BMO CashBack Mastercard

BMO Cashback Mastercard Review: No-Fee Cash Back Card for Everyday Spending

Earn up to 5% cash back in your first 3 months with no annual fee. Perfect for Canadians looking for straightforward rewards without the premium price tag.

Key Features at a Glance:

• Welcome Offer: Up to 5% cash back for 3 months
• Annual Fee: $0
• Regular Cash Back: 0.5% - 3% on purchases
• Purchase APR: 21.99%

Our Expert Take on the BMO Cashback Mastercard

The BMO Cashback Mastercard strikes an excellent balance for Canadian consumers who want to earn cash back without paying annual fees. As one of Canada's most accessible no-fee cash back cards, it offers a compelling welcome bonus and reasonable ongoing rewards that make it particularly attractive for everyday spending.

What sets this card apart is its practical approach to cash back rewards. Rather than complex category rotations or spending caps that are difficult to maximize, the BMO Cashback Mastercard offers straightforward earning rates: 3% on groceries (up to $500 per statement period), 1% on recurring bills (up to $500 per statement period), and 0.5% on everything else with no limit.

Best For:

• First-time credit card users building credit history
• Budget-conscious consumers who don't want annual fees
• Grocery shoppers who can maximize the 3% category
• Canadians who prefer cash back over points or miles

BMO Cashback Mastercard Features & Benefits

Rewards Structure

Grocery Purchases

• 3% cash back up to $500 maximum per statement cycle
• After reaching the $500 limit, groceries earn 0.5%

Recurring Bill Payments

• 1% cash back up to $500 maximum per statement cycle
• Includes utilities, phone bills, insurance, and subscription services

All Other Purchases

• 0.5% cash back with no spending limit
• Unlimited earning potential on general spending

Welcome Bonus

New cardholders can earn up to 5% cash back during their first 3 months of card membership. This welcome offer provides an excellent opportunity to maximize your initial rewards, especially if you time major purchases or grocery spending during this period.

Additionally, new cardholders receive a special 0.99% balance transfer rate for 9 months, making this card particularly valuable for debt consolidation. A 2% balance transfer fee applies to all transferred balances.

Additional Perks & Benefits

Car Rental Discounts Save up to 20% on National Car Rental and Alamo rentals, plus up to 5% on Enterprise locations worldwide.

Entertainment Savings Enjoy 20% off Cirque du Soleil shows in Canada and 15% off resident shows in Las Vegas.

Travel Booking Discounts Get up to 7% off Booking.com prepaid hotel or property rental bookings.

Purchase Protection Most card purchases are eligible for purchase protection and extended warranty coverage.

Zero Liability Coverage Protection from unauthorized card use, provided you've met your cardholder responsibilities.

Cash Back Redemption Options

One of the BMO Cashback Mastercard's strongest features is its flexible redemption system. Unlike some cards that require minimum redemption amounts or complex point transfers, you can redeem your cash back anytime through multiple convenient options:

Statement Credit Apply cash back directly to your credit card statement to reduce your balance.

Direct Deposit Have cash back deposited directly into your BMO bank account.

Investment Account Transfer cash back to your BMO InvestorLine account to grow your investments.

Interest Rates & Fee Structure

Expert Insight on Fees The BMO Cashback Mastercard's fee structure is competitive for a no annual fee card. The 21.99% purchase APR is standard for this category, though cardholders should always aim to pay their balance in full to avoid interest charges. The 2.5% foreign transaction fee is typical, making this card less ideal for frequent international travelers.

Eligibility Requirements & Application Process

Who Can Apply?

Age Requirement Must be at least the age of majority in your province (18 or 19 years old)

Residency Must be a Canadian resident with a Canadian address

Credit History No bankruptcies in the past seven years

Recommended Credit Score 660+ credit score for best approval odds

How to Apply

The BMO Cashback Mastercard application process is straightforward and can be completed entirely online in under 10 minutes. Here's what you'll need:

Step 1: Personal Information

• Full name and contact details
• Date of birth and SIN (optional but recommended)
• Current address and housing details

Step 2: Employment & Financial Information

• Employment status and industry
• Company name and work phone number
• Annual income (including all sources)

Step 3: Additional Options

• Option to add authorized users
• Optional balance protection insurance
• Review and accept terms and conditions

BMO Cashback Mastercard: Pros vs Cons

Advantages

• No annual fee - Keep more money in your pocket
• Strong welcome bonus - Up to 5% cash back for 3 months
• Good grocery rewards - 3% back on groceries up to $500/month
• Flexible redemption - Multiple ways to use your cash back
• Balance transfer offer - 0.99% rate for 9 months
• Purchase protection - Security for your purchases
• Accessible approval - Reasonable credit requirements

Disadvantages

• Low base earning rate - Only 0.5% on general purchases
• Spending caps - Limited high-earning categories
• Foreign transaction fees - 2.5% on international purchases
• Limited premium benefits - No travel insurance or lounge access
• No sign-up bonus beyond the rate increase
• Higher APR - 21.99% is standard but not competitive

How Does It Compare?

While the BMO Cashback Mastercard offers solid value for a no-fee card, it's worth considering how it stacks up against other Canadian cash back options:

Best Alternative Cards to Consider:

• Tangerine Money-Back Credit Card - 2% in two chosen categories, no annual fee
• PC Financial Mastercard - Optimum Points earning with grocery focus
• Scotiabank Value Visa - Simple 1% cash back on everything, no annual fee

Ideal Cardholder Profile The BMO Cashback Mastercard works best for Canadian consumers who:

• Spend $500+ monthly on groceries and can maximize the 3% category
• Have multiple recurring bills to take advantage of the 1% rate
• Prefer simplicity over complex reward structures
• Want to avoid annual fees but still earn reasonable rewards
• Are building or rebuilding their credit history

Security & Cardholder Protection

As a product of the Bank of Montreal, one of Canada's Big Six banks, the BMO Cashback Mastercard comes with robust security measures and regulatory oversight. BMO is regulated by the Office of the Superintendent of Financial Institutions Canada and registered as a Money Services Business with FINTRAC.

Security Measures Include:

• 24/7 Fraud Monitoring - Dedicated Financial Crimes Unit
• Zero Liability Protection - Protection against unauthorized use
• EMV Chip Technology - Enhanced transaction security
• Mobile App Security - Biometric login and account alerts
• Purchase Protection - Coverage for eligible card purchases

Summary

The BMO Cashback Mastercard delivers exactly what it promises: straightforward cash back rewards without annual fees. While it won't win any awards for having the highest earning rates or most premium benefits, it excels at providing accessible, practical value for everyday Canadian consumers.

The combination of no annual fee, decent earning rates in key categories, and flexible redemption options makes this card a solid choice for anyone looking to dip their toes into cash back rewards or for experienced users who want a simple, no-nonsense earning structure.

Our Recommendation Apply if: You want a reliable no-fee cash back card with good grocery rewards and don't need premium travel benefits. Skip if: You're looking for higher earning rates, premium benefits, or frequently travel internationally.