Travel Card Terms Glossary: Complete Guide for Canadian Travellers
Understanding travel card terms is essential for maximizing your rewards and avoiding costly mistakes when choosing credit cards in Canada.
Navigating the world of travel credit cards can feel overwhelming with all the jargon and technical terms thrown around!
From annual percentage rates to foreign transaction fees, each term impacts how much value you’ll get from your travel card.
Whether you’re a first-time cardholder or an experienced points collector, this comprehensive glossary breaks down every travel card term you need to know.
I’ve organized these travel card terms alphabetically and included practical examples to help you make informed decisions about your next travel credit card application.
📘 Table of Contents
A – Travel Card Terms Starting with A
Annual Fee
The yearly cost charged by credit card companies for maintaining your travel card account, typically ranging from $0 to $700+ for premium cards in Canada.
Example: The American Express Cobalt Card has an annual fee of $155.88 including GST, while the Scotiabank Gold American Express has no annual fee for the first year.
Annual Percentage Rate (APR)
The yearly interest rate charged on outstanding balances, including interest and other fees, typically 19.99% to 29.99% for Canadian travel cards.
Example: If your travel card has a 22.99% APR and you carry a $1,000 balance, you’ll pay approximately $230 in interest annually.
Airline Alliance
Groups of airlines that share routes, lounges, and loyalty programmes, allowing you to earn and redeem points across multiple carriers.
Example: Air Canada is part of Star Alliance, so you can use Aeroplan points on United, Lufthansa, and other Star Alliance partners.
Award Chart
A pricing structure showing how many points or miles are required for different flights, hotel stays, or redemptions within a loyalty programme.
Example: Aeroplan’s award chart shows that a round-trip economy flight from Toronto to London requires 75,000 points during off-peak periods.
Authorised User
A person given permission to use your credit card account, often receiving their own card while you remain responsible for all charges.
Example: Adding your spouse as an authorised user on your TD Aeroplan card allows them to earn points on their purchases toward your account.
B – Travel Card Terms Starting with B
Balance Transfer
Moving debt from one credit card to another, often to take advantage of lower interest rates or promotional offers.
Example: Transferring a $5,000 balance from a 24.99% APR card to a travel card with a 0% promotional rate for 12 months.
Blackout Dates
Specific dates when award redemptions are not available or require more points/miles, typically during peak travel periods.
Example: Some airline programmes have blackout dates during Christmas and March Break when you cannot book award flights.
Bonus Category
Spending categories that earn enhanced rewards rates, such as 3x points on dining or 5x points on groceries.
Example: The Scotiabank Gold American Express earns 5x points on groceries, dining, and gas purchases up to $2,500 monthly.
Bonus Points
Extra rewards earned above the base rate, either through category bonuses or special promotions.
Example: Earning 10,000 bonus points for spending $3,000 within the first three months of card membership.
Business Class
Premium airline seating category offering enhanced comfort, service, and amenities compared to economy class.
Example: Redeeming 140,000 Aeroplan points for a business class flight from Vancouver to Tokyo instead of paying $4,000+ cash.
C – Travel Card Terms Starting with C
Cash Advance
Using your credit card to withdraw cash from an ATM or bank, typically incurring immediate interest charges and fees.
Example: Taking a $200 cash advance might cost a $10 fee plus 22.99% interest starting immediately, making it expensive for emergencies.
Companion Pass
A benefit allowing you to bring a travel companion at reduced cost or for free when using points for flights.
Example: WestJet’s companion voucher lets your partner fly for just taxes and fees when you book a revenue flight.
Credit Limit
The maximum amount you can borrow on your credit card, set by the issuer based on your creditworthiness and income.
Example: A $10,000 credit limit means you can have up to $10,000 in outstanding charges before the card is declined.
Credit Score
A numerical representation of your creditworthiness, ranging from 300-900 in Canada, used by lenders to assess risk.
Example: A credit score above 650 typically qualifies you for most travel cards, while premium cards may require 700+.
