BMO Cashback Business MasterCard Review

4.25

$0

Annual Fee

$276

Annual Rewards

N/A

Intro Offer

$0

Annual fee

$276

Annual rewards

N/A

Intro offer


Pros


  • No annual fee
  • 1.5% cashback rate on eligible purchases
  • Cashback rewards are not capped
  • Includes MasterCard Easy Savings Program
  • Purchase protection and extended warranty
  • Access to BMO Cash Management Tools
  • Optional Employee Cards with controlled spending limits

Cons


  • Higher interest rate: 19.99% on purchases, 22.99% on cash advances
  • Foreign currency transactions incur a 2.5% fee
  • Limited reward redemption options: only cashback
  • Requires good credit for approval
  • No introductory or promotional offers
  • Cashback rewards may not be suitable for businesses seeking travel rewards or other benefits

Performance test results

At DollarWise, for each credit card we test 7 different factors including the rewards, value for money, perks, insurance, strengths and weaknesses of the card.

You can see our full testing methodology here to learn why we’re the most trusted source for credit card reviews.

The BMO Cashback Business MasterCard has earned a 4.25 DollarWise Rating out of 5. This score is based on a weighted average of the two highest scoring factors (excluding acceptance and approval).

Rewards

Fees

Perks

Interest rates

Insurance

Acceptance

Approval

The highest scoring categories for the BMO Cashback Business MasterCard are fees and interest.

These factors are weighted 70% to the highest scoring factor and 30% to the second highest score to get an overall review score.

This weighting allows us to judge cards on their merits and the customers they are designed for.

For the BMO Cashback Business MasterCard the most important factors for scoring this card are its fees and interest.

Rewards

With the BMO Cashback Business MasterCard, here’s the rates at which you earn rewards for different spending categories per dollar you spend:

Bills1%
Pharmacy1%
Gas2%
Groceries1%
Restaurants1%
Specific Stores2%
Travel1%
All Other Spend1%

Calculating your annual rewards

We estimate that spending $2,000 per month with the BMO Cashback Business MasterCard would earn $276 in rewards over the year.

Our performance testing research uses an accurate estimation of the average Canadian households spending patterns to predict the rewards a card will earn.

We found that you’d earn this per category:

Gas$48
Specific Stores$24
All Other Spend$204

Our study investigating the value found that each dollar spent on the BMO Cashback Business MasterCard is worth up to $0.01, depending on how you redeem.

This $276 in rewards value puts the BMO Cashback Business MasterCard in the bottom 40% of credit cards in Canada based on rewards earned.

The average credit card in our database earns $337 in rewards for the same spend that the BMO Cashback Business MasterCard earns $276 in rewards value.

We can compare this card to other options by looking at the earn rate by category.

This earn rate is the percentage return that you would get when you spend on this card, assuming you redeem at the predicted maximum value.

For example, if a card earned 5 points per dollar on gas and each point is worth up to $0.02, then the earn rate is 5 points multiplied by $0.02 each, divided by the dollar you spent.

In this example, that’s a 10% earn rate on gas.

SpendThis CardAverage
Bills1.00%1.25%
Pharmacy1.00%1.17%
Gas2.00%1.48%
Groceries1.00%1.71%
Restaurant1.00%1.53%
Store2.00%1.94%
Travel1.00%1.19%
Other1.00%1.08%
Above, we’ve calculated the earn rate for the BMO Cashback Business MasterCard for every spend category and compared it to the average for all Canadian credit cards.
Redemption methodAnnual rewards
Apply to statement credit$237

For an annual spend of $24,000, we estimated annual rewards value at up to $276.

That’s equivalent to a 1.15% return on spending.

The BMO Cashback Business MasterCard has an annual fee of $0. After deducting this, we predicted net annual rewards of $276.

This puts it in the bottom 50% of credit cards for net rewards after fees.

In comparison, the average card earns net annual rewards of $254.

Fees

The BMO Cashback Business MasterCard has a $0 annual fee.

The average card charges $85. So, the BMO Cashback Business MasterCard is in the bottom 50% of cards based on the cost of the annual fee.

Perks

We manually review the perks of each credit card to determine how they compare to other cards.

The BMO Cashback Business MasterCard scored a 1.8 out of 5 for perks, putting it in the top 40% of cards.

The average card scores 1.6 out of 5 for perks.

Interest Rates

Purchase19.99%
Cash Advance22.99%
Balance Transfer22.99%

The average (median) credit card has a purchase interest rate of 19.99% and so the BMO Cashback Business MasterCard charges {{purchase_interest_diff}} than the average.

For cash advances it costs 22.99% compared to the average of 19.96%.

Testing the BMO Cashback Business MasterCard with a $2,000 starting balance, you can see in the graph how the {{purchase_interest_diff}} in interest rates impacts the interest over a year, compared to the average card.

Insurance coverage

InsuranceThis CardAverage
Extended Warranty1 Year1 year
Purchase Protection90 days90 days

We scored it 0.0 out of 5 for insurance.

It offers 2 types of insurance, whereas the average card has 5 types of coverage.

