Card at a Glance
| Feature | Details |
|---|---|
| Card name | BMO CashBack Mastercard |
| Annual fee | $0 |
| Minimum income | None |
| Network | Mastercard |
| Rewards type | Cash back |
| Supplementary card | $0 |
| Interest rate (purchases) | 20.99% |
| Interest rate (cash advances) | 22.99% |
| Foreign transaction fee | 2.5% |
| Insurance | Purchase protection, extended warranty |
Cash Back Rates
| Category | Rate | Notes |
|---|---|---|
| Groceries | 3% | No annual cap |
| Everything else | 0.5% | Includes gas, dining, etc. |
What Counts as Groceries
The 3% category includes purchases at stores classified as supermarkets and grocery stores:
| Included | Not Included |
|---|---|
| Loblaws, No Frills | Costco (classified as warehouse) |
| Sobeys, FreshCo | Walmart Supercentre (general merchandise) |
| Metro | Gas station convenience stores |
| IGA | Restaurant/prepared food delivery |
| Farm Boy | Amazon Fresh |
| Whole Foods | Drug store food |
Important: Merchant category codes (MCC) determine eligibility. Some stores don’t code as grocery.
Cash Back Redemption
Cash back on the BMO CashBack Mastercard is simple and automatic:
| Aspect | Details |
|---|---|
| Accumulation | Automatic, no enrollment |
| Payout | Annual (December) |
| Minimum | None — all cash back paid out |
| Method | Statement credit to your account |
You don’t need to redeem manually — BMO deposits your cash back automatically each December.
Annual Cash Back Estimate
Example: Moderate Spender
| Monthly Spend | Category | Annual Cash Back |
|---|---|---|
| $500 groceries | 3% | $180 |
| $1,000 other | 0.5% | $60 |
| Total | $240 |
Example: High Grocery Spender
| Monthly Spend | Category | Annual Cash Back |
|---|---|---|
| $800 groceries | 3% | $288 |
| $500 other | 0.5% | $30 |
| Total | $318 |
Since there’s no annual fee, all cash back is pure profit.
BMO CashBack vs BMO CashBack Elite
BMO offers an upgraded version with higher rates but an annual fee:
| Feature | BMO CashBack | BMO CashBack Elite |
|---|---|---|
| Annual fee | $0 | $120 |
| Groceries | 3% | 5% |
| Gas | 0.5% | 4% |
| Recurring bills | 0.5% | 3% |
| Everything else | 0.5% | 1% |
| Insurance | Basic | Comprehensive |
When to Upgrade to Elite
The CashBack Elite becomes worthwhile with high spending in bonus categories:
| Monthly Spend | CashBack (Annual) | Elite (Annual) | Difference |
|---|---|---|---|
| $500 groceries | $180 | $300 | Elite +$0 (after fee) |
| $300 gas | $18 | $144 | Elite +$126 |
| $200 bills | $12 | $72 | Elite +$60 |
| Total | $210 | $516 – $120 fee = $396 | Elite +$186 |
If you have moderate spending in groceries, gas, and bills, the Elite card earns significantly more even after the $120 fee.
Insurance and Benefits
Included Coverage
| Coverage | Details |
|---|---|
| Extended warranty | Extra year (up to 1 year) on manufacturer warranties |
| Purchase protection | 90 days against damage or theft (up to $1,000/item) |
| Price protection | Not included |
| Travel insurance | Not included |
What’s Not Included
The no-fee BMO CashBack Mastercard does not include:
- Travel medical insurance
- Trip cancellation/interruption
- Car rental collision/damage waiver (CDW)
- Airport lounge access
- Price protection
For travel coverage, consider the BMO Eclipse Visa Infinite or a separate travel card.
