Min-max your cash back
Two or three no-nonsense cards, the right one at each store, and none of the traps. The cash back playbook for Canadians who want money, not points.
Cash back is the most honest reward: a dollar is a dollar. “Min-maxing” means using a minimum number of cards, each for the spending it rewards most, so you get the maximum return without juggling a wallet full of plastic.
Start with your spending, not the card
Pull up the last three months of statements and total your spending in a few buckets:
- groceries
- gas and EV charging
- restaurants and food delivery
- recurring bills (phone, internet, streaming)
- travel and transit
- everything else
The two or three biggest buckets decide your setup. A card paying 4% on a category you spend $50 a month on is worth less than a 2% card on your $800 grocery bill.
A typical two- or three-card setup
| Role | What to look for | Why |
|---|---|---|
| Category earner | High cash back on your biggest bucket (often groceries or gas) | This is where most of the extra money comes from |
| Choose-your-categories card | Cards like Tangerine’s let you pick 2 to 3 bonus categories | Covers your second- and third-biggest buckets |
| Everything-else card | The highest flat rate you can get on all purchases | Catches the long tail of spending |
The traps that quietly cost you
- Caps. Many bonus categories pay the high rate only up to a spending limit (monthly, quarterly or yearly), then drop to the base rate. Know where your caps are.
- How the store is coded. Cards pay bonus categories based on how the store is classified, not what you bought. Walmart and Costco usually don’t count as “grocery” even if you buy only food. A supermarket’s gas bar may count as gas or grocery.
- Card acceptance. Costco warehouses take Mastercard but not Visa or Amex credit cards. American Express isn’t accepted everywhere in Canada.
- Annual fees. A $120 fee needs $6,000 of spending at an extra 2% just to break even. Do the maths with your real spending.
- Paying once a year. Some cards pay cash back annually. If you cancel before the payout date, you can lose it.
Advanced: stacking
Cash back cards stack with store loyalty programs and, sometimes, gift card promotions. Earn the store’s points, pay with your best card for that category, and you’re collecting twice. Keep stacking simple: the rewards aren’t worth the hassle of keeping track of a dozen gift cards.
How Fruga helps
Fruga does this juggling for you. It recognises the store you’re shopping at and shows the card that maximizes your cash back the moment you point at Place order. If something looks off at a store, you can correct it in one click, and Fruga remembers.