Credit Utilisation
The percentage of available credit you’re using, calculated by dividing your balance by your credit limit.
Example: A $2,000 balance on a $10,000 limit card represents 20% utilisation, which is generally considered good for your credit score.
D – Travel Card Terms Starting with D
Dynamic Pricing
Award pricing that fluctuates based on demand, seasonality, and availability rather than following a fixed award chart.
Example: Air Canada Aeroplan flights may cost 25,000 points during low demand or 60,000 points for the same route during peak periods.
Due Date
The date by which you must make at least the minimum payment on your credit card statement to avoid late fees.
Example: If your due date is the 15th of each month, payments must be received by that date to maintain good standing.
Double Miles
Promotional periods where you earn twice the normal rate on purchases, often used in marketing campaigns.
Example: Capital One Venture cards occasionally offer double miles (4x instead of 2x) on dining purchases for limited periods.
E – Travel Card Terms Starting with E
Earning Rate
The number of points, miles, or cash back earned per dollar spent, typically expressed as a multiplier like 2x or 5x.
Example: The American Express Cobalt Card earns 5x points on dining and groceries, meaning $100 spent earns 500 points.
Elite Status
Tiered membership levels in airline or hotel loyalty programmes that provide enhanced benefits and treatment.
Example: Air Canada Altitude Elite 25K status includes priority boarding, free checked bags, and bonus points earning.
Expiry Date
When points, miles, or promotional offers become invalid and can no longer be used for redemptions.
Example: American Express Membership Rewards points don’t expire as long as your account remains open and in good standing.
Emergency Card Replacement
Service providing a new credit card quickly when yours is lost or stolen while travelling, often available 24/7.
Example: Premium travel cards typically offer emergency replacement within 1-2 business days anywhere in the world.
F – Travel Card Terms Starting with F
Foreign Transaction Fee
A charge (typically 2.5% in Canada) applied to purchases made in foreign currencies or with international merchants.
Example: A €100 purchase with a 2.5% foreign transaction fee would cost an additional $3.50 CAD on top of the exchange rate.
First Class
The highest level of airline service, offering premium seating, dining, and amenities, available on select routes.
Example: Air Canada’s Signature Class offers lie-flat beds and chef-designed meals on international flights.
Fixed APR
An interest rate that remains constant over time, unlike variable rates that can change with market conditions.
Example: A travel card with a fixed 19.99% APR maintains that rate regardless of Bank of Canada rate changes.
Fraud Protection
Security measures and policies that protect cardholders from unauthorised charges and identity theft.
Example: Most Canadian travel cards offer zero liability protection, meaning you’re not responsible for fraudulent charges.
Free Night Award
A hotel loyalty programme benefit providing a complimentary night’s stay, often tied to credit card annual benefits.
Example: Some hotel-branded credit cards offer an annual free night certificate at properties worth up to 35,000 points.
G – Travel Card Terms Starting with G
Grace Period
The time between your statement date and due date when no interest is charged on new purchases if you pay in full.
Example: A 21-day grace period means purchases made after your statement date won’t accrue interest until 21 days after the due date.
Global Entry
A trusted traveller programme offering expedited customs and immigration processing when entering the United States.
Example: Some premium travel cards reimburse the $100 USD Global Entry application fee as an annual benefit.
Guest Pass
Vouchers allowing non-cardholders to access airport lounges or other premium services typically reserved for members.
Example: The TD Aeroplan Visa Infinite Privilege includes two complimentary Maple Leaf Lounge passes annually.
H – Travel Card Terms Starting with H
Hold
Temporarily reserving an award flight or hotel room without completing the booking, typically for 24 hours.
Example: Aeroplan allows you to hold award flights for 24 hours while you decide whether to complete the booking.
Hotel Status
Tier levels within hotel loyalty programmes providing benefits like room upgrades, late checkout, and bonus points.
Example: Marriott Bonvoy Gold Elite status includes room upgrades, 14:00 late checkout, and 25% bonus points on stays.
