BMO CashBack World Elite Mastercard Review 2024: One of the Best Grocery Credit Cards In Canada

• The highest cash back offering for groceries in Canada at 5%.
• A $120 annual fee, but it is waived for the first year for new customers.
• There is a 0% balance transfer fee and there is no limit.

• Earn 10% cash back on your purchases for the first three months (up to $260 worth of cash back) when you apply by July 31, 2023.
• Get the highest cash-back offering for groceries in Canada, at 5% on the first $500 spent on grocery purchases per statement  period and 1% unlimited cash back after that.
• Get 3% on gas on the first $300 spent on automobile and vehicle fuel or electric charging purchases per statement period. Then, you’ll get 1% cash back after that.
• Get 4% on transit, including ride sharing, taxis and public transportation, on the first $300 spent on ground transportation purchases per statement period and then 1% unlimited cash back after that.
•  Get 2% on recurring bills such as phone bills, gym memberships and your favourite streaming services.
• There’s a $120 annual fee, but it’s waived for the first year for new customers.
• There’s a 0% balance transfer fee with no limit.
• An annual income of $80,000 for an individual or $150,000 for a household is needed to qualify.
• Rewards can be received as cash, put into an investment account or applied as credit towards your statement.

Earning Rewards

This card offers cash back on a number of everyday purchases, but its real draw is its earning potential for groceries. You earn 5% cash back on groceries, which is the highest overall offer out of all the comparable cards in this category. The Scotia Gold American Express does offer 6% cash back on groceries, but only at certain stores, such as Sobeys, IGA and FreshCo., so this card still offers the highest cash-back rate on all grocery purchases. Considering that food prices have gone up 5% to 7% in 2022 due to inflationary pressures, the BMO CashBack World Elite Mastercard is a very appealing credit card that can be incredibly useful to most Canadians.

However, it should be noted that 5% applies on the first $500 spent on grocery purchases per statement period and then groceries revert to 1% unlimited cash back thereafter. Given that the annual food expenditure for a family of four is estimated at $1,230 per month, it’s easy to max out the 5% cash back on the first $500. At least you’ll earn 1% cash back on the remaining $730.

You’ll also earn 3% cash back on gas on the first $300 spent on vehicle fuel or electric charging purchases per statement period and 1% unlimited cash back thereafter. You’ll earn a hefty 4% cash back on transit, which includes ride shares, taxis and public transportation, again on the first $300 spent on ground transportation purchases per statement cycle period and 1% unlimited cash back thereafter.  In addition, you’ll earn 2% on recurring bills, such as phone bills, gym memberships and streaming services.

If you use this as your everyday credit card (and pay it off every month), it’s easy to earn cash back on basic expenses, like monthly groceries, gas and reoccurring purchases.

As for other benefits, the card offers 1% cash back on all other purchases; a saving of 25% at rentals at participating Alamo and National Car Rental locations; 24-hour access to Mastercard’s concierge staff and access to airport lounges. Plus, you can earn more cash back if you add another cardholder for $50 a year.

In terms of rewards offered, this card is close to similar cards out there, like the CIBC Dividend Visa Infinite.

Redeeming Rewards

The rewards associated with this card do not expire as long as your account is open and in good standing. You can redeem the cash back in two ways: when there’s a set amount available up to a minimum of $25  (which can be redeemed in increments of $5 or as a one-time lump sum that requires a minimum cash-back balance of $1). That’s pretty flexible, as you can redeem cash back as regularly as you want with a relatively low limit.

Redeeming rewards requires you to log into your BMO Mastercard account. You have the option of depositing the cash into a BMO chequing or savings account, putting it in an InvestorLine account or using it toward your credit card balance.

Rewards Potential

The real value of a cash back card is based on potential annual earnings. We did the math for you by calculating what the average Canadian spends every year for each CIBC Dividend Visa Infinite cash back category. Forbes Advisor uses data from multiple government agencies in order to determine both baseline income and credit card spending averages across various categories.

Forbes Advisor estimates the total annual credit card spending to be $27,851.70. Of that amount, grocery purchases add up to $7,536 annually, earning $315.36 in cash back. We factored in the $500 per month spending cap to get this figure, earning 5% for the $500 a month and 1% thereafter. Gas amounts to $3,360 annually — earning $100.80 in cash back at the 3% rate. Recurring bills add up to $2,436 — earning $48.72 at the 2% rate.

From there, other purchases (like dining, entertainment, online purchases. airline  tickets, hotel stays and miscellaneous spending) make up the remaining $14,529.70. Assuming you earn the 1% base rate on those, this adds another $145.19 to your yearly cash back. All of this brings the grand total for yearly earnings to $610.07. Once you factor in the $120 annual fee, this card earns $490.07 in net cash-back earnings per year, and potentially more on top of that, if you spend on public transit or ride sharing frequently, since that purchase category alone earns an impressive 4% cash back.

Compared to similar cards, such as CIBC Dividend Visa Infinite Card at $537.50 annual earnings, Scotia Momentum Visa Infinite Card at $491.14 annual earnings and SimplyCash Preferred Card from American Express at $655.07 annual earnings, the BMO CashBack World Elite Mastercard looks pretty middle-of-the-pack, despite its flashy 5% grocery cash back rate.

