Desjardins Cash Back World Elite Mastercard review

How the Desjardins World Elite earns cash back

The Desjardins Cash Back World Elite Mastercard pays 4% on groceries, up to $10,000 of grocery purchases a year, and 3% on restaurants, up to $6,000 a year. Purchases above those limits earn 1%. Entertainment and alternative transportation also earn 3%, and all other purchases earn 1%.

Here’s an example. A household spending $700 a month on groceries, $300 at restaurants, $100 on entertainment and $1,000 on everything else would earn $28 on groceries, $12 on dining and entertainment, and $10 on the rest. That’s $50 a month, or $600 a year, which leaves $500 after the $100 annual fee.

Making the most of the caps

The grocery cap of $10,000 a year works out to about $833 a month, so it limits the 4% rate to $400 of grocery cash back a year. The restaurant cap of $6,000 a year is $500 a month and limits 3% restaurant cash back to $180 a year.

The example household above stays under both limits. If yours spends more, the extra still earns 1%, but it may be worth putting the overflow on a second card with a higher rate in that category.

Perks beyond cash back

The card includes Mastercard Travel Pass (DragonPass) membership, which opens access to more than 1,300 airport lounges at US$32 per visit, so lounge access is available but not free. You also get a complimentary Flexiroam global eSIM data plan of 3 x 1GB, useful for a short trip abroad.

Car rental discounts are included at Hertz, of up to 25%, as well as at Thrifty and Dollar.

Fees, interest and the fine print

The annual fee is $100, or about $8.33 a month. Purchases in a foreign currency carry a 2.5% foreign transaction fee, so $1,000 of spending abroad adds about $25.

Purchases are charged 20.9% interest and cash advances 21.9%. Pay your full statement balance by the due date to avoid purchase interest, which would quickly erase the cash back you earn.

Insurance coverage

The insurance package is strong on purchases, devices and rental cars, but the travel medical coverage is short. It covers trips of up to 3 days for cardholders aged 75 and under, so plan on separate travel medical insurance for longer trips. Read the certificate for full terms.

• Travel emergency medical up to $5 million (trips up to 3 days, age 75 and under)
• Trip cancellation ($500 before departure, $1,000 after)
• Baggage insurance up to $500 per person
• Auto rental collision and loss damage (rentals up to 48 days)
• Mobile device insurance up to $1,500
• Purchase protection (120 days) and extended warranty (2 extra years)

Who it suits, and who should look elsewhere

The card suits households that spend heavily on groceries and eating out, want straightforward cash back, and value device and purchase coverage. The $100 fee is easy to recover at the spending levels in the example above.

It’s a weaker choice if you travel for longer than a few days and want travel medical coverage included, or if your income falls below the listed requirement.

How it compares

The Scotia Momentum Visa Infinite + Card costs $120 a year and pays 4% on groceries and recurring bill payments, with a combined annual cap of $25,000, plus 2% on gas, transit, rideshare and food delivery. Its larger combined cap and its own travel insurance package make it worth comparing for big grocery spenders.

If you’d rather not pay a fee, the Desjardins Cash Back Mastercard has no annual fee and earns 2% on restaurants. You give up the 4% grocery rate, but there’s no fee to recover each year.

Before you apply

The recommended credit score is 720 or higher, and the card’s listing notes a personal income requirement of $80,000. Desjardins makes the final decision based on your full credit profile. Confirm current rates, caps and insurance terms on the Desjardins website before you apply.