Approval and qualifying

Do I qualify?
Estimated Credit Score660 – 724
Personal Income$0
Household Income$0
Fees
Annual Fee$0
Extra Card Fee$0
Card typeMasterCard

We scored it 3.0 out of 5 for approval.

We predict that you will require a credit score of at least 660 to qualify for the BMO Cashback Business MasterCard, while the average card requires 652 to qualify.

This puts it in the top bottom 50% of cards by approval difficulty.

The personal income requirements are $0, while the average card requires $23,896.

This puts it in the top 50% of cards by the income required to qualify.

The BMO Cashback Business MasterCard is a popular choice among Canadian business owners looking for a credit card that provides a straightforward cashback earning system.

This review will discuss its earning potential, list four benefits and two drawbacks, and any other relevant information that may help users make an informed decision.

Earning potential

The BMO Cashback Business MasterCard earns points through a simple cashback system rather than a tiered points-based system. Cardholders enjoy a flat rate of 1.5% cashback on all card purchases, regardless of the spending category, making it an easy-to-understand and consistent rewards card.

This means you will earn the same cashback rate on dining, travel, grocery, and any other spending.

Benefits

  1. Benefit 1: The first major advantage of this card is its welcome bonus. New cardholders can earn a 6% cashback on gas, office supplies, and cell phone/internet bill payments for the first four months, up to a maximum of $125 in cashback rewards.

    This is an attractive offer that can be especially beneficial for businesses with high expenses in these areas during the initial period.
  2. Benefit 2: The second major advantage of the BMO Cashback Business MasterCard is the availability of supplementary cards at no additional cost.

    This feature allows business owners to issue cards to employees, further empowering them to make day-to-day purchases while enabling the business to earn more cashback rewards.
  3. Benefit 3: Another advantage of this card is its robust set of purchase protections and insurances, which includes extended warranty and purchase protection. Such benefits can provide much-needed security and assurance for businesses when making large or important purchases.
  4. Benefit 4: The fourth major advantage of the BMO Cashback Business MasterCard is the access to BMO’s Cash Flow Management Tool, which helps monitor the cash flow of your business. This tool can be instrumental in making informed financial decisions, impacting the overall health and growth of your organization.

Drawbacks

  1. Drawback: A significant drawback of this card is the lack of travel-related benefits. Unlike many other business credit cards in the market, the BMO Cashback Business MasterCard does not offer travel insurance, airport lounge access, or travel reward redemption options.

    These omissions may deter those who travel frequently for business purposes or those who wish to redeem travel rewards from their credit card points.
  2. Drawback: Another significant drawback to keep in mind is the lack of tiered rewards categories, which can be considered both an advantage and a disadvantage.

    For businesses that spend heavily in specific categories such as travel or dining, having no bonus cashback categories may result in lower overall rewards earnings compared to cards that offer bonus multipliers for some spending categories.

    However, this may not be an issue for businesses with more evenly distributed expenses, who may prefer the simplicity of a flat cashback rate.

Additional information

In conclusion, the BMO Cashback Business MasterCard is an excellent choice for Canadian business owners who prefer a simple rewards system and want to earn consistent cashback.

Its benefits like the welcome bonus, free supplementary cards, purchase protections, and cash flow management tools can be advantageous for many businesses. However, those who prioritize travel-specific benefits or higher rewards multipliers in specific categories might need to explore other options available in the market.

Is the BMO Cashback Business MasterCard not convincing you? Consider the Scotiabank Passport Visa Infinite Business Card or the Scotia Momentum for Business Visa Credit Card. Still not the right credit card? Make sure not to miss the RBC Visa Business Platinum Avion.

FAQ

The BMO CashBack Business Mastercard credit card enables cardholders to redeem their cash back rewards for a variety of purposes. These include:

  • Statement Credit: Apply your cash back earnings directly towards your credit card balance, helping you save money on your monthly bill.
  • Investment Account Contribution: You can deposit your cash back rewards into a qualifying BMO investment account, allowing you to grow your investments more quickly.
  • Mortgage Payment: Cash back earnings can also be used towards making mortgage payments, which ultimately contributes to reducing the principal owed on your mortgage.
  • BMO Savings Account Deposit: Add your cash back rewards to a BMO Savings Account as additional savings, working towards your financial goals.

It’s important to note that your cash back rewards never expire as long as your account remains in good standing, giving you flexibility in deciding when and how you’d like to redeem them

The BMO Cashback Business MasterCard credit card imposes a foreign transaction fee of 2.5% on purchases made in a foreign currency. This fee is applied on top of the converted amount, reflecting the cost incurred by the bank for processing international transactions.

There is no minimum income requirement for the BMO Cashback Business MasterCard credit card. Since this is a business credit card, the approval is often based on the business financials and the personal credit history of the applicant.

Key benefits

  • Accessible to incorporated businesses and sole proprietorships
  • Manage, consolidate and track credit card expenses easily
  • Cashback credited to account annually
  • Employee cards at no additional cost
  • Additional cards available, each with customized spending limits
  • Credit monitoring and security alerts
  • 24/7 online account access
  • Personal and business contact information may be added for easier tracking
  • Mobile app functionality for convenient account management and access

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