BMO U.S. Dollar Mastercard
The BMO US Dollar Mastercard is aimed at Canadians who regularly spend in US dollars, whether while traveling or shopping from US-based merchants. It lets cardholders pay directly in USD, removing foreign transaction fees and the uncertainty of daily exchange-rate conversions that typically add about 2.5% to purchases on standard Canadian cards.
Key features and specifications
- Card type: BMO US Dollar Mastercard
- Primary benefit: Pay in US dollars without foreign transaction fees
- Annual fee: USD 49 (eligible for rebate)
- Annual fee rebate: Fee refunded if you spend at least USD 3,000 in a year
- Purchase interest rate: 21.99%
- Cash advance rate: 23.99%
- Rewards: No points or cashback program
- Purchase protections: Extended warranty (doubles original warranty up to one additional year) and purchase protection (covers eligible items for 90 days from purchase)
- Payment currency: Payments must be made from a US dollar account
Fees and rates explained
The standout cost advantage is elimination of foreign transaction fees on USD purchases. That alone can save frequent US spenders the typical 2.5% surcharge applied by many Canadian cards.
The card’s USD 49 annual fee can be rebated if the cardholder charges at least USD 3,000 during the year. This makes the card effectively free for those who meet that threshold. Interest rates are on the higher side, so carrying a balance is costly; the card works best for people who pay in full each month.
Rewards and protections
This Mastercard does not offer a rewards or cashback program. If earning points or cash back is a priority, this card will feel limited.
On the protection side, the card provides useful consumer protections that many people will appreciate:
- Extended warranty: Extends the manufacturer’s warranty by up to one additional year.
- Purchase protection: Coverage for eligible items against theft or damage for up to 90 days from purchase.
How payments work and practical considerations
Card payments must be made in US dollars. That typically requires linking the credit card to a US dollar bank account. BMO offers a US dollar premium checking account that can be linked to this card, but that account may carry its own fees and minimums. Prospective cardholders should factor in any account fees or requirements before signing up.
Because the card eliminates FX conversion at the point of purchase, it is especially convenient for travel to the United States and for purchases from US online retailers. The trade-off is the administrative step of maintaining a USD account for repayments.
Pros and cons
Pros
- Avoids foreign transaction fees on USD purchases
- Pays directly in USD, removing exchange-rate guesswork
- Annual fee can be rebated after USD 3,000 in spending
- Includes extended warranty and 90-day purchase protection
Cons
- No rewards or cash back program
- Requires a US dollar bank account for payments
- High interest rates if balances are carried month to month
- Annual fee applies if spending threshold is not met
Final verdict
The BMO US Dollar Mastercard is a practical, targeted tool for Canadians with consistent US dollar expenses. Its main strengths are the elimination of foreign transaction fees and the ability to pay directly in USD, which delivers predictable pricing when spending in the United States or with US merchants.
The absence of a rewards program and the need for a US dollar account make this card less attractive for people seeking one-card convenience or those who mainly want points or cashback. For frequent USD spenders who can meet the annual fee rebate threshold and pay balances in full, this card is a solid, cost-effective option.
Practical tips before applying
- Estimate annual USD spending to see whether the USD 3,000 rebate threshold is realistic.
- Compare the total cost (annual fee plus any USD account fees) with rewards cards that waive foreign transaction fees.
- Plan to pay the balance in full each month to avoid steep interest charges.
- Confirm details and terms with the issuer before applying, since fees and protections may change.