Application Requirements
| Criterion | Requirement |
|---|---|
| Age | 18+ (19+ in some provinces) |
| Residency | Canadian resident |
| Credit history | Limited history acceptable |
| Income | No minimum |
| Existing debt | Manageable debt-to-income ratio |
The BMO CashBack Mastercard is relatively easy to get approved for, making it good for:
- Students
- New graduates
- First credit card applicants
- Rebuilding credit (in some cases)
BMO CashBack vs Other No-Fee Cards
| Feature | BMO CashBack | Tangerine MC | SimplyCash Amex | Rogers Mastercard |
|---|---|---|---|---|
| Annual fee | $0 | $0 | $0 | $0 |
| Best rate | 3% groceries | 2% (3 categories) | 1.25% all | 1.5% all (Rogers) |
| Second best | 0.5% all | 0.5% all | — | 1% all (other) |
| Network | Mastercard | Mastercard | Amex | Mastercard |
| FX fee | 2.5% | 2.5% | 2.5% | 0% |
| Best for | Grocery focus | Flexible categories | Flat rate | FX purchases |
Comparison Analysis
Choose BMO CashBack if:
- Groceries are your highest spending category
- You want maximum return on grocery purchases with no fee
- You don’t need travel insurance
Choose Tangerine MC if:
- You want flexibility to pick your own bonus categories
- Gas, dining, or bills are higher priorities than groceries
Choose SimplyCash from Amex if:
- You want a flat rate everywhere without tracking categories
- Amex is widely accepted where you shop
Choose Rogers WE MC if:
- You make frequent purchases in foreign currency
- You’re a Rogers/Fido customer (cashback bonus)
Using This Card Strategically
Optimal Strategy
| Purchase Type | Use BMO CashBack? | Alternative |
|---|---|---|
| Groceries | ✅ Yes — 3% | None better at $0 fee |
| Gas | ❌ No — 0.5% | Use 4%+ gas card |
| Dining | ❌ No — 0.5% | Use dining-focused card |
| Bills | ⚠️ Maybe | If only card, yes |
| General purchases | ⚠️ Maybe | Flat-rate card may be better |
Recommended pairing: Use BMO CashBack for groceries alongside a Rogers WE MC (1.5% everything, no FX fee) or a dining card for restaurants.
BMO Banking Integration
If you bank with BMO, the CashBack Mastercard integrates seamlessly:
| Feature | Benefit |
|---|---|
| Same app | View card and bank in BMO app |
| Same login | One credential for everything |
| Payment | Pay directly from BMO chequing |
| Overdraft protection | Link to card for emergencies |
BMO Bundle Benefits
Some BMO account packages waive or reduce fees when bundled with credit products. Check your account for available offers.
Pros and Cons
Pros
| Advantage | Details |
|---|---|
| No annual fee | Keep forever without paying |
| Strong grocery rate | 3% beats most free cards |
| No income requirement | Accessible for students/beginners |
| Simple redemption | Automatic annual payout |
| Mastercard acceptance | Widely accepted in Canada |
Cons
| Disadvantage | Details |
|---|---|
| Low non-grocery rate | 0.5% on everything else is weak |
| No travel insurance | Must use a different card |
| 2.5% FX fee | Don’t use abroad |
| Annual cash back | Wait until December for payout |
| Limited benefits | Basic insurance coverage |
Who Should Get This Card
| Profile | Recommendation |
|---|---|
| Student/first card | ✅ Excellent — easy approval, no fee |
| High grocery spender | ✅ Good — 3% is competitive |
| Budget-focused | ✅ Good — no cost to hold |
| Frequent traveler | ❌ Get a travel card instead |
| High non-grocery spender | ⚠️ Flat-rate card may be better |
| Multiple-card strategist | ✅ Good as grocery-only card |
How to Apply
- Online — Apply at bmo.com in ~10 minutes
- In-branch — Visit any BMO location
- Phone — Call BMO
Decision timeline: Instant approval for many applicants; some may require additional review (7-10 business days).
Alternatives to Consider
If the BMO CashBack Mastercard doesn’t fit your needs:
| Alternative | Why Consider |
|---|---|
| Tangerine Money-Back MC | Pick your own 2% categories |
| PC Financial Mastercard | 3% at Loblaws stores as points |
| Scotiabank Momentum VI | 4% groceries (paid card) |
| BMO CashBack Elite | Upgrade for higher rates |