HSBC Cash Rewards Mastercard® Review

Overall Ranking

4.5/5

Overview

Annual Fee

5/5

Cash Back Rewards

4/5

Welcome Bonus

4/5

Ease of Redemption

5/5

With no annual fee, strong cash back bonus categories, and easy redemptions the HSBC Cash Rewards Mastercard® is a great card. Earn 1.5% back on eligible online purchases* (up to $6,000 a year); 1% back on grocery, gas, and drugstore purchases*; and 0.5% back almost everywhere else (conditions apply)*. All with no annual fee.

Karen Stevens

About the HSBC Cash Rewards Mastercard®

While many Canadians are familiar with the big five banks in Canada, HSBC quietly flies under the radar. It would be a huge mistake to underestimate HSBC, as its lineup of credit cards is impressive. With the introduction of the HSBC Cash Rewards Mastercard®, HSBC finally has a no-fee cash back credit card.

The addition of a cash back card with no annual fee is a smart move on HSBC’s part since many Canadians don’t like the idea of paying fees to have access to a credit card. Plus, there’s no high personal or household income required to qualify for this card, so it’s attractive to many different people.

Card features and benefits

Since this is a cash back credit card, the features are pretty straightforward. One clear advantage is the welcome bonus.

Earn an additional 12.5%* cash back on all purchases for the first 180 days (up to $1,000 in total purchases). If you’re a resident of Quebec, you’ll earn $125 cash back* if you keep your account open and active for 180 days. Must apply by May 31, 2023. Conditions apply.

Like many other cash back credit cards, the HSBC Cash Rewards Mastercard® has an increased earn rate on select categories and a base earn rate on everything else.

Your earn rate is as follows: Earn 1.5% back on eligible online purchases* (up to $6,000 a year); 1% back on grocery, gas, and drugstore purchases*; and 0.5% back almost everywhere else (conditions apply)*.

The HSBC Cash Rewards Mastercard® is the first cash back card to offer an enhanced earn rate on all online purchases. However, according to the terms and conditions, your online purchase of goods or services with your HSBC card must fall under the “online purchases” classification in the Mastercard Network.

What’s great about HSBC’s cash back rewards is that you only need to reach $25 in cash back to redeem. Once you’ve hit that minimum threshold, you can redeem for cash back as a statement credit online at rewards.hsbc.ca.

Besides the cash back regards, the HSBC Cash Rewards Mastercard® gives you the following benefits:

• Mobile Device Insurance: Coverage of up to $1,000 in the event your eligible mobile device is lost, stolen, accidentally damaged, or experiences mechanical failure.
• Extended Warranty Insurance: Automatically doubles the original manufacturer’s warranty for up to one additional year when you use your card to purchase eligible items.
• Purchase Assurance: 90-day coverage in the event of loss, damage or theft for eligible items purchased using your card.

Pros and cons of the HSBC Cash Rewards Mastercard®

With so many no-fee cash back credit cards on the market, it’s hard for a new one to stand out from the crowd. That said, the HSBC Cash Rewards Mastercard® is differentiating itself from the competition with its increased earn rate for online purchases. This is advantageous because online shopping has exploded over the last few years and continues to grow.

How the HSBC Cash Rewards Mastercard® compares

One of the most popular no-fee cash back credit cards is the Tangerine Money-Back Credit Card, so it’s the perfect choice to compare to the HSBC Cash Rewards Mastercard®.

Tangerine Money-Back Credit Card

Apply for a Tangerine Money-Back Credit Card by May 2nd, 2023 and earn an extra 10% back (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.*

Apply Now

Although the welcome bonuses are similar in the sense that you can earn cash back, keep in mind that these offers can change at any time.

As far as the earn rate is concerned, which card is better depends on where you spend the most money. With the HSBC Cash Rewards Mastercard®, you get 1.5% cash back on up to $6,000 of your online purchases*, and 1% cash back on gas, grocery and drugstore purchases*. The Tangerine Money-Back Credit Card allows you to boost your earn rate in select categories. Earn 2% Money-Back Rewards on your purchases in up to 3 categories of your choice, and 0.50% Money-Back Rewards on all other purchases.

When it comes to extra perks, the HSBC Cash Rewards Mastercard® comes out ahead since it includes mobile device insurance, whereas Tangerine Money-Back Credit Card does not.

Here’s a side-by-side comparison of the two cards.

*Terms and conditions apply

Verdict: Is the HSBC Cash Rewards Mastercard® worth getting?

There’s no denying that a no-fee cash back credit card that gives you an increased earn rate on online purchases will be appealing to some people. That said, since Mastercard doesn’t make its list of online merchants publicly available, it may take some trial and error to figure out which retailers give you the enhanced earn rate.

The good thing is that you still get 1% cash back on gas, grocery, and drugstore purchases*, which are typically popular categories for many consumers. Take a look at your regular spending, if it lines up with the increased earn rate offered by the HSBC Cash Rewards Mastercard®, then this card could be a good choice.

This offer is only available to residents of Canada other than the province of Quebec (Quebec residents eligible for separate offer).

*Terms and Conditions apply

®/TM Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Used pursuant to license.