Quick overview of the CIBC Costco Mastercard®
Costco was a magical place as a kid. I remember going with my parents and perusing the aisles, checking out books, clothes and sporting equipment, all while munching on free food samples. What I didn’t know at the time was how expensive each trip to Costco usually is. As an adult, I now know you’ll have to somehow pay for those skids of coffee beans, $1.50 hot dogs and giant-sized condiment bottles. And, if you’d like to earn credit points while shopping at Costco, there’s only one game in town, Mastercard, since that’s the only credit card accepted at all Costco locations.
Enter the CIBC Costco Mastercard®, which might just be the shopping companion you need for the bulk-buying paradise. It has no annual fee, so you can add it to your wallet exclusively for Costco trips without too much worry, and offers good cash back rewards.
Overall, it’s a fairly basic credit card that will allow you to shop at Costco while earning some cash back on all purchases. Read on to see if it might be the right card for you.
Who’s the card for?
- Existing Costco members who want to maximize their warehouse shopping experience
- Regular restaurant-goers who can benefit from the enhanced cash back rate
- Drivers who frequently fill up at Costco gas stations or other gas stations
- Shoppers who appreciate the flexibility of installment payment options
- Anyone looking for a no-fee cash back card with solid earn rates and insurance benefits
Pros and cons
- 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
- 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
Costco Mastercard welcome bonus
- Unfortunately, the CIBC Costco Mastercard does not provide a welcome bonus for new accounts
How to earn cash back with the CIBC Costco Mastercard
The CIBC Costco Mastercard is a simple rewards card with a simple rewards structure. Nothing complicated here.
- 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†
To get the most cash back from the card, you’ll want to use it while dining out and purchasing gas at Costco gas stations since those are the highest cash back earning categories.
How to redeem cash back with the CIBC Costco Mastercard
Unlike some other cash back cards that allow you to redeem your rewards on demand, the CIBC Costco Mastercard cash back is given yearly in the form of a certificate. It’s given each year in January in the form of a physical or digital certificate. Cash back can be redeemed directly using your phone and the CIBC mobile banking app.
Redemption limitations
Cash back certificates can only be redeemed at any Costco warehouse in Canada, which limits its flexibility.
Real-world savings: How much can the Costco Mastercard save you?
It's easy enough to talk about the rewards on offer with the Costco Mastercard from CIBC, but real-world numbers often speak louder than words. Let's look at how much a typical Canadian Costco member can save with the CIBC Costco Mastercard and an Executive Costco membership, through a year of spending.
Here's a breakdown of their typical monthly expenses:
- Costco gas: $300/month (3% cash back)
- Restaurants: $500/month (3% cash back)
- Costco.ca online shopping: $200/month (2% cash back)
- Other gas stations: $100/month (2% cash back)
- In-warehouse Costco shopping: $600/month (1% cash back)
- Other purchases: $1,500/month (1% cash back)
Total annual cash back: $612
- Executive membership rewards: Their $600 monthly in-warehouse spending ($7,200 annually) earns an additional 2% back through their Executive membership = $144/year
Total savings: $144
Special Purchase: When their refrigerator broke, they used the CIBC Pace It™ installment plan for a $2,000 Costco appliance purchase:
- They financed their new fridge from Costco at 6.99% over 12 months instead of the regular 20.75% purchase interest rate
- This saved approximately $160 in interest charges compared to the regular rate
Total savings: $160
All told, this family saves $916 each year thanks to the CIBC Costco Mastercard.
Key benefits of the Costco Mastercard
- 3% cash back on restaurant purchases and at Costco gas stations
- 2% cash back at all other gas stations, electric vehicle charging stations, and Costco.ca
- 1% cash back on all other purchases, including in-warehouse Costco shopping
- No limit on the total amount of cash back you can earn annually
- Mobile device insurance: Up to $1,000 coverage for repair or replacement of eligible mobile devices purchased with your card
- Purchase security: Protects eligible purchases against loss, theft or damage for 90 days
- Extended warranty: Doubles the manufacturer's warranty period for up to one additional year
- Doubles as your Costco membership card (physical card features your Costco membership photo)
- Only Mastercard accepted at Costco locations
- Cash back rewards are separate from and in addition to Costco Executive Membership rewards
CIBC Costco Mastercard insurance coverage
| Insurance | Coverage amount |
|---|---|
| Extended warranty | 1 year |
| Purchase security | 90 days |
| Mobile phone insurance | Up to $1,000 |
- Mastercard’s zero liability protection
- CIBC Pace It installment plans for Costco purchases
- Fraud alerts
- Digital disputes platform
According to one Reddit user, replying to a thread asking if the CIBC Costco Mastercard is worth it, the card is only valuable to those who dine out at restaurants often and gas up at Costco gas stations.
