Last week, Scotia introduced an updated AMEX Gold Card, positioning it as a potential competitor to the AMEX Cobalt. However, despite its new features, we believe Scotia Rewards are not as appealing as other rewards programs. Additionally, the welcome bonus does not sufficiently outweigh the annual fee, leading us to hold off on applying for this card—for now, at least.
Enhanced Points for New Spending Categories
Let’s start on a positive note. One of the most innovative aspects of Scotia’s new card is the introduction of bonus categories that allow you to earn additional points on specific purchases.
Here’s a breakdown of the categories:
| Category | Earn Rate | Description |
| “Eat In & Eat Out” | 5 points per $1 spent | Applicable for eligible groceries, restaurants, fast food, and beverage establishments, including popular food delivery and subscription services. |
| “Watch & Cheer” | 5 points per $1 spent | Covers eligible entertainment expenses, including movies, theaters, and ticket purchasing services. |
| “Ride & Drive” | 3 points per $1 spent | Covers eligible fuel and public transport spending, including rideshares, buses, taxis, and subways. |
| “Listen & Stream” | 3 points per $1 spent | Applicable for select streaming service subscriptions. |
| All Other Purchases | 1 point per $1 spent | Includes all purchases, even foreign currency transactions (once converted to Canadian dollars). |
These bonus categories come with a spending limit of $50,000 annually from January 1st to December 31st. Such spending caps are becoming a trend among card issuers aiming to limit creative spending within bonus categories. AMEX has similarly implemented a spending cap for the Cobalt card: as of August 20, 2019, the 5x “Eats and Drinks” category will have a cap of $30,000 in purchases per card membership year.
Limitations of Scotia Rewards
The major downside of this card, as well as all Scotia cards, lies in the Scotia Rewards program, which is not very competitive.
Besides the option to apply points to your credit card statement (offering poor value) or use them for travel at CAD $0.01 per point, Scotia Rewards lack flexibility. The points cannot be transferred to any airline or hotel loyalty program, significantly limiting their usability. While there are some workarounds to optimize your Scotia Rewards, many would prefer to avoid the hassle, especially when more attractive alternatives exist, like Cobalt’s Membership Rewards-Select (MR-S).
In comparison, Cobalt MR-S points can be transferred to both Marriott Bonvoy and Hilton Honors programs. Currently, AMEX is offering a welcome bonus of up to 30,000 MR-S for the Cobalt card. When you transfer MR-S to Bonvoy points, they can then be converted to a wide range of airline currencies, offering more options when booking travel.
Moreover, MR-S can be utilized in AMEX’s Fixed Points Travel Program, providing excellent value—particularly on “Popular Routes,” such as flights between Toronto and New York, where you can redeem points for as much as 2 cents each. This dramatically exceeds the value of Scotia Rewards used as a statement credit for the same purchase.
Finally, our experiences with Scotia’s card application process have been quite negative. Many of us at DCTA have encountered issues such as being denied without clear reasons, receiving our cards late, or being asked for an excessive amount of supporting documentation. While we appreciate thoroughness, Scotia needs to streamline its application process.
No First-Year Fee
Most new credit cards come with a first-year-free promotional offer, allowing new applicants to use the card without an upfront cost. Unfortunately, this is not the case with the Scotia AMEX Gold Card, which requires a $120 fee for the first year. This is also an increase from the previous fee of $99. However, you can mitigate this fee by applying through Great Canadian Rebates, which is currently offering $50 back on successful applications. The same $50 cashback applies to the AMEX Cobalt card as well.
No Foreign Exchange Fees, But…
We appreciate that more Canadian credit cards are eliminating foreign transaction fees on purchases made in foreign currencies. However, Scotia cardholders will only earn 1 Scotia Reward for each Canadian dollar spent. Scotia will convert the foreign currency into Canadian dollars before awarding points, which doesn’t compare favorably to other cards like the Rogers Mastercard, HSBC Mastercard, or even the Cobalt card. Though the AMEX Cobalt has a 2.5% foreign transaction fee, if you were to spend in a 5x points category, you’d still earn significantly more points than with the Scotia card. This makes the Cobalt a more attractive option for foreign spending, especially at restaurants, grocery stores, and on travel.
Insurance Coverage
The Scotia AMEX Gold Card offers more insurance coverage than the Cobalt but is less comprehensive than what the AMEX Platinum card provides. The insurance benefits have also decreased from earlier versions of the Scotia AMEX Gold Card, which is disappointing. If insurance coverage is your primary concern for travel, we suggest considering the AMEX Platinum or other premium travel cards. Currently, with a referral, AMEX is offering a welcome bonus of 60,000 MR points.
About the Author: Jacob is a long-time supporter of DCTA and a new contributor. He first ventured into the world of miles and points while planning a trip to Southeast Asia, searching for ways to maximize his student budget. When he’s not traveling or helping others save money with miles and points, he works as an international trade lawyer in Toronto.
