RBC Cash Back Preferred World Elite Mastercard review

How the Cash Back Preferred earns

Every purchase earns 1.5% cash back on the first $25,000 you spend each year, including at online and wholesale retailers, and 1% after that. There’s no overall limit on how much cash back you can earn. You reach the $25,000 threshold at about $2,083 a month, so many households will earn 1.5% on everything they spend all year.

Because every purchase earns the same rate, large one-off costs such as a new appliance or a home repair earn just as much as groceries or gas, which is where a flat-rate card has an edge over cards with low base rates.

For example, spending $2,000 a month ($24,000 a year) earns $360. At $3,000 a month ($36,000 a year), you’d earn $375 on the first $25,000 and $110 on the remaining $11,000, for $485.

After the $99 fee, those examples leave you $261 and $386 ahead. The higher your spending climbs past $25,000, the closer your average rate moves toward 1%.

World Elite perks

The card includes Mastercard Travel Pass (DragonPass) access to more than 1,300 airport lounges, 12 months of complimentary DoorDash DashPass, and Mastercard Travel Rewards offers when you spend abroad. Additional cards are free.

Check the terms for any per-visit lounge charges before you travel, and note that the DashPass benefit is for 12 months, so it won’t continue to add value after the first year.

Fees, interest and the fine print

The annual fee is $99. Purchases in a foreign currency carry a 2.5% fee, so $1,000 spent abroad costs about $25 while earning $15 back at 1.5%, a net cost of about $10.

Purchase interest is 20.99% and cash advances are charged 22.99%. A single month of interest at 20.99% is about 1.75% of the balance, more than the 1.5% you earned, so paying the full balance each month is essential.

Insurance coverage

Coverage focuses on purchases and rental cars. There’s no travel medical or trip cancellation insurance, so you’ll need separate coverage for trips. Check the certificate for limits and exclusions.

• Purchase security and extended warranty (120 days; triples the warranty, up to 2 years)
• Auto rental collision and loss damage waiver

Who it suits, and who should look elsewhere

The card suits people who want simple cash back without tracking categories, spend a moderate amount each year, and would use the lounge access and DashPass. It works well for someone who doesn’t want to think about which card to use where.

If you spend well over $25,000 a year, the drop to 1% weakens it. If groceries and gas are your biggest costs, a category card can pay more, and frequent travellers will want stronger insurance than this card offers.

How it compares

The Rogers Red World Elite Mastercard has no annual fee and earns 1.5% on most purchases and 3% on US-dollar purchases. If you meet its requirements, it matches this card’s base rate without the $99 fee: at $2,000 a month, it would earn about the same $360 a year with nothing to subtract.

The SimplyCash Preferred Card from American Express costs $119.88 a year and earns 2% on everything plus 4% on gas and groceries, but it runs on American Express, which isn’t accepted everywhere.

Before you apply

The recommended credit score is 720 or higher, but RBC makes the final decision based on your full credit profile. With no welcome offer, the card has to cover its $99 fee through regular earning from day one, so check your expected spending first and confirm the current terms on RBC’s website before you apply.