Aside from mortgage payments or rent, Canadians typically spend the biggest chunk of their budget on groceries. And given the rising costs of food these days, due to inflation, it’s not hard to see why. The Government of Canada even introduced a grocery rebate to help Canadians with the rising cost of groceries.
According to a recent study, the cost of food for a family of 4 is expected to hit $16,288.41 per year. That’s $1,065.60 more than last year. That’s a big sum of money, but you can lessen the financial blow by using a rewards-based credit card to make your purchases. With the right card in hand, you could be seeing a free cart of groceries on a regular basis.
Let’s take a look at some of the best credit cards for groceries in Canada.
Best Credit Cards For Groceries In Canada
| Earn Rate For Groceries | Annual Fee | |
| Neo Credit (with Everyday Essentials perks) | – Earn 1.5x more cash back at grocery and wholesale stores – Earn 1.5x more cash back at specialty food and liquor store partners | $8.99 monthly |
| BMO® CashBack® World Elite®* Mastercard® | Earn 5% cash back on groceries and other essentials you can buy at grocery stores | $120 |
| BMO CashBack® Mastercard® | Earn 3% cash back on groceries | $0 |
| Scotiabank Gold American Express® Card | Earn 6 Scene+ points for every $1 you spend at IGA, Sobey’s, Foodland, etc. | $120 |
| President’s Choice Financial® World Elite Mastercard® | Earn 30 points for every $1 spent at Maxi, Provigo, Wholesale Club | $0 |
| Tangerine Money-Back Credit Card | Earn up to 2% on purchases in 2 categories of your choice | $0 |
| Walmart Rewards™ Mastercard® | Earn 1.25% in rewards dollars on online and in-store purchases at Walmart | $0 |
| BMO eclipse Visa Infinite* Card | Earn 5 points for every dollar spent on groceries, gas, transit, and restaurants | $120 |
Neo Credit (with Everyday Essentials perks)
Best for: Unlimited cash back
If you want the ability to earn unlimited cash back and aren’t loyal to one specific grocery store, Neo Credit might be a good option for you. Neo Credit is an everyday credit card that lets you earn an average 5%1+ cash back at thousands of participating partners and earn up to 15%1 cash back on your first purchase with Neo partners.
On its own, Neo Credit had no monthly fee. But, to supercharge your Neo Credit card specifically for grocery shopping, you can add the Everyday Essentials perks for a monthly fee of $8.99.
$25 Welcome Bonus
Neo is offering new customers a $25 welcome bonus, sign up by clicking the button below and receive your $25.
Earn rate: Up to 5% cash back
Annual fee: $8.99 a month with the Everyday Essentials perks.
Purchase rate: 19.99% – 26.99% (QC: 19.99% – 24.99%)
Cash advance rate: 22.99% – 28.99% (QC: 22.99% – 25.99%)
Extra features: When you add the Everyday Essentials perks, you’ll benefit from these extra features:
- 1.5x more cash back at grocery and wholesale stores like Costco and Walmart.
- 1.5x more cash back at specialty food and liquor store partners.
- 1.5x more cash back at gas station partners.
- Access to exclusive offers from grocery stores and gas stations.
- Have your card balance covered with life insurance protection.
BMO® CashBack® World Elite®* Mastercard®
Best for: Highest cash back offer on groceries
The BMO CashBack World Elite Mastercard offers 5% cash back on your grocery purchases. The 5% cash back rate applies to all grocery stores who have a merchant category code of MCC 5411. Moreover, there’s also no cap on how much you can earn in cash back with this card. Once you have as little as a dollar in cash back, you can begin redeeming it.
Earn rate:
- Earn 5% cash back on groceries and other essentials you can buy at grocery stores.
- Earn 4% cash back on transit including public transportation, taxis and ride sharing services.
- Earn 3% cash back on gas, including electric vehicle charging.
- Earn 2% cash back on reoccurring bills including streaming services phone bills.
- Earn 1% cash back on all other purchases.
Annual fee: $120
Purchase rate: 20.99%
Cash advance rate: 23.99% (21.99% for Quebec residents)
Extra features:
- Free membership in Mastercard Travel Pass provided by DragonPass.
