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?
This Costco credit card, which is exclusive to Costco members, is for those shoppers who might not already have a Mastercard in their wallet. Mastercards are the only credit card accepted at the retailer across Canada, so having one on those trips is a must – unless you want to put your purchases on your debit card and forgo any points earning potential.
Since the highest reward category for the card is with Costco gas and eating out, it’s also a good choice for people who don’t mind filling up while doing their shopping and also enjoy a regular night dining out.
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
CIBC Costco Mastercard welcome bonus
Earn up to 3% cash back on eligible purchases everywhere Mastercard is accepted.
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 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.
Cash back certificates can only be redeemed at any Costco warehouse in Canada, which limits its flexibility.
Extra benefits
- Mastercard’s zero liability protection
- CIBC Pace It installment plans for Costco purchases
- Fraud alerts
- Digital disputes platform
CIBC Costco Mastercard insurance coverage
- Mobile device insurance: Get up to $1,000 to repair or replace your mobile device if it was purchased using your Costco Mastercard.
- Purchase security and extended warranty insurance: Get up to a one-year warranty extension on purchases made with your card. The Purchase Security feature offers global protection against loss, theft or damage for eligible purchases made with your card. If your item is stolen or damaged, CIBC may replace it, repair it or reimburse you for the original cost.
What people have to say about this card
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.
How CIBC Costco Mastercard compares
CIBC Costco Mastercard Vs. Rogers Red World Elite® Mastercard®
Rogers Red World Elite® Mastercard®
4.2
Excellent
Suggested credit scoreto receive the latest news, tips and offers by email
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
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
3%
Earn 3% unlimited cash back on purchases made in US dollars
2%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
1.5%
Earn 1.5% unlimited cash back on everything else
1.5x Cash Back
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
Earn 3% unlimited cash back on purchases made in US dollars
3%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
2%
Earn 1.5% unlimited cash back on everything else
1.5%
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
1.5x Cash Back
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee No annual fee
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Foreign Transaction Fee
2.5%
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
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
3%
Earn 3% unlimited cash back on purchases made in US dollars
2%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
1.5%
Earn 1.5% unlimited cash back on everything else
1.5x Cash Back
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
Earn 3% unlimited cash back on purchases made in US dollars
3%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
2%
Earn 1.5% unlimited cash back on everything else
1.5%
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
1.5x Cash Back
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee No annual fee
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Foreign Transaction Fee
2.5%
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†.
CIBC Costco Mastercard Vs. MBNA Rewards World Elite Mastercard
MBNA Rewards World Elite Mastercard
4.0
30,000 pts
Welcome offerGood
Suggested credit scoreEarn up to 30,000 bonus MBNA Rewards Points†† for cash back, gift cards and more.
Pros
-
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
Cons
-
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
Eligibility
Good
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
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.
MBNA offers up to a 30,000-point welcome bonus
30,000
You get five points‡ per dollar spent on groceries, restaurants, digital media, memberships, and household utilities
5
All other purchases outside those categories earn one point per $1 spent.
1
19.99%
Purchase APR
22.99%
Balance Transfer Rate
24.99%
Cash Advance APR
$120
Annual Fee
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
19.99%
Balance Transfer Rate
22.99%
Cash Advance APR
24.99%
Annual Fee
$120
Foreign Transaction Fee
2.5%
Pros
-
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
Cons
-
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
Eligibility
Good
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
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.
MBNA offers up to a 30,000-point welcome bonus
30,000
You get five points‡ per dollar spent on groceries, restaurants, digital media, memberships, and household utilities
5
All other purchases outside those categories earn one point per $1 spent.
1
19.99%
Purchase APR
22.99%
Balance Transfer Rate
24.99%
Cash Advance APR
$120
Annual Fee
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
19.99%
Balance Transfer Rate
22.99%
Cash Advance APR
24.99%
Annual Fee
$120
Foreign Transaction Fee
2.5%
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).
- ††, ‡, ✪, ***, ††††, 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.
Is it 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.
- †Terms and Conditions Apply. This offer is not available for residents of Quebec.
- This is a digital-exclusive offer†To be eligible for this offer:
1) This offer must have been directly communicated to you from CIBC or from a partner/affiliate; and
2) You must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.†This offer is reserved for you. Please do not forward it to anyone else.CIBC may approve your application, but you are not eligible to receive this Offer if you have opened, transferred or cancelled another eligible card within the last 12 months.††Terms and Conditions Apply
This offer is not available for the residents of Quebec. For Quebec Residents offer - visit CIBC.com product page here. - “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.”
FAQs
Justin is a writer and editor who has been covering personal finance for over 10 years. He's written for companies such as KOHO, Ratehub, BMO, Zoocasa, and Questrade, among others. Justin also created a course in Content Creation, which he taught at York University for four years. When not writing, Justin can be found at a live concert, on the golf course, riding a motorcycle, or sailing.
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