BMO Prepaid Mastercard Review for 2023

The BMO Prepaid Mastercard is a popular choice among Canada’s best prepaid cards. Why? Because more and more people are opting for prepaid cards as an accessible alternative to traditional credit cards. The BMO Prepaid Mastercard does just that, offering the convenience of a credit card without the hassle of credit checks, interest rates, or the risk of racking up debt. Instead, you can spend your own money everywhere that Mastercard is accepted. In this review, we’ll examine the BMO Prepaid Mastercard and weigh the pros and cons to gauge if it is worth a try.

What is the BMO Prepaid Mastercard?

Offered by The Bank of Montreal (BMO), the BMO Prepaid Mastercard, sometimes referred to as a BMO Travel Prepaid Mastercard, is one of the most well-known prepaid cards in Canada. Only five banks presently offer a prepaid Mastercard in Canada, which makes this BMO card a great option to have. It’s backed by the country’s fourth-largest bank and is considered a very safe option.

How does the BMO Prepaid Mastercard work?

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The BMO Prepaid Mastercard works strikingly similar to your favourite credit card, but with one simple difference: you load it with your own money instead of owing a balance. Consider it a gift card that you give yourself. You can use it and reload it again and again. With a traditional credit card, every purchase is a loan and the card limit is the maximum you can borrow.

But with a prepaid card, you are not borrowing. It must be funded with money you already have before you can make purchases. The amount of every purchase is deducted from the card balance, just like how debit card purchases are deducted from your chequing account.

When you’ve spent the balance, you will need to reload it with more money if you want to continue using it. That’s why it is sometimes called a reloadable card. You will also not be able to withdraw more money than what your card contains as there is no overdraft option with prepaid cards.

So because you are using your own money, not borrowing from a credit card issuer, there is no credit check or minimum income required to qualify. However, it still works like a traditional credit card by allowing you to use it in physical stores, online, at bank machines, and abroad wherever Mastercard is accepted. Simply swipe it or enter the required details to use the card. 

When you get your BMO Prepaid Mastercard it will display your name, the date of issue, the date of expiry, bank name, and a CSV code.

BMO Prepaid Mastercard features

The BMO Prepaid Travel Mastercard comes with several features. Unfortunately, this card does not reward your purchases at all, so if you were hoping for points or cash back, you’ll have to go elsewhere. Having said that, there are some benefits to explore:

Global Acceptance

The BMO Prepaid Mastercard is internationally accepted and will work at any location that accepts a Mastercard including physical and online stores. With this Mastercard, you will be able to shop at more than 30 million locations in Canada and abroad. And it works just like a regular credit card allowing you to book things like flights, hotels, rental cars, etc.

Purchase Protection & Extended Warranty

All BMO Prepaid Travel Mastercard holders enjoy complimentary Purchase Protection & Extended Warranty coverage to a combined lifetime maximum of $60,000. With Purchase Protection, most card purchases are covered against theft and damage for 90 days from the date of purchase. Extended Warranty protection covers most purchases by extending the original manufacturer’s warranty by up to 1 additional year.

No Interest Rates

You don’t have to worry about pesky interest charges because the BMO Prepaid Mastercard doesn’t lend on credit. Since there is no borrowing involved, there’s no interest rate to worry about. You will be able to use this card without having to keep an eye on the money owed and manage payment due dates. You can only use the money that you have deposited into your card.

Mobile App

The Bank of Montreal has a mobile app that can be used to manage your BMO Prepaid Mastercard. The app works on both Android and iOS devices, is very easy to use, and takes up very little storage space. With this app, you will be able to keep an eye on your card balance, payment due dates, transaction history and more.

It comes with BMO’s 100% Electronic Banking Guarantee and is safe to use. The app covers all BMO services and can even be used to pay bills, book appointments, and find nearby bank machines and branches. It is highly beneficial for users who want to manage everything online.

Quick & Easy Approval Process

There is no credit check or minimum income required to qualify. BMO is known to approve applications in only 5-7 business days. If approved, the card will be mailed to you. However, there may be some delays if there are issues with your application so make sure to double-check that all the information is correct before you submit.

Free credit score

This is one of the main features of the BMO Prepaid Mastercard. Once you sign up for a card, you will be able to keep an eye on your credit score through the app. This is a free feature designed to help BMO users understand their financial health and ensure their credit score doesn’t go below a certain point. 

This feature can be of great help since finding your credit score can be quite tricky and involves several steps. As a BMO member, all you’ll have to do is log in into your mobile banking app and go to the Credit Score section. The score updates once a month and you can check it as many times as you want without impacting your score.

Financial insights

In addition to credit scores, BMO also offers valuable financial insights to BMO Prepaid Mastercard holders. You’ll be able to see your spending habits including where you’re spending most of your money. This information can help cardholders make the right call.

The system even sends tips on what you can do to improve your spending habits or what has to be done to boost your credit score. These insights are correct and highly valuable, especially for people struggling to stick to their budgets. They’re updated instantly and can be a great way to create a more reliable budget.

