Best Credit Cards for Recurring Transactions and Recurring Bills in Canada

Best Credit Cards for Recurring Transactions and Recurring Bills in Canada

Kevin Shahnazari

Kevin Shahnazari

•

9 min read

One of the main expenses everyone has is recurring transactions. Things like streaming services like Netflix, software like Spotify and many more things we pay for each month.

One exciting thing about these types of transactions is that you can earn increased rewards on some credit cards.

In fact, because I also have many recurring transactions, I have optimized my cards for these transactions netting me a few hundred dollars in cashback each year and want you to make the best choice too!

In this blog, we briefly go through what makes a transaction a recurring one in the context of credit card transaction types to make sure you know which ones would be qualified for increased rewards or not and then we will rank the best credit cards for recurring transactions in Canada and discuss their pros and cons.

What recurring transactions and bills qualify for increased rewards?


When you allow a merchant to automatically deduct money from your credit card for their product or service, that would be a recurring transaction; that transaction is considered recurring when getting rewards from credit cards. There are no additional things you need to do after entering your credit card info, and things will automatically keep getting deducted from everyone until you decide to stop the payments.

A few good examples of these transactions would be:
  • Subscriptions
  • Phone, internet bill
  • Streaming and audio services (Spotify, Netflix, etc)
  • Membership (Gym memberships)
Now, some of these services might ask you to pay directly from your online banking. For example, many utilities don't take credit cards; therefore, when you pay from direct banking, you would not qualify for credit card rewards. Also, if some of these services offer you month-by-month payments manually instead of setting up automatic billing, your transaction might not qualify as a recurring transaction.

Reasons to avoid paying recurring transactions and recurring bills with a credit card


When you are given the option to pay your bills (like utilities) with your credit card, it's good to check whether there are any additional fees when you choose this option.

Most companies try to choose direct payments because they have very few fees, but if they choose to accept credit cards, they must pay a fee typically between 1% and 3% to the credit card processors. Because of this in many cases they might choose to pass this fee to you which makes the transaction more expensive than direct payments.

In these cases, do the math and see whether it's worth the rewards you get in return or not.

Best Credit Cards for recurring transactions and recurring bills based on your condition


Let's go through the results:

Best Card if you have high amounts of recurring transactions and bills (From $600/month up to $2000/month)


Scotia Momentum® Visa Infinite* Card
More Details

Scotia Momentum® Visa Infinite* Card

4

Finly Rating

$100 Cash Rebate From FinlyWealth

Now $150 until Oct 31, 2024

Welcome Bonus

10% Cash Back (up to $200 value)

Net Annual Rewards

$276.83

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$120

Interest Rates

20.99% / 22.99%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent

The 4% cashback offered on groceries and recurring purchases is the highest among all other credit cards. With the first year's annual fee waived, and with the right transactions used on this credit card, a high amount of cashback could be earned.

Pros

  • Highest Cashback rates on Groceries and Recurring purchases compared to other cashback credit cards.
  • High insurance coverage.
  • First year annual fee waived.

Cons

  • The base cashback rate (1%) is low for most high spent categories, especially after the first year when the card's annual fee kicks in.

Rewards

  • 4% cashback on groceries, recurring payments (maximum $1000 cashback per year)
  • 2% cashback on gas, daily transit (maximum $500 cashback per year)
  • 1% cashback on all other credit card purchases (unlimited).

Insurance

Coverage

  • mobile device insurance

    Mobile Device Insurance

    $1,000
  • heart lock

    Travel Accident

    $500,000
  • travel accident medical

    Emergency Out of province Medical

    15 days
  • travel - plane

    Trip Interruption

    $2,000
  • cancel airplane

    Trip Cancellation

    $1,500
  • hourglass timer

    Flight Delay

    $500
  • lost baggage

    Lost or Stolen Baggage

    $500
  • baggage on roller

    Baggage Delay

    $500
  • car insurance

    Car Rental Damage & Theft

    48 days
  • purchase protection

    Purchase Protection

    90 days
  • extended warranty

    Extended Warranty

    1 year

Benefits

Details

  • car rental

    Car Rental Discount

    25% off base rate of Avis Rent A Car and Budget Rent A Car
  • exclusive

    Visa Infinite Exclusive Benefits

    Yes

Eligibility

  • Credit Score

    Good

  • Annual Income

    $60,000 personal or $100,000 household

If you have a high amount on your recurring transactions per year, then the Scotia Momentum® Visa Infinite* Card would be the best card for your recurring transactions. The reason is simple. They have the highest reward rate in this category, which is 4%. No other card in this category comes close to this card.
One other benefit of this card is that it is a great card for your grocery purchases (4% on that category as well), which could be attractive for many.