- 24/7 concierge service.
- Free Boingo Wi-fi.
- Extended warranty and purchase protection.
BMO CashBack® Mastercard®*
Best for: Cash back with no annual fee
If you want something simple and straightforward, the BMO CashBack Mastercard may be the best offer for you. With no annual fee and no income specifications, it’s easy to get and easy to understand. This makes it a great alternative to the BMO® CashBack® World Elite®* Mastercard® which has an annual fee of $120.
You will earn 3% on groceries and at least 0.5% cash back on all purchases you make.You can then redeem your cashback directly into your chequing or savings account, or use it to pay off your BMO credit card.
Earn rate:
- 3% cash back on groceries.
- 1% cash back on reoccurring bill payments.
- 0.5% cash back on all other purchases.
Annual fee: $0
Purchase rate: 20.99%
Cash advance rate: 22.99% (QC: 21.99%)
Extra features:
- Up to 5% cash back in your first 3 months.
- 0.99% introductory interest rate on balance transfers for 9 months with a 2% transfer fee.
- Extended warranty and purchase protection.
- Save up to 25% at participating National Car Rental and Alamo Rent a Car locations.
- 15% off admission to Cirque du Soleil shows in Canada.
Scotiabank Gold American Express® Card
Best for: Shopping at IGA, Sobey’s, Foodland, etc.
If you spend a lot of money on food or exclusively shop for groceries at IGA, Sobey’s, Foodland, etc. then you definitely need to consider the Scotiabank Gold American Express Card. While the annual fee of $120 may seem high, the earn rate for Scene+ points is also high in all categories, but specifically in the grocery category. You should have no trouble being able to earn in excess of $120 worth of Scene+ points.
Earn rate:
- Earn 6 Scene+ points for every $1 you spend at IGA, Sobey’s, Foodland, etc.
- Earn 5 Scene+ points for every $1 you spend on eligible dining, food deliveries, food subscriptions, and other groceries store.
- Earn 5 Scene+ points for every $1 you spend on eligible entertainment purchases.
- Earn 3 Scene+ points for every $1 you spend on eligible gas and transit.
- Earn 3 Scene+ points for every $1 you spend on eligible streaming services.
- Earn 1 Scene+ point for every $1 you spend on all other eligible purchases.
Annual fee: $120
Purchase rate: 20.99%
Cash advance rate: 22.99%
Extra features:
- No foreign transaction fees.
- Preferred discount on the Priority Pass™ membership.
- Complimentary concierge services.
President’s Choice Financial® World Elite Mastercard®
Best for: Shopping at PC grocery stores and Shoppers Drug Mart
Loyal PC brand shoppers may find the PC Financial World Elite Mastercard an enticing option thanks to its attractive rewards program and no annual fee.
The PC Financial World Elite Mastercard lets cardholders earn PC Optimum points for every dollar they spend. These points can then be redeemed for free groceries at PC stores. If Maxi or Provigo are your go-to grocery stores, then this is a credit card you should consider.
Earn rate:
- Earn 30 points for every $1 spent at Maxi, Provigo, Wholesale Club.
- Earn 45 points for every $1 spent at Shoppers Drug Mart/Pharmaprix.
- Earn at least 30 points per litre at Esso and Mobile gas stations.
- Earn 30 points for every $1 spent at PC Travel.
- Earn 10 points for every $1 spent on all other purchases.
Annual fee: $0
Purchase rate: 21.99%
Cash advance rate: 22.97% (QC: 21.97%)
Extra feature:
- Travel Emergency Medical Insurance.
- Car Rental Collision/Loss Damage Waiver Insurance.
- Identity Theft Assistance.
- Concierge Services available 24/7.
Tangerine Money-Back Credit Card
Best for: No Annual fee
Anyone who spends a big chunk of their budget on groceries, may want to consider adding the Tangerine Money-Back Credit Card to their wallets.
With this credit card, you will learn 2% on expenditures made in 2 categories of your choice, including groceries. If you deposit your earned rewards into a Tangerine Savings Account, you can choose a third category to spend in.
