RBC hiking fees on cash back Mastercard, but sweetening the rewards

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RBC shared on Friday that there are changes coming to two of its cash back Mastercard options in October and December this year.

The announcement comes days after Scotiabank told customers it will lower cash back rates for rent and tax payment in the Scotia Momentum lineup in October, leaving many disappointed.

Though a couple of RBC’s upcoming changes may similarly irk cardholders (one of the cards’ annual fee will go up by $21), the benefits are getting a serious facelift that’ll be a net positive to most. Starting later this year, RBC Cash Back Preferred World Elite Mastercard and RBC Cash Back Mastercard cardholders will have new ways to earn cash back, with more flexible redemption and no spend cap on earning cash back, among other things.

At a glance, you can expect the following changes:

RBC Cash Back Preferred World Elite Mastercard

Changes to the RBC Cash Back Preferred World Elite® Mastercard® — source: RBC, “Updates to RBC Cash Back Credit Cards”

Effective October 1, 2026

What’s changing Current New

Annual fee	$99	$120
Additional (supplementary) cardholder fee	$0	$50 per additional card
Purchase interest rate (APR)*	20.99%	21.99%
Cash back – groceries, dining, restaurants & food delivery	Up to 1.5%	3%, unlimited
Cash back – gas, EV charging, public transit & rideshare	Up to 1.5%	3%, unlimited
Cash back – streaming & digital gaming (new category)	Up to 1.5%	3%, unlimited
Cash back – all other purchases	Up to 1.5%	1%, unlimited
Annual spending cap on cash back earning	Bonus rate applied on first $25,000/yr in purchases; 1% earned above that	No cap — full rate applies to every eligible purchase
Insurance coverage	Not included	Adds Out of Province/Country Emergency Medical Insurance, Flight Delay & Delayed Baggage Insurance, and Mobile Device Insurance

Effective December 2, 2026

What’s changing Current New

Minimum redemption amount	$25	$1
How to redeem	By phone only	Online Banking, RBC Mobile app, or by phone
Redemption timing	Cash back automatically redeemed once a year, in December	Redeem anytime, in any amount above the $1 minimum — no automatic annual redemption
Opt-out option	—	Cardholders can close the account or switch to another RBC credit card at no cost, penalty, or cancellation indemnity by notifying RBC before Dec 30, 2026

*The new purchase interest rate takes effect on the first day of the cardholder’s statement period beginning on or after October 1, 2026. Details reflect RBC’s official update notice as of August 21, 2026; confirm current terms at rbcroyalbank.com before publishing, as issuers can revise terms.

RBC Cash Back Mastercard

Changes to the RBC Cash Back® Mastercard® (no annual fee card) — source: RBC, “Updates to RBC Cash Back Credit Cards”

Effective October 1, 2026

What’s changing Current New

Purchase interest rate (APR)*	20.99%	21.99%
Cash back – groceries	2% on the first $6,000/yr, then 1% after	2%, unlimited
Cash back – gas, EV charging, public transit & rideshare (new dedicated category)	Counted as “other purchases”: 0.5% on the first $6,000/yr, then 1% after	1%, unlimited
Cash back – all other purchases	0.5% on the first $6,000/yr, then 1% after	0.5%, unlimited
Annual spending cap on cash back earning	Bonus rate applied on first $6,000/yr per category; rate changes above that	No cap — full rate applies to every eligible purchase

Effective December 2, 2026

What’s changing Current New

Minimum redemption amount	$25	$1
How to redeem	By phone only	Online Banking, RBC Mobile app, or by phone
Redemption timing	Cash back automatically redeemed once a year, in December	Redeem anytime, in any amount above the $1 minimum — no automatic annual redemption
Opt-out option	—	Cardholders can close the account or switch to another RBC credit card at no cost, penalty, or cancellation indemnity by notifying RBC before Dec 30, 2026

*The new purchase interest rate takes effect on the first day of the cardholder’s statement period beginning on or after October 1, 2026. The annual fee ($0) and insurance benefits (Purchase Security & Extended Warranty Insurance) are not changing for this card. Details reflect RBC’s official update notice as of August 21, 2026; confirm current terms at rbcroyalbank.com before publishing, as issuers can revise terms.

What else should I know about these RBC cash back Mastercard options?

If you’re looking for grocery shopping benefits, RBC specifies that it does not quality Costco and Walmart as traditional grocery stores, but as warehouse clubs. That is how RBC has always classified them This means the accelerated 2% grocery cash back won’t apply, and you’ll earn 0.5% cash back starting October 1. This is a loss for those who shop for groceries at Walmart and Costco frequently, because under the current policy, you get 0.5% more cash back in the “everyday purchases” category on both cards.

There will be no changes to RBC partner perks and savings for either card. According to RBC, perks include your ability to:

Save 3¢/L saving fuel and earn 20% more Petro-Points when you pay with an eligible linked RBC Credit Card Get 3x Canadian Tire Money when you link your eligible RBC card to your Triangle Rewards account, scan your Triangle Rewards card and pay with your linked RBC card Link your RBC Credit Card and earn 50 Be Well

points on every $1 spent on eligible purchases at Rexall Add your RBC Credit Card to your DoorDash account and get a free 12 month DashPass subscription

For the RBC Cash Back Preferred World Elite Mastercard, you’ll continue to:

Get exclusive access to The Mastercard Collection, experience exceptional global access to dining, entertainment and travel benefits Shop, dine and relax with partners to receive Mastercard Travel Rewards cash back offers, using your RBC Cash Back Preferred World Elite Mastercard when you travel outside Canada Enjoy Mastercard Travel Pass provided by Dragon Pass Membership, which gives you access to 1,300+ airport lounges worldwide, and access to exclusive offers from luxury retailers

The upcoming changes may not be worth it to every cardholder. You can cancel your credit card without cost, penalty or cancellation indemnity by notifying RBC before December 30, 2026, and by paying the total amount you owe on your credit card account.

“If you feel the enhanced product isn’t right for you, you have the option to switch to another RBC credit card product. This can be done through your Online Banking or Mobile Banking portal, or by contacting an advisor at 1-800-769-2512,” RBC advises on its FAQ page.

If you’re shopping for a credit card that best suits your needs, check out Ratehub’s CardFinder.

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