Capital One Canada Discontinues its Aspire Cash Back World Credit Card
In a move that will certainly disappoint Canadian cash back credit card fans, Capital One has discontinued the Aspire Cash Back card, which had one of the richest offers in the marketplace of 1.5% cash back with no annual fee.
Hopefully, for the sake of consumers, this is not the beginning of a trend. MBNA was the last Canadian issuer to reduced the value of its cash back card, which at the time clearly had the richest offer in the market.
After Capital One’s elimination of the Aspire Cash Back World card, Scotia’s Momentum Infinite Cash Back card and MBNA’s Smart Cash card seem to be the leaders in the category. Why Capital One decided to scrap the card as opposed to adjust it the way MBNA did to make their p&l work, we’re not sure yet. Perhaps, it’s because it has left its Platinum cash back card with a 1.25% cash back rate in its stable of cards. But if that were the case, why not axe the Platinum card and reduce the World card from 1.5% to 1.25%, so at least Capital One collects the higher interchange of 2%+- versus 1.54%+-.
The CapOne Aspire World Cash Back credit card was unique in that it gave 1.5% cash back on all spend regardless of merchant category, with no annual fee. On the other hand, Scotia’s Momentum Infinite Cash Back card gives back 4% on gas & groceries, 2% on pharmacy & recurring bills and 1% on everything else, and has a $99 annual fee. MBNA’s Smart Cash card offers 5% cash back on gas & groceries for the first 6 months, up to $400 in spend, then goes to 2% cash back on gas & groceries up to $400 in spend and 1% on everything else up to $1,250 in monthly spend and has no annual fee. The rule of thumb between these two cards is that if you spend over $8,000 a year on your card go with Scotia’s Momentum Infinite Cash Back card , if less go with MBNA’s Smart Cash card. Check out our best cash back credit card rankings for 2015 to compare all of Canada’s leading cash back cards to see which is best for you. Hopefully, those cards are here to stay!