Canadian Tire MasterCard Rewards Card – A Strange Duck

by Mike Holman

Michael L has had a Canadian Tire Mastercard for some time.  He was under the impression that it paid out one percent in rewards for non-Canadian Tire purchases.  After doing some analysis on his Canadian Tire credit card statement, he concludes that his actual rewards are only about 0.86%.

Read Michael’s analysis of the CT Mastercard rewards program.

With no help from Canadian Tire, he figures out that the “1% reward” is only calculated after following a rounding down formula as follows:

  • Less than $10 – Purchase amount rounded down to nearest dollar
  • $10 to $100 – Amounts rounded down to nearest $10.
  • Greater than $100 – Amounts rounded down to nearest $50.

 Since there is absolutely zero information about the card or the rewards on the website, I called Canadian Tire financial services this week and the rep confirmed exactly what Michael had figured out.

With this rounding method, you can end up with odd situations like the following:

  • Someone making a single $135 purchase will get 0.74% in rewards. 
  • Someone making three $45 purchases (totalling $135) will get 0.89% in rewards.
  • If you make 21 purchases all for $6.43 each (totalling $135) you will receive 0.93% in rewards.

I can understand that companies will favour in-store purchases with extra rewards and it’s very common for rewards cards to pay higher amounts for more use, but I can’t understand the logic behind this particular calculation.

It’s difficult enough to figure out the various rewards cards and determine which is the best for you without this kind of nonsense as well.

This is one rewards credit card I won’t be considering.

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