Credit Cards

BMO Cashback World Elite (10% first $2,000/3 months, 1.5% all purchases, free roadside assist, FYF)

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  • May 8th, 2022 1:33 pm
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Sr. Member
Apr 25, 2019
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On the new cashback accelerator categories, you would earn $56/mo. if you maxed out all the categories. Which is $672/year cashback excluding any 1% everywhere else purchases.
In the old 1.5% everything cashback system, you would earn $28.50/mo. based on spending $1900/mo. (Which is calculated by adding all the new maximum acceleration spend)
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Apr 24, 2017
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ddot98 wrote: The goal of any credit card's reward structure is to maximize usage incentive while minimizing the cost to the issuer. This way they can advertise big cash back amounts while limiting their downside risk. Those accelerator categories are likely all loss leaders. A high (or unlimited) cap + gift cards + a loss on every purchase + savvy RFDers who only uses the card for the big accelerator categories could make the card unsustainable.

Plus if you do most of your major grocery purchasing at something like Costco, $500 probably isn't out of the question.
This is exactly where they want you to buy groceries. Because you will only get 1% return there, which is a huge fail on a World Elite card.
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Apr 24, 2017
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The new reward structure gives 4% cash back on local transit. However, you need to manually pay (for example, monthly transit pass). If you set up anything automatic (recurring bills), it will be reduced from 4% to 2%......

Funny, isn't it?!
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Jan 16, 2007
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I ran my usage numbers against the old and new rewards (I don't have the card, was just curious). Old would give me $118.50 after annual fee, new $150 after annual fee. It's still atrocious mind you for my spending habits in comparison to other cards - but a slight improvement.
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Dec 5, 2006
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Markham
ddot98 wrote: The goal of any credit card's reward structure is to maximize usage incentive while minimizing the cost to the issuer. This way they can advertise big cash back amounts while limiting their downside risk. Those accelerator categories are likely all loss leaders. A high (or unlimited) cap + gift cards + a loss on every purchase + savvy RFDers who only uses the card for the big accelerator categories could make the card unsustainable.

Plus if you do most of your major grocery purchasing at something like Costco, $500 probably isn't out of the question.
I don't have this card, so I might be wrong.but if you major shopping is in Costco, you used to get 1.5%, but now you get 1%, wouldn't that potentially offset your all gains or even worse than before?

Beside there are cards that give you 2-3% in grocery shopping without annual fee. So you actually just get extra 2% under 500 and potentially lose to non annual fee card if you spend more.

I think this card selling point is 1.5% on other categories. So they switch it from competing with mbna to td cash back infinite or momentum infinite, but potentially could be worse on rewards

If they will partner with Costco by using this card, then make sense
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Aug 10, 2008
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So the BMO WE MC will pull in 5% on grocery merchants, and thus at Walmart Supercentres now?

It only makes sense, cuz prior to this the BMO Basic no-fee MC was earning 3% while the WE was only getting 1.5%. A Basic card out-pacing its WE sister card was asinine. :lol:

I only use the BMO MC at Walmart, so the $500 cap is irrelevant to me since we don’t shop there that often. We do most of our shopping at other true grocery stores so the CIBC Dividend Infinite Visa comes out for 4% walks, and not limited to $500/month.
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Oct 12, 2020
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Ontario
smartie wrote: I don't have this card, so I might be wrong.but if you major shopping is in Costco, you used to get 1.5%, but now you get 1%, wouldn't that potentially offset your all gains or even worse than before?

Beside there are cards that give you 2-3% in grocery shopping without annual fee. So you actually just get extra 2% under 500 and potentially lose to non annual fee card if you spend more.

I think this card selling point is 1.5% on other categories. So they switch it from competing with mbna to td cash back infinite or momentum infinite, but potentially could be worse on rewards

If they will partner with Costco by using this card, then make sense
That was certainly the selling point for me. I have other cards lined up for other categories, so with my spending habits, this won't give me nearly the return I used to get. It sounds like it's going to be an improvement for some, but what a shame. I'm bound to get about $115 less annually with my spending on the 1% cat.

Funny how when I was a student, I had the SPC Cash Back card that would give me 1% on E.E. with no AF, and now years later, despite the upgrade to a WE, I'm going to be stuck again at 1% for E.E., now with an AF.
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Aug 10, 2008
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genral wrote: Also, they are removing the two complementary LoungeKey passes
Are you sure about this?

I mean, I thought the two LoungeKey passes were only for the BMO WE Air Miles MC, and four passes for the BMO WE MC (Rewards).

I didn’t see them available for the WE Cash Back MC, but I did see the complimentary membership (and it still costs US$27 per lounge entry).

Not saying you’re wrong, but do correct me if I’m out of tune.
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Mar 2, 2017
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smartie wrote: I don't have this card, so I might be wrong.but if you major shopping is in Costco, you used to get 1.5%, but now you get 1%, wouldn't that potentially offset your all gains or even worse than before?

Beside there are cards that give you 2-3% in grocery shopping without annual fee. So you actually just get extra 2% under 500 and potentially lose to non annual fee card if you spend more.

