How Credit Card Points Work in Canada: Complete Beginner's Guide
Credit card points in Canada can be confusing — different programs, transfer partners, and redemption options. This guide explains everything from scratch.
Canadian credit card points can seem complicated — there are dozens of programs, each with their own earn rates, expiry rules, and transfer partners. But the basics are simple once you understand the structure. This guide explains how points work from first principles, so you can make informed decisions about which cards and programs to use.
The Three Types of Points Programs in Canada
(1) Bank-issued flexible points (Amex MR, RBC Avion, BMO Rewards, TD Rewards) — earned on bank credit cards, redeemable through the bank's portal or transferable to airline/hotel partners. Most flexible. (2) Coalition/co-branded programs (Aeroplan, Scene+, PC Optimum) — earned at partner stores and on co-branded credit cards, redeemable within the program. (3) Direct airline/hotel programs (WestJet Dollars, Marriott Bonvoy) — earned on airline/hotel co-branded cards, most valuable within that ecosystem.
What Is a Point Worth?
A credit card point is worth whatever the program assigns it. General guideline: Amex MR = 1.5–2 cpp when transferred to airlines. Aeroplan points = 1.5–3 cpp for business class, 1–1.5 for economy. Scene+ = approximately 1 cpp. PC Optimum = 0.1 cpp (10,000 points = $10). WestJet dollars = 1 CAD. BMO/RBC Rewards = 0.67–1 cpp. Always calculate the value before redeeming.
The golden rule
Never redeem points for gift cards or merchandise — you almost always get less than 0.5 cpp. The best value is almost always flights, especially business class on partner airlines.
How Transfer Partners Work
Many bank programs let you "transfer" points to airline loyalty programs at a set ratio. Amex MR → Aeroplan at 1:1. RBC Avion → British Airways Avios at 1:1. BMO Rewards → Air Miles at various rates. Transfers are typically one-way and instant (Amex to Aeroplan, for example). Once transferred, the points live in your airline loyalty account and can be used for award flights.
How to Start Earning Points
The simplest starting point: get one card that earns broadly — like the Amex Cobalt for dining and groceries — and one that earns on everything else. Use the Cobalt at restaurants and grocery stores (5x points), and a flat-rate card everywhere else. After 12 months, you'll likely have 50,000–80,000 points — enough for a round-trip domestic flight or a meaningful portion of a transatlantic redemption.
Cards Mentioned in This Article
American Express Cobalt
American Express · Amex
Earn up to 15,000 Membership Rewards
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