What the Air Canada Credit Card Does

The Air Canada credit card is a co-branded card issued by TD Bank that earns points on purchases, which you can redeem for Air Canada flights, seat upgrades, and other travel rewards. You earn points on every dollar spent, with bonus earning rates on Air Canada purchases and certain categories like dining and groceries. The card comes with perks tied to Air Canada travel—priority boarding, baggage allowance, and lounge access—though the specific benefits depend on which version of the card you hold.

This is not a card that gives you free flights or guarantees lower fares. It is a rewards card that accumulates points over time, and those points have a cash value you can use toward Air Canada bookings. The points do not expire as long as your account remains open and in good standing, but the redemption value and available flights change based on Air Canada's inventory and pricing.

Key Takeaways

  • Air Canada credit cards earn points on all purchases, with higher earning rates on Air Canada flights and select spending categories like dining.
  • Points can be redeemed for Air Canada flights, seat upgrades, and other travel rewards, but availability depends on Air Canada's current inventory.
  • The card includes travel benefits such as priority boarding and baggage allowance, though the exact perks vary by card tier.
  • Annual fees range from around $120 to $350 depending on the card version, and you should compare the earning rate against the fee to determine if it makes sense for your spending.
  • Points do not expire as long as your account is active, but the redemption value of those points can change over time.

The Different Air Canada Card Versions

TD Bank offers multiple versions of the Air Canada card, each with different annual fees, earning rates, and travel perks. The standard version typically has a lower annual fee and basic earning rates. The premium versions—often called "Infinite" or "Reserve"—charge higher annual fees but offer faster point earning, higher welcome bonuses, and more generous travel benefits like complimentary lounge access and seat upgrades.

Before you open an account, compare the annual fee against your expected spending. If you spend $10,000 per year on the card and earn 1.5 points per dollar, you earn 15,000 points. If the annual fee is $150, you need to value those 15,000 points at more than $150 to break even. Points typically redeem at roughly 1 cent per point for flights, though premium cabin seats and peak travel dates often cost more points per dollar of value.

The welcome bonus—usually a one-time point grant for opening the account—can offset the first year's fee if you meet any spending requirement. Read the terms carefully: some bonuses require you to spend a certain amount within the first few months, while others are automatic.

How to Open an Air Canada Credit Card Account

You can open an account online through TD Bank's website, by phone, or in person at a TD branch. The online process typically takes 10 to 15 minutes. You will need your Social Insurance Number, proof of income (recent pay stub or tax return), and current address. TD will run a credit check, which temporarily lowers your credit score by a few points.

Approval decisions usually come within minutes for online applications, though some applications are flagged for manual review and may take one to three business days. If you are declined, TD will send you a letter explaining the reason. Common reasons include insufficient credit history, recent missed payments, or a credit score below the card's minimum threshold.

Once you are approved, your card arrives by mail within 7 to 10 business days. You can often request expedited delivery for an additional fee. Before you use the card, you must set up it—either online through your TD account, by calling the number on the back of the card, or through the TD mobile app.

Earning and Redeeming Points

Points accumulate on every purchase you make with the card. The earning rate depends on the card version and the category of purchase. For example, you might earn 3 points per dollar on Air Canada flights and 1.5 points per dollar on dining and groceries, with 1 point per dollar on all other purchases. Some cards offer bonus points during promotional periods—Air Canada and TD announce these through email and the card's online portal.

You redeem points through your TD online account or the Air Canada website. You can book a flight directly using points, or you can transfer points to your Air Canada Aeroplan account (Air Canada's loyalty program) and book through there. Points typically redeem at a fixed rate: for example, a domestic flight might cost 12,500 points, while an international flight costs more. The cost varies by route, season, and how far in advance you book.

Not all Air Canada flights are available for points redemption. Airlines block certain seats and flights from reward bookings, especially on popular routes during peak travel times. If you cannot find award availability, you can use points to pay for part of a ticket (called a "points + cash" booking) or hold your points for a different date.

Annual Fees and When They Charge

The annual fee posts to your account on the anniversary of when you opened the card—usually one year from the approval date. The fee amount depends on which version of the card you hold. Standard versions typically charge $120 to $150 per year, while premium versions charge $300 to $350 per year.

You are responsible for paying the annual fee like any other charge on your statement. If you do not pay it, it accrues interest just like a regular purchase. Some cardholders close their account before the anniversary date to avoid paying the fee, though this forfeits any remaining points and closes your credit account (which can lower your credit score).

TD occasionally offers fee waivers for the first year if you meet a spending threshold during the welcome period. Read your welcome offer carefully to see if this applies to your card.

Travel Benefits Beyond Points

Air Canada credit cards include perks that are separate from points earning. These typically include priority boarding (you board before general passengers), a baggage allowance (usually one free checked bag), and access to Air Canada lounges when you fly. Premium card versions often add benefits like complimentary seat upgrades (when available), travel insurance, and emergency medical coverage while traveling.

These benefits explore when you use the card to purchase your ticket. If someone else buys your ticket and you use the card for something else, you may not receive the benefits. Read your card's benefits guide to understand which benefits require you to pay with the card and which explore automatically to your Air Canada account.

Travel insurance typically covers trip cancellation, baggage delay, and emergency medical expenses while you are outside Canada. The coverage limits and exclusions vary by card version. Review the full policy before you travel so you know what is and is not covered.

Managing Your Account and Paying Your Balance

You can manage your Air Canada credit card through TD's online banking portal or mobile app. You can view your current balance, recent transactions, available credit, and points balance. You can also set up automatic payments so your bill pays on a fixed date each month.

Payments are due by the statement due date, which is typically 21 days after your statement closes. If you pay only the minimum amount due, the remaining balance accrues interest at the card's annual percentage rate (APR), which varies based on your creditworthiness. Carrying a balance month to month costs significantly more than the annual fee, so paying in full is usually the better choice if you can afford it.

If you miss a payment, TD reports it to the credit bureaus after 30 days. This damages your credit score and may trigger a higher interest rate on this card and others. If you are having trouble making a payment, contact TD before the due date to discuss options.

Frequently Asked Questions

Do my points expire if I do not use them?

Points do not expire as long as your account remains open and active. However, if you close the card or your account becomes inactive for an extended period, TD may cancel your points. Keep your account open and use it occasionally to keep it active.

Can I transfer my points to someone else?

You cannot transfer points directly to another person's account. However, you can redeem points for a ticket in someone else's name and give them the ticket. Some cards allow you to add an authorized user to your account, and that person can earn points on their purchases, but those points still belong to your account.

What happens to my points if I close the card?

When you close an Air Canada credit card, your points are typically forfeited. Before you close the account, redeem any remaining points for flights or other rewards. If you have a small balance of points, contact TD to ask about your options.

Can I use my points on partner airlines?

Points earned on the Air Canada credit card can be used for Air Canada flights and, through the Aeroplan program, on Air Canada's partner airlines. The partner list includes airlines like United, Lufthansa, and others, though availability and point costs vary. Check the Aeroplan website to see the full list of partners and redemption rates.

What if I am denied for the card?

If TD declines your process, they will mail you a letter explaining the reason. Common reasons include a credit score below the card's minimum, recent missed payments, or insufficient credit history. You can reapply after addressing the issue—for example, by paying down existing debt or waiting several months for negative marks to age on your credit report. You can also contact TD to ask if a lower-tier version of the card might be available to you.