Security Features

It comes with Mastercard’s Zero Liability insurance that protects card owners against any financial loss due to fraudulent card use. In addition to this, there’s also Mastercard Identity Check protection to safeguard users when they shop online.

BMO alerts are sent instantly and are meant to help you confirm that transactions on the card are actually yours or if they’re fraudulent. If your card is lost or stolen, you can quickly lock it from the app. Moreover, there are also add-ons in the form of CREDIT ALERT and InfoProtector 360.

Fees & penalties with the BMO Prepaid Mastercard

The BMO prepaid Mastercard is an affordable alternative to a regular credit card, but it’s not entirely free to own. You will have to pay a variety of fees to ensure your card continues to operate smoothly. Here’s a breakdown of costs, penalties, and fees:

• Annual fee: $6.95
• Dishonoured payment: $40.00
• Copy retrieval request: $5.00
• Foreign transaction fee: 2.5%
• Card balance refund by Cheque: $10.00
• Card balance refund by direct/electronic deposit: $3.00
• Bill payments, cash advances, and cash-like transactions: $5.00
• Inactivity fee: $5.00 per month 

These charges are revised every now and then. Have a look at the official site for the latest figures or get in touch with customer service agents to ensure you don’t end up paying more than expected. Also, you might be able to avoid some of these costs by being smart, i.e.: don’t let your card go inactive.

Furthermore, you may even find some prepaid cards in Canada that are more affordable and rewarding to own. These are also backed by reputable companies. Make sure to compare different options to find the best fit and don’t just look at annual charges but other costs as well.

How can I get a BMO Prepaid Mastercard?

It is very easy to sign up for a BMO Prepaid Mastercard. The first thing is to ensure you qualify for a BMO Prepaid Mastercard in Canada and meet the eligibility requirements: 

• You must have a permanent Canadian address
• You must be of legal age in your province or territory of residence to apply
• You must not have filed for bankruptcy in the last 7 years

In some cases, you may be able to apply for a card even without a permanent address. In such cases, you will have to visit your nearest branch as applications without a permanent address cannot be filed online. You may be asked to submit certain documents when you visit a branch to get a new BMO Prepaid card.

Fortunately, there are no credit score requirements. Also, you are not required to have or show a source of income to apply for a BMO Prepaid Mastercard.

You can apply for a card even if your credit score is 300, which is the lowest possible score in the country. However, you cannot apply for a card if you have declared bankruptcy in the preceding seven years. You will have to wait for at least seven years to pass since you declared bankruptcy to be eligible for this card.

Assuming you’re eligible, you can go ahead and apply for the card. The process is very easy and only takes a few minutes. You will be asked to provide personal details including your full name, date of birth, and address. Next, you’ll have to provide your financial details and copies of your identification documents.

Acceptable documents include driver’s licences, passports, and resident cards. Moreover, you will also have to submit proof of address such as a utility bill. All documents must be valid and not expired. Also, proof of address must not be older than 90 days.

If everything’s right, the bank will send your card to your mailing address within 5-8 working days. In case there are some issues, you may be asked to submit additional documents that may delay the process. Those without a permanent address will have to visit the branch to receive their card.

Once received, simply follow the instructions that come with the card to activate it. You will have to call the number given on the back of your card and provide the required information to be able to use it. The process will only take a few minutes. Once activated, you will be able to use your card for as long as it has enough balance.

How to load your BMO Prepaid card with money

If you’re an existing BMO client, you can transfer money from your BMO chequing or savings account onto your BMO Prepaid card. To do this, simply sign into your online banking app.

If you’re not a BMO client, you can still load the card with funds from your account at another Canadian financial institution. To do this, you will need to add your BMO Prepaid card as a bill payment payee and treat it like a credit card payment. You will then be able to load the card by making a “bill payment” in the amount you wish to put on the card. The money will then be deposited onto the card in 2-5 business days.

Pros & Cons of the BMO Prepaid Mastercard

BMO Prepaid Mastercards come with several pros and cons. Just like any ordinary credit card, you have to weigh the benefits with the risks. We’ll discuss both here so you can understand why it may be a suitable option for you.

Cons:

The biggest downside is that the money you deposit in your account will not earn you any interest and the card offers no cash back or rewards program. Plus, there’s an annual fee of $6.95 even though you don’t earn rewards or get any special perks.

Since the funds in your BMO prepaid account aren’t CDIC guaranteed, they cannot be used to support pre-authorized recurring payments.

The maximum balance is only $10,000, which can be a problem for users who like to spend lavishly. You may have to keep loading your card, again and again, to ensure it meets your requirements. This can be an issue for some users.

How to add money to your BMO Prepaid Mastercard

It is important to not let your card have little to no balance as it is only as good as the amount it carries. The bank gives several options to deposit money into a card. The easiest method is to use your BMO chequing account. 

