Royal Bank of Canada (RBC) recently launched a new lineup of cash back MasterCards. Within the lineup they have a retail credit card and a business credit card. The retail credit card is the RBC Cash Back MasterCard, while the business credit card is the RBC Business Cash Back MasterCard.
That being said, we were able to get in contact with RBC and speak to Prashant Sharma, the Vice President of Retails Credit Cards concerning the launch of a new Cash Back MasterCard for consumers.
1. In a paragraph, please state you who you are and what your relation is to RBC is.
My name is Prashant Sharma, and I am the vice president of Retail Credit Cards for RBC. I oversee RBC’s suite of personal credit cards, such as the latest RBC Cash Back MasterCard and our popular RBC Rewards cards including Avion and our airline partner cards such as WestJet and British Airways.
2. What pushed RBC to launch the new cash back MasterCard?
RBC is always looking at new ways to better serve its clients. Our research showed that 30 per cent of Canadians hold a cash back card and that this is a fast-rising segment in the credit card space.
Despite this demand, the marketplace was undeserved in terms of a no annual fee, easy to understand, cash back card with a strong bonus offer on everyday spending and no limits to the amount you get back. We feel the new cash back MasterCard fills that need.
3. How has the response been so far with the launch of the RBC Cash Back MasterCard?
We have had a great response so far and are building momentum. The combination of no annual fee and a two per cent cash back bonus on grocery store purchases is really resonating with clients.
One of the best things about this card is that it provides the unique flexibility to get cash back credits when you need them but also allows you to let your card run on autopilot – consumers get to choose.
For example, with the new card consumers can simply contact RBC to receive the full amount every time their cash back credit balance exceeds $25 throughout the year, or let it accumulate all year for a cash back credit on their January statement. The statement also shows clients’ cash back credits accumulating month over month. This type of flexibility and simplicity is important to clients who like cash back rewards.
4. What is the most important tip for someone dealing with cash back rewards?
Don’t spend more, but switch your spending from debit and cash to the Cash Back MasterCard and consolidate your spend. The more often you use the card, the more you get back from it.
Consolidating your spending onto one card and using it for everyday purchases means the money adds up that much faster.
Also look for promotions. By paying for your groceries with your Cash Back MasterCard, you’re receiving two per cent on a large transaction that you make every week. But overall it’s important to be disciplined with your spend to ensure that you are budgeting effectively and paying off your credit card each month.
5. How would you advise someone when choosing a rewards credit card?
I would think about what kind of rewards I want to save up for and what matters to me. Cash back rewards are great for the person that doesn’t want the traditional points program and wants simplicity in receiving money back for everyday purchases.
For the person that wants a wider range of choice, or someone who likes different rewards each time, RBC Rewards offers simple points systems and easy redemptions. There is something for everyone, whether it is used for travel, gift cards, merchandise or experiences. We also offer RBC Financial Rewards vouchers (for example, contribute to your RRSP or pay down your mortgage) which have proven to be quite popular.
6. What is the advantage to having a cash back credit card?
This is a great credit card for someone who wants to earn cash back credits on everyday purchases and prefers not to track points. It’s a very simple and easy-to-understand program – spend money and get a little bit of it back. The RBC Cash Back MasterCard has many advantages, including no annual cap on what you can get back.
7. Does RBC plan on releasing a premium cash back credit card in the future? One that offers far better cash back rate for people willing to pay an annual fee?
RBC is always reviewing its line-up of services for its clients. Right now, we do offer the RBC Cash Back Visa, which has a low annual fee of $19.