Consumer Payment Card News

BMO CashBack Mastercard Makes CardTrak’s Nifty 9 Cards for Canadians

The BMO CashBack Mastercard is one of the most popular general purpose Canadian credit cards, based on new cards issued and is highly rated for cardholder satisfaction.

BMO CashBack Mastercard Canada

BMO Bank of Montreal is currently offering new cardholders 5% cash back for the first three months and a 1.99% introductory rate interest rate on balance transfers for nine months with a 1% balance transfer fee.

Rewards

The BMO CashBack Mastercard offers an on-going 1% cash back on all credit card purchases. When cardholders earn $50 in cash back, redemption is by direct transfer to a BMO checking or savings account, deposit to Investorline account; or as a credit on the BMO credit card statement.

Other BMO CashBack Mastercard features include a 25% discount off base rates for National and Alamo. Supplementary cards can be added to the account without an additional fee. Purchase protection and extended warranty covering most purchases is included.

Pricing

The BMO CashBack Mastercard has no annual fee and carries an interest rate of 19.99% for purchases and 22.99% for cash advances. Cardholders in default are accessed a punitive interest rate of 24.99% for purchases and 29.99% for cash advances. The over-limit fee is $29, the foreign currency conversion fee is 2.50% plus Mastercard’s conversion fee.

The BMO Mastercard card programs are rated with 5 Stars for overall value including pricing, rewards, availability, acceptance, service and feedback.

The BMO CashBack Mastercard is issued by the BMO Bank of Montreal. BMO is a highly diversified financial services provider – the 8th largest bank in North America with $807 billion total assets.

BMO Card 2019 Line-Up

BMO CashBack Mastercard

BMO AIR MILES World Elite Mastercard

BMO World Elite Mastercard

BMO AIR MILES Mastercard

BMO CashBack World Elite Mastercard

BMO Preferred Rate Mastercard

BMO Rewards Mastercard

BMO SPC CashBack Mastercard

BMO SPC AIR MILES Mastercard

BMO U.S. Dollar Mastercard

BMO Prepaid Travel Mastercard

BMO CashBack World Mastercard

BMO AIR MILES World Mastercard

BMO Business Mastercard

Canadian Preferences

About 95% of Canadians have at least one credit card. Nearly three-quarters have a credit card with a rewards program and 82% of those cardhilders says rewards is the top priority when selecting a card, according to Canadian Bankers Association.

According to the J.D. Power 2018 Canada Credit Card Satisfaction Study, Canadians place a high value on their rewards programs, so much so that 48% who switched their primary credit card during the past year did so for a better rewards program.

According to the study, two-thirds of card holders say they completely understand how to redeem rewards. Overall satisfaction is 87 points higher among this group than among card holders who say they do not fully understand how the system works. Furthermore, rewards redemption and frequency also contribute to higher satisfaction and loyalty levels.

Mastercard & Visa in Canada

Based on purchase dollar volume, Visa holds a 60% marketshare in Canada. However, Mastercard posts higher annual gains in nearly all other categories, slowly closing the gap, according to analysis by RAM Research.

Combined, Visa and Mastercard logged US$115 billion in fourth quarter 2018 purchase dollar volume, compared to a revised US$108 billion in 3Q/18 and a revised US$109 billion for 4Q/17, according to CardData.

Visa Canada Credit Card Open Accounts

4Q/15: 47 million
4Q/16: 50 million
4Q/17: 57 million
4Q/18: 61 million

Mastercard Canada Open Card Accounts

4Q/15: 42 million
4Q/16: 46 million
4Q/17: 46 million**
4Q/18: 52 million**

Visa Canada Credit Cards Issued

4Q/15: 54 million
4Q/16: 55 million
4Q/17: 64 million
4Q/18: 67 million

Mastercard Canada Cards Issued

4Q/15: 48 million
4Q/16: 48 million
4Q/17: 52 million
4Q/18: 61 million

Expanded Current & Historical Quarterly Data for Visa + Mastercard Canada

Additional Current & Historical Quarterly Data for Visa Global

Additional Current & Historical Quarterly Data for Mastercard Global

Sources: Visa; Mastercard; BMO; RAM Research; CardData; CardTrak; JD Power; Canadian Bankers Association;