Best Costco credit cards Canada

BMO CashBack® World Elite®* Mastercard®* - 🏆winner, best gas and best cash back card in the Money.ca Credit Card Awards

It’s a great card overall since you’ll earn up to 5% in cash back on groceries; 4% on transit, 3% on gas; 2% on recurring bills; and 1% on everything else (including Costco). While these earning rates are fantastic, there are billing cycle caps of $500 on groceries; $300 on transit; $300 on gas; and $500 on recurring bill payments. If you exceed those amounts, you’ll earn 1% cash back.

Another appealing aspect of this card is that you can redeem your cash back for as little as $1. That means no waiting for monthly or annual payouts like other cards. In addition, you can apply your cash back as a statement credit, have it deposited to your BMO account, or even invest it with BMO InvestorLine. 

You also get the standard World Elite benefits such as free Boingo Wi-Fi, and a free membership in Mastercard Travel Pass provided by DragonPass (no free passes). 

Key features:

• Annual fee: $120 (annual fee waived in the first year*)
  
• Welcome bonus: Get up to 10% cash back in your first 3 months, $75 cash back bonus when you spend $25,000 in your first year, and the $120 annual fee waived in the first year†.
• Rewards: 5% cash back on groceries; 4% cash back on transit, including ride sharing, taxis, and public transportation; 3% cash back on gas and EV charging; 2% cash back on recurring bills; Earn 1% cash back on all other purchases
• Oher perks: Enjoy a complimentary membership in the Dominion Automobile Association (DAA) - a $69 value

BMO CashBack World Elite pros and cons

Pros

• Valuable sign-up bonus

• High 5% cash back rate on groceries

• Free roadside assistance

• Excellent extended warranty and purchase protection terms

Cons

• Restrictive spending limits for most cash back categories

• Sign-up bonus structure is head-scratchingly complicated

• High minimum income requirements

Disclosures:

• *Terms and conditions apply.
• BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

A Rogers card catering to both Costco fans and travel junkies is the Rogers Red World Elite® Mastercard®. 

It grants 1.5% cash back for all purchases made in Canadian dollars. That’s almost double Costco’s own Mastercard, plus cardholders will also earn 3% unlimited cash back on all eligible purchases made in U.S. dollars (net 0.5% after the foreign transaction fee).

And, if you're a Rogers customer, get 2% unlimited cash back on all eligible non-U.S. dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw.

As a World Elite card, it also provides insurance for out-of-province medical needs, car rentals, trip interruption and cancellation, and protection for new items bought with the card. There’s $0 annual fee, but you’ll have to demonstrate $80,000 in annual personal income to be eligible.

Key features:

• Annual fee: No annual fee
• Welcome bonus: N/A
• Rewards: Earn 2% unlimited cash back on all eligible non-U.S. dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw.; Earn 3% unlimited cash back on all eligible purchases made in U.S. dollars.; 1.5% unlimited cash back on eligible non-U.S. dollar purchases
• Mobile roaming: Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases.

Rogers Red pros and cons

Pros

• Lucrative cash back rates on USD and CAD purchases, especially for Rogers, Fido or Shaw customers

• No annual fee with valuable insurance benefits

• Competitive against foreign transaction fee cards

• Convenient cash back redemption options

• Redemption bonus of 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases

• Travel insurance perks and airport lounge access

Cons

• High income requirement: $80,000 personal or $150,000 household

• Foreign transaction fee applies

• Limited redemption options for statement credits

When looking at Costco credit cards, many people will consider the CIBC Costco Mastercard® since it’s Costco's official co-branded credit card. While the earning rate is respectable, there’s no increased offer on in-store Costco purchases. That means when you shop at Costco warehouses and pay with your CIBC Costco Mastercard®, you’ll only earn 1% cash back.

There are a few additional benefits with the CIBC Costco Mastercard®. Your card doubles as your Costco membership, so you don’t need to worry about bringing your membership card with you. You also get mobile device insurance, purchase security, and extended warranty on purchases charged to your card.

