Rewards Canada is known for their reviews of Travel Rewards Credit Cards but now we take the foray into reviewing a non-Travel Rewards card with our first ever review of Cash Back Credit Card. Cash Back has been making big inroads in the reward credit card scene and taking a bite out of the strangle hold that Travel Rewards has had in the market. While Travel Rewards are still the most common type of credit card and most held by Canadians, Cash Back is growing by leaps and bounds.
The SimplyCash™ Preferred Card from American Express® hit the market on September 2nd, 2014 and marks American Express' first foray in the Cash Back market with a credit card product rather than a charge card product. Prior to the launch of the SimplyCash and SimplyCash Preferred cards, American Express briefly brought back their Gold Cash Rewards card but it didn't fair too well so it was once again pulled from accepting new applications but those who have that card get to keep it. American Express wanted to make sure that their new Cash Back cards were not only strong in their rewards and benefits offering but easier to use than many of the other cash back cards out there. They did this by offering a higher across the board cash back rate than many competing cards and doing away with the confusing tier bonuses and category bonuses seen on other cards.
Sign up Features
Unlike Travel Rewards Cards, most Cash Back cards do not have a a sign up or welcome bonus but some do have incentives for using the card right when you get. The SimplyCash™ Preferred Card from American Express® comes with this type of incentive program which awards 5% cash back on all purchases in the first 6 months up to a maximum of $400 cash back. Its no-free brethren, the SimplyCash Card from American Express offers 5% cash back on all Gas, Grocery and Restaurant purchases in the first 6 months up to a maximum of $250 cash back.
The SimplyCash™ Preferred Card from American Express® comes with a $79 Annual fee which matches some other cards with similar rewards and benefits. At the $79 level, this card is about the middle of the pack for all the Cash Back cards that do have an annual fee. The interest rate
on the card is 19.99% which is the same as seen on the majority of Cash Back cards.
After you exhaust the first 6 month incentive bonus, The SimplyCash™ Preferred Card from American Express® has nice simple earning structure: 1.5% cash back on all eligible purchases up to $100,000 in spend per year. After $100,000 that drops down to 1.25%. The No-Fee version earns a straight 1.25% on all purchases after the first 6 month incentive bonus.
Related: Cash Back Credit Card Comparison Chart