Clash of the Credit Cards!
BMO eclipse Visa Infinite* Card vs.
HSBC World Elite® Mastercard®
First posted on January 28, 2022
Welcome to another Rewards Canada Clash! This time in our Clash of the Credit Cards we see BMO's relative newcomer take on HSBC's flagship card! Those cards are the BMO eclipse Visa Infinite* Card and the HSBC World Elite® Mastercard®
In this match up we look at over half a dozen criteria to compare the cards against one another along with a head to head detailed table comparison.
Annual Fees / Sign Up Bonus
In this first round there is a definite difference between the cards, the BMO card has what used to be your standard fee for a premium card and that is $120 per year. The HSBC comes in higher at $149 per year. Supplementary or additional cards are equal between the two competitors at $50 per card. At the time of first posting this Clash (January 2022) both the Eclipse card and HSBC World Elite cards come with a first year annual fee waiver allowing people to try out either card at no cost as part of their limited time welcome offers. In terms of minimum income requirements the BMO card is $60,000 personal or $100,000 income stipulation while HSBC is higher at $80,000 personal or $150,000 household annual income
For the standard sign up bonus there are some slight differences between the cards. The standard bonus on the BMO eclipse Visa Infinite Card is 25,000 points and those points are worth $166.67 towards travel. The standard bonus on the HSBC World Elite Mastercard is 20,000 points which are worth $100 towards travel. However, since the launch of these two cards it has been very rare to see them offering only a standard bonus. For the most part they have limited time increased welcome offers.
Currently the BMO card has an increased welcome bonus offering up to 60,000 points. You'll earn 30,000 points when you spend $3,000 in the first three months along with the annual fee waiver in the first year as noted above, On top of this they are offering additional 2,500 points for each subsequent month in which you make at least $2,000 in purchases on your card, for 12 months (months 4-15) for a total potential bonus of 60,000 points. That's a lot of spending required to get the entire bonus - $27,000 to be exact versus the HSBC's needing $6,000 and adding a supplementary card in the first year to get the entire bonus. Also note, if you don't hit the $2,000 level in any said month you will not receive the bonus for that month. In the end those 60,000 points are worth $400 when redeemed for travel.
The HSBC card also has an increased welcome bonus of up to 80,000 points. They are offering 20,000 points when you are approved for the card and an additional 40,000 points when you spend $6,000 in the first 180 days plus an annual fee waiver in the first year as noted above. An additional 20,000 points is awarded on your first card anniversary. In the end those 80,000 points* are worth $400 when redeemed for travel.
This category is really split - if we were to only look at the fees and income requirements with a standard sign up bonus it would go to the BMO eclipse card. If we were to only look at the limited time welcome bonuses the category would go to the HSBC card. Ultimately the tie breaker for this category is the spend required to earn the current limited time welcome bonus points so this category goes to HSBC thanks to only requiring $6,000 in spending versus BMO's $27,000.
Rates
The HSBC World Elite Mastercard has slightly lower interest rates when compared to the BMO eclipse card for both purchases and cash advances. The big differentiator in this category however is HSBC not charging foreign transaction fees for purchases made in currencies other than the Canadian dollar. That provides a 2.5% savings over the BMO card. Once again, another category to the HSBC card - primarily for the No Foreign Transaction fees but even for beating out the BMO card on interest rates.
Bonus Features & Benefits
On the features and benefits side there are once again some key differences in these cards. The primary bonus feature the BMO eclipse Visa Infinite Card provides is an annual $50 lifestyle credit. Simply put, they give you $50 each year as a statement credit for having the card including right after you apply for and receive the card and then resets each year on January 1st. That's really the only additional benefit this card has.
The HSBC World Elite Mastercard also has an annual credit benefit like the BMO card however it is more limiting. The annual credit is a $100 travel enhancement credit that can be used towards travel related charges like seat selection fees, baggage fees, lounge access passes and more. So you are more limited in receiving this credit when compared to the BMO card.
The HSBC World Elite Mastercard also comes with a lounge access benefit. The benefit entitled Mastercard Airport Experiences Provided by LoungeKey is an annual membership that basically saves you US$99 from buying a similar membership That membership then provides discounted access to lounges which is currently set at US$32 fee per person to enter a lounge.
Finally, the HSBC card also provides global Wi-Fi access via Boingo which includes free Wi-Fi access on select airlines including WestJet.
Although we love BMO's ease and simplicity with the annual lifestyle credit this is another category that goes to the HSBC card for its larger annual credit even though its more limiting but by also offering lounge access membership and more.