Overall, the card has a decent rewards program. After all, it’s easy to earn over $400 in rewards solely by using it for groceries and gas. With that kind of rewards potential, we think it’s worth paying the $120 annual fee.

• The highest cash back offering for groceries in Canada at 5%.
• The $120 annual fee is waived for the first year.
• It includes a generous welcome bonus compared to similar cards, such as the CIBC Dividend Visa Infinite Card and the Scotia Momentum Visa Infinite Card (However, the SimplyCash Preferred Card from Amex has the highest welcome bonus in Canada at $400).

Interest Rates

• Regular APR Min: 20.99%
• Regular APR Max: 25.99%

Fees

• Cash Advance: 23.99% (21.99% for Quebec residents)
• Foreign Transaction Fee: 0%
• Annual Fee: $120 but applicants will get 10% cash back in their first three  months and the $120 annual fee waived in the first year.
• Any other fees: There’s an additional $50 fee per additional card.

BMO CashBack World Elite Mastercard vs. CIBC Dividend Visa Infinite Card

There is very little to differentiate between these two cards when it comes to initial offerings and qualifications. Both have a $120 annual fee and the need for a Good/Excellent credit score. There is a slight difference in the standard variable APR with BMO CashBack World Elite Mastercard offering 20.99% to 25.99%, while the CIBC Dividend Visa Infinite Card offers $20.99 to $24.99%. Even their welcome offers are similar: both earn you 10% cash back, but the CIBC card caps out at $250, whereas the BMO CashBack World Elite Mastercard offers the potential to earn $260.

The BMO CashBack World Elite Mastercard earns a 5% cash back on groceries, but there is a cap on that of $500 per billing period. CIBC Dividend Visa Infinite Card offers a 4% cashback on $20,000 spent on groceries, gas, restaurant and bills or on $80,000 net annual card purchases, whichever comes first. It also offers 4% cashback on gas compared to BMO’s 3%. While there isn’t a huge difference between the two, someone who spends a lot of time driving might want to consider the CIBC Dividend Visa Infinite Card for the extra 1% with the 4% cash back on gas. .

BMO CashBack World Elite Mastercard vs. Scotia Momentum Visa Infinite Card

Again, there is very little to differentiate between these two cards when it comes to initial offerings and qualifications. Both have a $120 annual fee, the need for a Good/Excellent credit score and a standard variable APR of 20.99 to 25.99%, depending on creditworthiness. Their welcome offers separate them a little: BMO CashBack World Elite Mastercard has a $260 bonus while Scotia Momentum Visa Infinite Card has $200. Both cards waive their annual $120 fee the first year, too.

What distinguishes these cards is the 4% cash back that the Scotia Momentum Visa Infinite earns on groceries has no cap. The BMO CashBack World Elite Mastercard has a 5% cashback on groceries, but there is a cap on that at $500 per billing period. If your grocery bills are higher than $500 a month, the Scotia Momentum Visa Infinite Card might be the better pick.

BMO CashBack World Elite Mastercard vs. SimplyCash Preferred Card from American Express

The SimplyCash Preferred Card offers 2% on everything: All everyday purchases, groceries, dining, gas, hotels and entertainment with no cap. There is a 0% balance transfer APR and a 19.99% to 26.99% standard variable APR, depending on creditworthiness. There is also a $400 welcome bonus and 10% cashback on all purchases for the first six months up to $450.

There is a lower annual fee of $99 compared to the BMO CashBack World Elite Mastercard at $120, but that is going up to $119.88 as of October 12, 2022 too, making it just 12 cents cheaper. Unlike BMO, this fee is not waived for the first year.

Also unlike the BMO, the SimplyCash Preferred Card from American Express has no tiered rewards and a lower entry point when it comes to credit scores as it requires a Fair/Good score compared to the Good/Excellent needed for the BMO CashBack World Elite Mastercard. Therefore, the SimplyCash Preferred card is a good everyday option for someone who wants consistent rewards without worrying about a cap. They just have to remember that American Express is accepted by fewer merchants.

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With cash back, the scoring model used takes into account factors such as, but not limited to, cash back rates and categories, fees, welcome bonuses and other rewards and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

The BMO CashBack World Elite Mastercard has an average earn rate (and the same annual fee of $120) when compared to similar cards in its class. Where it does stand out is the 5% cashback offered on groceries, which is good for households where groceries are a large expense. Still, it’s only on the first $500 in purchases, reverting to 1% cash back after that.

If you tend to spend more in other areas such as driving, other cards might be more attractive. For example, the CIBC Dividend Visa Infinite Card offers 1% more than the BMO Cashback World Elite Mastercard on gas.

This card is good for current qualifying BMO customers, but there are better cards that can be found on the Canadian credit card landscape overall, depending on your budgetary requirements and where you spend. For instance, the CIBC Dividend Visa Infinite Card is better for gas and the Scotia Momentum Visa Infinite earns 4% on groceries with no cap.

Related: Canada best credit cards