# Changes to Smart Cash card



## Echo (Apr 1, 2011)

It looks like MBNA made a change to the Smart Cash card. The updated version will be launched tomorrow (Oct 23rd). New members will still get up to 5% cash back on gas and grocery purchases for the first six months, but instead of 3% cash back after the first six months, they've reduced it to 2% cash back. You'll still get 1% cash back on all other spending.

https://www.applyonlinenow.com/CACCapp/Ctl/entry?sc=COL7&lc=en_CA

I recently did a review of the best no-fee cash back credit cards, and Smart Cash came out on top (barely) - but now the Capital One Aspire Cash World MasterCard is definitely worth a look as the best cash back card.

I'm going to update this post as I learn more about the changes from MBNA, but if you max out the grocery and gas bonus each month, you used to earn $216 a year. Now you'll earn $144.

With Capital One Aspire, you'll earn 1% back on everything, plus get 50% bonus cash back each year, plus $100 sign-up bonus.

http://www.boomerandecho.com/best-no-fee-cash-back-credit-cards-in-canada/


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## Sherlock (Apr 18, 2010)

So this applies only to new members? Those of us who already have the card will continue to get 3% on gas/groceries?


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## PharmD (Dec 21, 2011)

This certainly makes some fee based cards such as the Scotia Momentum Visa Infinite look attractive as well based on what your spending patterns are. I am leaning towards it to replace the SC card and I also have a Capital One Cash for purchases that don't qualify for the 4 or 2%. It all depends on how much you spend per month on gas, groceries and pharmacies to if the annual fee is worth it.

And no this applies to current cardholders beginning in December. Letters are on the way if you have not received them yet...


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## Echo (Apr 1, 2011)

@Sherlock - yes it applies to existing members as well.

@PharmD - I did a comparison between Scotia Momentum Visa Infinite, Capital One Aspire Cash and MBNA Smart Cash (before the changes) and SMVI came out ahead after 3 years. It's often overlooked because of the $99 annual fee and the lack of a sign-up bonus, but over time you'll earn more cash back if you spend over $2k a month.

http://www.boomerandecho.com/top-cash-back-credit-cards-in-canada/


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## timelessfinance (Aug 24, 2012)

After TD snapped up MBNA, I said back in February:

"My only concern about the Smart Cash MasterCard® Credit Card is as follows: TD Canada Trust just acquired MBNA, and therefore they are the holder of my account. I fear that my fantastic gas/groceries bonuses will be cut sometime in the near future. TD has a long history of “improving” services in a manner that, oddly, degrades my experience."

Typical TD: "We make banking comfortable by saying we're making it comfortable while we screw you."

Robb, you're right. The Capital One Aspire you discuss in your article is best for everybody, and then ScotiaBank is best for grocery/gas/pharmaceuticals/recurring bills (IF you spend enough to justify the $99 annual fee, which has always been the kicker for me).

TD has succeeded in making the Smart Cash into a sideshow credit card. Every frugal person is going to get one for 6 months and then dump it for something better.


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## Argonaut (Dec 7, 2010)

Knew it was coming with the TD purchase. I doubt the profit margins/risk was worth it for them.

But wait a minute, what's with this Capital One Aspire Cash Back card?

http://www.capitalone.ca/credit-card/rewards/cash-back-credit-card/

How outrageously good is this card? Wow. Any idea how you prove you make $60k, do you just say so or what?


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## Echo (Apr 1, 2011)

@Argonaut - I've had quite a few readers email me to say it was a process to get approved with Capital One. 

For instance, "A year ago I obtained a new travel rewards card. After reading comments by Rob Carrick (Globe & Mail) I decided to go with the Capital One product. It took the company over 2 weeks to approve me. 6 weeks after starting the process I gave up when they requested that I have the local postman sign a form to verify that he/she had seen my personal ID and confirm that I am who I claimed to be. Considering that they base most of the decision on my credit bureau ( beacon score of 775-800, no income or asset / liability verification) this is terrible service.

