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Email this4:25 pm
December 12, 2008
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Royal Bank has introduced a new visa -- The Visa Cash Back Card (en francais -- Carte Visa Remise en argent)
Visa Cash Back Card features:
- From June 2nd to December 31, 2010 (EDIT: Now until March 31st, 2011) receive 5% Cashback on the first $5000 of Grocery transactions.
- 1% Cashback on all other purchase transactions on the first $25,000 (annually) of all other non-Grocery purchase transactions.
- $19 Annual Fee (Fee waived for the first year if you apply by December 31, 2010)
- Earn up to $25 in cash back bonus when you use free CustomSwitch.
- Purchase Security and Extended Warranty Protection.
- This card also includes Visa payWave.
This card is available to all Canadians and you can https://www.rbcroyalbank.com/cgi-bin/cards/cardapp/apply.cgi/getting_started?cid=cashback&ASC=
4:28 pm
December 12, 2008
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Royal Bank will be using Merchant code 5411
A list (not complete) of Grocery Stores:
A & P
Asian Food Center
Askew's Foods
Atlantic Wholesalers
Bidgoods
Brunos Fine FoodsBuy
Low Foods
Canada Safeway
Choices Market
Colemans Food Centre
CO-OPCooper's Foods
Country Grocer
Dominion
Extra Foods
Fairway Market
Farm Boy
Food Basics
Foodland
Fortinos
Grocery Gateway
Hannam Supermarket
Highland Farms
IGA
Kin's Farm Market
Les Aliments M&M
Loblaws
Loebs
Longo's
M & M Meat Shops
Maxi
Metro
Michael -- Angelo's
Market
Moncion Grocers
NeedsNester's Market
No-Frills
Overwaitea Food
Pete's Frootique
Planet Organic
Powell's Supermarket
Presidents Choice
Price Chopper
Price Smart
Produce Depot
Provigo
Quality Foods
Quality Market
Rabba
Real Canadian Super Stores
Save EasySave On Foods
Shop Easy Foods
Shop 'N Save
Sobeys
Starsky Foods
Stongs Markets
Super CSuper Value
Supermarche -- Metro
Superstore
T & T Supermarket
Thrifty Foods
Urban Fare
Valu Mart
Village Food Markets
Weston Produce
Your Independent Grocers
Zehrs
4:52 pm
December 12, 2008
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Compared to the Smart Cash Card, I do not think this card can compete.
The maximum grocery cash back you can receive until December 31st is $250 (5% of $5000). After December 31st there is no bonus 4% on the grocery purchase.
Your maximum non-grocery cash back (the 1%) is also limited to receiving $250 (1% of $25,000) as you do not receive any cash back after $25,000 of annual spending).
The annual fee is also a draw back (though its waived for the first year).
Is it really worth the hassle to change my existing RBC Platinum Avion card to this? Not really, I will stick with using my MBNA Smartcash card as my primary card.
djino
"What do you all think?"
5:02 pm
May 15, 2007
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Thanks for the info!
This would be handy to switch to in the short term for those who were stuck with the terrible RBC Rewards Gold Visa after the RBC Starbucks Duetto card was cancelled.
5:31 pm
December 12, 2008
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I thought about that too (though I upgraded to RBC Platinum Avion in January for the free RBC points and no annual fee), but then when looking at the RBC Chart of Credit cards, this card does not fall under the RBC Rewards Cards.
Which means, if I switched to it, I would no longer get the Multi-product rebate on my checking account with RBC. I have the Day to Day Checking account with RBC, which is normally $4/month, but since I have a RBC Rewards card and an RRSP Account with RBC, I get a $4 credit on the checking account which makes the Checking account free. Switching to RBC Visa Cash back card, would mean I'd lose that $4/month rebate and would incur a $19 annual fee starting the 2nd year with the card.
djino
"Not worth it for me"
5:33 pm
May 15, 2007
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When you say "though I upgraded to RBC Platinum Avion in January for the free RBC points and no annual fee" -- was that a promo or smart negotiation?
5:44 pm
December 12, 2008
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In January they sent me junk mail, but it was available for everyone who was on the RBC Rewards GOLD Visa. They allowed them to upgrade to RBC Platinum Avion and get 15,000 RBC Rewards points and get their first annual fee waived ($120/year). So I upgraded for the points as its worth $150 in Esso Gas Cards (or up to $350, if you use it with their Airline Agency to fly to a connecting province/state). You also get 1 point for $1 purchase with Platinum Avion (Rewards GOLD is 1 point for $2 purchase).
I'm not sure if the promo is still on, but it doesn't hurt to call in and ask. I plan to switch back to GOLD before January 2011 if they do not waive the fee again.
djino
6:06 pm
May 15, 2007
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Thanks for the info. I might try calling... if I decide not to cancel the RBC card altogether!
2:16 am
December 12, 2009
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I really don't understand why so many of banks' credit cards have an annual fee, unless you want a no frills, no rewards credit card. Scotiabank and BMO seem to have the most credit cards without an annual fee. Most of CIBC, RBC and TD cards charge fees.