You must have a Costco membership to apply for the card, but there’s no annual fee ($0). Up to 3 additional cardholders for $0. The only other requirement is a minimum annual income of $15,000.

Key features:

• Annual fee: $0
• Rewards: Earn 3% cash back at restaurants and at Costco gas†; Earn 2% cash back at other gas stations, electric vehicle charging stations and at Costco.ca†; Earn 1% cash back on all other purchases†
• Income required: $15,000 (personal)

Costco Mastercard pros and cons

Pros

• No annual fee

• No fee for additional cards

• Earn up to 3% cash back

• Can double as your Costco membership card (though you’ll still have to pay the Costco membership fee)

• Mobile device insurance

Cons

• Exclusive to Costco members

• Low cash back rate of 1% for purchases at Costco

• High interest rate of 20.75%

• Cash back can only be redeemed at Costco

Disclosures:

• The information for the CIBC Costco Mastercard® has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.
• †Terms and Conditions Apply. This offer is not available for residents of Quebec.

The BMO AIR MILES World Elite Mastercard offers an impressive earn rate specifically for Costco purchases:

• Earn 2x the Miles for every $12 spent at any eligible grocery store* (like Costco)
• This translates to a 1.67% to 1.75% cash back when redeemed as Cash Miles

That earn rate is very impressive in the grocery category, but lacks behind the BMO CashBack World Elite, our top grocery card in Canada. Additionally, the BMOAIR MILES program offers flexibility in how you can use your rewards:

• Redeem for travel (flights, hotels, car rentals)
• Use for merchandise or gift cards
• Convert to cash discounts on purchases (Cash Miles)

This versatility allows you to maximize the value of your Costco spending based on your preferences.

AIR MILES World Elite pros and cons

Pros

• Offers the largest Air Miles sign-up bonus on the market with a waived annual fee for the first anniversary*

• High earn rates of up to 3x the Miles on eligible purchases

• Exclusive travel discounts like 25% off one worldwide AIR MILES flight redemption annually

• Airport lounge access through complimentary Mastercard Travel Pass membership

• Comprehensive insurance package which covers medical, trip, flight delay, lost luggage and more

• Additional Perks include BMO Concierge, digital subscriptions, and cash back promotions

Cons

• An $80,000 personal/$150,000 household income is needed to qualify

• Ideal for AIR MILES loyalists, may not suit those with a casual approach

• The fixed redemption value for flights may not appeal to everyone

• Optimal value only when frequently shopping at AIR MILES partners

Disclosures:

• *Terms and conditions apply

• BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

When it comes to navigating Costco runs in Canada, the RBC Preferred World Elite Mastercard offers you a seamless shopping experience.

Accepted at Costco locations across the country, this card ensures you can stock up on your essentials with ease. Say goodbye to carrying cash or multiple cards—simply swipe your RBC Preferred World Elite Mastercard and enjoy the convenience of a single payment method at Costco.

A minimum personal income of $80,000 or a minimum household income of $150,000 is required to qualify for this card. It also has a annual fee.

If you're comfortable with the annual fee, the perks don't stop there. With the RBC Preferred World Elite Mastercard, you unlock a host of benefits designed to enhance your everyday transactions and lifestyle.

Enjoy up to 1.5% back on all purchases (without limit), allowing you to earn while you spend. Whether you're stocking up on groceries at Costco, dining out with friends, or making online purchases, every transaction earns you valuable cash back rewards, putting money back in your pocket with every swipe.

In addition to cash back rewards, the RBC Preferred World Elite Mastercard offers premium perks tailored to elevate your overall experience.