I instead with the BMO card. Same day approval and I had the card in my hands 48 hours later and continue to be satisfied with the product ever since."

Does anyone else have a Capital One card and can weigh-in on their service?


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## peterk (May 16, 2010)

OH damnit to hell! I just got one of these cards last month based on the great reviews at MDJ. Also got screwed last year when ING dropped the interest rate on TFSA accounts the week after I made a big deposit.

Banks....*grumble*


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## Echo (Apr 1, 2011)

@peterk - I just spoke with an MBNA rep and she said if you have the card already then you'll still get the 3% cash back on groceries and gas.

But, I mentioned someone here received a letter stating they would no longer get the 3% as of December. She said, "Have you received the letter?". I said no, and she said, "then your benefits will remain the same". WTF?

So, I'm trying to get in touch with someone in communications/pr to clarify. Will report back if I hear anything.


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## Sustainable PF (Nov 5, 2010)

That was pretty much my experience. That being said it looks as though this might be the best option. I was on the fence about cancelling my Capital One, mostly based on your analysis, but now that doesn't make sense. The Scotia card may be best for us in the end ...



Echo said:


> @Argonaut - I've had quite a few readers email me to say it was a process to get approved with Capital One.
> 
> For instance, "A year ago I obtained a new travel rewards card. After reading comments by Rob Carrick (Globe & Mail) I decided to go with the Capital One product. It took the company over 2 weeks to approve me. 6 weeks after starting the process I gave up when they requested that I have the local postman sign a form to verify that he/she had seen my personal ID and confirm that I am who I claimed to be. Considering that they base most of the decision on my credit bureau ( beacon score of 775-800, no income or asset / liability verification) this is terrible service.
> 
> ...


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## Pigzfly (Dec 2, 2010)

I figured this day would come, ever since the TD purchase announcement.
My TD First Class Travel is looking a lot better now, if they do drop the groceries and gas percentage, I'll probably cancel the cards.


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## Echo (Apr 1, 2011)

Update: It's worse than we thought. The $600 cap on groceries and gas spending has been reduced to $400 a month. Also, there's a $1,250 cap on earnings!

"Effective Dec.1, 2012 the amount of cash back that Smart Cash Platinum cardholders can earn will be limited to 1% of their first $1,250 in monthly Net Purchases, including gas and grocery purchases.

The majority of MBNA’s Smart Cash customers currently have the Smart Cash Platinum MasterCard credit card; it has been in market for a few years now, whereas Smart Cash World was just introduced last year. Smart Cash Platinum cardholders with personal income of $60,000 or greater or total household income of $100,000 or greater can consider requesting an upgrade to Smart Cash World. By upgrading, they will again receive up to 5% cash back on gas and grocery purchases for the introductory six months to a maximum of 1,600 points per month, as well as benefit from the no cash back earn limit on the Base Earn Rate for Smart Cash World."

Changes for existing cardholders take effect December 1st, ironically the date of the sale to TD last year.

Time to switch to Aspire Cash.


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## Jungle (Feb 17, 2010)

This sucks.. 
Sometimes we spend more than $400 month on gas and grocery. And we are a two people, maybe a small family soon. 
And there are times when our monthly statement is more than $1250..
ah well. I guess we might look at getting the Capital One Aspire Card. 

The bonus about Capital One card is that you you don't have to wait until you reach $50 to receive a cheque.


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## FrugalTrader (Oct 13, 2008)

I just spoke with an MBNA rep and they told me that existing card holders will retain the benefits that they signed up for. Anyone else get feedback from MBNA reps?


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## Echo (Apr 1, 2011)

@FT - the quote in my previous post was from Cathy Velazquez, Media Relations from MBNA Canada. All existing cardholders will get a letter in the next few days stating the changes, which will take effect December 1st. I've got an article going up on Moneyville about this tomorrow.