I think this card selling point is 1.5% on other categories. So they switch it from competing with mbna to td cash back infinite or momentum infinite, but potentially could be worse on rewards

If they will partner with Costco by using this card, then make sense
My Costco comment was in reference to the $500 cap at grocery encoded stores. For some people this is an absurdly small amount. For others it's very doable. I was just trying to point out that it's very possible for a non "downtown single hipster" to have their spending at grocery encoded stores below $500/month.

In regards to using the BMO CB WE as a Costco card, it's definitely gone downhill. And I can see the paradox of this card, especially with the annual fee. If you're a big Costco shopper, then you're limited by the 1% "other" category. If you're a big grocery encoded store shopper, then you'll be limited by the $500 cap.

But if you're a Costco shopper and you can combine it with a better flat card (say the Rogers WE) and get the annual fee waived (either through a premium banking plan or just phoning in and asking for a rebate), it has some interesting potential. Have we ever seen a 5% cash back category that wasn't part of a welcome bonus?
Newbie
Nov 16, 2019
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bizee-bee wrote: Are you sure about this?

I mean, I thought the two LoungeKey passes were only for the BMO WE Air Miles MC, and four passes for the BMO WE MC (Rewards).

I didn’t see them available for the WE Cash Back MC, but I did see the complimentary membership (and it still costs US$27 per lounge entry).

Not saying you’re wrong, but do correct me if I’m out of tune.
Yes, I should have mentioned more explicitly that BMO is removing the two complementary LoungeKey passes for the WE Air Miles. The edit is all about the WE Air Miles. Sorry about that.
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Mar 2, 2017
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smartie wrote: 5% is just an eye catching market tactic. Do you really think 10% cash back on groceries with cap at 100 is the best card in the world?
Sure it's just a tactic. As I pointed out earlier, the goal of any credit card's reward structure is to maximize usage incentive while minimizing the cost to the issuer. And if advertising "5%" in jumbo sized font while burying the spending cap in the terms and conditions gets them more clients, then I guess good for them.

My point is if someone can get the annual fee waived and use it as part of a collection of cards where it's only used for the accelerator categories, then this card with a 5% category has an interesting place.
Deal Addict
Feb 10, 2018
1547 posts
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It is really weird to see all these small caps on what is supposed to be a WE card.

I hope they do not do any changes to BMO WE. Otherwise, I will be cancelling.
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Dec 5, 2006
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Markham
EDL67134234 wrote: It is really weird to see all these small caps on what is supposed to be a WE card.

I hope they do not do any changes to BMO WE. Otherwise, I will be cancelling.
Might be because they are going to enforce 15k minimum spending and don't want people to take advantage of 1.5% on everything

But 5/4/3/2 is a good eye catching market headline. Highest reward in the world!
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Aug 10, 2008
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genral wrote: Yes, I should have mentioned more explicitly that BMO is removing the two complementary LoungeKey passes for the WE Air Miles. The edit is all about the WE Air Miles. Sorry about that.
Whoops. My bad. I read your post too quickly and didn’t realize you added the WE Air Miles section. Thought it was still related to the WE Cash Back.

In any event, no big loss on the LoungeKey, due to COVID’s impact. And unlike Priority Pass, the LoungeKey was too difficult to register under a different name, has to be the primary cardholder. My preference was to give my Passes to family members who don’t travel in Business class. But LoungeKey wouldn’t play along.
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Feb 10, 2018
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smartie wrote: Might be because they are going to enforce 15k minimum spending and don't want people to take advantage of 1.5% on everything

But 5/4/3/2 is a good eye catching market headline. Highest reward in the world!
I get the marketing angle. It just lacks substance for my spending.
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Nov 3, 2018
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I love it.

My insurance renews in the summer. So I'll be getting this for 10% return on my insurance, after which I'll get 5% on groceries for a year. Currently getting 3% from the regular cashback card, and I stay under $500.

As a side note, I do want to comment on the $500 limit. On the free card, the $500 grocery limit, while not great, is understandable. However on a WE card, and especially one with an AF, a $500 limit really feels out of place. If a limit is absolutely necessary, at least maybe $1000 feels more "right" for a WE card with AF.
Last edited by OxbridgeIvy on Feb 5th, 2021 7:01 pm, edited 1 time in total.
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Dec 5, 2006
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Markham
EDL67134234 wrote: I get the marketing angle. It just lacks substance for my spending.
Yes, momentum infinite is better
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Apr 29, 2008
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I plan to cancel my current BMO CashBack World Elite card, it’s been more than 6 months that I have it.

The terms and conditions say I won’t ever get the 10% bonus, is it true ? Do they enforce it?
The 10% cash back offer and first year annual fee waiver offer is limited to new BMO CashBack World Elite Mastercard accounts and will not be awarded to current or former cardholders who reinstate a closed account, product transfer, or who open a new account.
I would like to open a new account to get 10% on first $2,000?
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Oct 27, 2012
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The category limits on this one are really chintzy for a WE card. I still think Scotia Gold AMEX reigns supreme for me with 5% back on groceries/restaurants, and I have Momentum Infinite for grocery stores that don't take Visa. As a single hipster I don't come close to $500 at non-AMEX grocery stores every month. I just don't see any benefit anymore to the BMO CB WE as both these cards beat it in almost every category (except Transit I think), and I have HSBC WE for everyday purchases.

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