Hard Pull
A credit inquiry that appears on your credit report when applying for new credit, potentially impacting your credit score.
Example: Applying for a new travel card results in a hard pull that may temporarily lower your credit score by a few points.
I – Travel Card Terms Starting with I
Interest Rate
The annual percentage charged on outstanding balances, calculated daily and compounded monthly on most Canadian credit cards.
Example: A 19.99% interest rate means you pay approximately $200 annually in interest on a $1,000 balance carried for a full year.
Introductory Offer
Special promotional terms for new cardholders, such as waived annual fees or bonus earning rates for a limited period.
Example: The Scotiabank Gold American Express waives the annual fee for the first year as an introductory offer.
Insurance Coverage
Protection benefits included with travel cards, covering medical emergencies, trip cancellation, baggage loss, and other travel-related issues.
Example: The TD Aeroplan Visa Infinite includes up to $1 million in travel medical insurance for trips up to 15 days.
J – Travel Card Terms Starting with J
Joint Account
A credit card account shared by two people, both legally responsible for all charges and payments on the account.
Example: Married couples might open a joint travel card account where both spouses can make purchases and both are liable for the debt.
K – Travel Card Terms Starting with K
Known Traveller Number (KTN)
A unique identifier assigned to pre-approved travellers through programmes like NEXUS or Global Entry for expedited security screening.
Example: Canadian NEXUS members receive a KTN that allows them to use TSA PreCheck lanes when flying within or to the United States.
L – Travel Card Terms Starting with L
Late Fee
A penalty charge applied when you miss your payment due date, typically $25-$40 for Canadian credit cards.
Example: Missing your payment due date on a travel card might result in a $35 late fee plus potential interest charges on your entire balance.
Lounge Access
Permission to use premium airport waiting areas offering complimentary food, drinks, WiFi, and comfortable seating before flights.
Example: The American Express Platinum Card provides access to Centurion Lounges and Priority Pass lounges worldwide.
Loyalty Programme
A rewards system where customers earn points, miles, or status through repeated business with airlines, hotels, or credit card companies.
Example: Air Canada’s Aeroplan programme allows you to earn and redeem points for flights, hotels, car rentals, and merchandise.
M – Travel Card Terms Starting with M
Miles
A type of rewards currency used primarily by airline loyalty programmes, though some credit cards also earn miles instead of points.
Example: Capital One Venture cards earn miles that can be redeemed for travel purchases at a rate of 1 cent per mile.
Minimum Spend
The required spending amount within a specified timeframe to earn a welcome bonus or qualify for promotional offers.
Example: “Spend $3,000 within the first 3 months to earn 50,000 bonus points” is a typical minimum spend requirement.
Monthly Statement
A detailed record of all transactions, payments, fees, and interest charges on your account for a specific billing period.
Example: Your monthly statement shows $2,847 in purchases, earning 3,421 points, with a minimum payment of $57 due on the 15th.
N – Travel Card Terms Starting with N
No Annual Fee
Credit cards that don’t charge a yearly fee for account maintenance, though they typically offer fewer benefits than premium cards.
Example: The MBNA Rewards World Elite Mastercard has no annual fee and earns 2x points on travel and gas purchases.
No Foreign Transaction Fee
Cards that don’t charge extra for purchases made in foreign currencies or with international merchants.
Example: The Scotiabank Passport Visa Infinite eliminates the typical 2.5% foreign transaction fee, saving money on international purchases.
NEXUS
A trusted traveller programme for pre-approved, low-risk travellers between Canada and the United States, offering expedited border crossings.
Example: NEXUS membership costs $50 CAD for five years and includes TSA PreCheck and Global Entry benefits.
O – Travel Card Terms Starting with O
Overlimit Fee
A charge applied when your account balance exceeds your approved credit limit, typically $25-$35 in Canada.
Example: If your credit limit is $5,000 and you charge $5,200, you might pay a $29 overlimit fee plus be required to pay down the balance.