If you're into cash back rewards, I would have to recommend the HSBC Advance MasterCard (which replaces the cancelled HSBC Gold MasterCard which had an annual fee) and comes with either travel & merchandise rewards or 1% cash back rewards and has no annual fee. You can sign up for it as part of the HSBC Advance package which includes a fee-free chequing account (including free HSBC Advance branded personalized cheque orders) when you maintain combined deposit and investment balances of $25,000 (this can be in chequing, savings, TFSAs, Mutual Funds, InvestDirect or HSBC Securities), HSBC Advance Savings and HSBC Advance TFSA. The HSBC Advance MasterCard also has Chip+PIN and PayPass as well as other great benefits. As well, the package is fee-free for I believe the first six months regardless of balances (and they can also include joint accounts of which you're a party as well as registered RSPs and RIFs). 🙂
Cheers,
Doug
2:29 am
November 8, 2009
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this link shows a bunch of cards with info on fees and rewards. Paying an annual fee for a credit card seems crazy to me!
11:11 am
December 12, 2008
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If you're into cash back rewards, I would have to recommend the HSBC Advance MasterCard (which replaces the cancelled HSBC Gold MasterCard which had an annual fee) and comes with either travel & merchandise rewards or 1% cash back rewards and has no annual fee.
I understand your recommendation of the Advance MasterCard, but I would have to say MBNA's Smart Cash Card cannot be beaten when it comes to cash back rewards with no annual fee. 3% on Gas and Grocery (5% for the first 6 months) and 1% on everything else. It also includes all the platinum benefits anyone would need out of a free card.
MBNA's customer service could use some improving bigtime, which is my only beef with them. I have HSBC products (Advance Savings, RRSPs, etc), I don't think you can really say the HSBC Advance MasterCard is free since one would need to hold $25,000 across Checking/Savings/Investment products in order to get the fee waived on the MasterCard.
But anyways, I've gone off topic, this thread is about RBC's Cash Back Card.
djino
1:07 pm
I can't find this information on the website.
How and when is the cash back redeemed?
1:54 pm
The 5% promo on groceries could be worth wild for many people. In some respect it is better than the Smart Cash card since the cap is not on a per month basis. It's $5000 till the end of the year. Whenever you do your groceries is your business.
However it might be a different story when the promotion expires. I guess everybody's free to take the money and run.
4:14 pm
December 12, 2008
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Yeah, it doesn't explicitly state how the cash back is redeemed. I believe it will be a posted credit to the account annually in January.
If you plan to use this card up and only until Dec 31st, then it is worth while. But remember, this is only 5% on Groceries (the Smart Cash Card is good for Gas and Groceries). The 1% is also capped on the RBC Cash Back (not so on the Smart Cash Card).
Between now and Dec 31st, there is 7 months * $600 = $4200 ($5000 with RBC). If you are to sign up for Smart Cash, one has the potential to earn $600 * 5% * 6 months + $600 * 3% * 1 month = $198 in Cashback. The cashback potential with RBC is $250 (52 more than MBNA but only between now and December 31st). If the maximum of $52 (from now until Dec 31) is worth it to you to switch to RBC over MBNA then...
djino
2:44 pm
In all fairness, by the time this cards gets in your wallet, July will be just around the corner.
Although I do admit that once the promotion is over, there's really no point in keeping this card. There are many 1% cash back cards out there with no annual fee. Even CIBC's Dividend card will bump this one by $0.25!
As a side note, it is my personal belief that if you've managed to get your hand on a Smart Cash card, you deserve 5% cash back on absolutely everything you buy...
4:14 pm
December 12, 2009
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I have to disagree with you wholeheartedly, djino.
It's all about a bank increasing its "share of wallet" of its customers (that is, industry speak for increasing the percentage of a customer's business with a particular institution) and by offering fee waivers and unlimited banking in exchange for having certain products (as RBC does with its MultiProduct Rebate and HSBC does with its Advance and Premier packages) is a great tool to achieve this. Another way is for institutions to end their relationships with mortgage brokers, which RBC, BMO and now HSBC have done. The unique thing that HSBC does is it doesn't require a minimum balance in your chequing account (which pays no interest and thus they can recoup the lost non-interest revenue for additional gains in net interest income) but instead allows you to hold assets in your non-registered or registered accounts with HSBC Bank Canada or its affiliates and subsidiaries including Mutual Funds, InvestDirect and Securities. Only BMO comes close to this in that regard by allowing you to hold your balance in your account package's designated "lead account" but even that requires it be a low paying savings account or a no paying chequing account.
All I'm saying is RBC charges an annual fee for a 1% cash back rewards Visa card which is become standard in the marketplace. HSBC Advance MasterCard offers the same and has no annual fee. Other institutions offer the same, namely Canadian Tire Bank. Scotiabank's Moneyback Visa offers 1% cash back rewards with no annual fee albeit with a tiered payout structure.