Best Cashback Credit card if you have a Rogers Service (Any spending amount)


Rogers Red Mastercard
More Details

I currently have or may soon have an eligible Rogers, Fido or Shaw service as the primary or level 1 authorized user

Rogers Red Mastercard®

4.5

Finly Rating

$60 Cash Rebate From FinlyWealth

Welcome Bonus

Up to $60 cash back

Net Annual Rewards

$240

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$0

Interest Rates

19.99% / 22.99%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent

This card is one of our top-ranked options in terms of rewards, especially if you are a Rogers, Fido, or Shaw customer. With those services, you can effectively get a 3% cashback rate, which is a higher rate than almost any other card offers, even those with annual fees! If you have a high income of $80K or a household income of $150K, you can apply for the World Elite version of this card, which comes with additional insurance and benefits like a lounge pass.

Pros

  • Voted as the Best Cash Back Card in Canada for Rogers, Fido and Shaw Customers by FinlyWealth.
  • There is no annual fee, a notable perk for a card with such high reward multipliers. Most cards with slightly lower reward rates typically have annual fees.
  • Offers the flexibility to redeem cash towards Rogers, Shaw, or Fido services, potentially increasing the value of your earned rewards.
  • The roam-like benefit is a benefit unique only to this card.
  • It is accepted at nearly all locations as it's a Mastercard.

Cons

  • No real insurance coverage (only balance protection), not even purchase protection or extended warranty which are pretty standard benefits for almost all credit cards.
  • Low rewards multiplier if you don't have an eligible Rogers, Shaw, or Fido service.

Rewards

  • 2% cashback on all purchases if you have 1 qualifying Rogers, Fido or Shaw service as the account owner
  • 2% cashback on all U.S dollar purchases and 1% on all other eligible purchases if you do not have a qualifying Rogers, Fido or Shaw service
  • 1.5x redemption bonus on your earned cash back value when used on Rogers, Fido and Shaw purchases – that’s a 3% cash back value

Insurance

Coverage

  • credit card dollar

    Balance Protection

    Minimum payments

Benefits

Details

  • mobile phone wifi

    No Cost roaming

    5 days

Eligibility

  • Credit Score

    Very Good

  • Annual Income

    N/A

The Rogers Mastercard is unique because its reward rate depends on whether you have a qualifying Rogers, Fido, or Shaw Service card. If you don't have one, getting this card is not recommended because the rewards rate won't be that high. However, if you do, you can get a 3% cashback rate on all your purchases, including recurring ones.

This is another reason why we think this is one of the best credit cards for recurring transactions and consider it one of the best credit cards in Canada overall for people with a qualifying service.

Best Credit Cards if you have small amounts of recurring transactions and recurring bills (less than $600/month) and don't have a Rogers Service


If you have small amounts of recurring transactions, then you better go for a card with no annual fee. There are some great options to look at:

Best overall no-fee credit card for recurring purchases and Best card for recurring bill payments (such as internet bills)


Tangerine Money-Back Credit Card
More Details

I currently have or may soon have a Tangerine Savings account

Tangerine Money-Back Credit Card

3.6

Finly Rating

Welcome Bonus

10% Cash Back up to $100 value

Net Annual Rewards

$244.92

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$0

Interest Rates

19.95% / 19.95%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent

While we think Tangerine isn't the best single credit card to own, it's still a valuable card to have in your arsenal for maximizing your rewards. It offers one of the highest cashback rates for pharmacy and recurring bill payments, areas where your other credit cards might not provide significant rewards. This card only requires a Fair credit score, making it an excellent choice for people who don't have a high credit score yet.

Pros

  • Allows you to change the categories, and you get a 2% reward depending on how your spending is changing every 90 days.
  • 2% cashback on recurring Transactions and pharmacy purchases. One of the highest cashback rates on these categories among credit cards in Canada. 
  • Has cashback on Furniture and Home Improvement categories. Two categories that are not covered by any other card in Canada.
  • Easy credit score requirements needed for this card.
  • Overall, it is a good no-annual-fee cashback credit card, especially if you have a Tangerine Savings account.

Cons

  • Insurance coverage is the most basic.
  • Very low cashback rate on the other categories not selected.