Online Account
Web-based platform where you can view statements, make payments, track rewards, and manage your credit card account digitally.
Example: Your online account shows real-time spending, available credit, rewards balance, and allows you to redeem points for travel.
P – Travel Card Terms Starting with P
Points
A rewards currency earned through credit card spending that can be redeemed for travel, merchandise, or statement credits.
Example: American Express Membership Rewards points can transfer to Aeroplan at a 1:1 ratio or book travel through their portal.
Priority Pass
A network of over 1,300 airport lounges worldwide, with membership often included as a benefit with premium travel cards.
Example: The TD Aeroplan Visa Infinite Privilege includes Priority Pass Select membership with six free lounge visits annually.
Purchase Protection
Insurance coverage that protects items bought with your credit card against theft or damage for a specified period after purchase.
Example: If your new laptop is stolen within 90 days of purchase, purchase protection might reimburse the full purchase price.
Pre-authorisation
A temporary hold placed on your available credit when merchants verify your card before completing a transaction.
Example: Hotels often pre-authorise $100-$200 per night plus taxes to cover potential incidentals during your stay.
Q – Travel Card Terms Starting with Q
Qualifying Purchase
Transactions that count toward earning rewards or meeting minimum spend requirements, excluding cash advances, fees, and balance transfers.
Example: Restaurant meals and hotel stays are qualifying purchases, but ATM withdrawals and annual fees typically don’t earn points.
R – Travel Card Terms Starting with R
Redemption
Using accumulated points, miles, or cash back rewards to pay for travel, merchandise, or statement credits.
Example: Redeeming 50,000 Aeroplan points for a round-trip flight from Toronto to Paris instead of paying $800 cash.
Rewards Rate
The percentage or multiplier indicating how much you earn in rewards for each dollar spent on eligible purchases.
Example: A 2% cash back rate means you earn $20 in rewards for every $1,000 in qualifying purchases.
Rotating Categories
Bonus spending categories that change quarterly, offering enhanced rewards rates for different types of purchases throughout the year.
Example: A card might offer 5x points on gas stations in Q1, grocery stores in Q2, and restaurants in Q3.
R – Travel Card Terms Starting with R (Continued)
Reward Zone
A tiered system where earning rates increase based on your annual spending or account status with the credit card issuer.
Spending over $25,000 annually might unlock a “Platinum Reward Zone” with 3x points instead of the standard 2x rate.
Return Protection
Insurance benefit that reimburses purchases when merchants won’t accept returns, typically within 90 days of purchase.
If a retailer refuses to accept your unwanted $200 headphones, return protection might refund the full purchase price.
Revenue Flight
A paid airline ticket purchased with cash rather than points or miles, as opposed to award flights.
Booking a $500 cash flight to Vancouver earns Aeroplan points, while an award flight using 25,000 points doesn’t.
S – Travel Card Terms Starting with S
Statement Credit
A direct reduction to your credit card balance, often used as a redemption option for points or cash back rewards.
Redeeming 10,000 points for a $100 statement credit reduces your outstanding balance by that amount.
Sign-up Bonus
A large number of points, miles, or cash back awarded for meeting minimum spend requirements within the first few months of account opening.
The TD Aeroplan Visa Infinite offers 50,000 points when you spend $3,000 in the first three months.
Stopover
A planned extended layover of more than 24 hours (international) or 4 hours (domestic) that allows you to explore a connecting city.
Flying Toronto to Bangkok with a 3-day stopover in Tokyo, all on one award ticket using Aeroplan points.
Sweet Spot
Award redemptions that offer exceptional value, typically requiring fewer points than the trip’s cash cost would suggest.
Booking business class from North America to Europe using 70,000 Aeroplan points instead of paying $3,000+ cash.
Status Match
A loyalty programme practice of granting equivalent elite status based on your tier with a competitor’s programme.
Marriott might grant you Gold Elite status if you already have Air Canada Altitude Elite 25K status.