Points Earning & Redemption
Points earning and redemption on the two cards look quite different and can really create some confusion if you don't dig deeper and look closely at both sides of the equation. That's why we combine Points Earning and Redemption into one category. That's due to the redemption value of the points which we'll discuss here as well! Both cards provide several levels of earn rates of which BMO heavily promotes their 5x points earning on select categories. Those 5x points categories are groceries, dining, gas and transit and are capped at $50,000 of spending annually. All other spending on the BMO card earn 1 point per dollar spent. Meanwhile the HSBC card earns 6 points per dollar spent on travel that is capped at $50,000 of spending annually. All other spending on the HSBC card earns 3 points per dollar. It should be noted that BMO cardholders will also earn an extra 10% points if they add an additional card to their account. So here we have 6 points, 5 points, 3 points, 1 point and you can see where the confusion might start. How does BMO's 5x points compare to HSBC's 3 points or HSBC's 3 points to BMO's 1 point? 5 looks better than 3 and 3 looks better than but is that really the case? Well, in this case it is true but how much better? It's not as simple as five being two points better than three and three being two points better than one. How do you determine what's better? Easy, we take into account the redemption side!
Recommended reading: When earning 5x points isn't the same as earning 5x points - a loyalty lesson
Both of these cards strongest redemption options are for travel rewards. The BMO eclipse card is pretty simple in that you book any travel via BMO Rewards and redeem your points at a rate of 150 points for a $1 credit. That's a redemption rate of 0.667 cents per point, which means those 5x points you earned are worth 3.33 cents and the 1x point earned are actually worth 0.667 cents. The HSBC World Elite Card on the other has you book travel via any provider (IE Air Canada, WestJet, Expedia, etc.) and then redeem points against the charge. They give you 0.5 cents credit for each point redeemed. That makes the 6x points earned on travel purchases worth 3 cents each and 3x points on all other purchases worth 1.5 cents. Now you can see why it's not as easy as five being two points better than three. In fact in this case the 5x earning is 1.83 points better than 3x and the 3x is 0.833 points better than 1. But it doesn't end there, if you factor in BMO's 10% extra points if you happen to add an additional card and the difference in points becomes 2.17 and 0.766 respectively. It can be confusing, I know! But that's why Rewards Canada exists, to help Canadians figure all of this out. That's the point value covered, next look actually redeeming the points.
In terms of the any airline anytime redemption the HSBC Card is the better option since you do your own bookings with any provider whereas the BMO card you have to book via BMO Rewards who do not have the most stellar reputation with our readers. But on the opposite side, with BMO you can redeem virtually any amount of points as long as you have 150 points (IE a small amount) whereas HSBC only lets you redeem once you have 25,000 points and then in 10,000 point increments. If you have 34,999 points, you'll only be able to redeem 25,000 of them. That being said, with BMO Rewards you can only redeem points at the time booking not afterwards. HSBC gives you up to 60 days after the travel charge posts to your account to redeem points. So if you are in that boat of having 34,999 points you could easily purchase something for $1 and push your points over 35,000 so that you could redeem 35,000 points.
Recommended reading: More BMO credit card changes - travel redemption rate devaluation affects new eclipse Visa cards and BMO Rewards Mastercards
For the HSBC Card the travel redemption options don't end there however. It also has an option to convert points to airline programs like British Airways Executive Club, Cathay Pacific Asia Miles and Singapore Airlines KrisFlyer. You can convert the HSBC Rewards points earned on the HSBC Card to British Airways at a rate of 25,000 points to 10,000 Avios, Cathay Pacific at a rate of 25,000 points to 8,000 Asia Miles and Singapore Airlines at a rate of 25,000 points to 9,000 KrisFlyer Miles If we use British Airways as an example it would mean you earn 1.2 to 2.4 Avios per dollar spent and since we value British Airways Executive Club Avios at no less than 1.5 cents each it works out to a 1.8% to 3.6% return. And that's a minimum - you can easily exceed those values when redeeming for business or first class flights.
Both cards also offer cash back redemption options. The BMO eclipse card allows you to redeem 200 points for $1 statement credit which works out to a 0.5% to 2.5% return on your spending, not taking into the potential 10% bonus if you have an additional card. The HSBC card also allows to redeem points for a statement credit where you redeem 25,000 points for $75, which translates to a 0.9% to 1.8% return. There is one other avenue for BMO however for cash back and that is redeeming points to have cash deposited into a BMO savings account. That rate matches the travel rate of 150 points to $1. This last option works out to a 0.667 to 3.33% return.
This earn and redeem category is very close to call as the BMO 5x points provides more value for the select spend categories but then HSBC provides more value on all other spending. In terms of earning and value of points I'd have to call it a draw so we'll have to use redemption to call this category. With more flexibility and the option to convert to airlines it goes to HSBC.
Insurance
On the insurance side there is almost no comparison here, the HSBC card provides 10 types of insurance coverage versus BMO's 6. The only coverage BMO provides that HSBC does not is mobile device insurance. The extra insurance benefits and 31 day versus 15 day out of province emergency medical coverage gives this category to the HSBC card.
