Canada’s best credit cards for grocery purchases 2022

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Everybody needs to put food on the table, so you might as well earn rewards while doing so. Considering that the price of food in Canada is predicted to rise between 5% and 7% this year (nearly $1,000 more per year for a family of four), there’s no better time to earn useful rewards and cash back on this essential household expense.

Whether you’re looking for cash back, to rack up points or simply to find the best grocery credit card in Canada, we’ve gathered the information you need to maximize your spending. Take stock of your shopping habits, and get ready to cash in on the rewards.

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The best credit cards for grocery purchases in Canada

• Best no-fee cards for groceries — BMO CashBack Mastercard (Honourable mention — Tangerine Money-Back Credit Card)
• Best cash back cards for groceries — Scotia Momentum Visa Infinite
• Best cash back card for groceries and gas (tie) — CIBC Dividend Visa Infinite; Meridian Visa Infinite Cash Back Card
• Best card for Loblaw banner stores — PC Financial World Elite Mastercard
• Best points cards for groceries — American Express Cobalt (Honourable mention — Scotiabank Gold American Express)
• Best card for Costco — MBNA Rewards World Elite Mastercard

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Best no-fee credit card for groceries

BMO CashBack Mastercard*

If you’re looking for the best no-fee grocery credit card, look no further. 3% cash back on grocery purchases, no annual fee, and solid earn rates in other categories have made this card is a standout in the category. Keep in mind, though, that earnings are capped at $500 spent per statement period, so if you spend more than $500 per month on groceries, you’ll want to consider another card in order to reap the full benefits.

In addition to earning cash back on groceries, this card earns you 1% on recurring bill payments and an unlimited 0.5% on other spending. You can choose when to redeem cash back, in increments as little as $1; you can also set up automatic recurring redemptions of $25 or more.

• Annual fee: $0
• Interest rate: Purchases 19.99%, cash advances 22.99% (21.99% for residents of Quebec)
• Earn rate on groceries: 3% cash back on groceries, up to $500 per month
• Rewards on other purchases: 1% on recurring bills; 0.5% on everything else
• Welcome bonus: Get up to 5% cash back for the first 3 months, plus a $50 cash back bonus, adding up to $175 in cash back in your first year. It also features a 1.99% introductory interest rate on balance transfers for 9 months with 1% transfer fee
• Additional perks: Purchase protection and extended warranty; discounts at Avis and National Car Rentals; discount Cirque du Soleil performances; add authorized cardholders at no charge
• Income required: None specified

Get more details about the BMO CashBack Mastercard*

Honourable mention: Tangerine Money-Back Credit Card*

Every cardholder is given a 2% return on spending in two categories of their choice, of which groceries is one. (There are 10 categories in total, including drug store, gas, hotel and motel accommodations, restaurants, furniture, recurring bill payments, home improvement, entertainment, and public transportation and parking.) Plus, you can earn 2% on a third category of your choice just by having your rewards deposited into your Tangerine Savings Account.

In addition to being a no-fee card, this is a stand-out because your cash-back earnings are unlimited, meaning that your regular 2% earnings don’t have a cap. While this card doesn’t offer too much in the way of perks, like the card above, it currently has an attractive welcome offer.

• Annual fee: $0
• Interest rate: Purchases 19.95%, cash advances 19.95%, balance transfers 19.95%
• Earn rate on groceries: 2% cash back
• Rewards on other purchases: 2% in up to two other spending categories of your choice and 0.5% cash back on everything else
• Welcome bonus: Earn 10% cash back (up to $100) when you spend $1,000 on everyday purchases within the first 2 months of having the card. Must apply before February 28, 2022.
• Additional perks: Purchase protection and extended warranty
• Income required: $12,000

Get more details about the Tangerine Money-Back Credit Card*

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Best cash back card for groceries

Everybody likes flexible rewards, and cash is the most flexible around. This card offers 4% cash back on groceries and is part of the Visa Infinite family, which means cardholders receive perks including concierge service, and wine and dining experiences.

Scotia Momentum Visa Infinite*

You’ll earn a healthy 4% on groceries, as well as subscription services like Netflix and recurring bill payments, while transportation costs (including Uber) and gas earn at 2% (up to an annual total spend of $25,000; after that the earn rate drops to 1%). All other purchases earn at 1%, so if you’re carrying this card you’ve got a lot of cash back to earn in a broad group of spending categories.

