You're a dedicated Loblaw family of grocery stores shopper. Whether it's Loblaws, Zehrs, No Frills, Superstore or one of their other numerous brands, you're there. It's your go to grocery store. And like many Loblaws shoppers you have their PC World Elite Mastercard, You have it just because you shop there and their credit card must be the best option for their own stores right? Well, unfortunately in many cases it is not, especially so if you are a mid to high range spender on groceries.
2024 update:
- New values based on 2024 average spend of $16,297.20
- ️Desjardins Cash Back World Elite Mastercard drops from 3rd to 8th due to its new $10,000 spending cap on groceries
- Added the new PC Insiders World Elite Mastercard which ties for 3rd in the high spend and 7th in the low spend
If we look at the Canadian market as a whole the most rewarding cards for grocery purchases are the American Express Cobalt Card and the Scotiabank Gold American Express Card. However that becomes an issue with the Loblaw family of grocery stores as they don't accept American Express Cards.
Naturally, with their locations not accepting American Express you would think that their own PC Financial cards would be the best to use at their stores but that's only true for some. The same things happens with Costco. Their own CIBC Costco card is not the best to use at Costco warehouses!
Now you may be asking, what are the best cards to use for Loblaw purchases if their own card isn't the best and they don't accept American Express? That's a great question and you'll find out with this article. Read on to find out!
Top 5 Mastercard Cards to use at Costco
Check it out here
Comparing Apples to Apples
With the PC Financial Mastercards being so popular and prevalent for purchases at Loblaw stores we are only going to look at the cash back redemption values of cards since that is how the PC Financial cards operate. That being said, the PC Financial card's 'cash back' rewards are limited to redeeming only at Loblaw family of stores. Whereas the other cards you'll find listed in this comparison have points or cash back that can be redeemed for any purchase, so right away before even looking at the actual value you receive, these other cards are already more flexible than the PC Financial cards!
Since we are only looking at comparable cash back options this means we are excluding cards such as Aeroplan and other co-brand card options. It should be known that those co-brand cards have the potential to provide even more value than any of the cards on this list thanks to outsized redemption options such as redeeming for business or first class flights.
10 credit cards compared for a family of four
To begin our comparison of the best cards for Loblaw purchases lets look at purchasing groceries for a family of four.
We are utilizing the average cost of groceries for a Canadian family of four which is predicted to be $16,297,20 in 2024 (Source)
With that spending amount in mind here's the cash back you could expect to earn at Loblaw stores if you only shopped with them over the course of a year:
1. MBNA Rewards World Elite® Mastercard®: $559.10 to $626.41 cash back earned
- This card earns 5 points per dollar spent at Loblaw family of grocery stores.
- It also has a 10% birthday bonus which can boost your earn rate to 5.5 points.
- You can redeem the points for cash back at a rate of 120 points to $1 providing an effective cash back rate of 4.167% to 4.58%
- There is a $50,000 annual cap on the 5 points per dollar category for groceries.
- Click here to learn more about and/or to apply for this card
Calculation:
4.167% to 4.58% cash back rate = $679.10 to $746.41 | Subtract $120 fee = $559.10 to $626.41 cash back
2. Meridian Visa Infinite* Cash Back: $552.88 cash back earned
- This card earns 4 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 1 cent which provides an effective cash back rate of 4%
- There is a $25,000 annual cap on earning 4 points per dollar on groceries that is also shared with gas, pharmacy & utilities
- This card is only available to residents of Ontario
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $651.88 | Subtract $99 fee = $552.88 cash back
3. CIBC Dividend® Visa Infinite* Card: $531.88 cash back earned
- This card earns 4% cash back at Loblaw family of grocery stores
- There is a $20,000 annual cap on 4% earning for grocery and gas/EV Charging combined (or $80,000 in total spend on the card)
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $651.88 | Subtract $120 fee = $531.88 cash back
3. Collabria (Various credit unions) Cash Back World Elite Mastercard®: $531.88 cash back earned
- This card earns 4 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 1 cent which provides an effective cash back rate of 4%
- There is a $20,000 annual cap on earning 4 points per dollar on groceries that is also shared with sustainable transit
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $651.88 | Subtract $120 fee = $531.88 cash back
3. PC Insiders™ World Elite Mastercard®: $531.88 cash back earned
- This card earns 40 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 0.1 cent which provides an effective cash back rate of 4%
- No cap on spending
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $651.88 | Subtract $120 fee = $531.88 cash back
3. Scotia Momentum® Visa* Infinite card: $531.88 cash back earned
- This card earns 4% cash back at Loblaw family of grocery stores
- There is a $25,000 annual cap on 4% earning on groceries that is also shared with recurring bill payments
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $651.88 | Subtract $120 fee = $531.88 cash back
7. PC World Elite Mastercard®: $488.92 cash back earned
- This card earns 30 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 0.1 cent which provides an effective cash back rate of 3%
- No cap on spending
- Click here to learn more about and/or to apply for this card
Calculation:
3% cash back rate = $488.92 | Subtract $0 fee = $488.92 cash back
8. CIBC Dividend Platinum® Visa* Card: $389.92 cash back earned
- This card earns 3% cash back at Loblaw family of grocery stores
- There is a $20,000 annual cap on 3% earning for grocery and gas/EV Charging combined (or $80,000 in total spend on the card)
- Click here to learn more about and/or to apply for this card
Calculation:
3% cash back rate = $488.92 | Subtract $99 fee = $389.92 cash back
9. Desjardins Cash Back World Elite® Mastercard®: $369.27 cash back earned
10. TD Cash Back Visa Infinite* Card: $342.97 cash back earned
- This card earns 3% cash back at Loblaw family of grocery stores
- There is a $15,000 annual cap on 3% earning for grocery purchases
- Click here to learn more about and/or to apply for this card
Calculation:
3% cash back rate for $15,000, 1% for $1,297.20 = $462.97 | Subtract $120 fee = $342.97 cash back
As you can see in this first scenario the PC World Elite Mastercard doesn't even crack the top 5 cards despite having no annual fee.
