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The Royal Bank of Canada (RBC) is changing the way redemption works for its cash back cardholders.
Soon, not only will it become easier and faster to redeem cash back, but you won’t have to wait to accumulate a $25 minimum amount.
According to an announcement from the bank on Monday, the changes will kick in on Dec. 2, 2026.
Holders of the RBC Cash Back Mastercard and the RBC Cash Back Preferred World Elite Mastercard will be affected by the changes.
RBC Cash Back Mastercard: What changes on Dec. 2?
Right now, according to RBC’s cash back updates page, you can only redeem by phone, and your balance has to be at least $25.
From Dec. 2, you’ll be able to redeem through RBC Online Banking, the RBC Mobile app or by phone, with a $1 minimum.
You’ll also be able to redeem all or part of your balance, as long as the amount is at least $1. RBC says you can check your balance in either online banking or the mobile app, and that rewards accumulate indefinitely, so there’s no pressure to cash out on a schedule.
Auto-redemption is going away
The other half of the change is that, historically, both cards have paid out cash back automatically once a year. RBC says that automatic redemption ends on Dec. 2, and from then on you decide when to redeem.
That works better if you’d rather keep your balance growing or time a redemption yourself. It also means the cash back won’t land in your account on its own anymore, so it’s worth setting a reminder.
The updates page doesn’t say whether a balance that would have been paid out automatically this year still will be, so if you have a sizable balance, ask RBC how it will be handled.
A few rules to know before you redeem:
- Only the primary cardholder or co-applicant can request a redemption. Authorized users, including additional cardholders on the Preferred card, can’t cash out on their own.
- Redemption requests are final and can’t be cancelled.
- Redemption credits don’t count toward your minimum payment, so you’ll still need to make your regular payment on time.
Key dates for recent and upcoming RBC changes
Redemptions are the last piece of the update to land this year.
Here’s the timeline, per RBC:
- Oct. 1: New earn rates, the removal of annual spending caps and the new fees took effect, as MoneySense reported in August.
- Dec. 2: The new redemption rules take effect and automatic redemption ends.
- Dec. 30: The deadline to close your account or switch to another RBC credit card without cost or penalty if you don’t accept the changes. You need to notify RBC before then and pay your full balance.
Changes to the RBC Cash Back Preferred World Elite® Mastercard® — source: RBC, “Updates to RBC Cash Back Credit Cards”
Kicked in October 1, 2026
| What changed | Before Oct. 1 | Now |
|---|---|---|
| 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. Confirm current terms at rbcroyalbank.com.
What RBC Cash Back Mastercard holders should
The redemption update arrives alongside changes that are already in effect.
The RBC Cash Back Preferred World Elite Mastercard now earns an unlimited 3% on groceries, dining, gas, EV charging, transit, rideshare, streaming and digital gaming, and 1% on everything else. Its annual fee rose to $120 from $99, and additional cards now cost $50.
The RBC Cash Back Mastercard keeps its $0 annual fee and now earns an unlimited 2% on groceries, 1% on gas, EV charging, transit and rideshare, and 0.5% on everything else. Both cards’ purchase interest rate rose to 21.99% from 20.99%, according to RBC’s updates page. The Preferred card also has income requirements of $80,000 personal or $150,000 household, per RBC’s card page.
If you’re thinking about closing the card before the Dec. 30 deadline, ask what happens to any unredeemed cash back first.
MoneySense has asked RBC if cardholders who would have received an automatic payout this year will still get one, or if balances will stay in the account until the cardholder redeems.
We will update this story when RBC responds.
If you’re shopping for a credit card that best suits your needs, check out Ratehub’s CardFinder.
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About MoneySense Editors
MoneySense editors and journalists work closely with leading personal finance experts in Canada. Since 1999, our award-winning magazine has helped Canadians navigate money matters.