Rewards

  • 2% on the choice of two categories chosen from the 10 offered by Tangerine
  • 0.5% cashback on all other credit card purchases.

Insurance

Coverage

  • purchase protection

    Purchase Protection

    90 days
  • extended warranty

    Extended Warranty

    Up to a year

Eligibility

  • Credit Score

    Fair

  • Annual Income

    N/A


If you don't travel a lot, a great option is the Tangerine Cashback Credit Card. The unique feature of Tangerine cards is that you get to choose bonus categories, including recurring purchases, where you can earn 2% cashback. Among the free cards (excluding Rogers), this card has the highest cashback rate, making it an excellent choice.

If you have a high income, you can also apply for the World Elite version of this card. It offers identical rewards with no annual fee but includes additional benefits like lounge pass access and mobile insurance, making it a well-rounded card.

Tangerine World Mastercard
More Details

I currently have or may soon have a Tangerine Savings account

Tangerine World Mastercard

4

Finly Rating

Welcome Bonus

10% Cash Back up to $100 value

Net Annual Rewards

$244.92

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$0

Interest Rates

19.95% / 19.95%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent

While we think Tangerine World Mastercard isn't the best single credit card to own, it's still a valuable card to have in your arsenal for maximizing your rewards. It offers one of the highest cashback rates for pharmacy and recurring bill payments, areas where your other credit cards might not provide significant rewards. For no annual fees

Pros

  • Allows you to change the categories, and you get a 2% reward depending on how your spending is changing every 90 days.
  • 2% cashback on recurring Transactions and pharmacy purchases. One of the highest cashback rates on these categories among credit cards in Canada. 
  • Has cashback on Furniture and Home Improvement categories. Two categories that are not covered by any other card in Canada.
  • Overall, it is a good no-annual-fee cashback credit card, especially if you have a Tangerine Savings account.
  • A few benefits such as free DragonPass for lounge access, Boingo Wi-Fi, and insurances like mobile insurance and car rental theft and damage insurance.

Cons

  • With these income and credit score requirements, there are cards with no annual fees that offer much higher rewards and benefits.
  • Very low cashback rate on the other categories not selected.

Rewards

  • 2% on the choice of two categories chosen from the 10 offered by Tangerine (3 if you have Tangerine's Savings account)
  • 0.5% cashback on all other credit card purchases.

Insurance

Coverage

  • purchase protection

    Purchase Protection

    90 days
  • extended warranty

    Extended Warranty

    Up to a year
  • mobile device insurance

    Mobile Device Insurance

    $1000
  • car insurance

    Car Rental Damage & Theft

    31 days

Benefits

Details

  • internet worldwide

    Boingo Wi-Fi hotspot

  • alcohol cheers

    Airport Lounge - Dragon Pass

    Pass only. No Complimentary visits!

Eligibility

  • Credit Score

    Good

  • Annual Income

    $60,000 personal or $100,000 household

If you are subscribed to many streaming services


Scotiabank Gold American Express® Card
More Details

Scotiabank Gold American Express® Card

4.9

Finly Rating

$75 Cash Rebate From FinlyWealth

Now $200 until Oct 31, 2024

Welcome Bonus

Up to 45,000 Scene+ points ($450 value)

Net Annual Rewards

$493.54

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$120

Interest Rates

20.99% / 22.99%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent

The Scotiabank Gold American Express® Card is one of our favorite cards. It has a very solid rewards program, earning one of the highest rewards among all credit cards in Canada. In addition, it offers comprehensive travel benefits, including the rare and valuable no foreign transaction fee benefit, making it a great and balanced credit card in terms of both rewards and benefits. The first-year annual fee waiver is the cherry on top, providing even greater value to cardholders.

Pros

  • No foreign transaction fee saves you 2.5% on all non-CAD purchases.
  • Rewards cover all high-spending categories, including food, groceries, entertainment, and gas.
  • Comprehensive coverage of all travel insurance.

Cons

  • The card network is American Express, which might not be widely accepted in some countries, making it a bit harder to use the no foreign transaction fee benefit.
  • Having a lounge pass would have made this card even more perfect, but there is access to a discount code for lounge access pass purchases.