MBNA's Smart Cash Card may have the highest payouts but as I've said before and numerous customer anecdotes report that (a) the card is not available to apply for on their website anymore and is hard to apply for in that you have to threaten to close your MasterCard account numerous times before they finally offer you the Smart Cash Card in a last-ditch effort to save your business, (b) I've had numerous customers report to me problems with MBNA's billing department not receiving payments on time or at all and (c) they require a minimum $35,000 annual income to apply which is ironic since MBNA is normally considered the MasterCard of choice for those with blemished credit ratings whereas the Big Five banks have credit cards available with as little as $15,000 annual income. I have a theory on the high income threshold and that is because they can then offer you a higher credit limit, hoping to attract people that will transfer their existing balances to their card and thereby making it difficult for them to pay off their balance. They hope for just one late payment so they can hike the customer's interest rate, charge a late payment fee and maybe an overlimit fee and reap the profits.
It may be for some people but no thanks, I'll stick with my Scotiabank SCENE Visa which pays 1% rewards in the form of Cineplex points I can redeem for movie theatre tickets, concession combos and Cineplex.com purchases and it has no annual fee. For cashback rewards, I'll stick with the HSBC Advance MasterCard although the Canadian Tire Curve MasterCard looks interesting. Moreover, it can't be stressed enough that a lot of young people in their late twenties or early thirties already have $25,000 amassed in their RRSPs and TFSAs so it's fairly easy to attain.
I also believe there's something inherently wrong with increasing your spending to get cash back rewards from your credit card issuer as an alternative to the low interest rates paid on savings accounts and GICs. A much better move, in my opinion, would be to buy solid blue chip, dividend paying stocks in low-rish industries like Canadian banking or insurance, telecommunications, transport and utilities.
My $0.02 or so.
Cheers,
Doug
6:23 am
Spend $25,000 per year on groceries to get 5% refund. Wow. That is sick.
That is awesome. People who do this are nuts. That 25K for spending
alone is not even close to my anemic annual gross income. What a world we live in.
What kind of stuffs do you buy? On the average, I spend $300-350 on groceries
per month, so that's like $3,600 per year. Not $25,000!!! Come on. Save your money!!!
8:38 am
they require a minimum $35,000 annual income to apply which is ironic since MBNA is normally considered the MasterCard of choice for those with blemished credit ratings whereas
That $35,000 income is pretty standard for Platinum cards since usually Platinum cards have a minimum limit of $5,000. Although this isn't the case for this one. I have no doubt that anyone with a lower income can get approved for it (with a lower limit obviously). The only problem with this card is getting it in your mailbox.
Spend $25,000 per year on groceries to get 5% refund. Wow. That is sick.
That is awesome. People who do this are nuts. That 25K for spending
alone is not even close to my anemic annual gross income. What a world we live in.
What kind of stuffs do you buy? On the average, I spend $300-350 on groceries
per month, so that's like $3,600 per year. Not $25,000!!! Come on. Save your money!!!
The 5% cash back on groceries is only a promotion for the remainder of this year and is caped off at $5,000.
12:57 am
December 12, 2009
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Well, then that exempts a lot of the population. I make a good wage and I still can't quite crack $30,000 even when you factor in my year-end incentive pay. For two-income earning housesholds, it's a little different and thus easier to qualify for so-called "platinum" credit cards.
No thanks on MBNA's Smart Cash Card - high rewards points or no. Factor in their problems with not receiving payments or not crediting customers' accounts properly and I think I'll pass. I'll stick with my Scotiabank SCENE VISA. If I need a MasterCard too, I'll get the HSBC Advance MasterCard.
As for RBC's cashback Visa, as I said earlier, 1% rewards is standard in the industry and with no annual fee. For them to charge a fee, that's ludicrous! 🙂
Cheers,
Doug
12:04 pm
December 12, 2008
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Every company (even HSBC, Scotia, RBC) have their problems Doug. I know, because I am a client of all those companies and have dealt with their BS.
The MBNA Smart Cash card is/was a new system (been out for 1 year now). I've been an MBNA client for 5-6 years now (as I have other accounts with them) and only had problems with them for this Smart Cash Card.
Most all of the early problems have been resolved now with the Smart Cash Card. Most recently in April they converted to a new points/cashback system which works out in the clients favour.
Although I watch movies often, I rarely feel like going to the theatre to enjoy one which doesn't make the 1% Scotia Scene Visa optimal. I actually prefer my credit card rewards to be in Cash as apposed to it to goto the movies like Scotia.
If MBNA Smart Cash card was not around, I'd be struggling with either choosing PCFinancal's 1% Mastercard (because I could spend my rewards at a number of grocery stores - everyone needs food) or this RBC Cash back visa (the annual fee is the only downside).
The HSBC Advance package (that includes the Mastercard) is good in theory, but I don't think many Canadians have $25,000 saved up across Checking/Savings/Investment accounts for them to have the $35 fee waived on the HSBC Mastercard. Not just that, the interest rates on their RRSP products (0.20%) to be VERY low (yes I have about 7K with HSBC RRSP). Having all this money tied up with HSBC receiving very low return just to get their 1% Mastercard fee waived is not that worth it to me. I prefer to have my money spread across mutliple banking institutions instead of 1 Bank across multiple products. But too each his own.
djino
"As of now, I'll stick to receiving 3%/1% with MBNA"
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