The Growing Case for Cashback Cards

The truth is, a fair bit of effort is required to actually redeem your miles and points for saver award space, especially on an ideal date that works for you. Nowadays, when a friend asks which credit card to sign up for, I seriously consider pointing them to a cashback card. Usually, I’ll recommend a fixed-value currency-earning credit card, which works much like cashback.

The State of Award Space

Want to leave on Friday night and come back Sunday evening? It’s going to be tough, especially if you want to fly business or first class with only one layover.

When someone asks me what is the best way to fly to Japan in business class — a common question — I tell them to book Japan Airlines with Finnair Avios 361 days out. Check daily at regular intervals to figure out the exact minute seats will drop. At that point, only two business class seats are released, so hopefully they’re travelling with only their partner. I tell them to create an account and practice the check-out flow a few times. If they don’t have enough points, they need to start accumulating immediately, ideally two years in advance, to book one year out.

Japan Airlines B787-9 business class

Does it sound as crazy to you as it does to me? The above even assumes those seats are still available because there’s a decent chance it’s already booked up 362 days out through JAL Mileage Bank (the only way to earn in Canada is transferring Marriott Bonvoy at a 3:1 ratio). Frankly, I rarely book awards this way, but I also have the advantage of being able to travel on a Tuesday and mostly fly solo. I’ll also book tickets days before departure, which isn’t everyone’s cup of tea.

When I consider how realistic these redemptions actually are, cashback and fixed-value points start to make a lot of sense.

Why I Often Recommend Fixed-Value Cards

For someone new to miles and points, it can be difficult to convey the value of signing up for an Amex, paying a $799 annual fee, meeting a five-figure spending requirement, and then doing the award space dance outlined above to fly in business class.

The TD First Class Travel Visa Infinite, on the other hand? First year free, spend $7,500 in six months and earn $825 of travel money to spend on anything available on Expedia. You can also book outside Expedia and still have a staggering $725 in free travel money. If you and your partner both sign up for one, that’s immediately $1,500+ in travel money with $0 paid in annual fees and an easy spending requirement.

No, it doesn’t have the allure of a lie-flat seat, but it’s a low-effort, high-reward way for someone to dip their toes into travel rewards. The signup offer is so good right now that I’ve signed up for a card and also signed up my entire family.

The Scotiabank Momentum Visa Infinite is my other go-to card for a friend who seldom travels or goes on one big trip a year. Having no flexibility on dates is, frankly, incompatible with award travel. So it’s much better to earn 4% cashback on groceries, recurring bills, and subscriptions. You’ll also earn 2% cashback on food delivery, gas, and transit and 1% on everything else.

Heck, you might as well just put the Scotiabank Momentum Visa Infinite on Chexy to pay for as many things as possible. You’ll come out ahead with 4% cashback and a 1.75% fee (depending on your Chexy referrals). Even as someone who primarily collects rewards points, the Scotia Momentum has a permanent spot in my wallet.

Takeaway

There’s a strong case for earning fixed-value points or cashback. In today’s award landscape, expecting to book saver premium cabin seats on a Friday night 3–6 months out (when most people are planning a vacation) is unrealistic for most travellers, regardless of their points expertise.

Fixed-value points and cashback offer a much simpler path: the value is predictable, redemptions are straightforward, and you’re not dependent on scarce saver award space. For many travellers, especially those with limited flexibility, these deliver reliable value with far less effort.