Rewards

  • 6 Points on on every $1 you spend at Sobeys, Safeway, IGA, Foodland & Participating Co-ops
  • 5 Points dining and at other eligible grocery stores, entertainment purchases which includes movies, theatre, and ticket agencies
  • 3 Point on Rides which includes rideshare, buses, taxis, subways and more
  • 3 Points on eligible streaming services (Netflix, Spotify, Disney+, Crave and more)
  • 1 Point on everything else

Insurance

Coverage

  • travel accident medical

    Emergency Out of province Medical

    $1M, Up to 25 days
  • travel accident medical

    Emergency Medical Over 65

    $1M, Up to 3 days
  • cancel airplane

    Trip Cancellation

    $1500/person, $10000/trip
  • travel - plane

    Trip Interruption

    $1500/person, $10,000/trip
  • lost baggage

    Lost or Stolen Baggage

    $500/person, $1000/trip
  • baggage on roller

    Baggage Delay

    $500/person, $1,000/trip After 4 hours
  • hourglass timer

    Flight Delay

    $500/person
  • heart lock

    Travel Accident

    $500K/person, $1M/occurrence
  • car insurance

    Car Rental Damage & Theft

    $65K up to 48 days
  • burglar

    Hotel Burglary Insurance

    $1000/occurrence
  • mobile device insurance

    Mobile Device Insurance

    $1,000
  • purchase protection

    Purchase Protection

    90 days
  • extended warranty

    Extended Warranty

    Up to a year

Benefits

Details

  • exchange money

    No Foreign Transaction Fees

    Avoid the 2.5% foreign transaction fees incurred when spending in non $CAD
  • Amex logo

    American Express Experiences

  • concierge

    Concierge Services

  • discount

    Discount

    Discount on PriorityPass Membership

Eligibility

  • Credit Score

    Good

  • Annual Income

    $12,000 personal

If you have many streaming services from this list, a flexible rewards card to earn bonus rewards on streaming services is the Scotiabank Gold American Express® Card. You will earn three Scene points for payments towards the services on that list, which can be redeemed at $0.03, giving an effective cashback rate of 3%. The one notable downside is that you don't get the 3% on any other recurring purchases, only from the merchants on that list.

Besides this, the card is very solid, with many unique benefits, such as no foreign transaction fees, which are not offered by almost any other card, and a great rewards program, making it one of the best options to carry in your wallet.

If you don't want to pay an annual fee, you can choose the Scotia American Express Card, which will earn you 2 points instead of 3 on these purchases.
Scotiabank American Express® Card
More Details

Scotiabank American Express® Card

3.2

Finly Rating

$65 Cash Rebate From FinlyWealth

Welcome Bonus

Up to 5,000 Scene+ points ($50 value)

Net Annual Rewards

$337.61

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee

$0

Interest Rates

19.99% / 22.99%

RECOMMENDED CREDIT SCORE

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent

If you're looking to earn travel rewards without an annual fee, the Scotiabank American Express® Card is a great choice. It offers flexible Scene+ points on everyday purchases, allowing you to redeem rewards for travel, entertainment, and more—all while enjoying plenty of perks at no extra cost.

Pros

  • Strong Rewards: Earn flexible Scene+ points on all everyday purchases.
  • Mobile Device Insurance: Comes with coverage for your mobile devices.
  • Exclusive Perks: Access special offers, experiences, and more through American Express Invites.
  • No Annual Fee: Enjoy all these benefits without paying an annual fee.

Cons

    Limited Insurance Coverage: Insurance is confined to mobile devices and purchase security & extended warranty protection.
    Lower Acceptance: Due to being an American Express network card, less merchants may accept it.

Rewards

  • 3 Points on on every $1 you spend at Sobeys, Safeway, IGA, Foodland & Participating Co-ops
  • 2 Points dining and at other eligible grocery stores, entertainment purchases which includes movie theaters, and ticket agencies
  • 2 Point on Rides which includes rideshare, buses, taxis, subways and more
  • 2 Points on eligible streaming services (Netflix, Spotify, Disney+, Crave and more)
  • 1 Point on everything else

Insurance

Coverage

  • mobile device insurance

    Mobile Device Insurance

    $500
  • purchase protection

    Purchase Protection

    90 days
  • extended warranty

    Extended Warranty

    Up to a year

Benefits

Details

  • Amex logo

    American Express Experiences

  • car rental

    Car Rental Discount

    25% off base rate of Avis Rent A Car and Budget Rent A Car

Eligibility

  • Credit Score

    Good

  • Annual Income

    $12,000 personal

If you travel a lot:


American Express® Green Card
More Details

American Express® Green Card

3.8

Finly Rating

Welcome Bonus*

Up to 10,000 points ($210 value)

Net Annual Rewards

$457.03

Based on $2,000/mo spending. Calculate your rewards.