• Annual fee: $120 (waived for first year)
• Interest rate: Purchases 20.99%, cash advances 22.99%, 22.99% on balance transfers
• Welcome bonus: Earn 10% cash back on all purchases for the first 3 months (up to $2,000). Plus, get a 2.99% introductory interest rate on purchases and balance transfers for the first 6 months
• Earn rate on groceries: 4% cash back
• Rewards on other purchases: 4% cash back on recurring bill payments, 2% on gas, public transit, taxis and rideshares, and 1% on everything else
• Additional perks: Travel emergency medical coverage, travel accident, trip cancellation, trip interruption, and flight delay insurance, and delayed or lost baggage protection; car rental loss or damage insurance; mobile device insurance
• Income required: $60,000 or $100,000 as a household

Get more details about the Scotia Momentum Visa Infinite*

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Best credit card for groceries and gas (tie)

When it comes to can’t-avoid-it expenses, gas and groceries top the list. Our pick for the best gas and grocery credit card in Canada was a draw, with each card boasting 4% cash back on both filling your tank and your fridge, as well as some pretty decent earn rates in other categories and perks. Which card you choose will really depend on where you tend to spend more, and what perks are most useful to you.

CIBC Dividend Visa Infinite*

This credit card offers compelling earn rates on all types of food purchases—with 4% cash back on groceries and 2% on dining (including take out and food deliveries). And you will earn 4% on gas as well helping you earn at the pump while on your way to earn at the grocery store. Plus, save up to $0.10 per litre at participating Chevron, Ultramar and Pioneer gas stations when you link your card with Journie Rewards.

• Annual fee: $120 (rebated for the first year)
• Interest rate: Purchases 20.99%, cash advances 22.99% (21.99% for Quebec residents)
• Earn rate on groceries: 4% cash back
• Rewards on other purchases: 4% cash back on gas; 2% on dining, daily transit and recurring bills; 1% on everything else
• Welcome bonus: Get 10% cash back for all purchases on your first four statements, or first $2,500 in purchases (up to $250 in cash back). After that, the earn rate becomes 4% on gas and grocery purchases and 1% cash back on everything else.
• Additional perks: Emergency medical travel insurance, mobile device insurance, car rental loss and collision coverage
• Income required: $60,000 or $100,000 as a household

Get more details about the CIBC Dividend Visa Infinite *

Meridian Visa Infinite Cash Back Card

Aside from 4% cash back on groceries and gas—two very popular spending categories—the Meridian remains strong by offering 2% back on drug store purchases and recurring bills. The 1% regular rate on everything else is pretty standard but the annual fee of $99 is fairly accessible (and it’s waived for the first year). The Meridian has some good included insurance and carries the increasingly popular mobile device coverage. 

• Annual fee: $99 (waived for first year)
• Interest rate: Purchases 19.50%, cash advances 21.99%
• Earn rate on groceries: 4% cash back
• Rewards on other purchases: 4% cash back on gas; 2% on drug stores and recurring bills; 1% on everything else
• Welcome bonus: None
• Additional perks: Emergency health care, trip cancellation or interruption, and baggage insurance; car rental loss or collision coverage; mobile device insurance
• Income required: $60,000 or $100,000 as a household

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Best credit card for Loblaw banner grocery stores

PC Financial World Elite Mastercard*

With about 2,500 stores operating under the Loblaw company banner, including the economy brand No-Frills, the big-box Real Canadian Superstore and the market-style Fortinos, it’s safe to say this is a useful card for many Canadians. The PC Financial World Elite Mastercard is the country’s first no-fee elite-level card. Shoppers who pay with this card will earn a whopping 30 PC Optimum points per $1 on grocery purchases (equivalent to 3.0%) at any Loblaw banner store and at PC Travel; 45 points per $1 at Shoppers Drug Mart; and 10 points per $1 everywhere else. Gas purchases at Esso and Mobil earn at least 30 points per litre, making this an all-around valuable card for everyday living expenses. PC Optimum points are easily redeemed at the checkout counter starting at 10,000 points (which is equal to $10) and can be used on any products in participating stores. 

A drawback to this card is the $80,000 minimum annual income requirement (or $150,000 for the household), which will put it out of reach for some. However, there are related PC Financial credit cards with slightly lower earn rates for those who can’t meet the threshold. 