T – Travel Card Terms Starting with T
Transfer Partner
Airlines or hotels where you can move credit card points at a specific ratio, often 1:1, to book award travel.
American Express Membership Rewards transfers to Aeroplan, British Airways, and Marriott Bonvoy at 1:1 ratios.
Trip Cancellation
Insurance coverage that reimburses non-refundable travel expenses when you must cancel trips for covered reasons like illness or emergency.
If you get sick before a $2,000 vacation, trip cancellation insurance might refund your prepaid, non-refundable expenses.
Travel Credit
An annual benefit providing statement credits for qualifying travel purchases, effectively reducing your travel costs.
The American Express Platinum Card offers a $200 annual travel credit that automatically applies to airline purchases.
Travel Portal
A booking platform operated by credit card companies where you can use points to book flights, hotels, and rental cars.
The Capital One travel portal allows you to book any flight and pay with miles at a fixed 1 cent per mile rate.
TSA PreCheck
A U.S. security programme allowing pre-approved travellers to use expedited screening lanes at airports.
TSA PreCheck members keep shoes and laptops on while passing through security, significantly reducing wait times.
U – Travel Card Terms Starting with U
Upgrade
Moving to a higher class of service, often using points, elite status, or paying additional fees for better seats and amenities.
Using 15,000 Aeroplan points to upgrade from economy to business class on a domestic flight.
Utilisation Rate
The percentage of your available credit limit that you’re currently using, a key factor in calculating your credit score.
A $1,500 balance on a $5,000 limit card represents a 30% utilisation rate, which may impact your credit score.
Unrestricted Miles
Reward miles that can be used for any available flight without blackout dates or seat restrictions, though at potentially variable rates.
Capital One miles can be used to book any seat on any flight at any time, unlike traditional frequent flyer programmes.
V – Travel Card Terms Starting with V
Variable Rate
An interest rate that fluctuates based on economic conditions and the Bank of Canada’s prime lending rate.
A variable rate of “Prime + 15.99%” would be 22.94% when the prime rate is 6.95%.
Void Transaction
Cancelling a credit card transaction before it’s processed, preventing the charge from appearing on your statement.
If a restaurant voids your $50 dinner charge due to an error, it won’t appear on your credit card statement.
Value Proposition
The overall benefit you receive from a travel card considering annual fees, earning rates, welcome bonuses, and included benefits.
A card with a $120 annual fee that provides $300 in travel credits offers a strong value proposition for frequent travellers.
W – Travel Card Terms Starting with W
Welcome Bonus
The initial reward offered to new cardholders for meeting spending requirements, typically the largest points earning opportunity.
A 60,000 point welcome bonus worth $600-$1,200 in travel depending on how you redeem the points.
Waived Fee
Promotional offers where card issuers eliminate annual fees, foreign transaction fees, or other charges temporarily or permanently.
Many travel cards waive the annual fee for the first year, then charge the full amount starting year two.
Wheeling
A strategy of booking complex flight itineraries with multiple stops to maximise award value or reach destinations with limited direct flights.
Flying Toronto to Bangkok via London and Dubai on one award ticket instead of booking separate segments.
X-Y-Z – Travel Card Terms Starting with X, Y, and Z
Yield Management
Airline and hotel pricing strategies that adjust award availability and cash prices based on demand, seasonality, and booking patterns.
Hotels release more award nights during low-demand periods and fewer during conferences or holidays.
Zone-based Pricing
Award charts that group destinations into geographical zones, with pricing based on zones crossed rather than specific cities.
Flying from Toronto to any destination in Europe (Zone 5) costs the same 75,000 Aeroplan points whether London or Athens.
Zero Liability Protection
Credit card security feature ensuring you’re not responsible for fraudulent charges made with your card information.
If someone uses your stolen card number for $500 in purchases, you won’t be charged for those fraudulent transactions.
📊 Best Travel Card in Canada 2025: Expert Analysis
Best Travel Card in Canada 2025
The top-performing travel credit cards available to Canadian consumers, evaluated based on welcome bonuses, earning rates, annual fees, travel benefits, and overall value proposition for different spending patterns and travel preferences.
