Rogers Red World Elite Mastercard review

How the Rogers Red World Elite earns

There are two rates. US-dollar purchases earn 3% cash back, and everything else earns 1.5%. With no annual fee, that flat 1.5% applies to groceries, gas, bills and any other spending in Canadian dollars.

For example, someone who spends $2,000 a month in Canadian dollars and $3,000 a year in US dollars earns $360 + $90 = $450 a year, with no fee to subtract.

The US-dollar advantage

The card still charges a 2.5% foreign transaction fee, but on US-dollar purchases the 3% cash back more than offsets it. On $1,000 of US-dollar spending, you pay about $25 in fees and earn about $30 back, leaving you roughly $5 ahead. In the example above, $3,000 of US-dollar spending earns $90 against about $75 in fees, so you finish about $15 ahead on those purchases.

That margin applies only to US dollars. Purchases in other foreign currencies don’t qualify for the 3% rate, so $1,000 spent in euros would cost about $25 in fees and earn about $15 back at 1.5%, a net cost of about $10.

The welcome offer and redemptions

New cardholders can earn up to $60 cash back. Our data doesn’t list the conditions, so check Rogers Bank’s current offer terms for any spending requirement. It’s a small offer, but on a card with no annual fee there’s no fee for it to offset.

Redeeming cash back is easiest if you have a Rogers or Shaw account. If you aren’t a customer, check how redemptions work for you before you apply, since convenience matters on a card you might use every day.

Fees, interest and the fine print

There’s no annual fee, so every dollar of cash back is a net gain as long as you avoid interest. Purchase interest is 20.99% and cash advances are charged 22.99%.

Paying the full balance each month matters more than usual here. On US purchases, your margin over the FX fee is only 0.5%, and a single month of interest at 20.99% would wipe that out several times over.

Insurance coverage

For a no-fee card, the coverage includes travel emergency medical and rental car protection, along with purchase coverage. Travel medical is especially handy for short trips across the border, but read the certificate for trip length limits and exclusions before you travel.

• Travel emergency medical
• Rental car collision and loss damage
• Extended warranty and purchase protection

Who it suits, and who should look elsewhere

The card suits people who regularly shop online from US retailers, travel to the US or pay for US-dollar subscriptions, and who earn at least $80,000. It also works as a no-fee everyday card at 1.5%, and Mastercard Travel Pass lounge access is a bonus for travellers.

If you’re not a Rogers or Shaw customer, check whether redemptions will be convenient. And if you travel mostly outside the US, a card with no foreign transaction fee will save you more.

How it compares

The Rogers Red Mastercard is the entry-level version, also with no annual fee, earning up to 2% on US-dollar purchases. The World Elite version earns more on US-dollar spending.

The Wealthsimple Credit Card has no annual fee and no foreign transaction fee, and earns 1% cash back on everything. It’s the simpler option for spending in currencies other than US dollars.

Before you apply

The card is aimed at applicants with a credit score of 720 or higher, and it has an $80,000 income requirement. Rogers Bank makes the final decision. Confirm the welcome offer, redemption options and terms on the Rogers Bank website before you apply.