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## Echo (Apr 1, 2011)

Here's my post today on Moneyville - http://www.moneyville.ca/blog/post/1276120--mbna-cuts-rewards-on-popular-smart-cash-card


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## Dave (Apr 5, 2009)

FrugalTrader said:


> I just spoke with an MBNA rep and they told me that existing card holders will retain the benefits that they signed up for. Anyone else get feedback from MBNA reps?



Not sure if it is true. Seems that there is a lot of confusion. I have two MBNA smart cash cards, one of them is the new World Card. I have them since over a year. I got a letter about benefit reductions for the World card but not for the other one. Go figure... I will be applying for the Capital One card and I might keep one MBNA card only for gas and gorceries.

D.


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## leoc2 (Dec 28, 2010)

I have a world card too. Got the letter last week. Capital One here I come.


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## GOB (Feb 15, 2011)

FrugalTrader said:


> I just spoke with an MBNA rep and they told me that existing card holders will retain the benefits that they signed up for. Anyone else get feedback from MBNA reps?


The rep was mistaken. I got my letter last week. 

Anyone considering the Capital One Cash should consider the World version that gives you points you can redeem for travel. You can potentially get a 2% return if you maximize the travel redemption. Not only can you redeem for travel but you can also get cash back at 1.5% if you so choose. There's a 35,000 point bonus at signup that is equivalent to $262.50. Annual fee is $120 but you get a 10,000 point bonus every year so the real fee is $45/year - great for the rewards, flexibility and all the benefits you get.

Comparing the World to the Cash, the additional $162.50 bonus would cover almost 4 years of $45 annual fees. You also have to opportunity to redeem travel at up to 2%, or take the minimum 1.5% cash back. A better card in my books.


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## Echo (Apr 1, 2011)

@GOB - No doubt, the Aspire Travel card is best in class. But for light spenders, or for those who don't travel much, the no fee Aspire Cash card is probably a better fit. You also get a $100 bonus with the Aspire Cash card.


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## FrugalTrader (Oct 13, 2008)

@GOB, also note that with the Cap One Travel World card that the 2% is not guaranteed as it's tiered. As well, you need to claim the entire travel but you can get creative if you don't have enough points. Basically, you can split plane tickets in portions etc, but there is a PITA factor there. So you need to ask yourself if the 0.5% advantage over the free cash version is worth it.


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## Sustainable PF (Nov 5, 2010)

I recall seeing a really thorough calculator that helped folks determine which card was best for them to use over 1 yr, 2 yrs, 3 yrs. Does anyone know where I can find this? (it basically let you input how much you spend monthly on gas and groceries vs other purchases).


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## james4beach (Nov 15, 2012)

I have the MBNA Smart Cash World and I was confused about these point maximums. I wanted to share what the rep told me (September 18, 2013)

She said that on gas and groceries, only up to $400 a month will earn the 2% reward.
Everything else, or gas and groceries above the $400 maximum, continues to earn 1% reward.

Does this sound right to others?


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## Echo (Apr 1, 2011)

That's right.


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## indexxx (Oct 31, 2011)

james4beach said:


> I have the MBNA Smart Cash World and I was confused about these point maximums. I wanted to share what the rep told me (September 18, 2013)
> 
> She said that on gas and groceries, only up to $400 a month will earn the 2% reward.
> Everything else, or gas and groceries above the $400 maximum, continues to earn 1% reward.
> ...


Refresh my memory on what the older Platinum card's rewards are? I can't remember- I have it and was just offered the World card so am interested in whether to switch or not.


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## james4beach (Nov 15, 2012)

Looking at this article (which describes the Platinum one) the only difference from the World card I see is that

Platinum: only up to $1,250 a month earns reward; it's 0% cash back beyond $1,250 spending
World: all spending continues to earn 1%, no maximum

Real example with my World card: I had a month where I spent $3,670. That month I earned $53 cash back or 1.44% (it was mostly not gas/groceries). If this had been the platinum card I think I would have only earned 1.44% x $1,250 = $18 cash back which is much worse... all the spending > 1,250 is wasted, no bonus.

