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Updated: January 22, 2024

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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 3% cash back at restaurants and on Costco gas, 2% cash back at other gas stations and Costco.ca, and 1% cash back on everything else. 

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 CIBC Costco Mastercard for?

The CIBC 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

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

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

Unfortunately, the Costco CIBC Mastercard doesn’t currently offer any welcome bonus at this time. 

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. While you won’t earn any welcome bonus points with the card, you will earn 3% cash back whenever you eat at restaurants and buy gas at Costco, 2% cash back at other gas stations and at Costco.ca, and 1% cash back on all other purchases, including Costco 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.  

CIBC Costco Mastercard key benefits

  • Earn up to 3% cash back
  • Mobile device insurance
  • No annual fees

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.

Extra benefits

  • Mastercard’s zero liability protection
  • CIBC Pace It installment plans for Costco purchase: 5.99% for six months; 6.99% for 12 months; 7.99% for 24 months
  • Fraud alerts
  • Digital disputes platform

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 2% 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.Other users have suggested alternatives to the Costco CIBC Mastercard, including the Rogers World Elite Mastercard, a no-fee credit card that earns 1.5% cash back on all purchases, including at Costco (more on that card below).

How CIBC Costco Mastercard compares

CIBC Costco Mastercard Vs. Rogers World Elite Mastercard

If you’re looking for a card you can use at Costco, you might be debating between the CIBC Costco card and the Rogers World Elite Mastercard – two no-fee options. Both are rewards cards but the Rogers World Elite does it a little better and with a few extra features.

With the Rogers card, you’ll earn 1.5% cash back on all purchases (including at Costco) compared to 1% on all purchases outside the main spending categories with the CIBC Costco card (with that one, you’ll earn 3% on Costco gas and at restaurants, as well as 2% at Costco.ca and at all other gas stations, though). So, the Rogers card actually earns you more when shopping in-store at Costco. It also offers 3% cash back on purchases made in US dollars, lounge access with Dragon Pass, travel insurance and a $25 cash back welcome bonus. 

CIBC Costco Mastercard Vs. MBNA Rewards World Elite Mastercard

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.

It costs $120 per year and what you get for that price might make it worth it to you. First, you’ll start off with up to 30,000 welcome bonus points for cash back or gift cards. Not a bad little nest egg to offset the price of the card. You’ll also earn five points for every $1 spent on eligible restaurant, grocery stores, digital media, memberships and household utility purchases up to a maximum of $50,000 in each applicable category. 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). 

CIBC Costco Mastercard Vs. Scotia Momentum Visa Infinite

If you’re looking at a card to use at Costco, the Scotia Momentum Visa Infinite isn’t it, since the warehouse retailer only accepts Mastercard. However, if you’re looking for an everyday rewards card, it’s worth a look. 

It offers 4% cash back on groceries and recurring payments, 2% on gas and transit and 1% on everything else. It also comes with mobile device insurance and travel insurance. However, all this comes at a cost of $120 per year (with the first year waived). So, if you’re looking for a free card to use at Costco, this isn’t it.

Features CIBC Costco Mastercard Rogers World Elite Mastercard MBNA Rewards World Elite Mastercard Scotia Momentum Visa Infinite
Annual fee $0 $0 $120 per year $120 per year
Welcome offer None $25 cash back Up to 30,000 bonus points Earn 10% cash back on purchases in the first 3 months (up to $2,000)
Rewards 3% cash back at restaurants and at Costco gas stations.
2% cash back at Costco.ca and all other gas stations.
1% cash back on everything else.
1.5% cash back on everything.
3% cash back on purchases made in US dollars
5 points for every dollar spent on restaurants, grocery stores, digital media, memberships, and utilities.
1 point for every dollar spent on everything else.
4% cash back on groceries and recurring payments.
2% cash back on gas and transit.
1% cash back on everything else.
Insurance Extended Warranty and Purchase Protection.
Mobile device insurance.
Extended Warranty and Purchase Protection.
Rental car insurance.
Travel insurance.
Rental car insurance.
Travel insurance.
Mobile device insurance.
Extended Warranty and Purchase Protection.
Rental car insurance
Travel insurance.
Benefits Earn up to 3% cash back.
Mobile device insurance.
No annual fees.
Earn 1.5% cash back on all purchases.
Lounge access.
Travel insurance.
Earn up to 5 points per dollar spent.
Travel insurance.
Earn up to 5% cash back.
Travel insurance.

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. 

FAQs

  • Can I use my CIBC Costco Mastercard anywhere?

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    You sure can! The CIBC Costco card is accepted anywhere Mastercard is accepted. Despite its name, the CIBC Costco Mastercard isn’t only accepted at Costco.

  • Does CIBC Costco Mastercard have travel insurance?

    +

    Unfortunately, it doesn’t. It does, however, have mobile device insurance. If you’re looking for a no-fee Mastercard that includes travel insurance, you might want to consider the Rogers World Elite Mastercard.

  • Does the CIBC Costco Mastercard cover car rental insurance?

    +

    No, the CIBC Costco Mastercard doesn’t offer car rental insurance. There are other cards that offer car rental insurance, such as the Rogers World Elite Mastercard and the Tangerine World Mastercard.

  • Does the CIBC Costco Mastercard have lounge access?

    +

    No, the CIBC Costco Mastercard doesn’t offer lounge access. If you’re looking for lounge access, you should look into travel rewards cards or the World Elite cards, such as the ones offered by Rogers or MBNA.

About our author

Justin da Rosa
Justin da Rosa, Freelance Writer

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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