BMO Cashback MasterCard Review

3.00

$0.00

Annual Fee

$324.00

Annual Rewards

5% Cashback + $50

Intro Offer

$0.00

Annual fee

$324.00

Annual rewards

5% Cashback + $50

Intro offer


Pros


  • No annual fee
  • 3% cashback on groceries
  • 1% cashback on recurring bill payments
  • 0.5% cashback on all other purchases
  • Purchase protection and extended warranty coverage
  • Access to MasterCard’s Priceless Experiences

Cons


  • Minimum $15,000 annual income requirement
  • Lower cashback rate on non-grocery/non-bill purchases
  • Foreign currency conversion fee of 2.5%
  • Limited to BMO customers only
  • Some cashback competitors offer higher earning rates

How you earn rewards

Each card earns rewards differently. Part of choosing your card is deciding what type of rewards you want to get. With BMO Cashback MasterCard, here’s how you earn rewards:

Bills1%
Groceries3%
All Other Spend1%

How much your rewards are worth

The dollar value of your rewards depends on the specific BMO rewards program and what you choose to redeem your points for.

For BMO Cashback MasterCard in particular, if you spend $2,000.00 per month, here’s our estimated rewards earned depending on which reward you choose:

Redemption methodAnnual rewards
Apply to statement credit$3.27
Make investments$3.27
Cash rewards$3.27

Calculating your annual rewards

$24,000.00 annual spending x $1.35% return on spending = $324.00 annual rewards

$324.00 annual rewards – $0.00 annual fee = $$324.00 net annual rewards

Details and eligibility

Do I qualify?
Estimated Credit Score560 – 659
Personal Income$15,000.00
Interest Rates
Purchase20.9%
Cash Advance22.9%
Balance Transfer22.9%
Fees
Extra Card Fee$0
Card typeMasterCard

Insurance coverage

Extended Warranty1 year
Purchase Protection90 days

BMO Cashback MasterCard Review

The BMO Cashback MasterCard is a popular credit card choice among those looking to earn cash back on their everyday purchases. In this review, we will analyze the earning potential of this card, detail four notable benefits, and discuss two major drawbacks that consumers should consider before applying. Finally, we will provide additional information to give a comprehensive outlook on the card.

1. Earning Potential: The BMO Cashback MasterCard allows cardholders to earn unlimited cash back on every purchase with no cap on the total amount earned. The reward rates for different spending categories are as follows:

  • 3% cash back on grocery purchases
  • 1% cash back on recurring bill payments
  • 0.5% cash back on all other purchases

2. Benefit 1: The first major advantage of this card is its simplicity, as cardholders will not have to deal with a complicated rewards program or carefully track their spending in specific categories.

3. Benefit 2: The second advantage is the impressive 3% cash back rate on groceries, which is one of the highest in the Canadian market for this category and a major selling point for families or individuals who frequently cook at home.

4. Benefit 3: The third advantage is that there is no annual fee for the card, making it suitable for individuals who prefer not to pay for a credit card membership.

5. Benefit 4: The fourth advantage is the card’s wide acceptability, as it can be used anywhere MasterCard is accepted – making it ideal for both domestic and international purchases.

6. Drawback 1: A significant drawback of this card is the relatively low 0.5% cash back rate for purchases outside of grocery and recurring bills. Those with diverse spending habits may not be able to maximize their cash back rewards within these limited categories.

7. Drawback 2: Another drawback is the lack of additional perks, such as travel benefits or extended warranty coverage, which are commonly offered by other cash back cards with annual fees.

8. Additional Information: The BMO Cashback MasterCard offers new applicants a welcome bonus of 5% cash back in the first three months, up to a maximum of $100. Cardholders will also have access to basic security features such as purchase protection and zero liability for unauthorized use.

In conclusion, the BMO Cashback MasterCard is a solid choice for those who prioritize earnings on grocery purchases and prefer a simple, no-annual-fee card. However, individuals with varied spending habits or those seeking additional card perks may want to explore other options within the Canadian credit card market.

Not the right fit? You could consider the BMO Preferred Rate MasterCard. Or, if you’re looking for other options check out the BMO Rewards MasterCard, and the BMO Cashback World Elite MasterCard.

FAQ

The BMO Cashback MasterCard allows you to redeem your cashback rewards for various attractive options. You can use the cashback earned in the form of:

  • Statement credit: Apply your cashback amount directly to your credit card statement to offset your balance.
  • Direct deposit: Deposit your cashback directly into a BMO checking or savings account.
  • Investment: Apply your cashback rewards to eligible BMO investment accounts.
  • Mortgage principal: If you have a BMO mortgage, you can use your cashback to reduce the principal amount owing on your mortgage.
  • Travel: Redeem your cashback rewards for various travel-related expenses, such as flights, hotels, and car rentals.
  • Merchandise: Spend your cashback on a wide range of products available through the BMO Cashback online catalogue, including electronics, home items, accessories, and more.

The BMO Cashback MasterCard credit card has a foreign transaction fee of 2.5% on purchases made in a currency other than Canadian dollars. This fee is applicable to both online and in-person transactions made abroad or with merchants that process payments in foreign currencies.

The BMO CashBack MasterCard does not have a minimum income requirement, making it accessible to a wider range of applicants.

Key benefits

  • Issued by Bank of Montreal (BMO)
  • MasterCard network
  • Credit limit determined by income and credit score
  • $0 annual fee
  • Interest rate: 19.99% on purchases
  • Cash advance rate: 22.99%
  • Balance transfer rate: 22.99%
  • Grace period: 21 days
  • Automatic cashback redemption every January
  • Card customization options available
  • Contactless payment (tap-and-go) enabled

About The Author