Special Offer
Apply for a Tangerine Money-Back Credit Card by January 31, 2024. If you’re approved, you’ll earn an extra 10% back on up to $1,000 in everyday purchases made within your first 2 months.*
Rewards:
- Earn up to 2% on purchases in 2 categories of your choice.
- Earn 0.50% on all other purchases.
Annual fee: $0
Purchase rate: 19.95%
Cash advance rate: 19.95%
Extra Perks:
- Unlimited cash back.
- Mastercard Zero Liability.
- Automatic earnings.
- Earn extra rewards with a 3rd category when you deposit your rewards into a Tangerine savings account.
Walmart Rewards™ Mastercard®
Best for: Shopping at Walmart
If you’re a frequent shopper at Walmart, then the Walmart Rewards Mastercard may be the best credit card for groceries for you. You’ll get 1.25% in rewards dollars for any purchase made at Walmart in-store or online. Each dollar you earn in Walmart dollars is equivalent to $1 at Walmart. Essentially, the reward dollars can be used like cash at Walmart, whether for groceries or other items.
Earn Rate:
- Earn 1.25% in rewards dollars on online and in-store purchases at Walmart.
- Earn 1% at gas stations and all other purchases.
Annual fee: $0
Purchase rate: 25.99% (19.89% if you apply for the preferred rate card).
Cash advance rate: 27.99% (22.97% if you apply for the preferred rate card). Note, for Quebec residents only the 21.97% preferred rate applies.
Extra Perks:
- Extended warranty plan.
- Purchase assurance protection.
- Balance protection plan.
BMO eclipse Visa Infinite* Card
Best for: Flexible grocery rewards.
The BMO eclipse Visa Infinite Card is one to consider if you’re looking for a card that comes with a lot of flexibility on rewards when you buy groceries. You can use the points you earn on groceries and other purchases in various ways. You can redeem it for gift cards, or use the points to pay for travel and non-travel expenses. With this card, you’ll not only earn 5 points for every dollar spent on groceries, but for every dollar you spend on gas, transit, and restaurants.
Earn Rate:
- Earn 5 points for every dollar spent on groceries, gas, transit, and restaurants.
- Earn 1 points on all other purchases.
- If you add an authorized user to the account, you’ll earn 10% more points on all purchases.
Annual fee: $120
Purchase rate: 20.99%
Cash advance rate: 23.99% (21.99% for Quebec residents)
Extra Perks
- You’ll receive a $50 lifestyle credit every year, which will be automatically applied to the first $50+ purchase you make.
- Travel Insurance.
- Mobile device insurance.
- Extended warranty and purchase protection.
Looking for the best credit card options?
How Do You Choose The Best Credit Cards For Groceries For You?
If your goal is to get as many free groceries as you can, there are several factors to consider before you choose a credit card to apply for:
Choose The Best Credit Cards For Groceries Using The Annual Fee
Credit cards often offer many attractive perks, but there may be a high annual fee to pay in exchange for these benefits. In addition to assessing the perks of the card, be sure to weigh them against the annual fee.
Consider The Welcome Offer When Choosing The Best Credit Cards For Groceries
Creditors may offer a welcome bonus as an incentive to get you to sign up for their card. These bonuses typically come in the form of bonus rewards points, a low promotional rate, or a waived annual fee.
Don’t Forget About The Rewards
If you want your money to work for you by earning points with every purchase you make, then a rewards system is something to look for in a credit card. The higher the points offered per dollar spent, the better. And if your goal is to use points towards groceries, look for a card that favours grocery store purchases with higher points.
Interest Rate Is Key To A Low Cost Credit Card
The interest rate charged on a credit card is what you owe the creditor on balances carried over month to month. A lower rate is more attractive for obvious reasons, especially if you have a tendency to carry balances.
Final Thoughts
A cash back credit card is an excellent way to stretch your dollar further. With every purchase you make, you can earn points that can later be used to redeem for free groceries. And considering how much you likely spend on groceries every week, it would be nice to get a free grocery load from time to time with the right cash back credit card in hand.
