BMO Rewards Business Mastercard Review

Annual Fee
first year free
$120
Purchase Interest Rate
14.99%
Interest Free Grace Period
25 Days
Cash Advance Interest Rate
22.99%
Base Rewards Earning Rate
1.5%
Max Earnings Rate
3%
35,000 points for $5,000 purchases in the first 3 months, no annual fee for the first year

The BMO Rewards Business Mastercard is an asset for those SMBs with significant expenses in fuel, office supplies and mobile phone bills. Its 35,000-point welcome bonus is granted to cardholders that spend a minimum of $5000 in the first 3 months after their approval—a relatively low spending threshold even for modest businesses.

Aside from its business-oriented rewards accumulation structure, the card also includes substantial insurance benefits and a comparatively low interest rate on purchases. It’s available to the business owners of sole proprietorships, corporations, partnerships and unincorporated ventures.

Basic Rewards Structure

The card’s basic rewards structure is 1.5 BMO Rewards points per $1 spent. This may seem like a better deal compared to competing cards in this category, like the American Express Business Gold Rewards card, which offers 1 point per dollar. But a closer look at the real Canadian dollar value of BMO and Amex’s loyalty programs reveals that the offers are basically comparable: $1 spent on the BMO Rewards Business Mastercard yields the equivalent of $0.0105 in rewards vs. $0.01 for the Amex Business Gold.

Accelerated Rewards Structure

The BMO Rewards Business Mastercard can be ideal for fuel frenzied business owners, as they’ll earn 3 points on purchases at eligible gas stations, along with office supply merchants and on recurring mobile phone/internet bills. Annual cap for accelerated rewards-generating spending is $50,000, at which point expenses in these categories will earn at the flat rewards rate of 1.5 points per $1.

About BMO Rewards

BMO Rewards are redeemable for products like magazine subscriptions, a sleek designer cutlery set, home furnishings, or a handy fitness tracker, among others.

Travel lovers can count calories burned while enjoying a ski vacay in Banff or urban getaway in Montreal, as BMO Rewards can be redeemed on flights and accommodations with a wide variety of popular airlines and hotels. For more insight you can compare BMO Rewards to redemption options with competing loyalty programs.

Other Card Perks

  • Mastercard is the only card type accepted at Costco Wholesale Warehouses. Business owners that make a lot of supply purchases there would be well served by this card as opposed to an Amex or Visa.
  • The 14.99% purchase interest rate is quite low for this card type. Compare to the Amex Business Gold Rewards Card’s 30% interest rate.
  • Optional employee cards
  • Concerned about the potential for card abuse by employees? The card offers a Liability Waiver protecting your operation from trigger-happy overspending.
  • Purchases are covered by extended warranty (manufacturer’s warranty + 1 year) and purchase protection (90 days) in the event of malfunction, theft or damage.
  • Travel insurance benefits include baggage delay, trip cancellation, trip interruption, and flight delay.
  • 25-day payment grace period (standard in Canada is 21 days)

Who’s the Card For?

SMB owners with significant monthly gas, office supplies, mobile phone and internet bills have the most to gain from the BMO Rewards Business Mastercard. We recommend the card to those whose business expenses in those categories total more than $5700 per year ($475 per month), which will offset the card’s annual fee of $120.

Applicants are required to undergo a bit more bureaucracy with the card’s application and setup process than they would for a non-business credit card, e.g. providing BMO with documents of their business. But the procedure is a relatively minor hassle for companies keen on the card offering.

BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

Article comments