• Annual fee: $0
• Interest rate: Purchases 20.97%, cash advances 22.97% (21.97% for residents of Quebec)
• Earn rate on groceries: 30 PC points per $1 at Loblaw banner grocery stores (including No Frills, Fortinos, and The Independent Grocer)
• Rewards on other purchases: 45 points per $1 at Shoppers Drug Mart, 30 points per litre at Esso/Mobil; 30 points per $1 at PC Travel; and 10 points per $1 on everything else
• Welcome bonus: Get 20,000 PC Optimum points (equivalent to $20) as a welcome bonus
• Additional perks: Travel emergency medical insurance; car rental loss or damage coverage; concierge service; identity theft assistance service
• Income required: $80,000 or $150,000 as a household

Get more details about the PC Financial World Elite*

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Best points cards for groceries

American Express Cobalt*

For those who want to turn their grocery purchases into world travel, the American Express Cobalt is here to help. There are a few standout elements of this card, starting with the unique payment structure that bills the annual fee in monthly installments of $12.99. Next is the welcome bonus, encouraging new cardholders to spend by rewarding 2,500 points when you make $500 in purchases each month for the first year. If you hit that target every month, you’ll have a cool 30,000 points accumulated by the end of the year. The earn rate on groceries as well as dining out and food delivery services is a very competitive 5 points per $1 (to a maximum spend of $30,000; thereafter, the earn is 1 point per $1); plus you get 2 points per $1 on transportation. Everything else earns at a rate of 1 point per $1. 

Because this is a travel-based card, it should come as no surprise that there are some sweet perks geared toward frequent flyers and drivers, like emergency medical coverage and car rental theft and damage coverage. Cardholders are also eligible for a credit on amenities at participating hotels. 

It does bear mentioning that because this is an American Express card, it is not accepted at every store—but if you’re a shopper at Food Basics, Longo’s, McEwan, Metro, Pusateri’s, Rabba, Safeway, Sobeys or Whole Foods, you’re golden. Loblaw banner stores, including No-Frills, do not accept Amex.

• Annual fee: $155.88 ($12.99 monthly)
• Interest rate: Purchases 20.99%, cash advances 21.99% 
• Earn rate on groceries: 5 points per $1
• Rewards on other purchases: 5 points per $1 on dining, food delivery and bars; 2 points per $1 on transportation including taxis, public transit and rideshares; and 1 point per $1 on everything else
• Welcome bonus: Earn up to 50,000 points in your first year. For each monthly billing period in which you spend $500, you can earn 2,500 points. Plus, you can earn a welcome bonus of 20,000 points when you spend a total of $3,000 in purchases on your card in your first 3 months.
• Additional perks: Emergency travel medical coverage, travel accident, flight and baggage delay, hotel or motel burglary and lost or stolen baggage insurance; car rental theft and damage protection; hotel credit up to $100 USD on amenities like spa or dining at participating hotels; Amex Invites and Front-of-the-Line Access
• Income required: None specified

Get more details about the AMEX Cobalt*

Honourable mention: Scotiabank Gold American Express*

Want to earn points toward next year’s vacation while you cover this week’s grocery haul? Here’s how it works: For every point you earn, you get $0.01 redeemable toward travel, which is easy to figure out and calculate. Just think of it like a cash-back credit card with 1% earn rate toward travel savings. Plus, the welcome offer is pretty sweet. Earn up to 50,000 bonus Scotia Rewards points your first year, too—that’s about $500 towards your next trip. 

While we’re comparing the two, it’s worth noting that the American Express Cobalt has an edge on the Scotiabank Gold American Express card since the former lets you get 15% to 75% more value out of your points through Amex’s fixed points travel chart or by transferring points to hotel loyalty programs. Neither are available with the Scotiabank Gold. That said, the Scotiabank Gold American Express is still a great card. Plus, the Scotiabank Gold American Express has some great perks that the Cobalt doesn’t, like no foreign transaction fees and additional points on entertainment and streaming services.  

• Annual fee: $120 (waived first year)
• Interest rate: Purchases 19.99%, cash advances 22.99%, balance transfers 22.99% 
• Earn rate on groceries: 5 points per $1 on groceries
• Rewards on other purchases: 5 points per $1 on dining and entertainment purchases; 3 points per $1 on gas, transit and rideshare charges, as well as streaming services; 1 point per $1 on everything else
• Welcome bonus: Earn 20,000 bonus Scene+ points by making at least $1,000 in everyday purchases in your first 3 months and to earn another 20,000 Scene+ point bonus when you spend at least $7,500 in everyday eligible purchases in your first year. Plus, get a 0.00% introductory interest rate on balance transfers for the first 6 months (with a 1% balance transfer fee. Must apply by February 28, 2022.
• Additional perks: As an Amex cardholder, you get access to its Front of the Line Presale & Reserved program, including invites for entertainment ticket pre-sales and advanced movie screenings and more.
• Income required: $12,000

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Best credit card for Costco shoppers

