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Cash Back vs Travel Rewards Credit Cards in Canada: Which Earns More?

A suitcase-shaped money box covered in travel stickers

It's the first choice most people make when picking a credit card: cash back or travel points? The answer depends less on the card than on how you'll redeem.

The short answer

  • Choose cash back if you want a guaranteed return, don't travel often, or don't want to manage points.
  • Choose travel rewards if you fly at least once or twice a year and will take the time to redeem points for flights.

Why cash back is easier to compare

A dollar of cash back is worth a dollar. A card that pays 2% on groceries returns exactly 2¢ per dollar spent there. Comparing cash-back cards is a matter of matching earn rates to your spending. Cards like the Scotia Momentum Visa Infinite and the CIBC Dividend Visa Infinite are built this way.

What travel points are really worth

Points have no fixed value. What they're worth depends on the redemption. These are CardTruth's estimates, taken from our program data:

  • Aeroplan: about 2¢ per point on flights
  • Amex Membership Rewards: about 2¢ when transferred to Aeroplan for flights, but 1¢ as a statement credit
  • Scene+: a fixed 1¢ per point on travel

So a card earning "5 points per dollar" isn't automatically better than one paying 4% cash back. Multiply the earn rate by the point value to compare: 5 points × 1¢ = 5%, but 5 points × 0.5¢ is only 2.5%.

A palm tree leaning over a white sand beach with a hanging chair, by turquoise water

When travel rewards win

  • You redeem for flights, especially long-haul or premium cabins, where points stretch further.
  • You use the card's travel benefits: insurance, lounge access, free checked bags or no foreign transaction fee.
  • You spend enough to justify a higher annual fee.

When cash back wins

  • You'd otherwise redeem points for gift cards or statement credits, which usually pay the least.
  • You don't travel in a typical year.
  • You want a no-fee card: the strongest no-fee cards are often cash back, such as the Tangerine Money-Back Credit Card.

Don't forget the fine print

Both kinds of cards have spending caps, where a bonus rate drops after a set amount, and rules on how often you can redeem. Read credit card spending caps explained, or let Card Match compare both types against your actual spending, using the same point values shown above.