In the same thread, another user shared a tip to maximize rewards by purchasing Costco shop cards on Costco.ca that can then be redeemed at physical Costco locations. Doing this will earn you extra cash back (for purchases on Costco.ca) instead of the standard 1% for shopping directly at the warehouse. The low cash back rate for the CIBC Costco Mastercard when shopping at Costco locations is a major gripe among users in that thread.
I love my Costco Mastercard, and have had it since capital one (2014). That being said, others have pointed out that the Rogers World Elite Mastercard is better for warehouse spending. Personally, I don’t have this card, and still prefer the Costco Mastercard.
Reddit user u/Top-Wolf9846
How does CIBC Costco Mastercard compare?
If you’re looking for a card you can use at Costco, you might be debating between the CIBC Costco card and the Rogers Red World Elite® Mastercard® – two no-fee options. Both are rewards cards but the Rogers Red World Elite® Mastercard® does it a little better and with a few extra features.
It offers 3% cash back on purchases made in US dollars, lounge access with Dragon Pass, travel insurance and a cash back welcome bonus. Earn 1% cash back on all other purchases†.
$324
First Year Value
$0
Annual Value
Get this card if you...
- want to earn cash back with no annual fee
- are an existing Rogers or Fido customer
- want complimentary lounge access
Annual Fee & Annual Interest Rates
$0
Annual Fee
20.99% - 25.99%
Purchase
22.99% - 27.99%
Cash Advance
22.99% - 27.99%
Balance Transfer
Our Take
The Rogers™ World Elite® Mastercard® is a no-annual-fee credit card offering elevated cash back rates on purchases made in U.S. dollars, with a standard rate on all other eligible purchases. Cardholders benefit from comprehensive insurance coverage, including emergency medical and rental car collision/damage protection, as well as access to over 1,300 airport lounges worldwide through Mastercard Travel Pass provided by DragonPass; however, the card has a high income requirement.
Eligibility
Excellent (740+)
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
- 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
- High income requirement: $80,000 personal or $150,000 household
- Foreign transaction fee applies
- Limited redemption options for statement credits
Annual Interest Rates
20.99% - 25.99%
Purchase
22.99% - 27.99%
Cash Advance
22.99% - 27.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards cash back
3%
Earn 3% unlimited cash back on all eligible purchases made in U.S. dollars.
2%
Earn 2% unlimited cash back on all eligible non-U.S. dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
1.5%
Earn 1.5% unlimited cash back on eligible non-U.S. dollar purchases.
1.5x Cash Back
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases.
5
Get 5 Roam Like Home days at no cost every year for Rogers mobile plans (up to $80 value).
Insurance Benefits
$1,000,000
Emergency medical insurance amount
3
Emergency medical insurance over 65 days
$65,000
Rental car insurance amount
Our Take
The Rogers™ World Elite® Mastercard® is a no-annual-fee credit card offering elevated cash back rates on purchases made in U.S. dollars, with a standard rate on all other eligible purchases. Cardholders benefit from comprehensive insurance coverage, including emergency medical and rental car collision/damage protection, as well as access to over 1,300 airport lounges worldwide through Mastercard Travel Pass provided by DragonPass; however, the card has a high income requirement.
Eligibility
Excellent (740+)
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
- 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
- High income requirement: $80,000 personal or $150,000 household
- Foreign transaction fee applies
- Limited redemption options for statement credits
Annual Interest Rates
20.99% - 25.99%
Purchase
22.99% - 27.99%
Cash Advance
22.99% - 27.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards cash back
3%
Earn 3% unlimited cash back on all eligible purchases made in U.S. dollars.
2%
Earn 2% unlimited cash back on all eligible non-U.S. dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
1.5%
Earn 1.5% unlimited cash back on eligible non-U.S. dollar purchases.
1.5x Cash Back
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases.
5
Get 5 Roam Like Home days at no cost every year for Rogers mobile plans (up to $80 value).
Insurance Benefits
$1,000,000
Emergency medical insurance amount
3
Emergency medical insurance over 65 days
$65,000
Rental car insurance amount
While the CIBC Costco Mastercard is a fairly no frills, no fee credit card, the MBNA Rewards World Elite Mastercard packs a lot more features – but at a price.
First, you’ll start off with a great welcome bonus points for cash back or gift cards. Not a bad little nest egg to offset the price of the card. It also comes higher earn rates. Earn 5 MBNA Rewards points for every $1 spent†† in several categories, including groceries, restaurants, digital media, memberships and household utilities.
You’ll also earn birthday bonus points, equal to up to 10% of the points earned the prior year (to a maximum of 15,000 points).
Disclosures:
-
††, ‡, ✪, ***, ††††, Terms and Conditions apply.
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.