Conclusion
Here we have two cards that have taken a similar approach in having higher points earn rates (which looks good to prospective customers) but have redemption values that don't work on a 1 to 1 basis (and often goes unnoticed by customers as they automatically assume 1:1) so it is good to compare them and have them clash it out. Thanks to more benefits, better insurance and more flexible reward options the HSBC World Elite Mastercard is the clear winner here by beating the BMO card in every category and most of the comparisons in the chart below.
The winner of this clash is: HSBC World Elite® Mastercard®
Key factors in HSBC's win:
- No foreign transaction fees
- Lounge access membership
- More flexible travel booking options
- Airline conversion options
- Better insurance package
Here is a direct side by side comparison of the two cards in this clash!
Basics |
 BMO eclipse Visa Infinite* Card |
HSBC World Elite® Mastercard® |
|---|---|---|
| Card Type | Travel Points | Hybrid |
| Annual Fee | $120 | $149 |
| Limited Time Annual Fee Offer | $0 in the first year | $0 in the first year |
| Additional Card Fee | $50 | $50 |
| Interest Rate | 20.99% Purchase 23.99% Cash Advance |
19.9% Purchase † 22.9% Cash Advance † |
| Foreign Transaction Fee | 2.5% | 0% |
| Income Requirements | Minimum Income $60,000 (individual) or $100,000 (household) |
$80,000 personal or $150,000 household annual income |
Points Earning |
BMO eclipse Visa Infinite* Card |
HSBC World Elite® Mastercard® |
|---|---|---|
| Standard Welcome Bonus | 25,000 | 20,000 |
| Welcome Bonus Value* | $166.67 | $100 |
| Limited Time Welcome Bonus | 60,000 | 80,000* |
| Limited Time Welcome Bonus Value* | $400 | $400 |
| Renewal or Additional Bonus | 10% extra points when you add an authorized user to your account | None |
| Travel Purchases | 1 point per dollar spent | 6 points per dollar spent^ |
| Grocery Purchases | 5 points per dollar spent^ | 3 points per dollar spent |
| Dining Purchases | 5 points per dollar spent^ | 3 points per dollar spent |
| Gas & Transit Purchases | 5 points per dollar spent^ | 3 points per dollar spent |
| Streaming Services Purchases | 1 point per dollar spent | 3 points per dollar spent |
| All Other Purchases | 1 point per dollar spent | 3 points per dollar spent |
| ^ Annual cap on bonus category spending | $50,000 | $50,000 |
| Value of points per $1 spent* | 0.667 to 3.33 cents | 1.5 to 3 cents |
| *Valuations are based upon redeeming the points for the any travel redemption - see the next section for cash back and other redemption options | ||
Redemption/Exchange Options |
BMO eclipse Visa Infinite* Card |
HSBC World Elite® Mastercard® |
|---|---|---|
| Miles/Points deposited to | BMO Rewards | HSBC Rewards |
| Travel Redemption Value | 150 points = $1 | 1,000 points = $5 |
| Exchange Options | None | Convert points to: British Airways Executive Club Cathay Pacific Asia Miles Singapore Airlines KrisFlyer |
| Cash Back Redemption option | 200 points = $1 statement credit | 25,000 points = $75 statement credit |
| Value of points for cash back redemptions | 0.5% to 2.5% | 0.9% to 1.8% |
Benefits |
BMO eclipse Visa Infinite* Card |
HSBC World Elite® Mastercard® |
|---|---|---|
| Annual credit | $50 | $100 (Towards travel enhancements only) |
| Business Class Lounge Access | None | Mastercard Airport Experiences Provided by LoungeKey |
| Global Wi-Fi | None | Boingo Wi-Fi |
Insurance |
BMO eclipse Visa Infinite* Card |
HSBC World Elite® Mastercard® |
|---|---|---|
| Common Carrier Travel Accident Insurance | $500,000 | $500,000 |
| Flight Delay Insurance | None | None |
| Delayed Baggage Insurance | None | 12 hours $200 per trip |
| Lost / Stolen Baggage Insurance | None | Yes up to $750 per person |
| Damaged Baggage Insurance | None | Yes up to $750 per person |
| Trip Cancellation Insurance | None | Yes $2,000 per person (max $5,000) |
| Trip Interruption Insurance | None | Yes $2,000 per person (max $5,000) |
| Travel Medical Insurance up to 64 years old | 15 Days | 31 days |
| Travel Medical Insurance 65+ | None | None |
| Auto Rental/Loss Damage Insurance | 48 Days Up to $65,000 MSRP |
31 Days Up to $65,000 MSRP |
| Hotel / Motel Burglary Insurance | None | None |
| Purchase Protection | 90 Days Up to $60,000 lifetime |
90 Days Up to $60,000 lifetime |
| Price Protection | No | No |
| Extended Warranty Plan | Yes Up to 1 extra year |
Yes Up to 1 extra year |
| Mobile Device Insurance | Yes Up to $1,000 |
None |
| Link to Apply |  |
|
* Terms and Conditions apply
®/TM Mastercard and World Elite are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated. Used pursuant to licence