MBNA Rewards World Elite Mastercard*

The wholesaler Costco is popular among Canadians, particularly those with large families to feed. The Costco brand has an exclusive partnership with Mastercard, so it doesn’t accept any payment from Visa or American Express. When it comes to groceries purchased there, the very best Mastercard for the job is the MBNA Rewards World Elite, which offers 2 points per $1 on Costco spends. MBNA points are extremely flexible—you can redeem points for virtually any airline. (There’s also the option of cash back, merchandise or gift cards, but points do not go as far when you choose those perks instead of travel.) The best part? They never expire so you’ll always be able to take advantage of your earnings. And right now this card is offering an attractive welcome bonus to new cardholders. Those who make $2,000 in purchases in the first three months will receive 20,000 points plus an additional 10,000 points on enrolment in electronic statements. That’s about as much as $300 when redeemed for travel, depending on how you redeem.

• Annual fee: $120
• Interest rate: Purchases 19.99%, cash advances 22.99%, balance transfers 24.99% 
• Earn Rate at Costco: Earn 5 points for every $1 spent on grocery, until $50,000 is spent annually (along with other categories).
• Rewards on other purchases: 1 point per $1
• Welcome bonus: For the first 90 days, you can get up to 30,000 points (approx. $245 in cash back): 10,000 for registering for paperless e-statements, 20,000 for spending $2,000 in purchases with the card. Plus, earn earn 5 points for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases. (Not available for residents of Quebec.) 
• Additional perks: Savings with Avis and Budget car rentals; up to 9 additional users with no additional annual fee; purchase assurance and extended warranty
• Income required: $80,000 or $150,000 as a household

Get more details about the MBNA Rewards World Elite*

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Frequent asked questions about grocery credit cards in Canada

Which grocery stores accept AMEX in Canada?

As we noted above, the American Express Cobalt and Scotiabank Gold American Express offer the most bonus points on this credit card list, but they just aren’t as widely accepted at all grocery stores as we’d like, like No Frills and Costco. That said, here are the major grocery stores that both accept American Express and let you earn bonus points for grocery purchases. Note: It’s possible that some franchise locations don’t participate in bonus offers.

• 88 Supermarket
• Bownesian Grocer
• Farm Boy
• Federated Co-op
• Longo’s
• Metro
• Safeway
• Sobeys
• Rabba
• Pusateri’s Fine Foods
• Whole Foods
• Instacart

Is Walmart a grocery store when it comes to credit cards?

Walmart may be synonymous with groceries for you, but not all credit cards recognize Walmart as a “grocery store.” While American Express and Visa are accepted at Walmart, neither credit card company categorizes Walmart on their merchant code system as a grocery store. For instance, while the TD CashBack Visa Infinite earns 3% cash back on groceries, it earns just the base 1% cash back rate at Walmart.

If you are a Walmart Supercentre frequent shopper, know that Mastercard does, however, recognize several Walmart Supercentre locations for grocery purchases, but not all. You will have to check with Mastercard to find out if the Walmart Supercentre near you qualifies. The best credit cards to use for groceries at Walmart Supercentres include the BMO CashBack Mastercard and Tangerine MoneyBack Card.

As for Walmart, including the Walmart Supercentre locations, the top credit cards to consider include the Amex SimplyCash Preferred and MBNA Rewards World Elite. Both these cards earn double the points when you use them, regardless of the type of purchase you’ve made. 

If you prefer to “add to cart” at Walmart.ca for grocery pickup and delivery, the newly-launched Walmart World Mastercard is a good card to look at. It earns you 3% on online purchases from Walmart (and  1.25% when shopping in store and 1% at all other grocery stores). 

Do credit card companies reward grocery purchases at Costco?

Costco exclusively accepts Mastercard credit cards (sorry Visa users.) And even though it’s not recognized as a “grocery store” in credit card reward programs, you can still earn rewards. It just won’t be as bonus rewards with your groceries from Costco. For example, the BMO CashBack Mastercard earns 3% on groceries, but at Costco you earn the card’s base earn rate of 0.5% on your purchases. It’s why we categorized the MBNA Rewards World Elite Mastercard as the best credit card for use at Costco, since it earns double the points–regardless of the purchase category. Other great cards to use at Costco include the BMO CashBack World Elite Mastercard and the Rogers World Elite Mastercard.

Which credit card is accepted at No Frills?

While it used to be that No Frills only accepted Mastercard, like Costco, but the grocery chain now accepts both Visa and Mastercard.

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More on Canada’s best credit cards

• Canada’s Best Credit Cards for Gas
• Best Credit Cards for Walmart Shoppers
• Best No Fee Credit Cards in Canada

The post Canada’s best credit cards for grocery purchases 2022 appeared first on MoneySense.

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