Best Credit Cards for Recurring Transactions and Recurring Bills in Canada
Kevin Shahnazari
Author9 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
4
Finly Rating
Welcome Bonus*
10% Cash Back (up to $200 value)
Annual Fee*
$120
Interest Rates*
20.99% / 22.99%
Why we like it
Why we like it
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 & Cons
Pros & Cons
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.
Product Details
Product Details
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
$1,000
Travel Accident
$500,000
Emergency Out of province Medical
15 days
Trip Interruption
$2,000
Trip Cancellation
$1,500
Flight Delay
$500
Lost or Stolen Baggage
$500Baggage Delay
$500.svg)
Car Rental Damage & Theft
48 days
Purchase Protection
90 days
Extended Warranty
1 year
Benefits*
Details*
Car Rental Discount
25% off base rate of Avis Rent A Car and Budget Rent A Car
Visa Infinite Exclusive Benefits
Yes
Eligibility*
Credit Score
GoodAnnual 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)
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®
4.4
Finly Rating
Welcome Bonus
Up to $60 cash back ($90 if redeemed for Rogers, Fido or Shaw purchases)
Annual Fee
$0
Interest Rates
19.99% / 22.99%
Why we like it
Why we like it
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 & Cons
Pros & Cons
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.
Product Details
Product Details
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
Balance Protection
Minimum payments
Benefits
Details
No Cost roaming
5 days
Eligibility
Credit Score
Very GoodAnnual 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
4
Finly Rating
Welcome Bonus
10% Cash Back up to $100 value
Annual Fee
$0
Interest Rates
20.95% / 22.95%
Why we like it
Why we like it
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 & Cons
Pros & Cons
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.
Product Details
Product Details
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
90 daysExtended Warranty
Up to a year
Eligibility
Credit Score
GoodAnnual 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
4.1
Finly Rating
Welcome Bonus
10% Cash Back up to $100 value
Annual Fee
$0
Interest Rates
20.95% / 22.95%
Why we like it
Why we like it
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 & Cons
Pros & Cons
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.
Product Details
Product Details
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
90 daysExtended Warranty
Up to a yearMobile Device Insurance
$1000Car Rental Damage & Theft
31 days
Benefits
Details
Airport Lounge - Dragon Pass
Pass only. No Complimentary visits!
Boingo Wi-Fi hotspot
Eligibility
Credit Score
GoodAnnual Income
$60,000 personal or $100,000 household
If you are subscribed to many streaming services
Scotiabank Gold American Express® Card
4.9
Finly Rating
Welcome Bonus*
Up to 45,000 Scene+ points ($450 value)
Annual Fee*
$120
Interest Rates*
20.99% / 22.99%
Why we like it
Why we like it
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 & Cons
Pros & Cons
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.
Product Details
Product Details
Rewards*
- 6 Points per $1 spent at Sobeys, Safeway, IGA, Foodland & Participating Co-ops
- 5 Points per $1 spent on eligible dining, other grocery stores, entertainment purchases including movies, theatre, and ticket agencies
- 3 Points per $1 spent on rides which includes rideshare, buses, taxis, subways and more
- 3 Points per $1 spent on eligible streaming service payments (Netflix, Spotify, Disney+, Crave and more)
- 1 Point per $1 spent on all other eligible purchases
Insurance*
Coverage*
Emergency Out of province Medical
$1M, Up to 25 daysEmergency Medical Over 65
$1M, Up to 3 daysTrip Cancellation
$1500/person, $10000/tripTrip Interruption
$1500/person, $10,000/tripLost or Stolen Baggage
$500/person, $1000/tripBaggage Delay
$500/person, $1,000/trip After 4 hoursFlight Delay
$500/personTravel Accident
$500K/person, $1M/occurrenceCar Rental Damage & Theft
$65K up to 48 days
Hotel Burglary Insurance
$1000/occurrenceMobile Device Insurance
$1,000Purchase Protection
90 daysExtended Warranty
Up to 1 year
Benefits*
Details*
No Foreign Transaction Fees
Avoid the 2.5% foreign transaction fees incurred when spending in non $CAD
American Express® Experiences
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Concierge Services
Discount
Discount on PriorityPass Membership
Eligibility*
Credit Score
GoodAnnual Income
$12,000 personal or $12,000 household
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
3.2
Finly Rating
Welcome Bonus*
Up to 5,000 Scene+ points ($50 value)
Annual Fee*
$0
Interest Rates*
19.99% / 22.99%
Why we like it
Why we like it
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 & Cons
Pros & Cons
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.
Product Details
Product Details
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
$500Purchase Protection
90 daysExtended Warranty
Up to a year
Benefits*
Details*
American Express® Experiences
Car Rental Discount
25% off base rate of Avis Rent A Car and Budget Rent A Car
Eligibility*
Credit Score
GoodAnnual Income
$12,000 personal
If you travel a lot:
American Express® Green Card
3.9
Finly Rating
Welcome Bonus*
Up to 10,000 points ($210 value)
Annual Fee*
$0
Interest Rates*
21.99% / 21.99%
Why we like it
Why we like it
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 & Cons
Pros & Cons
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 Amex 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.
Product Details
Product Details
Rewards*
- 1x point per $1 spent on all purchases
Insurance*
Coverage*
Purchase Protection
90 daysExtended Warranty
Up to a year
Benefits*
Details*
Amex Experiences™
With Amex Experiences™ and Front Of The Line® Amex Presale Tickets, American Express Cardmembers get access to amazing events in Canada
Extra points
2 points on Amex Travel Online purchases
Eligibility*
Credit Score
GoodAnnual Income
N/A
If you are a traveler 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 transactions.
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.