For 2025, top contenders include the TD Aeroplan Visa Infinite (best for Air Canada loyalty), American Express Cobalt (highest grocery/dining rates), and Scotiabank Passport Visa Infinite (no foreign transaction fees). See our complete 2025 rankings and analysis →
Best All-Around Travel Card
A travel credit card that excels across multiple categories including earning rates, welcome bonus, travel benefits, and insurance coverage, making it suitable for most Canadian travellers regardless of their specific preferences.
Cards like the TD Aeroplan Visa Infinite offer strong earning rates (2x on gas/groceries), valuable welcome bonuses (50,000+ points), comprehensive travel insurance, and airport lounge access, making them excellent all-around choices.
Best Premium Travel Card
High-end travel cards with substantial annual fees ($400+) that provide luxury benefits like airport lounge access, travel credits, concierge services, and enhanced insurance coverage for affluent travellers.
The American Express Platinum Card ($799 annual fee) offers Centurion Lounge access, $200 annual travel credit, hotel status upgrades, and comprehensive travel protection for frequent luxury travellers.
Best No Annual Fee Travel Card
Travel credit cards that don’t charge yearly fees while still offering competitive earning rates and travel benefits, ideal for budget-conscious consumers or those new to travel rewards.
The MBNA Rewards World Elite Mastercard offers 2x points on travel and gas with no annual fee, plus comprehensive travel insurance coverage typically found on premium cards.
Best Travel Card for Groceries
Cards optimized for earning maximum rewards on grocery purchases, which represent a significant portion of most households’ spending and can accelerate points accumulation for travel redemptions.
The American Express Cobalt Card earns 5x points on groceries (up to $30,000 annually), making a $500 monthly grocery budget worth 30,000 points per year toward travel.
Best Travel Card for International Travel
Cards specifically designed for frequent international travellers, featuring no foreign transaction fees, comprehensive overseas medical insurance, and benefits like Global Entry credits or international lounge access.
The Scotiabank Passport Visa Infinite eliminates foreign transaction fees, includes $1 million travel medical insurance, and offers Priority Pass lounge access for international travellers.
Best Airline-Specific Travel Card
Co-branded credit cards tied to specific airlines that offer enhanced earning rates on that carrier, airline-specific benefits like free checked bags, and direct points earning into the airline’s loyalty programme.
TD Aeroplan cards earn points directly into Air Canada’s programme, offer benefits like priority boarding and lounge access, plus earn bonus points on Air Canada purchases.
Best Welcome Bonus Travel Card
Cards offering the highest-value sign-up bonuses for new cardholders, often worth $500-$1,500 in travel value when minimum spending requirements are met within the specified timeframe.
Current top welcome bonuses include 80,000+ point offers worth $800-$1,600 in travel, requiring $3,000-$5,000 in spending within 3-6 months of account opening.
Best Travel Card for Families
Cards offering benefits that extend to family members, such as additional authorized user cards at no cost, family travel insurance coverage, and earning structures that maximize rewards on family spending categories.
Cards like the TD Aeroplan Visa Infinite include up to 4 additional cards at no extra cost, family travel medical insurance, and bonus categories like groceries and gas that benefit household spending.
Best Flexible Travel Card
Cards that don’t restrict you to specific airlines or hotel chains, offering maximum flexibility in how and where you can redeem your rewards for travel purchases.
Capital One Venture cards allow you to book any flight, hotel, or rental car and pay with miles at a fixed rate, providing complete flexibility without airline or hotel loyalty programme restrictions.
🎉 Glossary Complete!
You now have access to over 100 essential travel card terms covering everything from annual fees to zone-based pricing. This comprehensive glossary will help you navigate the complex world of Canadian travel credit cards with confidence!
Pro Tip: Bookmark this glossary and refer back to it when comparing travel cards or reading terms and conditions.
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