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CIBC Costco Mastercard Review

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CIBC Costco Mastercard Image

CIBC Costco Mastercard

Rated 3/5 stars.

Rewards
  • 3% Earn 3% back at participating restaurants and Costco Gas purchases.
  • 2% Earn 2% back on Costco.ca and non-Costco gas purchases.
  • 1% Earn 1% back on all in-store Costco items and all other purchases.

Buying in bulk has become synonymous with Costco, the membership-only warehouse chain that allows shoppers to buy items in larger quantities or sizes than traditional retail stores.

With its gigantic locations that sell everything from groceries to high-end electronics (along with an eyewear department and a pharmacy), Costco has become a one-stop shop for many Canadians.

While Costco is renowned for its convenience (and ridiculously cheap hot dogs), it is rather restrictive in one area — accepted payment methods. Costco Canada only accepts Mastercard for in-store credit card payments (along with debit, cash, or gift cards).

The Costco Canada Mastercard was previously issued by Capital One, but as of 2022, it is now being issued by CIBC. This marks CIBC’s first Mastercard, as the bank had previously partnered with Visa on their credit card lines

With more than 10 million Costco memberships across Canada, CIBC acquired the pre-existing Costco credit accounts to introduce the CIBC line of financial products to potential new customers.

For new customers along with previous Capitol One Costco Canada accounts, the new CIBC Costco Canada Mastercard is a recommended way to start earning your year-end Costco Canada cash back funds by shopping the same way you always have (albeit with a shiny new card).

This CIBC Costco Mastercard Review will highlight the role that transactions and payment processors play in businesses — especially those as large as Costco.

CIBC Costco Mastercard: an overview

Apart from the inconvenience of changing one’s online banking information, the switch has no real downside for Costco Canada members.

The benefits remain the same as they were with the Capital One card, and there have even been some welcome upgrades, including the ability to start earning 1% back on purchases from the first $1 spent, instead of the .05% interest earned for the first $3,000 of purchases under Capital One.

The Costco Canada CIBC Mastercard also serves as your Costco membership card, saving you a bit of room in your wallet or purse. Overall the card provides great value for Costco purchases and redemptions.

If you’re looking to maximize your Costco Canada cash back savings at the end of the year, the Costco Canada Mastercard is your best bet.

CIBC Costco Mastercard rewards

The CIBC Costco Mastercard rewards program provides unlimited cash back on eligible purchases, with the earn rate varying based on the category of purchase.

The cash back card offers customers:

  • Up to 3% in savings
  • 1% on all purchases, including items at Costco
  • 2% cash back on gas purchases and Costco.ca orders
  • 3% back on Costco gas and restaurant purchases

Costco Canada’s cash back program is calculated once a year, two months before your annual Costco membership expires. Unlike other cash back credit cards, Cardholders receive a cash back gift certificate in January for the previous year’s earned cash back, which can be redeemed at Costco warehouses for almost anything.

The gift certificate can be viewed and printed through online banking or the mobile app, or presented in-person at a Canadian Costco warehouse. But, the gift certificate can only be used in-stores and cannot be redeemed online. They also can’t be used to purchase alcohol, tobacco-related products, gas, pharmacy, or optical care items.

Unlike many other partnered credit cards, the Mastercard does not offer a special return rate for shopping in-person at a Costco location. However, cardholders earn a higher return rate for shopping online at Costco.ca or at a Costco gas station.

If you have an Executive Costco card, you will also earn 2% cash back on most in-store and online purchases even if you pay via Interac or cash.

As long as you are diligent about paying off your balance each month, the Costco Canada CIBC Mastercard is a great way to rack up cash back credits throughout the year that will pay off when your annual totals are calculated and your Costco Canada cash back check is issued.

CIBC Costco Mastercard eligibility

In order to qualify for the CIBC Costco Mastercard, you need a Costco membership. Costco Canada memberships range from $60 annually for their Gold Star card to $120 for the Executive membership, which offers 2% cash back on purchases and other exclusive deals.

A minimum income of $15,000 is required to be eligible for the card, and it’s recommended that you have a credit score of 760+.

CIBC Costco Mastercard interest rates and fees

Fees

  • Annual fee: $0
  • Foreign transaction fee: 2.5%
  • Extra card fee: $0

Interest rates

  • Purchases: 19.75%
  • Cash advances: 21.49%

CIBC foreign transaction rates apply. These can range from 1% to 3% of the purchase amount.

CIBC Costco Mastercard perks

  • Cash back on global transfers

    Earn 0.25% cash back per $1 on every CIBC Global Money Transfer™.

    As long as you pay off your balance when it’s due, these transfers are fee and interest free.

  • Insurance coverage

    When you purchase an eligible phone with your card, the CIBC Costco Mastercard includes mobile device insurance up to $1,000.

    Purchase Security & Extended Warranty Insurance is also included on eligible purchases, so you can get up to one more year of protection.

  • Low-interest installment plans

    CIBC Pace It allows you to pay off eligible big ticket purchases in monthly installments online without accumulating too much interest.

    Plus, there are no credit checks or approvals involved.

  • Budget alerts

    You can opt for spend alerts through your phone or email if you surpass or are close to maxing out your set budget.

    Settings can be managed in the CIBC Mobile Banking App or through CIBC Online Banking.

Compare CIBC Costco Mastercard alternatives

CIBC Costco Mastercard Image

CIBC Costco Mastercard

  • Welcome Offer $30
  • Annual Rewards $366
  • Annual Fee $0
  • Minimum Income Requirement $15,000
Our Pick
Tangerine Money-Back Credit Card

Tangerine Money-Back Credit Card

  • Welcome Offer 10% cash back on up to $1,000 in purchases in first 2 months
  • Annual Rewards $282
  • Annual Fee $0
  • Minimum Income Required None

Our final thoughts

While most Costco Canada shoppers would likely prefer to have more redemption options, the CIBC Costco Mastercard provides significant savings for those who frequently use their membership.

If you’re comfortable with putting all your earned cash back into the warehouse club once ever year, it’s a good option for you. If you’d prefer having more ways to use your rewards, you can always opt for another one of Canada’s best credit cards in addition to your CIBC Costco Mastercard.

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