From convenient insurance coverage for car rentals to Mastercard airport experiences provided by DragonPass, this card ensures you're well taken care of wherever you go. Plus, stay connected with its complimentary Boingo‡ Wi-Fi account and access over 1 million hotspots worldwide. And benefit from instant-fuel savings at Petro-Canada or maximize your Be Well points at Rexall with your RBC Preferred card. Get a 12-month complimentary DashPass subscription18 – a value of almost $120. Enjoy unlimited deliveries with $0 delivery fees on orders of $15 or more when you pay with your eligible RBC credit card

RBC cash back pros and cons

Pros

• High flat cash back rate

• No annual fee for additional cardholders

• No limit to cash back earned²

• Access to Mastercard World Elite Benefits

• Save 3₵ per litre on Gas at Petro-Canada and Earn 20% More Petro-Points⁷

• Redeem cash back anytime once you hit $25

• Complimentary access to Boingo‡ Public Wi-Fi

• Auto Rental Collision/Loss Damage⁴, Purchase and Extended Warranty Insurance³

Cons

• High minimum income requirements

• $25,000 Cap on 1.5% Cash Back (but earn 1% Cash Back after $25,000)¹

• No medical, travel or accidental death insurance

Disclosures:

• *This post contains affiliate links. Please read disclaimer for more info.

  Refer to RBC page for up to date offer terms and conditions

  Disclaimer: Money.ca may engage in affiliate marketing, which is done by embedding tracking links into Money.ca. If you click on a link for an affiliate partnership, a cookie will be placed on your browser to track any sales for purposes of commissions. 

With the PC Financial Mastercard, you’ll earn 10 PC Optimum points per dollar you spend while shopping at  Costco. This is a great option for your Costco purchases because, chances are, you do your regular grocery shopping elsewhere. If you choose a Loblaw’s branded store, points you earn at Costco can help offset your regular grocery bill.

Shoppers Drug Mart often has bonus redemption events to further boost the value of your PC Optimum points. That’s where you can redeem a set number of points for more than they’re usually worth. Earn 25 points per $1 at Shoppers Drug Mart and Pharmaprix. For example, you could redeem 200,000 PC Optimum points for $300 off. The regular value is $200, so that’s a 50% increase.

This card is also appealing because it’s relatively easy to be approved for. You only need an annual income of $15,000 and you don't need to have outstanding credit to be considered. Other factors may apply when determining your eligibility, but this card has fewer restrictions than other rewards cards.

PC Financial Mastercard pros and cons

Pros

• No annual fee, ideal for budget-conscious shoppers

• Earn 10 points per $1 spent everywhere

• Accelerated points at Esso, Shoppers Drug Mart, and PC Travel

• Points redeemable at over 2,500 stores nationwide

• Purchase insurance and extended warranties for added protection

Cons

• Middle-of-the-road rewards compared to other no-fee cards

• Limited redemption options compared to some competitors

• Requires spending at specific stores for maximum benefits

• Point value may seem low initially, despite earning potential

Disclosures:

• Sponsored advertising. President’s Choice Financial® Mastercard® is provided by President’s Choice Bank. The PC Optimum™ program is provided by President's Choice Services Inc. President’s Choice Bank is not responsible for the contents of this site, including any editorials or reviews that may appear on this site. For complete information regarding the PC® Mastercard®, PC® World Mastercard®, or PC® World Elite Mastercard®, please click on the “Apply Now” or other applicable button.

Grocery rewards are highly sought after by the average Canadian, as they offer significant value. However, if you're specifically looking for a Costco grocery card, I'm sorry to inform you that Costco is not categorized as a grocery store according to Mastercard's merchant code system. This means that even if your credit card offers bonus rewards for grocery purchases, you won't earn any additional points or cash back when using your card at Costco. 

Although it’s never been officially disclosed, Costco likely only accepts Mastercard in Canada because they’ve negotiated an exclusive deal with the payment network. Whenever a Costco customer pays with their credit card, Mastercard gets a small percentage since they’re the host payment network. By agreeing to an exclusive deal with Mastercard, Costco can pass on any savings to the consumer.

It’s worth noting that Mastercard wasn’t always the only credit card accepted by Costco. There used to be an exclusive agreement with American Express, but that deal ended in 2014. The official Costco credit card can change at any time. Right now, the partnership is with CIBC, but previously, Capital One was the provider.