10 credit cards compared for low spend
What if you don't spend that much on groceries? Let's look at someone who lives alone or at the most live as a couple who can get by on $500 of groceries per month. What are the best cards in this case?
1. BMO CashBack® MasterCard®*: $180.00 cash back earned
1. BMO CashBack® World Elite®* MasterCard®*: $180.00 cash back earned
1. PC World Elite Mastercard®: $180.00 cash back earned
- This card earns 30 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 0.1 cent which provides an effective cash back rate of 3%
- No cap on spending
- Click here to learn more about and/or to apply for this card
Calculation:
3% cash back rate = $180.00 | Subtract $0 fee = $180.00 cash back
4. MBNA Rewards World Elite® Mastercard®: $130.02 to $154.80 cash back earned
- This card earns 5 points per dollar spent at Loblaw family of grocery stores.
- It also has a 10% birthday bonus which can boost your earn rate to 5.5 points.
- You can redeem the points for cash back at a rate of 120 points to $1 providing an effective cash back rate of 4.167% to 4.58%
- There is a $50,000 annual cap on the 5 points per dollar category for groceries.
- Click here to learn more about and/or to apply for this card
Calculation:
4.167% to 4.58% cash back rate = $250.02 to $274.80 | Subtract $120 fee = $130.02 to $154.80 cash back
5. Meridian Visa Infinite* Cash Back: $141.00 cash back earned
- This card earns 4 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 1 cent which provides an effective cash back rate of 4%
- There is a $25,000 annual cap on earning 4 points per dollar on groceries that is also shared with gas, pharmacy & utilities
- This card is only available to residents of Ontario
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $240 | Subtract $99 fee = $141.00 cash back
6. Desjardins Cash Back World Elite® Mastercard®: $140.00 cash back earned
7. CIBC Dividend® Visa Infinite* Card: $120.00 cash back earned
- This card earns 4% cash back at Loblaw family of grocery stores
- There is a $20,000 annual cap on 4% earning for grocery and gas/EV Charging combined (or $80,000 in total spend on the card)
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $240 | Subtract $120 fee = $120.00 cash back
7. Collabria (Various credit unions) Cash Back World Elite Mastercard®: $120.00 cash back earned
- This card earns 4 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 1 cent which provides an effective cash back rate of 4%
- There is a $20,000 annual cap on earning 4 points per dollar on groceries that is also shared with sustainable transit
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $240 | Subtract $120 fee = $120.00 cash back
7. PC Insiders™ World Elite Mastercard®: $120.00 cash back earned
- This card earns 40 points per dollar spent at Loblaw family of grocery stores.
- Each point is worth 0.1 cent which provides an effective cash back rate of 4%
- No cap on spending
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $240 | Subtract $120 fee = $120.00 cash back
7. Scotia Momentum® Visa* Infinite card: $120.00 cash back earned
- This card earns 4% cash back at Loblaw family of grocery stores
- There is a $25,000 annual cap on 4% earning on groceries that is also shared with recurring bill payments
- Click here to learn more about and/or to apply for this card
Calculation:
4% cash back rate = $240 | Subtract $120 fee = $120.00 cash back
7. Multiple Cards: $120.00 cash back earned
- There are multiple no annual fee cards that award 2% cash back on groceries:
Calculation:
2% cash back rate = $120.00 | Subtract $0 fee = $120 cash back
In this second scenario for lower spenders the PC World Elite Mastercard fares better as it ties the BMO cards for the top spot.
What about cards that have annual fee waivers with select bank accounts?
Select cards from the above list above will have their annual fees waived each and every year if you have a bank account that provides such a waiver. For example, if you have a CIBC Smart Plus chequing account you do not have to pay the annual fee on the CIBC Dividend cash back cards. Plus if you meet the minimum balance requirement of $6,000 monthly you don't pay any fees for the bank account and still get the credit card waiver. So in this regard the CIBC Dividend Visa Infinite would earn the full $648.92 in cash back for groceries for a family of four which puts it ahead of the MBNA card. While the BMO CashBack World Elite Mastercard would dominate the low spending scenario with $300 in cash back. There are similar bank account credit card fee waiver offers for Scotia, TD, and so forth.
You'll still earn PC Optimum Points at Loblaw stores if you use a non-PC credit card
Remember you will still earn PC Optimum points at all the Loblaw stores simply by swiping/scanning/showing your PC Optimum loyalty card at the till. You do not have to utilize a PC Mastercard. Just remember to load all your personalized offers before you shop at one of the Loblaw stores.
Wrapping it up
I do want to heed a word of caution to the readers of this feature - one has to take into account many more factors than what is shown above and with everyone's spending habits being different, the above comparison is simply a snapshot of two grocery spending scenarios. When deciding on a card you also need to look at the purchases you make outside of groceries, the benefits and insurance you would like with your card and more.
However, even if you are to look at various spending scenarios I think what you can take away from this feature is that for many Canadians the PC World Elite Mastercard will not be the most rewarding option at Loblaw family of grocery stores. That is unless you don't spend very much on groceries.
And when you start taking into consideration spending outside of groceries where many of the other cards have accelerated earn rates, the spread of cash back earned between those cards and the PC World Elite Mastercard widens even more - and not in favour of the PC card of course.
Title Image via Loblaw Companies Limited
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