So it looks to me like you're much better off with the World card if you will ever spend over 1250/month. For that one month in my example that meant I got nearly triple the cash back using World vs Platinum.


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## indexxx (Oct 31, 2011)

Hmmm- I doubt I'll ever spend that much in a month so it's not really an issue for me. Thanks James- when I was looking over the offer it seemed that there was't really anything to attract me to it aside from the initial 6 month bump.


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## sisco (Oct 18, 2011)

FWIW, I used to have a MBNA Smart Cash but cancelled it roughly a year ago. I now have the Capital One Aspire Cash World card and am 100% happy with it. Unlike MBNA, rather than having to have a cheque mailed to you, you can choose to have your cash balance credited to your CC account...only takes 2-3 days for the credit to show up on your card balance. You can also request a check if you prefer...to each their own.

Bottom line - happy Capital One user here.


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## FrugalTrader (Oct 13, 2008)

@sisco, keep that card around as they do not offer it any more. Existing cardholders are grandfathered.


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## peterk (May 16, 2010)

Is World and Platinum the same thing? I search for World and go to their website but when I hit apply it takes me to the Platinum application page.


Does anyone know if I'll get the 5% 6mo. deal if I'm an existing SmartCash(regular) card holder upgrading?


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## FrugalTrader (Oct 13, 2008)

Yes, if you upgrade to World you will get the 5% bonus for 6 months. Note though that you'll get a different credit card number too.


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## My Own Advisor (Sep 24, 2012)

I keep getting notices in the mail about this FT, the upgrade. 

Is there a catch, I wonder with the MBNA World?


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## indexxx (Oct 31, 2011)

FrugalTrader said:


> @sisco, keep that card around as they do not offer it any more. Existing cardholders are grandfathered.


Aha- that's the other card I was thinking of, the Aspire. It's no longer available??


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## james4beach (Nov 15, 2012)

Another card I don't see mentioned too often is the PC Financial World Mastercard

I've used the regular PC Mastercard for years (1% reward in form of PC points which, let's face it, is practically as good as cash). This no-fee *World* card earns double, 2% PC points at the Loblaws chain stores, and still 1% everywhere else.

For me that makes it awfully similar to the MBNA Smart Cash World except as far as I know, the PC mastercard doesn't cap the grocery (2% bonus) at $400 like MBNA... so if you're spending a ton of money in the Loblaws/Superstores definitely go with the PC Financial World; that's a significant benefit for high spenders at SS


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## FrugalTrader (Oct 13, 2008)

@MOA, I have the MBNA World, no catch, just 1% on all spending (2% on groceries up to $400/month), and added Price protection.

@indexxx, that is correct, the Aspire Cash World is no longer available. The next best would be the platinum.


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## indexxx (Oct 31, 2011)

FrugalTrader said:


> @MOA, I have the MBNA World, no catch, just 1% on all spending (2% on groceries up to $400/month), and added Price protection.
> 
> @indexxx, that is correct, the Aspire Cash World is no longer available. The next best would be the platinum.


So I wonder why they would even bother offering me this new MBNA World MC if there is no apparent benefit over the older Platinum. Looks like they are almost identical. There's no different interest rate or fee structure.


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## FrugalTrader (Oct 13, 2008)

The MBNA regular SC card now has a cap on the 1%. That is, you can only spend up to $1250/month to earn 1%, after that, it goes to 0%. With the SC World, you get 1% on everything (plus the 2% on $400/month on gas/groceries).


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## james4beach (Nov 15, 2012)

indexxx said:


> So I wonder why they would even bother offering me this new MBNA World MC if there is no apparent benefit over the older Platinum. Looks like they are almost identical. There's no different interest rate or fee structure.


Well if you spend over a certain amount, big benefit as in my example in post #26


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