BMO CashBack Business Mastercard review

How the CashBack Business card earns

The BMO CashBack Business Mastercard pays 1.5% cash back in three areas: gas stations, cell phone and internet bill payments, and office supply stores. Gas bought at Shell locations in Canada earns 1.75%. Everything else earns 0.75%, half the bonus rate, so it pays to route your business’s fuel, telecom and supply spending to this card.

As an example, a business spending $400 a month on gas, $150 on phone and internet and $200 on office supplies would earn $11.25 a month from those categories. Add $1,500 of other spending at 0.75%, another $11.25, and the total is $22.50 a month, or $270 a year, with no fee to subtract. Buying all that gas at Shell would add another $1 a month.

The welcome offer

New cardholders can earn up to $150 cash back. The offer requires a minimum of $1,500 in eligible purchases; the time you have to make them and how the bonus is calculated aren’t detailed here, so confirm both with BMO before you apply.

For many businesses, $1,500 is a modest threshold. The example business above spends $2,250 a month on the card, so it would pass the minimum within its first month.

Redeeming cash back and other perks

Cash back can be redeemed flexibly, toward your card statement or your accounts. Additional employee cards are free, which lets you put team spending on gas and supplies through one card program and earn cash back on all of it.

The card also carries a 0% introductory balance transfer rate for 9 months, with a 3% transfer fee. Moving a $5,000 balance would cost $150 upfront, and that balance would then carry a 0% rate for the 9 months instead of regular interest. That can help with cash flow, as long as you have a plan to clear the balance before the promotional period ends.

Fees, interest and the fine print

There’s no annual fee. Purchases in a foreign currency carry a 2.5% foreign transaction fee, so $1,000 spent with a US supplier adds about $25, more than three times the $7.50 you’d earn on that purchase at 0.75%.

Purchases are charged 20.99% interest and cash advances 23.99%. Paying the full balance each month avoids purchase interest, which would otherwise outweigh the cash back many times over.

Insurance coverage

Coverage is basic and focused on the things you buy rather than travel. Read the insurance certificate for limits, eligible items and exclusions before making a claim.

• Extended warranty insurance
• Purchase protection

Who it suits, and who should look elsewhere

The card suits sole proprietors and small teams with steady fuel, telecom and office supply costs who don’t want to pay an annual fee. Free employee cards make it practical for businesses with a few staff who buy gas or supplies on the company’s behalf.

Businesses with large spending outside those categories will find the 0.75% base rate limiting, and anyone paying foreign suppliers regularly should look for a card without a foreign transaction fee.

How it compares

The BMO Ascend World Elite Business Mastercard earns 4 points per dollar on gas, office supplies, and phone and internet bills, plus 1.5 points on everything else, and includes lounge access. It costs $149 a year, waived in the first year, so it’s worth considering if your business spends enough to justify a fee and prefers points to cash.

The RBC Avion Visa Business costs $120 a year and earns 1 point per dollar on all purchases. A single flat rate suits businesses whose spending doesn’t line up with BMO’s bonus categories, though you’d be paying a fee this card doesn’t charge.

Before you apply

The recommended credit score is 660 or higher, and BMO makes the final decision based on your full credit and business profile. Confirm the current welcome offer, balance transfer terms and rates on the BMO website before you apply.