Annual Fee*

$0

Interest Rates*

21.99% / 21.99%

RECOMMENDED CREDIT SCORE*

300
Poor
560
Fair
660
Good
725
Very Good
760
Excellent

The American Express® Green Card is a great option for those looking for a no-frills card that earns rewards on all purchases without any annual fee or minimum income requirement. It's an accessible card with no cap on rewards, making it ideal for those who want to earn points without the higher costs and complexities of premium cards. However, it does come with lower rewards earnings across most categories and a modest welcome bonus.

Pros

  • No Spending Limits: Earn unlimited rewards with no caps.
  • Flexible Redemption: Transfer points to other loyalty programs for maximum value.
  • VIP Perks: Access a variety of exclusive benefits through American Express Experiences.
  • Eco-Friendly: The card is made from 99% recycled plastic.

Cons

  • Lower Reward Rates: Earn rates are lower compared to other no-fee cards.
  • Limited Travel Perks: Lacks some of the travel benefits and insurance options provided by other cards.

Rewards*

  • 1x point per $1 spent on all purchases

Insurance*

Coverage*

  • purchase protection

    Purchase Protection

    90 days
  • extended warranty

    Extended Warranty

    Up to a year

Benefits*

Details*

  • Amex logo

    American Express Experiences

  • reward cup

    Extra points

    2 points on Amex Travel Online purchases

Eligibility*

  • Credit Score

    Good

  • Annual Income

    N/A
*American Express is not responsible for maintaining or monitoring the accuracy of information on this website. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment. Check for full details and current product information.

If you are a traveller and are open to using your points for air travel and hotels, then the American Express® Green Card is a perfect option for a travel credit card. With no annual fee, you gain 1 point per dollar spent which could be redeemed at $0.021 for travel, effectively giving you a 2.1% cashback rate which is great for a free card. The main disadvantage of the American Express card is that it might not be accepted as a payment option everywhere, so you need to check before you go for this card.

Best Credit Cards for utilities


As previously mentioned, utilities could be considered as a recurring purchase or a non-recurring purchase depending on whether you allow the payment to be taken automatically from your credit card or not.

So, if you have pre-authorized payments, then the cards that were previously discussed are your best options. But if you don't have them pre-authorized, then a card with high cashback rate is what you are looking for because that transaction could be considered as uncategorized in terms of credit card rewards. So you will need a card that gives a good rewards rate on the other categories.

FAQ


Is it better to put recurring payments/monthly payments on a credit card?


Most of the time, yes! Simply because you would miss out on credit card rewards.
But as previously mentioned, there are some cases where direct payment from the bank is available; paying with a credit card might come with some additional fees. In these cases do some calculations and see whether the rewards you get from your credit card is higher than the fees or not and then make the decision.

Will getting a new credit card stop recurring payments?


When you authorize recurring payments, you're allowing a merchant to charge your credit card number periodically for a service or subscription. If you get a new card (due to expiration, loss, or fraud), the recurring charges might initially fail because the card details have changed.

There are some exceptions to this however which is some credit card issuers participate in an account updater service which they automatically provide the merchant with your new card info. We don't recommend you to wait and see if this happens or not and if you don't want the services you are using to be interrupted, we recommend changing your credit card infos for your recurring payments proactively.

Can I ask my credit card company to stop a recurring payment?


Yes, you are allowed to contact your credit card company and stop a recurring payment.
Be advised, though, that cancelling your automatic payments does not mean that your contract with your service provider is also cancelled. If you have a contract that requires payments in the future, it's better to check with the service provider or merchant so that you don't incur penalties or future bills.

Can I pay my bills with an American Express Credit card?


It depends on whether the merchant or service provider accepts American Express or not. Because American Express usually charges merchants more than Mastercard or Visa, many choose not to accept American Express, but there are some that still continue to accept it.
You can check this yourself by going to the merchant's payment portal and see if you see American Express as a payment option or not.

Do recurring payments affect credit score?


Recurring payments themselves don't directly impact your credit score. The only indirect way they might affect your credit score is if you don't make on-time payments on those transactions which then could cause your credit score decrease but that does not relate to the recurring nature of those tranasctions.

Conclusion


There aren't that many cards that give great rewards on recurring transactions and recurring bills, but the few that do offer very decent rewards. Different cards might be suitable for you depending on the amount of recurring transactions you have in the month.
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