say, you should be taking this initial step if you own an RBC credit card. 

If you currently own another RBC credit card and would like to transfer to the WestJet World Elite Mastercard, you can perform a credit card switch on the RBC banking page, or by calling their credit card hotline.Switching from one RBC credit card to another DOES NOT impact your credit score.

Read: Your Complete Guide to WestJet Rewards

FAQ’s 

Why should I use a credit card instead of a debit card (or cash) at a grocery store?

Simply put, using a credit card at the grocery store allows you to earn some sort of return on your purchases, either in the form of travel reward points or pure cash back. If you’re in a larger family, this return can equate to well over $500 annually (not including a lucrative sign up bonus that may come with your card). 

Using and paying off your credit cards will also improve your overall credit score, which in turn could help lower the interest rate on larger purchases such as a car or house. 

What if I’m concerned about paying off my credit card in time? 

One of the fears about using credit cards for everyday purchases is that you don’t have insight into your purchases, and that there may be a tendency to overspend. While these fears were certainly prevalent 10 years ago, modern technology can help burden this load.

• Mint.com allows you to track your spending, as you can securely link your credit card to your monthly budget. 
• Every credit lender in the country will allow you to set up automatic payments with your financial institution, eliminating the fear of missing a payment.

Conclusion 

Having one of the credit cards listed above in your portfolio can go a long way to maximizing the return on your monthly grocery spend. The American Express Cobalt Card provides the best overall value to Canadians, but it’s important to have another card in your wallet as well since certain retailers don’t accept AMEX as a form of payment 

4 Tips To Help You on Your Travels

1. These are the best credit cards to use at the grocery store in Canada. To help maximize the return on your grocery purchases, choose a credit card that emphasizes grocery store return 
2. If you have an American Express Cobalt Card, ensure you also have a Visa or Mastercard in your wallet in case you’re buying from a retailer which doesn’t accept Amex 
3. Link your credit card purchases to your monthly budgeting software to track how your spending compares to your monthly budget 
4. Set up automatic transfers between your credit card and your financial institution