Rewards and Benefits Matter More as Credit Cardholders in Canada Feel the Squeeze

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Postmedia has not reviewed the content. by Business Wire Rewards and Benefits Matter More as Credit Cardholders in Canada Feel the SqueezeAuthor of the article:More Fee-Based Cardholders Look to Open New Cards in Quest for Better BenefitsTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account19% of fee-based cardholders are considering a new card in the next 12 monthsReward bonuses fall sharply year over year59% of credit cardholders are classified as financially unhealthy, up from 58%TORONTO — The value of rewards and benefits has emerged as a critical differentiating factor among credit cardholders in Canada, and now drives 53% of overall satisfaction, according to the JD Power 2026 Canada Credit Card Satisfaction Study,SM released today. At the same time, more cardholders are facing financial pressure, with 59% classified as financially unhealthy,1 up from 58% in 2025, and 38% of customers now carrying revolving debt, up from 36% a year ago.Despite mounting pressures—including rising credit card debt and increasing instances of fraud and merchant surcharges—credit cardholders in Canada remain resilient, with their outlook on personal finances and the economy remaining positive and many actively seeking new cards with better rewards and benefits.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Credit cardholders in Canada are under growing financial pressure, and that’s making them extremely focused on getting value from their credit cards,” said John Cabell, managing director of payments intelligence at JD Power. “With reward bonuses declining and more customers shopping for cards with better rewards and benefits, issuers have a clear opportunity to differentiate by delivering meaningful value that customers can see and use.”Following are some key findings of the 2026 study:Primary card use rises despite surcharges: The average monthly credit card spend among cardholders in Canada is $1,436 this year, up more than 7% from $1,336 in 2025. Overall, 38% of cardholders are now carrying revolving debt, up from 36% in 2025. At the same time, they are also seeing increases in merchant surcharges for using their card (54% vs. 53% in 2025). These fees not only significantly lower the perception of card value, but they also limit usage as 88% of cardholders say they will choose another payment method when confronted with a surcharge, ranging from sometimes (40%) to usually (26%) to always (22%).Cardholders see a significant drop in reward bonuses compared with last year: The share of cardholders who receive extra rewards for spending in certain categories—such as making purchases at specific stores or participating in special promotions—falls sharply across card segments, but those paying annual fees of $200 or more have seen the largest drop in extra rewards for certain categories of spending (-27 percentage points), eroding perceived card value and helping drive more customers to shop for new cards with richer rewards and benefits. Accordingly, 29% of premium cardholders say they are likely to open a new card in the next 12 months.Cardholders are increasingly shopping for better perks: A growing majority (73%) of those planning to open a new card intend it as an additional card rather than a replacement. Among customers likely to open a new card in the next 12 months, better benefits (40%) and rewards programs (39%) are the top reasons, while better rewards (36%) and benefits (28%) lead among those who switched their primary card in the past 12 months. Cardholder satisfaction is higher among those with the most flexible rewards programs and those with shopping/travel benefits.Customers feel decline in card security: The share of cardholders who initiated contact with their issuer after noticing fraud has increased to 69% (+6 percentage points year over year), while preference for handling fraud digitally has risen to 37% (+4 percentage points). However, just 30% of cardholders report a more positive impression of their card’s security following a fraud experience, down significantly from last year, falling to 26% among those who initiated the fraud contact with their issuer and to 25% among those who prefer digital channels to handle fraud.ranks highest in customer satisfaction among credit card issuers for a second consecutive year, with a score of 618.Canadian Tire Triangle World Elite Mastercardranks highest among credit cards with no annual fee for a third consecutive year, with a score of 669.PC World Elite MastercardAmerican Express Cobalt Card ranks highest among credit cards with an annual fee for a third consecutive year, with a score of 645.PC Insiders World Elite MastercardScotiabank Passport Visa Infinite CardTo view the complete rankings for each segment, visit: http://www.jdpower.com/pr-id/2026090.The Canada Credit Card Satisfaction Study measures cardholder satisfaction with their primary credit card issuer and performance in seven factors (in alphabetical order): account management; benefits; customer service; new account; rewards earning; rewards redeeming; and terms. The 2026 study was fielded from May through July 2026 and includes responses from 11,887 cardholders who used a major credit card in the past three months.For more information about the Canada Credit Card Satisfaction Study, visit https://www.jdpower.com/business/canada-credit-card-satisfaction-study/.JD Power delivers mission-critical data, analytics and intelligence that help businesses improve customer experience and operational performance with confidence and clarity. Using proprietary, comprehensive data–including millions of consumer interactions and authoritative automotive datasets–combined with advanced analytics, artificial intelligence and deep industry expertise, JD Power enables leaders to respond to market shifts, make smarter decisions and drive measurable performance improvements.As an objective source of deep insight into real-world customer interactions with brands and products, JD Power provides the independent intelligence organizations need to anticipate change, strengthen customer engagement and advance growth. Learn more at JDPower.com.About JD Power and Advertising/Promotional Rules:JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.View source version on businesswire.com: Gal Wilder, NATIONAL PR; 416-602-4092;Joe LaMuraglia, JD Power; East Coast; 714-621-6224;This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.