Finding the best credit cards for grocery or restaurant purchases is relatively straightforward, but many retailers, such as Walmart and Amazon, don’t fall into those straightforward boxes as a result of how their transactions code with financial institutions.
Keeping that in mind, the MBNA Amazon.ca Rewards Mastercard offers an interesting value proposition in offering increased cash back on everyone’s favorite retailer, Amazon, in conjunction with charging no annual fee.
Let’s dive into our review of the MBNA Amazon Rewards Mastercard to see if this card has a place in your wallet.
MBNA Amazon.ca Rewards Mastercard Overview
If you’re an avid Amazon.ca shopper, the MBNA Amazon Rewards Mastercard might be a great card for you as it rewards all purchases made at Amazon.
The earning rates for this card are structured differently as you will earn a varying cash back percentage depending on if you have an Amazon Prime membership or not. The rates are as follows:
- Prime Members earn:
- 2.5% cash back on Amazon.ca purchases and at Whole Foods Market stores
- 2.5% cash back on purchases made in a foreign currency
- Non-Prime Members earn:
- 1.5% cash back on Amazon.ca purchases and at Whole Foods Market stores
- 1% cash back on purchases made in a foreign currency
- Both Prime and Non-Prime members earn 1% cash back on all other purchases outside of the above categories
In order to apply for the MBNA Amazon.ca Rewards Mastercard, you must be a Canadian resident and have reached the age of majority in your province or territory. There is no minimum personal or household income requirement for this card.
The Amazon Rewards Mastercard gives new cardholders the opportunity to earn 5% back on purchases at Amazon.ca, Whole Foods Market Stores, restaurants, and grocery stores for the first six months of card membership.
This increased earning rate is available for the first $3,000 in eligible purchases, meaning new cardholders can expect to earn an additional $150 cash back thanks to this welcome bonus.
Amazon Rewards Program
This credit card earns rewards in the form of Amazon credit that can be applied to your Amazon.ca account.
Once the cardholder accrues $20 worth of Amazon rewards, a $20 gift card will automatically be deposited to their Amazon.ca account within two billing cycles in their credit card account. From there, cardholders are easily able to apply the gift card towards their next Amazon purchase.
Amazon.ca Rewards Mastercard Benefits
This card offers purchase assurance and an extended warranty benefit to all cardholders.
The Purchase Assurance benefit covers your new purchases for 120 days against damage or theft up to $500 per claim and a maximum of $50,000 per account.
On the other hand, the Extended Warranty benefit Doubles the original manufacturer’s warranty on eligible items you purchase with your card, for up to one additional year.
The card does also cover foreign transaction fees, but not in the traditional sense. Instead of removing the 2.5% foreign transaction fee like the Scotiabank Gold American Express card, this card has an earn rate of 2.5% on all foreign currency transactions for those cardholders who are Amazon prime members. That means you will not truly earn any rewards on foreign transactions, since the rewards rate and the foreign currency transaction fee net out at zero.
The earn rate on foreign currency purchases is reduced to 1% for those who are not Prime members, meaning you are still paying a 1.5% fee on all foreign currency transactions. In short, there are better cards available for Canadians who are looking to avoid foreign currency exchange fees.
Who is the Amazon.ca Rewards Mastercard Best For?
This card is best for frequent Amazon.ca shoppers who want to earn rewards on their purchases and don’t want to pay an annual fee. The 2.5% cash back earning rate on a no-fee credit card is very strong and needless to say, it is becoming very easy to make the majority of your purchases on Amazon.
If you’re not a Prime member, you may want to consider a different rewards card, as you’ll only earn 1.5% cash back on your Amazon.ca purchases with this card. However, most people these days are Prime members thanks to the slew of benefits such as Prime Video, etc.
Alternatives to the Amazon.ca Rewards Mastercard
While the Amazon Rewards Mastercard offers the best cash back rates for earning at Amazon, it is far from the best card on the market when we look at what it offers holistically.
HSBC World Elite Mastercard
The HSBC World Elite Mastercard earns HSBC Rewards points and offers cardholders benefits including an annual $100 travel enhancement credit and free Boingo Wifi membership.
Check out our HSBC World Elite review for more details about this card.
80,000 HSBC Rewards
If the no foreign exchange fees had you interested in the MBNA Amazon Rewards Mastercard, the HSBC World Elite Mastercard might be a better fit for your wallet. While the Amazon Rewards Mastercard has an increased reward rate for foreign currency transactions, the HSBC card erases the 2.5% fee completely and then earns rewards on top making it the far superior card.
The card also offers a strong welcome bonus and $100 travel enhancement credit which sweetens the deal even further. New applicants for the HSBC World Elite card can also earn additional cash back through the Frugal Flyer Rebates program.
Rogers Bank World Elite Mastercard
If you are looking for a consistent cash back credit card that rewards actual cash and not gift cards, the Rogers Bank World Elite Mastercard might be right up your alley. This card has no annual fee and offers a universal 1.5% cash back on all purchases which means that you are rewarded at the same rate regardless of where you are making a purchase.
It also provides cardholders with 3% cash back on all purchases made in US dollars, meaning that you will earn 0.5% cash back after the 2.5% foreign exchange fee. This is a slightly better rate of return on these purchases than the MBNA Amazon.ca Rewards Mastercard.
The MBNA Amazon.ca Rewards Mastercard is a great option for those who frequently shop with Amazon. It offers cardholders rewards on their purchases, as well as extended warranty and purchase assurance benefits. If you’re not an Amazon Prime member, you may want to consider a different rewards card, as you’ll only earn a reduced rewards rate on your Amazon purchases and may find greater value in a different credit card.
As always, take advantage of the Frugal Flyer credit card comparison tool to ensure you are choosing the right card for your wallet.