BMO Air Miles No-Fee Business Mastercard Review

Annual Fee
Purchase Interest Rate
Cash Advance Interest Rate
Interest Free Grace Period
25 Days
Get 500 AIR MILES Bonus Miles after your first purchase

Like BMO’s other Air Miles business card, the BMO Air Miles No-Fee Business Mastercard provides a small company and its employees with responsible buying power and a steady stream of travel rewards. Unlike BMO’s other Air Miles business card, it does so at no annual cost to the business owner.

With no restrictions on which purchases are eligible to collect rewards, an accelerated earning rate at certain locations, and Miles that never expire, a business’s travel expenses can be reduced just by operating as usual. Any businessperson will appreciate the introductory bonus of 500 Air Miles as well, though they must apply before March 31st, 2018 to be eligible.

Basic Rewards Structure

BMO grants cardholders 1 Air Mile for each $20 spent on credit card purchases, without constraining users to certain brands or categories. This is respectable for a card with no annual fee, though it does not accumulate miles as quickly as other Air Miles cards (the regular BMO Air Miles business card accrues at double that rate).

Accelerated Rewards Structure

When spending money at Shell stations across Canada, members earn Air Miles at 1.25x the normal rate. With a default of 1 mile per $20, this means that Shell purchases collect 1 Mile for every $16. Compare that to the 1 Mile for every $8 spent at Shell with the regular BMO Air Miles business card.

It’s important to note that the accelerated Shell rates are only applicable for a monthly spending amount under $2,500 in total, whether with this no-fee card or its $120 annual fee cousin.

About Air Miles

One of Canada’s most celebrated travel programs, Air Miles are a flexible rewards currency that can be redeemed for flights, hotels and merchandise. While the CAD value of 1 Air Mile varies depending on what it’s being redeemed for, we calculate its average point value at $0.105. Including the introductory Mile bonus, business owners spending $5,000 each month will earn 3,500 miles in their first year—enough to cover a trip to New York from Canada.

Other Card Perks

  • Distribute cards to employees in order to accelerate earnings while enforcing responsible spending.
  • Accepted at Costco
  • Manufacturer’s warranty on items purchased with the card is extended by up to one year.
  • Purchase Protection provides reimbursement for goods that are damaged or stolen up to 90 days after their purchase.
  • 25-day grace period for payments (standard period is 21 days)

Who’s the Card For?

The BMO Air Miles No-Fee Business Mastercard is best suited to small business owners who travel (whether for business or pleasure) and want to use their company’s expenditures to cut the cost of airfare, without paying a fee for the privilege. It might also be important for them to delegate spending responsibility to their employees, which is another feature that the card offers with zero liability. The card is one of the best Air Miles credit cards without an annual fee, but the lack of an annual fee forfeits the possibility of a high rewards rate.

Not sure whether you should go with this card or an Air Miles card with greater rewards earning rates and an annual fee? We advise you to do some calculations to determine whether or not you’ll meet a monthly spending amount that garners enough rewards to offset said fee.

For example, the BMO Air Miles Business Mastercard has a $120 annual fee after the first year (for which it is waived). To maintain value after the first year, we recommend it to small businesses that spend a minimum of $1000 per month. Not sure you’ll meet that threshold? Go with the No-Fee Business Mastercard instead.

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