BMO allows users to directly transfer money from their BMO account to their prepaid card. You can do this online through the website, through the app, by visiting a branch, or a nearby ATM. The amount will appear on your card within 24-48 hours. The maximum amount for this method is $10,000 and the minimum is only $100.

Another option is to use the bill payment feature. You can register your BMO Prepaid Mastercard as a bill to be paid via mobile banking, telephone, ATM, online or a physical branch. Supported banks include BMO, Scotiabank, BC Royal Bank, CIBC, PC Financial, Laurentian Bank, Alberta Treasury Board, and TelPay. The maximum amount for using this method is $1,000. It can, however, take about 2-5 days for the money to appear in your account.

The bank currently does not support cash transfers. You must have a bank account with BMO or any other financial organization to be able to deposit money into your account. Do not go for this option if you have no bank account at a supported bank.

BMO Prepaid Mastercard expiry

BMO prepaid cards expire after three years of issuance. You will not get a new card automatically. You will have to request a new one before your existing card expires.

If your card has already expired then you will have to apply for a new card by getting in touch with the bank. Any balance remaining on your card when it expires will be refunded to you. You can choose to get the amount transferred to your new card or have BMO use TransUnion Credit Bureaus or Equifax to clear your dues.

The BMO Prepaid Mastercard is among the best prepaid cards in Canada. It is easy to apply for and can be used to shop at any store that supports Mastercard. It works like any other card and can help manage your finances. However, it will not improve your credit score or be helpful in applying for a loan. 

Alternatives to the BMO Prepaid Mastercard

The BMO Prepaid Mastercard, while offering notable features, may not cater to everyone’s needs. For those seeking different advantages or broader functionalities, various alternatives are available. Let’s delve into some other cards that could better align with your preferences.

KOKO Prepaid Mastercard

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The KOHO Prepaid Mastercard offers a fresh approach to spending and saving by giving you up to 2% cash back on groceries, dining, and transportation as well as up to 4.5% interest on deposit. The unique app ensures you stay on track with budgeting tools, and automatic savings features. Plus, you can only spend what you load onto the card.

As part of the vast Mastercard network, the KOHO Prepaid Mastercard promises acceptance at millions of locations worldwide, catering to both online and physical store purchases. One standout feature is the Round-Up Savings, where each transaction is automatically rounded up to the nearest dollar, with the difference transferred to your savings—a seamless way to save without even thinking about it. Plus, the real-time notifications ensure you’re always in the know about your spending habits and account balance, enhancing security and awareness.

Neo Money Card

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Designed for the modern spender, the Neo Money Card stands out for its digital-first approach. It seamlessly integrates with the Neo app, providing tailored rewards of 1% interest on your account balance and an average of 5% cash back based on your spending patterns.

Plus, you’ll get up to 15% cash back on every first purchase you make across a network of over 10,000 partner merchants. Cash back offers near you can be found within the app ensuring you always get the best deals from your favourite brands and local stores. Enjoy instant transaction notifications so that you’re always updated about your expenditures and account balance.

EQ Bank Card

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The EQ Bank Card redefines the traditional banking experience allowing you to quickly access the money in your EQ Savings Plus Account. Simply move money from this high-interest savings account to your EQ Bank Card account at the tap of a button.

Not only does it serve as a gateway to a competitive 2.50% interest rate for your savings, but it also offers 0.5% cash back on all your card purchases, no foreign transactions, and all Canadian ATM fees reimbursed to you. The app offers robust online banking features too, helping you manage your money on the go.

What makes the EQ Bank Card even more enticing is its fee-free structure. Like the account, the card comes with no monthly or annual fees or transactional charges. It’s an ideal choice for those who want their money to work harder for them, without any of the traditional banking hassles.

What is the Bank of Montreal

The Bank of Montreal has a very rich history. It was founded in 1817 and has been going strong since then with its head office located in Montreal. The bank, however, opened its operational headquarters in Toronto in 1977.

The bank is globally recognized and made it to the Forbes Global 2000 List, ranking at number 131. It is looked at as a reputable bank as it hasn’t missed a dividend payment in nearly two centuries, since 1829. This makes it a good option for people who are looking to get a prepaid card.

Owned by The BMO Financial Group, the bank provides a variety of services including debit and credit cards, trusts, insurance, securities, deposits, investments, and loans. It is a member of a variety of national and international organizations including the Canadian Bankers Association, Interac, the Canada Deposit Insurance Corporation (CDIC), Air Miles, Cirrus for Mastercard card users, ATM Industry Association, Mastercard International, and Diners Club North America.

This is very important because these memberships make the BMO Prepaid Mastercard more reliable. Thanks to such partnerships, users can enjoy greater benefits and usage. We’ll look at this and several other aspects of owning a BMO prepaid card in 2022.

Still have questions about the BMO Prepaid Mastercard? We’ve got you covered. Checked below for some of the most commonly asked questions: