Best American Express Cards in Canada

What to know about American Express cards

By Barry Choi

American Express is an international credit card issuer with a presence in Canada. Not only does American Express work with financial institutions to provide co-branded credit cards, but it also issues cards directly to consumers. This is a different strategy than the one used by Visa and Mastercard, which rely on banks to get their cards into the hands of consumers and don’t provide them directly.

American Express, or Amex, offers a wide range of cards aimed at consumers with different needs and preferences. The issuer has multiple co-branded cards with some of the best loyalty programs in Canada to help you earn travel rewards. Amex’s rewards program, American Express Membership Rewards, is highly regarded and has many redemption options. 

However, one potential drawback to Amex credit cards is that they aren’t accepted quite as widely as Mastercard and Visa credit cards. Some retailers in Canada may not accept an Amex credit card, so if you shop at those stores, you’ll need to plan ahead and have a different payment method.

How to compare American Express cards 

Amex offers more than 20 cards in Canada. While that number may seem a bit overwhelming, it’s easy to pick the best American Express card for you once you start considering the features that are most important.

Features of Amex cards 

Every American Express credit card is different, so you’ll need to compare the features offered by each card when you’re deciding which is the best Amex for you. Ideally, focus on the two or three features that are most important to you to help you narrow down your choices.

Annual fee

Amex has no-annual-fee cards, as well as cards with annual fees up to $699. Some people may find it ludicrous to pay that much for a credit card, but it really comes down to the benefits included. If you’re getting more value out of those benefits than what you pay in annual fees, then you’re coming out ahead. However, make sure to do the math on the benefits you’ll use so you know if paying the annual fee will be worthwhile.

Sign-up offer

The best Amex cards in Canada typically come with a generous welcome bonus. The amount of rewards depends on the current promotion, but generally, the sign-up offer is usually worth a few hundred dollars. 

Type of rewards

Just about every Amex credit card earns some reward, with the most common being travel points and cash back. If you want to save money on flights and hotel stays, get a travel rewards card. If you prefer simplicity or don’t plan to travel much, go for a cash-back card. The American Express SimplyCash Preferred Card offers cash-back without any spending limits or rewards categories to worry about.

Earn rate

Every Amex card has different earn rates that can be broken down into two categories: accelerated and base.

• With your accelerated earn rate, you’ll earn extra points on spending in specific categories, such as restaurants and gas stations.
• The base earn rate is the number of rewards you’ll earn on all other purchases.

Interest rate

Most Amex credit cards charge interest rates of 19.99% to 20.99% on purchases. However, the American Express Essential credit card has an interest rate of 12.99%. A lower interest rate may appeal to people who typically carry a balance on their credit card.

Additional benefits

These benefits vary widely between cards, especially between cards with annual fees vs. ones without annual fees. Before you start reviewing cards, consider the benefits that are most important and useful for you based on your lifestyle.

Perks to look out for include:

• Mobile device insurance.
• Airport lounge access.
• Concierge services.
• Travel insurance.
• Free checked bags
• Purchase protection. 

Types of Amex cards

While different Amex cards offer distinct features, broadly speaking, credit cards are typically grouped by whether they offer travel rewards or cash back. Because Amex offers so many travel rewards cards, it’s helpful to break them down further into the following categories:

• General rewards: Cards that allow you to earn points that can be used for travel, statement credits, merchandise and more.
• Aeroplan: Amex cards that allow you to earn points through Aeroplan, Air Canada’s loyalty program.
• Air Miles: Cards that reward you with points through Air Miles, one of Canada’s oldest travel loyalty programs. 
• Marriott Bonvoy: Cards that offer points through Marriott hotels. Amex is the only credit card partner of Marriott International in Canada.
• Cash back: Cards that reward you with cash back as a statement credit.

Are there Amex levels or tiers?

Unlike Visa and Mastercard, American Express has not organized its credit cards into formal tiers. However, it does offer both charge cards and credit cards.

Credit cards allow you to borrow funds from the issuer to make purchases up to a fixed credit limit. If you don’t pay off your balance in full, you can carry it over to the next month, but you’ll pay interest on it.

With charge cards, you have no pre-set credit limit; instead, your limit adjusts based on your credit and payment history. However, you must pay your balance in full monthly, or you’ll be charged a higher interest rate of 30%.

Amex also offers the American Express Centurion Card, an invitation-only “black card” aimed at its top customers. This card comes packed with benefits but also has a high annual fee — and again, you must wait until Amex offers you an invitation.

