Recurring bills are easy to ignore because they do not feel like "shopping." They just happen.
Phone plans, internet, streaming, insurance and memberships can add up to thousands of dollars a year. If your card pays a higher rate on qualifying recurring payments, that spending can quietly become one of your best reward categories.
The catch is important: a bill does not qualify just because you pay it every month. It generally has to be processed by the merchant as a pre-authorized recurring transaction.
The short answer
Two current examples show why this category is worth checking:
- Scotia Momentum Visa Infinite earns 4% cash back on eligible recurring bill payments, subject to its stated annual cap.
- TD Cash Back Visa Infinite earns 3% cash back on eligible recurring bill payments, also subject to its category cap.
Those rates are useful, but they do not automatically tell you which card is better. Annual fees and the rest of your spending still matter.
What counts as a recurring bill?
Qualifying payments can include things such as:
- mobile phone plans;
- internet and cable;
- streaming subscriptions;
- gym or membership fees;
- insurance premiums;
- some utilities;
- and other automatic charges set up with the merchant.
The key is how the merchant submits the payment.
If you sign in every month and manually click "Pay," the transaction may be treated as a normal purchase. If the merchant automatically charges your card on a regular schedule, it is more likely to qualify as a recurring payment.
When one bill makes up a large part of your calculation, it is worth checking how that merchant processes the transaction.
What can the category be worth?
Assume your automatic monthly payments look like this:
| Bill | Monthly amount |
|---|---|
| Mobile phones | $140 |
| Internet | $90 |
| Insurance | $250 |
| Streaming | $70 |
| Memberships | $80 |
| Other recurring charges | $120 |
| Total | $750 |
That is $9,000 per year.
| Reward rate | Approx. annual rewards |
|---|---|
| 1% | $90 |
| 2% | $180 |
| 3% | $270 |
| 4% | $360 |
Moving $9,000 of qualifying spending from a 1% card to a 4% card is worth roughly $270 more per year before fees.
That is enough to change a card decision.
Scotia Momentum Visa Infinite: a strong recurring-bill rate
Scotiabank currently advertises 4% cash back on eligible grocery purchases, recurring bill payments and subscription purchases on the Scotia Momentum Visa Infinite.
The 4% rate applies to the first $25,000 of eligible annual spending in the relevant accelerated categories under the card's current terms, with lower earnings after the cap is reached.
That makes the card especially interesting for households that have both high grocery spending and substantial automatic bills.
But the annual fee still needs to be included. A 4% category rate can look impressive and still lose to a cheaper card if your qualifying spend is modest.
TD Cash Back Visa Infinite: broader 3% coverage
TD currently advertises 3% cash back on eligible recurring bill payments, along with 3% on groceries, gas and EV charging, public transit, and certain streaming or digital purchases.
TD's current terms apply an annual cap to each accelerated category.
The advantage here is breadth. Someone who wants one everyday card may prefer a slightly lower recurring-bill rate if the same card performs well across several other categories.
Why 4% does not automatically beat 3%
Suppose you spend $6,000 a year on qualifying recurring bills.
The difference between 4% and 3% is only:
$6,000 × 1% = $60 per year
If the 3% card earns more than $60 elsewhere in your budget, it can still be the better choice.
That is why a single-category comparison should always be checked against your full spending profile.
Watch for payment surcharges
Some insurers, utilities, rent-payment services and other billers charge a fee for credit-card payments.
A 3% reward is not exciting if the merchant charges 2.5% to accept the card.
Use this quick check:
reward earned − payment surcharge = real benefit
If the result is tiny, use a cheaper payment method.
Annual fees can still be justified by bills alone
Imagine a $120-fee card earns 4% on $9,000 of qualifying recurring bills.
That is about $360 in gross cash back.
If your no-fee alternative earns 1%, it would return about $90.
The difference after the premium card's fee is:
$360 − $90 − $120 = $150
In that example, recurring bills alone create a $150 advantage.
With only $150 or $200 per month of recurring bills, the conclusion could be completely different.
Check the biggest categories first
Recurring bills are worth optimizing, but they may not be the biggest part of your budget.
If you spend $250 a month on automatic payments and $1,200 a month on groceries and dining, the larger categories may deserve more attention.
A useful rule is to optimize the categories where spending × reward difference is largest, not simply the category with the highest percentage.
Compare the whole budget
Enter your actual monthly spending into the ClearFin credit card calculator to compare estimated annual value after fees.
If you already have two cards in mind, the ClearFin side-by-side comparison shows where each card earns more.
For the underlying math, see our cash back calculator Canada guide.
Bottom line
Recurring bills are one of the easiest categories to optimize because the spending is already happening.
A card paying 3% or 4% on qualifying automatic payments can add meaningful value, especially for households with large telecom, insurance or subscription bills.
Just make sure the transactions actually qualify, the annual fee still makes sense, and the card works for the rest of your budget too.
Sources checked
- Scotiabank — Scotia Momentum Visa Infinite current earn rates and category limits
- TD Canada Trust — TD Cash Back Visa Infinite current earn rates and annual caps
Last reviewed: October 10, 2026. Reward rates, fees, merchant coding and spending limits can change. Confirm current terms directly with the issuer before applying.