The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.
up to 30,000 points
Welcome Bonus
$972
First Year Value
$672
Annual Value
Welcome Bonus: Earn up to 30,000 bonus MBNA Rewards Points†† for cash back, gift cards and more. Conditions Apply.
Get this card if you...
- want to take advantage of high earn rates
- need comprehensive travel insurance benefits
- want flexible point redemption
Annual Fee & Annual Interest Rates
$120
Annual Fee
19.99%
Purchase
24.99%
Cash Advance
22.99%
Balance Transfer
Our Take
The MBNA Rewards World Elite® Mastercard® is a premium credit card offering accelerated rewards on categories such as groceries, restaurants, digital media, memberships, and household utilities. It provides flexible redemption options, including travel, merchandise, gift cards, and cash back, along with benefits like a generous welcome bonus, birthday bonus points, and comprehensive insurance coverage.
Eligibility
Good (620 - 670)
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
- High earn rates: Up to 5 points per $1 on groceries, restaurants, digital media, memberships, utilities
- Generous welcome bonus of up to 30,000 points, covering first-year annual fee
- Points never expire, flexible redemption options including travel and statement credit
- Birthday bonus: Up to 15,000 points annually, 10% of points earned in the previous year
- Comprehensive benefits: Price protection, purchase assurance, extended warranty, travel insurance
- High income requirements: $80,000 personal or $150,000 household income
- Annual fee of $120 after the first year
- Travel insurance package not as robust as other cards at similar price points
Annual Interest Rates
19.99%
Purchase
24.99%
Cash Advance
22.99%
Balance Transfer
Fees
$120
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards MBNA Rewards
30,000
MBNA offers up to a 30,000-point welcome bonus
5
You get five points‡ per dollar spent on groceries, restaurants, digital media, memberships, and household utilities
1
All other purchases outside those categories earn one point per $1 spent.
Insurance Benefits
$1,000
Mobile device insurance amount
$200,000
Rental car insurance amount
Earn up to 30,000 bonus MBNA Rewards Points†† for cash back, gift cards and more. Conditions Apply.
20,000 bonus points†† (approximately $165 in cash back value) after you make $2,000 or more in eligible purchases within the first 90 days of your account opening.
10,000 bonus points††(approximately $80 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Our Take
The MBNA Rewards World Elite® Mastercard® is a premium credit card offering accelerated rewards on categories such as groceries, restaurants, digital media, memberships, and household utilities. It provides flexible redemption options, including travel, merchandise, gift cards, and cash back, along with benefits like a generous welcome bonus, birthday bonus points, and comprehensive insurance coverage.
Eligibility
Good (620 - 670)
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
- High earn rates: Up to 5 points per $1 on groceries, restaurants, digital media, memberships, utilities
- Generous welcome bonus of up to 30,000 points, covering first-year annual fee
- Points never expire, flexible redemption options including travel and statement credit
- Birthday bonus: Up to 15,000 points annually, 10% of points earned in the previous year
- Comprehensive benefits: Price protection, purchase assurance, extended warranty, travel insurance
- High income requirements: $80,000 personal or $150,000 household income
- Annual fee of $120 after the first year
- Travel insurance package not as robust as other cards at similar price points
Annual Interest Rates
19.99%
Purchase
24.99%
Cash Advance
22.99%
Balance Transfer
Fees
$120
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards MBNA Rewards
30,000
MBNA offers up to a 30,000-point welcome bonus
5
You get five points‡ per dollar spent on groceries, restaurants, digital media, memberships, and household utilities
1
All other purchases outside those categories earn one point per $1 spent.
Insurance Benefits
$1,000
Mobile device insurance amount
$200,000
Rental car insurance amount
Earn up to 30,000 bonus MBNA Rewards Points†† for cash back, gift cards and more. Conditions Apply.
20,000 bonus points†† (approximately $165 in cash back value) after you make $2,000 or more in eligible purchases within the first 90 days of your account opening.
10,000 bonus points††(approximately $80 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Is the CIBC Costco Mastercard worth it?
The CIBC Costco Mastercard isn’t going to blow anyone away with its features. It lacks a few of the more enticing things offered by other, more premium cards like travel insurance and lounge access. The fact that it only offers 1% cash back when shopping at Costco is – forgive me for saying it – a little weird for a card that is exclusive to Costco owners and is named after the place. Still, if you’re looking for a card that’ll earn you cash back to use at Costco, dine out often and don’t mind getting your gas at Costco gas stations, this card is worth considering.
Eligibility requirements
- Age: Must be of the age of majority in your province or territory (18+)
- Residency: Canadian resident
- Credit needed: Good
- Income: $15,000 (household)
Disclosures:
- †Terms and Conditions Apply. This offer is not available for residents of Quebec.
-
Any opinions, analyses, reviews, or recommendations expressed on this page are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertising partners.
-
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.