How to get an American Express card

Unlike Visa and Mastercard, Amex doesn’t have any formal income requirements for any of its cards. That means you could potentially be approved for a high-end card, such as the American Express Aeroplan Reserve Card, on a modest income.

Amex only lists two formal requirements on its credit card pages:

• You must be a Canadian resident
• You must be at least the age of majority in the province or territory in which you reside. 

Although Amex doesn’t list a minimum credit score to be approved for any of its cards, it’s safe to assume that your credit should be in good standing.

When you apply for any new credit card, the issuer will do a credit check, so expect to see your credit score drop by a few points.

Steps to apply

Start by browsing Amex cards to see which ones align with your spending patterns and offer rewards that interest you. Consider whether you want to earn travel rewards, general rewards or cash back, and whether you could earn extra based on regular spending on flights, hotel stays, groceries and other purchases.

Once you’ve chosen the card you want to apply for, here’s what to do:

1. Click “apply now”
2. Verify your eligibility
3. Enter all of your relevant information
4. Wait for your approval

Approval can often take as little as 60 seconds but can take longer if Amex requires additional information. 

How to get the most out of your American Express card

Strategies to maximize the benefits of your Amex card will depend on which card you choose. Generally speaking, you’ll want to take advantage of annual benefits, such as airport lounge access, travel credits, free nights at hotels, and anything else of value. Since these perks are associated with a real dollar value, you offset your annual fee every time you use them. 

Maximize American Express Membership Rewards points

If your Amex card earns you Membership Rewards points, you’ll want to become familiar with the program.

Simply put, this is a value of 1 cent per point. However, if you use the Fixed Points Travel option, you can get a value of up to 2 cents per point on some flights.

You also can redeem your points for gift cards and merchandise, but those options typically have a lower value than travel redemptions.

Understand Amex point transfer partners

Another huge benefit of American Express Membership Rewards is that you can transfer your points to various hotel and airline loyalty programs. 

• 1,000 Membership Rewards points = 1,000 Aeroplan points, British Airways Avios points, or Hilton Honors points
• 1,000 Membership Rewards points = 750 Air France Flying Blue Miles, Asia Miles, Delta SkyMiles or Etihad Guest Miles
• 5 Membership Rewards points = 6 Marriott Bonvoy points

The ability to transfer your points is valuable, as you might be able to get more value out of them through the other programs.

» MORE: Read our full review of the Marriott Bonvoy American Express Card

Know where American Express is accepted in Canada

Amex has a reputation for not being widely accepted, but it continues to onboard more merchants every year. If you’re wondering if Amex is accepted at a particular retailer, you can always check the company’s online merchant map. 

Familiarize yourself with popular American Express card benefits

Amex credit cards are popular in Canada because they come packed with benefits. Make sure you know what you have access to so you can use as many perks as possible.

Use the Amex referral program

One of the best perks of being an Amex cardholder is the referral program. If friends or family apply through your referral link and are approved for an Amex card, you could get rewards in the form of points.

Keep your eye on Amex Offers

Amex Offers is a unique perk that’s exclusive to American Express cardholders. Throughout the year, you’ll get offers in your account for various retailers. Some recent offers include:

• Spend at least $500 on Amex Travel Online and get a $150 credit
• Spend at least $50 at Lululemon and get a $50 credit
• Spend at least $75 on Voilà By Sobeys and get a $40 credit
• Get 20% of your purchase at Dell Technologies back as a credit, up to $1,500 in total credits

To take advantage of Amex offers, you must register them to your card via your online account or app. Always activate these offers as soon as possible since some of them have limited availability.

Buy early-access tickets through American Express Front of the Line

With American Express Front of the Line access, cardholders can purchase tickets to entertainment events before they go on sale to the general public. To top it up, the American Express Cobalt card also grants cardholders access to American Express Experiences, a collection of special dining, shopping and wellness events.

If you miss the presale event, some shows offer exclusive seats to American Express cardholders until they sell out.

Take advantage of Amex purchase protection

Purchase protection is a benefit that’s included with most Amex cards. When you charge a purchase to your American Express card, it’s insured for up to 90 or 120 days (depending on the card) from theft, damage or loss, up to $1,000 per occurrence. 

A related protection program extends the manufacturer’s basic warranty on purchases by one or two years, depending on your card.

Consider upgrading your Amex card

If you’re already an Amex cardholder, the company may pre-approve you for an upgrade. For example, you could go from the Gold Rewards Card to the Platinum. Since you’re being offered an upgrade, Amex won’t perform another credit check, which means you could get a higher-tier card without any effect on your credit score.